FAQ for investors

1. Who can become a member of Paris Business Angels?

Paris Business Angels welcomes entrepreneurs, executives, experienced senior managers, sector experts and investors who want to play an active part in funding and supporting innovative startups. More than any particular background, we look for people ready to invest capital, but also time, experience and energy in the service of founders.

2. Do I need to be a business angel already to join the network?

No. Many members made their first startup investments within Paris Business Angels. We have put in place an onboarding path, regular training, a sponsorship system and the opportunity to take part progressively in due diligence, so that new members can build the skills they need.

3. What is the profile of the network's members?

Our community brings together around 200 members, one third of them entrepreneurs and two thirds executives, senior managers, subject-matter experts and experienced investors. This diversity is one of the network's greatest assets and gives startups access to complementary skills.

4. What is the application process?

Once your application has been received, a conversation is arranged with a board member in charge of recruitment to discuss your background, your motivations and your investment plans, and to make sure your expectations and the network's are aligned.

If that conversation is conclusive, your application is put to a vote of the Board of Directors. That vote is the final step of the process.

5. Are there selection criteria for new members?

Yes. Above all, we look for people able to contribute actively to the life of the network. Professional experience, a willingness to share expertise, an interest in innovation and the intention to invest regularly are essential criteria.

6. What is the minimum financial commitment expected?

Each member commits to investing at least €10K per deal. This commitment guarantees members' active involvement and the network's ability to fund the selected startups effectively.

For Young Professional business angels (under 35 with at least 5 years' experience in cutting-edge fields such as AI, cybersecurity or emerging technologies), the investment thresholds are adapted, with a minimum of €5K per deal.

7. Can I join the network while still in full-time employment?

Absolutely. A large proportion of our members still hold executive or management positions. The level of involvement is flexible, and everyone can take part according to their availability and interests.

8. How much time does being a business angel require?

Involvement varies from member to member. Some mainly attend the pitch sessions, while others take an active part in due diligence, the expertise groups (DEX), selection or startup support. Each member shapes their own level of commitment around their diary and their skills.

9. How are new members onboarded?

New members benefit from a structured onboarding path including sessions on how the network operates, guidance from experienced members, dedicated training and progressive involvement in investment activities.

10. Why join a network rather than invest alone?

Investing through a network gives you access to a qualified deal flow, collective analysis, complementary expertise and continuous learning opportunities. It is also a way of pooling some of the more complex stages of investing while keeping full independence of decision.

It also matters not to spread yourself too thinly: taking the time to master the processes, get to know the permanent team and build relationships with the other members who run the network and support the portfolio. Being a business angel is above all a human adventure, built on relationships and trust.

Why do our members join us?

• To access a qualified deal flow;
• To learn from experienced investors;
• To take part in the innovation ecosystem;
• To give founders concrete support;
• To diversify their wealth;
• To give meaning to their investments.

11. Why invest in startups?

Investing in startups means helping to fund innovation and the economy of tomorrow. Beyond the prospect of financial performance, many business angels are also looking for the opportunity to pass on their experience, support ambitious founders and stay connected to technological change and new business models.

12. What are the risks of early-stage investing?

Startup investing is inherently risky. Some of the companies funded will fail to reach their objectives or to create enough value. In return, some holdings can deliver substantial performance. Diversification and rigorous selection are the main tools for managing that risk.

13. What return can I expect?

There is no guarantee of performance. Startup investing follows a portfolio logic: some holdings may be lost, others simply return the capital invested, while a small number of companies generate most of the value creation. The horizon should be measured in years.

Each member follows their own investment thesis and decides individually whether to take part in the qualified opportunities. Since investments are made deal by deal, there is no pooled portfolio, and performance is therefore specific to each investor.

14. What is the average holding period of an investment?

Investing in a startup is generally a long-term commitment. Between the initial investment and a possible exit, five to ten years is common. Business angels should therefore invest with a long-term wealth perspective.

