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Writer's pictureAthlete Capital

How To Business Angel

Updated: Jul 5, 2023

The five most important tasks you should focus on when investing in an early-stage startup.



At Athlete Capital, you will primarily find early-stage startups. Currently, our platform features companies in the pre-seed, seed and series-A stage. Especially in the pre-seed and seed stage, startups are mostly financed by business angels. For the angel, there is a ratio of attractive opportunities but also high risk.

“That's why you should always build a portfolio of multiple startup investments to reduce the risk of total loss of your entire investment amount.”

To successfully find the right one for you, there are some basic points you should consider before investing in a startup.


The 5 Stages:


Your playing field


To be successful in investing in startups, you must first know which startups you want to invest in. That sounds easy, but it is essential if you want to be successful in investing. The most important questions you should ask yourself here are: In which industries do I want to invest? At what stage of development should the startups be? How much capital do I have available? Here's a tip from the experts, you should not use more than 5% of your available capital. Startup investments are classified as risk class 6 in Germany, which you must be fully aware of. Our investment partner capacura, for example, specializes in investments in startups in the areas of education, health, and environment. For example, at Athlete Capital, you will also find categories such as Web3, Mobility, or SportTech, and many other industries that can be interesting and offer a high return.


Your deal flow


A well-known startup investment rule says that you should have seen at least 100 startups before making your first investment. Whether it's 100 startups, a few more or less, doesn't matter! What you should take away from this is that you should look at many startups and not just invest in the first startup whose capital needs you can meet. To find as many startups with capital needs as possible, you need to network well in the startup scene. The goal should be to build a steady deal flow - that is, startups that contact you with capital needs because they want you as an investor. At Athlete Capital, we are constantly looking for new startups and pre-screening them through our investment service, so you can always find new input and "ready to invest" startups on the platform.


The analysis


When investing in startups, the rule is to make rational and not emotional decisions. Therefore, it is important that you systematically analyze potential startups according to economic indicators, such as market size, target customers, competitive environment, and financial projections. Also, you should be looking at the team and their experience, the product and its potential and the traction and user engagement. With this information, you can then make a decision on whether or not to invest in a startup. At Athlete Capital, we have all this information in our startup profiles and you can also access additional information through our investment service.


The due diligence


Once you've found a startup that you want to invest in, it's important to do your due diligence. This means, you need to verify that the information provided by the startup is accurate and that there are no hidden risks that could negatively impact your investment. This includes reviewing financial statements, legal documents, and other important information related to the startup. It's also important to speak with the management team and other key stakeholders in the startup to get a better understanding of the company's operations and future plans. At Athlete Capital, our investment service includes a due diligence process for all startups that are on our platform, so you can have confidence in the information provided.


The negotiation and documentation


Once you have completed your due diligence, it's time to negotiate the terms of the investment with the startup. This includes determining the amount of the investment, the ownership percentage, and any other terms that need to be agreed upon. Once the terms have been agreed upon, the investment is documented in a legally binding agreement. It's important to have the agreement reviewed by a legal professional to ensure that it complies with all applicable laws and regulations. At Athlete Capital, we can provide you with legal support to help you navigate the process.



With these five phases, you will be well equipped to evaluate and invest in early-stage startups on Athlete Capital. By following these steps, you can reduce your risk and increase your chances of success as an investor.


Are you ready to start investing?


Then sign up as an 'Athlete' on our platform. There you will find only qualified 'ready to invest' startups that you can invest in directly as a business angel or indirectly through our partner capacura. Feel free to put together a first selection and give us your feedback.

If you want to make a direct investment but have never made one before and need support to professionally handle all the points mentioned above, then schedule an appointment with us and use our Investment as a Service. A direct investment can make sense if you want to directly participate as a shareholder in a startup or, for example, want to contribute not only cash but also a non-cash contribution such as acting as a testimonial or reaching. We will gladly accompany you during your first investment and support you throughout the process.

Do you have experience in startup investments and want to make a bigger investment? Then you can find a co-investor through Athlete Capital who will accompany you in investing. Here too, we will gladly help you, schedule an appointment with us and we will certainly find the right partner for you.


References: capacura



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