Business Angels Europe launches survey on Secondary Markets
- 5 hours ago
- 3 min read
Business Angels Europe (BAE) is launching a pan-European survey to better understand the needs, experiences, and expectations of business angels regarding secondary markets, both at national and EU-wide level.
As Europe’s startup ecosystem matures and holding periods lengthen, secondary transactions are becoming an increasingly important—yet still underdeveloped—tool for early‑stage investors. Through this survey, Business Angels Europe aims to capture angels’ perspectives on liquidity constraints and opportunities, identify good practices and structural gaps across countries and collect ideas on how secondary markets could better support angel investing in Europe The findings will inform future ecosystem initiatives and contribute to policy discussions on liquidity, scale‑up financing, and Capital Markets Union.
Why Secondaries Matter for Business Angels
Business angels are, by nature, temporary and active partners. They invest at the earliest stages—when risk is highest and hands‑on support is most critical—and play a decisive role in shaping startups’ initial development.
Secondary transactions have emerged as a natural and necessary mechanism to support this investment lifecycle. They allow angels to realise value, manage risk, and recycle capital, even when traditional exits are distant, uncertain, or misaligned with the angel’s role and time horizon.
Increasingly, secondaries are no longer exceptional events, but a standard option for partial or full exit, contributing to a more sustainable and dynamic early‑stage ecosystem.
Key Insights from Angel Investors (BAND Survey)
According to a 2024 survey conducted by BAND – the German Business Angels Association, secondary transactions respond to several structural realities of angel investing:
1. Angels are temporary partners
Angel expertise is most valuable in the early stages
Once key milestones are achieved, continued involvement may limit value creation for both angels and founders
Secondaries allow angels to exit without waiting for a full company exit
2. Capital recycling is essential
Angels invest when risk is highest and therefore expect to benefit from value creation
Secondary sales enable profit realisation and reinvestment into new early‑stage ventures
This sustains a healthy, long‑term angel investment cycle
3. Not all relationships evolve smoothly
When communication or strategic alignment deteriorates, exit options must be available
Secondaries offer a constructive alternative to conflict or deadlock
4. Bridging early‑ to later‑stage capital
As new investors enter, governance dynamics and expectations change
Secondaries allow angels to step back when their role becomes less relevant, while enabling companies to continue scaling with appropriate capital and skills
How Business Angels Use Secondaries
Secondary transactions can support full or partial exits when traditional exits are far off, liquidity without disrupting company growth, risk reduction after strong early value creation, portfolio rebalancing and consolidation and alignment with personal life planning and investment time horizons.
Secondary markets are a way to strenghten the European startup ecosystem by keeping angels focused where they add the most value: early-stage innovation.
For business angels, secondary transactions are becoming an essential part of the investment journey—supporting timely exits, capital recycling, and the continuous renewal of early‑stage portfolios, while ensuring continuity and stability for growing companies across Europe.
Participation
We kindly invite all business angels to participate in the survey on secodary markets. By sharing your experience and views, you will help shape how secondary markets can better support angel investors, highlight differences and common needs across European countries and inform future ecosystem initiatives and EU‑level policy discussions.
Whether you have already participated in secondary transactions or are still waiting for liquidity opportunities, your input is essential to build better, more accessible secondary solutions for business angels across Europe.
Please take a few minutes to complete the survey and contribute to the future of angel investing in Europe.
DEADLINE: 31 July 2026
For more information, mail to: Chiara.Davalli@businessangelseurope.com
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