15. How many startups should I hold in my portfolio?

Diversification is a fundamental principle. Rather than concentrating your investments in a handful of companies, it is generally advisable to build up, over time, a portfolio of several holdings so as to spread the risk inherent in this asset class.

16. How do I build a diversification strategy?

Diversification can work along several dimensions: sectors, stages of development, technologies, business models or investment vintages. Taking part regularly in new rounds smooths risk over time.

PBA's strength, as a generalist network, lies in its ability to offer diversified investment opportunities across every sector, while maintaining high standards of quality and growth potential.

17. How much of my wealth should I allocate to unlisted assets?

Every wealth situation is different, so there is no universal rule. Startup investments should be made with capital you do not need in the short term and are prepared to lock up for a long period, or possibly to lose.

18. How do I manage the risk of startup failure?

Risk is managed primarily through diversification, investment discipline, rigorous analysis of applications and hands-on support for portfolio companies. At Paris Business Angels, the selection processes, the due diligence and the mobilisation of the network's expertise all help to reduce avoidable risk.

It is with this in mind that the deals put forward for investment at PBA represent less than 1% of the deal flow reviewed.

19. Why do some startups succeed while others fail?

Every situation is unique, but certain factors come up again and again: the quality of the founding team, product-market fit, the ability to execute, growth management, market timing and access to funding. The founders' resilience is often the deciding factor.

20. What are the most important success factors?

Beyond the technology or the idea, we regularly observe that the best outcomes come from teams able to execute fast, adapt to market feedback, attract key talent and build lasting competitive advantages. The team is often the first investment criterion at the early stages.

We invest in teams first, then in projects.

At Paris Business Angels, we review between 1,500 and 2,000 applications every year. That experience has taught us that a resilient team, able to execute and adapt, is often a startup's main success factor.

21. How are the startups sourced?

Paris Business Angels enjoys a particularly rich deal flow thanks to its reputation, its deep roots in the innovation ecosystem and its network of partners. Every year we receive between 1,500 and 2,000 applications from startups located all over France. These opportunities come to us directly from founders, but also from our partners, incubators, accelerators, investment funds, banks, specialist advisers and members of the network.

22. How many applications do you receive each year?

We review between 1,500 and 2,000 applications a year. That volume allows us to identify the most promising projects and apply a particularly demanding selection process. Only a small proportion of the startups we receive reach the advanced stages of the investment process: just 60 to 80 startups make it to the pitch stage, and around ten are ultimately funded.

23. Which sectors do you favour?

We invest in innovative startups capable of transforming their market. Our main areas of interest include:

Preferred sectors:

• Deeptech: quantum, photonics, new materials, semiconductors, fusion, breakthrough biotech;
• Applied AI: generative AI, autonomous agents, AI infrastructure, industry copilots;
• Health: medical AI, medtech, medical devices, drug discovery;
• Sovereignty: cybersecurity, cloud, defence, space, critical infrastructure;
• Decarbonisation: energy, storage, mobility, industrial efficiency, climate adaptation;
• Other sectors: fintech, silvertech, HRtech, legaltech, edtech, and more.

We generally favour B2B models and innovations built on lasting competitive advantages.

24. Why is deeptech a strategic focus?

Deeptech is today one of the main engines of innovation and value creation. These companies often develop differentiating technologies born of scientific research, capable of creating significant barriers to entry and of addressing major challenges in health, industry, energy and artificial intelligence.

25. What are your investment criteria?

Our decisions rest mainly on six dimensions:

• The quality and complementarity of the founding team;
• The market potential;
• The innovative nature of the solution;
• The proof of traction;
• The barriers to entry;
• The ability to create significant value over time.

Above all, we look for companies capable of building a lasting competitive advantage.

26. Why are some startups turned down?

A refusal does not necessarily call the quality of a project into question. Several factors can explain a negative decision:

• Questions about the team;
• A project outside our investment thesis;
• Insufficient maturity;
• No demonstrated traction;
• An unsuitable valuation;
• A limited market size;
• High technological or regulatory risk.

