halo - Business Angels
EXISTING MEMBERS: - Members Log In to see pitch videos, power points presentations and other useful information.
WHAT IS A BUSINESS ANGEL?
A 'Business Angel' is a private investor, usually in new businesses with high growth potential, who contributes:
- Financial Support
- Experience
- Expertise
Business Angels, regardless of age, have capital, experience and expertise they are willing to invest. They normally want to buy into a small firm where they can benefit from a sound investment return, while also being able to play a part-time role in advising the business.
While some Business Angels find their prospective partners by chance or through previous business contacts, there are a number of specialised business angel networks across Britain who provide this service. In Northern Ireland, halo provides this matching service in an efficient and very sociable manner.
HOW DOES IT WORK?
Five times a year, halo brings together a large group of halo business angels for an investor meeting. This consists of :
- An evening meeting including a meal usually at the Science Park
- 50 or more angels and guest angels
- 5 pre-qualified and fully prepared companies making 15 minute pitches
- Moderated Q+A sessions
- Facilitated meeting session when angels and pitching companies can progress their interests in a structured manner
After the meeting, further discussions take place often facilitated by halo. However the negotiations and any deals which arise are purely between the business angels and the companies concerned.
All pitches are videoed and provided to halo angels via a secure website. This is particularly useful when angels are unable to attend a particular meeting or are based outside NI.
In addition to the regular meetings, halo also facilitates matches between companies and investors as the needs arise.
WHAT ARE THE RISKS?
Clearly investing in un-tested, start-up companies carries significant risk. However research into over 400 angel exits in the UK has shown that returns can be good provided the business angels spread their investment over a portfolio of companies. Full details of this independent research is publicly available and can also be provided by halo.
Making this type of investment should only be considered by high net-worth individuals and they should also take advice from their financial advisers.
Advice is not provided by halo. Instead it ensures an excellent structure giving access to ambitious companies, with growth potential that are seeking private equity finance and other expertise and skills.
Investing in companies like this can often be made much more attractive by the Enterprise Investment Scheme. This provides generous initial tax relief, zero tax on capital gains and offset against higher rate tax for eventual losses.
Most halo angels tell us that angel investing is fascinating and that the structure and format of halo meetings is both rewarding and enjoyable.
HOW TO BE A BUSINESS ANGEL
We require some forms to be filled in, however we recognise that many people will want to judge the value of the meetings for themselves before doing this. So halo encourages potential angels to come to a meeting as a guest angel - often introduced by one of the existing halo angels. In this case a cut down version of the angel terms and conditions needs to be signed. Copies of this are available from halo.
Please note that it is not possible to simply turn up for a halo meeting. It is first necessary to speak with the Director of halo as access is restricted to those who could be reasonably expected to be able to sign the necessary forms should they wish to join halo later.
At present there is no cost involved in becoming a member of halo.
The Business Angel Network service is available to both individual investors and groups of investors.
Since all pitches are made available on the private website, halo is also well suited to angels who are not resident in NI. Halo actively encourages angels to join from other locations as indeed a number have. The benefit here is of course having access to a good deal flow which may not be obvious to 'competing' angels in your area.
Once you decide you wish to join, we will request some initial detail from you in order to better understand the type of business that you are interested in. This detail is used to match your requirements to appropriate companies. To do this we required you to fill in a simple application form and also to sign acceptance to our terms and conditions.
You will then have to fill in one of the two types of form below to show your financial ability to make this type of investment.
Investing in companies is high risk and we will require Business Angels to meet certain criteria established under the Financial Services and Markets Act 2000. Becoming a business angel (or member of halo ) is restricted to those who qualify under the law as Sophisticated Investors or High Net Worth Individuals.
A certified Sophisticated Investor is a person who:-
- has a current certificate signed by an authorised person to the effect that they are sufficiently knowledgeable to understand the risks associated with this type of investment; and
- has signed a statement in the last twelve months in the form prescribed by Article 50(1)(b) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2000
A certified High Net Worth individual is a person who:-
- has a current certificate of high net worth signed and dated by their accountant or employer in the last twelve months stating that such a person had, during the financial year immediately preceding the date of the certificate, an annual income of not less than £100,000 or held net assets to the value of not less than £250,000 (excluding primary residence); and
- has signed a statement in the last twelve months in the form prescribed by Article 48(2)(b) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001
If you meet either of the above criteria, you are now in a position to complete the appropriate form (available below for download). When you have completed the registration, signed acceptance to the terms and conditions and signed the appropriate investor form, you should forward the originals to halo for our consideration.
halo documents:
Angel Registration form.doc
MS Word Angel Registration Form. Please fill in and sign.
Angel Terms and Conditions
Angel Terms and Conditions. Please read and sign your acceptance.
Self Certification - Sophisticated Investor.doc
Self Certification Sophisticated Investor
Self Certification - High Net Worth Individual.doc
Self Certification High Net worth Individual.
Send completed application forms to: alan.watts@nisp.co.uk
CONFIDENTIALITY
Confidentiality is critical throughout the process to protect the integrity of everyone involved.