{"id":2438,"date":"2020-07-16T11:47:10","date_gmt":"2020-07-16T09:47:10","guid":{"rendered":"https:\/\/www.franceangels.org\/?page_id=2438"},"modified":"2025-07-31T16:15:59","modified_gmt":"2025-07-31T14:15:59","slug":"networks-of-business-angels","status":"publish","type":"page","link":"https:\/\/www.franceangels.org\/en\/networks-of-business-angels\/","title":{"rendered":"Networks of Business Angels"},"content":{"rendered":"

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What is a network?<\/h2><\/div><\/div>[vc_column_text]Business Angels are very often organized in a network. A network of Business Angels is a legally formalized organization putting together potential investors and entrepreneurs with a general objective to make investments by Business Angels and to be the point of attraction for entrepreneurs looking for funding.<\/p>\n

Each network of Business Angels which is a member of France Angels, undertakes to support and promote the development of Business Angels activity in its region and to put entrepreneurs in search of financing in touch with business angels of its own network. All the networks are also signatories of the France Angels Network Charter<\/a>. The network services are accessible to all promoters of innovative projects with high growth potential.<\/p>\n

France Angels federates different types of structures with varied objectives, modes of operation and investment patterns.[\/vc_column_text][\/vc_column][\/vc_row][vc_row bg_type=”bg_color” bg_override=”full” type=”vc_default” bg_color_value=”#f5f5f5″][vc_column css=”.vc_custom_1595341499509{padding-bottom: 50px !important;background-color: #f5f5f5 !important;}”]

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Legal structures<\/h2><\/div><\/div>[vc_tabs interval=”0″ style=”tab-style-two” el_class=”onglets”][vc_tab title=”Associative” tab_id=”0efb6f33-4a2b-2″][vc_column_text]The associative networks are structures dedicated to bringing entrepreneurs \/ investors together. Generally, the structure organizes monthly meetings to present selected projects to an audience of potential investors. These networks are mainly used for projects requiring small amounts (often less than 200,000 euros). The Business Angel joins such a network by paying an annual fee. The network pools its expertise with the other network members and makes its own decision whether or not to invest in the projects presented.<\/span>[\/vc_column_text][\/vc_tab][vc_tab title=”Business Angels Investment Company (BAIC)” tab_id=”b6571edb-2e85-4″][vc_column_text]The establishment of these investment companies can meet two objectives<\/span>:<\/p>\n
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  • Some Business Angels (especially in a small group, from 10 to 20 people) wish to remain “among themselves” without seeking strong regional visibility. They then agree to put their money in a “common pot”<\/span>.<\/li>\n
  • Certain networks wish to acquire, in parallel with the associative structure, a BAIC allowing them to supplement the investments of individual Business Angels<\/span>.<\/li>\n<\/ul>\n

    Creating an investment company requires strict operating rules (board of directors, chairman, etc.) and investment decision (investment committee). It imposes a fairly rigorous discipline on its members but is very effective in terms of quality and speed of decision as well as of investment capacity.<\/span><\/p>\n

    There are 2 types of appropriate legal and fiscal structures<\/span>:<\/p>\n

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    • The limited company \/ joint-stock company allowing in particular to benefit from reductions of the personal income tax and solidarity\u00a0tax on wealth during the investments of the holding company in eligible SMEs<\/span>,<\/li>\n
    • The limited company \/ joint-stock company\u2019s “Venture Capital Company tax option” allowing in particular to benefit, when reselling the interests, from an exemption from capital gains<\/span>.<\/li>\n<\/ul>\n

      [\/vc_column_text][\/vc_tab][vc_tab title=”Mixed organization” tab_id=”1595601507550-2-8″][vc_column_text]It is possible to create a mixed organization (Association + Investment company). More and more networks having experience with the associative structure or the Investment Company structure come to the conclusion that a double structure (whether or not the Business Angels are members of the two structures) has many advantages. The associative structure allows easier \u201cacculturation\u201d of new, less experienced Business Angels, various communication actions aimed at recruiting new members and systematic contact with entrepreneurs seeking funding. The Investment Company structure enhances organized collective decisions and it effectively brings together a larger number of Business Angels, both active and passive.<\/span>[\/vc_column_text][\/vc_tab][\/vc_tabs][\/vc_column][\/vc_row][vc_row type=”vc_default”][vc_column css=”.vc_custom_1498229445232{padding-bottom: 50px !important;}”]

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      Investment process<\/h2><\/div><\/div>
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        Sourcing<\/h3>
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        Preselection<\/h3>
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        Presentation<\/h3>
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        Due Diligence<\/h3>
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        Closing<\/h3>
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        Follow-up<\/h3>
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        Exit<\/h3>
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