Timing also plays an important role in any investment decision.

27. How does a selection committee work?

Pre-selected applications are analysed by experienced members of the network and by the permanent team, with the support of the AI now built into our processes. The discussion covers the team, the market, the technology, the business model, the growth prospects and the strategic interest for investors. The most convincing startups are then invited to pitch to the members.

28. How many startups pitch each year?

Every year, between 60 and 80 startups are selected to present their project to the members of Paris Business Angels. For founders, this stage is a unique opportunity to share their vision and talk directly with experienced investors.

A pitch consists of a 10-minute presentation followed by a 10-minute Q&A session.

29. How many startups end up being funded?

On average, around ten startups are funded each year. This selectivity reflects our determination to focus the network's resources on the companies with the strongest potential for growth, value creation and impact.

30. How do you spot a high-potential startup?

No method guarantees success, but certain signals come up frequently:

• An exceptional team;
• An ambitious vision;
• A real, significant problem to solve;
• A sufficiently large market;
• Fast execution;
• Early signs of traction;
• An ability to attract customers, talent and partners.

At Paris Business Angels, we often consider the quality of the team to be the best predictor of future value creation.

What we have learned from reviewing more than 30,000 applications since 2004

The best projects are not always the ones with the most advanced technology or the most detailed business plan.

The startups that do best are generally those that combine:

• A team that learns fast and is resilient;
• A clear vision of the problem to solve;
• Rigorous execution;
• A strong capacity to adapt;
• The ambition to build a market leader.

31. How does due diligence work?

Due diligence is an in-depth analysis carried out after the startup's pitch. Its purpose is to validate the project's key assumptions before any investment decision. The work covers the team, the market, the technology, and the financial, legal and regulatory aspects. This stage identifies the risks, but also the levers of value creation.

It is generally led by 3 business angels with expertise in the field, one of whom acts as lead, supported by our Investment Manager, a member of our permanent team.

32. Can I take part in a due diligence as a new member?

Yes. Paris Business Angels encourages new members to take part in due diligence and learn alongside more experienced investors. It is often one of the fastest ways to develop the analytical reflexes of early-stage investing. To help newcomers get to grips with our processes, an observer role has been created for new members: it lets them take part in a review without carrying responsibility for leading the due diligence.

33. What are the main risks analysed?

Due diligence assesses several categories of risk:

• Risks relating to the founding team;
• Commercial and market risks;
• Technology risks;
• Regulatory risks;
• Financial risks;
• Competitive risks;
• Intellectual property risks.

The aim is not to eliminate every risk, but to understand which ones are acceptable in view of the value-creation potential.

34. What is the role of the sector experts?

Members with specific expertise may be called on to analyse particular aspects of an application: technology, cybersecurity, health, industry, artificial intelligence, finance or commercial strategy. This collective mobilisation is one of the network's main strengths.

35. How do you assess a founding team?

We look at several dimensions:

• Entrepreneurial vision;
• Complementarity of the profiles;
• Ability to execute;
• Resilience;
• Leadership;
• Ability to recruit and unite people;
• Ability to listen and question themselves.

At the earliest stages, the quality of the team is often the single most decisive factor.

36. How do you assess a technology?

The analysis covers several elements:

• Level of innovation;
• Differentiation from existing solutions;
• Technological maturity;
• Feasibility of the development;
• Intellectual property;
• Industrialisation potential;
• Lasting competitive advantage.

In deeptech projects, this assessment may require specialist experts.

37. How do you analyse a valuation?

A valuation must be consistent with the company's stage of development, its market, its traction, its potential and the references observed in the sector. A reasonable valuation helps align the interests of founders and investors.

38. How is an investment decision made?

Each member remains entirely free to decide. The network's role is to provide a rigorous analytical framework, share the conclusions of the due diligence and facilitate discussion between investors. The final decision always belongs to each business angel.

