The term „business angel” conjures up an image of the benevolent investor… helping the aspiring start-up with money, advice and connections to grow his company big.  It so happens, that some angels are less angelic than they seem.  Sometimes they are outright demonic.

The position of a business angel is fiduciary. His qualifications are:  having cash and time to invest, experience and integrity.  Angels are typically former entrepreneurs, having sold out; or big-time executives who cashed their options or golden-parachuted into early retirement. They are usually, between 40 and 70, without the need or desire for full time employment or running a business.  What they are after, instead, is the opportunity to mingle with and contribute to creative, ambitious people. They want to leverage their experience and time into money by helping exciting ideas turn into valuable businesses.  The true business angel is a godsend for a start-up, as he is autonomous, speaks his mind, and acts on principle. Hence his name.

As it happens, occasionally a demon pulls a pair of wings and a glory and poses as an angel. He gives some, but takes more.  He has contacts, but often the wrong type… that harm, rather than help the company. He speaks, but not his mind, but words that manipulate his prey into allowing him to grab control of the company. Such an “angel” is really a parasite, who seeks wealth by feeding on inexperienced entrepreneurs. Fortunately, this ‘wolf-in-sheep-skin’ is easy to uncover. Just put him under pressure and he will crack like eggshell.