FAQ
What are Business Angels?
These are often successful entrepreneurs themselves, or they may have been senior managers from industry. A common thread is that they are looking for the opportunity to invest in ambitious, fast-growth businesses.
Who needs them?
Any company can benefit from their involvement but Business Angels are particularly useful for:
- Early-stage and growing businesses that do not have enough capital of their own.
- Companies whose equity requirements are too small for venture capitalists.
- Growing businesses that need to strengthen their board or management team.
How much is Available?
Collectively, many millions, but individual Business Angels tend to invest in the range £20k to £200k.
What can they Offer? - Long term finance – with no immediate repayment burden. If your company succeeds the Business Angel will share in this growth. If your company fails then the Business Angel will lose his or her funds.
- Business skills and experience. Business Angels tend to invest in sectors they understand and they can bring additional benefits e.g. contacts and particular experience.
- Credibility and leverage. Having a Business Angel involved can influence other financiers. Aside from the contacts and experience they bring equity/finance- not debt finance - so your balance sheet is immediately strengthened.
What kind of Business can get this investment?
Business Angels invest their own money and where they invest will depend on their own preferences and criteria. Collectively though, they look at any industry sector and all stages of development, including start-up, growth and even refinancing.
How do I find them?
Often with difficulty - through personal contacts of your own, through your accountant, solicitor or banker Or more simply through halo.