39. Can I invest even if I am not an expert in the sector?

Yes. The diversity of profiles is precisely one of the strengths of a network like Paris Business Angels. Collective analysis, the DEX, the sector experts and the training sessions allow everyone to build up expertise on new subjects over time.

40. What is the average time between the pitch and the investment?

Paris Business Angels is known for its operational efficiency. On average, three months elapse between receipt of the application and the transfer of funds. That speed is a significant advantage for founders looking for investors able to decide within timeframes compatible with a startup's growth imperatives.

Why is due diligence essential?

Investing in a startup is not about predicting the future.

The aim is to reduce uncertainty by answering three fundamental questions:

1. Can the team execute its vision?
2. Is the market attractive enough?
3. Are the conditions in place to create substantial value in the years ahead?

At Paris Business Angels, due diligence is also an excellent way for members to share their expertise, learn from one another and contribute actively to the quality of investment decisions.

We are not trying to eliminate risk. We are trying to understand which risks are worth taking.

41. What does "investing and getting involved" really mean?

At Paris Business Angels, we believe capital alone is not enough to make a startup succeed. Our members invest financially in the companies they back, but they also contribute their experience, their network, their sector expertise and their ability to support founders in their strategic decisions. This dual commitment has been the network's DNA since its creation.

42. How do you support a startup after the investment?

A PBA lead is appointed for every investment, to represent the interests of the network's investors within the startup and help accelerate its growth. This is generally an experienced member with expertise in the sector, who has often been part of the due diligence team.

Support can take many forms:

• Commercial introductions;
• Recruiting key talent;
• Strategic thinking;
• Governance;
• Preparing the next rounds;
• International expansion;
• Finding industrial partners.

Each startup receives support tailored to its needs and its stage of development.

43. What are the DEX (expertise groups)?

The DEX bring together the network's most experienced members around specific themes. They are a unique resource for founders and investors alike.

The main DEX include:

• Go-to-Market
• Artificial Intelligence
• Governance
• Acceleration
• Innovation funding
• SPV structuring
• Exits

44. How can I put my expertise at the service of founders?

Each member can contribute according to their skills and interests. Some take part in due diligence, others advise leadership teams on operational or strategic issues. This hands-on involvement gives founders access to experience that would be hard to find anywhere else.

45. Can I join a board or strategic committee?

Having a PBA lead on the startup's board is a prerequisite for our investment. One of our members with expertise in the field therefore joins its board of directors or strategic committee to support the company's growth over the long term.

46. What training is available to members?

Paris Business Angels regularly runs training sessions that help members build their skills on subjects such as:

• Startup investing
• Financial analysis
• Valuation
• Shareholders' agreements
• Tax
• Governance
• Artificial intelligence
• Deeptech
• Exits
• SPV structuring

This effort continually raises the professional standard of the community.

47. How does mentoring work within the network?

New members can be guided by more experienced investors to speed up their learning curve. This sharing of experience passes on best practice and contributes to the quality of investment decisions.

48. How is an exit prepared?

Value creation starts at the very first stages of the investment. Members support the startups on structuring, governance and growth strategy so as to maximise the exit options: industrial acquisition, strategic combination, secondary sale or other liquidity scenarios.

A dedicated expertise group (DEX) plays a key role in sharpening our approach to this subject.

49. What are the non-financial rewards of being a business angel?

Many members join Paris Business Angels to:

• Stay close to innovation;
• Discover new markets;
• Join a dynamic, expert, friendly and supportive community;
• Learn from their peers;
• Share their experience;
• Support ambitious founders;
• Contribute to economic development.

The experience is widely seen as intellectually stimulating and personally rewarding.

50. Why do members stay involved with Paris Business Angels for so many years?

Because Paris Business Angels is, above all, a community. Members find a quality deal flow, continuous learning opportunities, enriching encounters and the satisfaction of contributing concretely to the success of innovative founders. The combination of investing, expertise, transmission and collective spirit explains why so many members have stayed loyal for more than ten years.

A strong indicator of that satisfaction is referral, which accounts for nearly half of all new memberships.