A few months ago we revealed that we have been working on something completely new: FiBAN Follow. The idea was to build a new model to enable FiBAN angels to make bigger, faster and more straightforward investments in growth companies together. One of our active angels, Reima Linnanvirta, reveals why he decided to sign up.
The idea behind FiBAN Follow is simple: to match active angels with follower angels. The structure enables active angels to gain leverage in investments and a chance to participate in bigger investment rounds, just to name a few. Follower angels, on the other hand, get an opportunity to diversify their portfolio with ease and convenience, more filtered deal flow, smaller costs compared to funds, among other benefits. At the end of the day, each investment decision is made by the follower, not the active angel.
Introducing Reima Linnanvirta, a FiBAN Board member and respected and known business angel: You have signed up as an active angel. Why?
Firstly, FiBAN Follow perfectly suits my investment style. I make practically all my investments in syndicates, so syndicated investing is natural for me. The FiBAN Follow structure provides additional tools in building angel syndicates. I truly believe that using FiBAN Follow will not only give new options to our members, but it will enable me to provide attractive financing options to the startups as well.
Secondly, I believe that having a pool of investors following my cases will make it easier to finalize the angel rounds faster. Also, as I am often leading cases, I see FiBAN Follow providing a clear structure for lead angel compensation as well through the carried interest.
Finally, I recognize the pain that some of our members have: It is not easy to make your first angel investment. If we can reduce that burden through FiBAN Follow, I am more than happy to introduce great cases to the audience.
In addition to being an active angel, you have also signed up as a follower angel. What kind of cases are you planning on investing in through FiBAN Follow as a follower?
Through FiBAN Follow, I am looking to invest in the kind of cases where I myself don’t want to be hands-on. Cases where I trust the other investors and can position myself as a purely financial investor.
To a fellow business angel who’s hesitating whether to join or not, what advice would you give them?
Depending on what kind of investor you are, there should be something for everyone:
For a passive investor, FiBAN Follow offers startup investments as a turn-key solution: deal sourcing, due diligence, and term negotiations have already been done by experienced investors with aligned interested and skin in the game.
For a new investor the structure enables an easy way to get her feet wet in the world of angel investing, make the first investments with reasonable tickets, experience the path of a startup from angel round onwards and learn from the experienced active angel.
And finally, for active investors, FiBAN Follow offers the possibility to be the active angel getting more trusted investor contacts with similar investment strategies, more syndication tools, and options - as well as compensation for taking the role of a lead investor.
Any FiBAN member can sign up as an active angel (one to follow) and sign up as a follower angel (one following an active angel). You can find active angels whom to follow here.
Ready, Get Set, Invest!
Talouselämä, Finland's leading business magazine, covered FiBAN Follow - read the article here.
Reima Linnanvirta, Member of the Board, FiBAN
Amel Gaily, Deal Flow Manager, FiBAN
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