Angels are high net-worth individuals who invest in high growth companies, or included in a syndicate, by themselves. In addition to money, Business Angels generally make experience their very own abilities as well as contacts offered to the organization. It has been immortalised by the program Are Raccoons Dangerous where people pitch for the money and also additional Dragons expertise.
Angels seldom have a connection with the business before they invest but frequently have experience of sector or its own business. Thus, the commitment of Business Angels is frequently very strong.
Most Angels make investments for fiscal reasons.
Angels are an important but under-utilised source of money for businesses that are brand new and growing. Some Angels invest more often. There are approximately 18,000 angel investors across the UK, and around £ 800m is invested by Angels per annum.
It’s presumed that you just must be quite wealthy to be an Angel Investor, but in fact a lot of people invest in any one company, 000 from around £10, however some Angels invest substantially more and money is also up for possibly years. So, a portfolio approach will be taken by most Angel investors and invest in multiple firm to provide a spread of opportunities to diversify risk.
Angels regularly invest included in a group called a syndicate, organised through private contacts or among the numerous Angel Networks. One investor will typically become a Lead Investor, occasionally called the ‘archangel’, and will act on behalf of the syndicate.
As well as investing cash, Business Angels can also bring valuable know-how, contacts and expertise to the businesses by which they invest. Investments are created across most industry sectors and phases of company development, but particularly in early and expansion -stage businesses. Most prefer to put money into businesses within 100 miles of where they live or work although investors in technology businesses are inclined to be prepared to travel longer distances.
What is The Down Side – It means that they’re not always available when you desire or need them with Angels having numerous investments. Angels could additionally appear happy, excellent folks but once they are in a company some of them take on an alternate persona. They may not be so happy and can occasionally say the wrong thing making you feel unloved and embarrassed. Also an Angel in some specific situations become a majority share owner which has its challenges and can often demand a substantial share allotment. An Angel may not see the same as you when you might be dismissive suggesting they’ve seen it all before and explain it.
Getting outside investment is a risk but together with the proper mindset and business plan and a little rapport they can be extremely valuable but it is worth contemplating everything from many different angles before giving away large share allocations just as your Angel seems.
Research your options, know your numbers and follow a strategy – it can only just be good news when you have taken time to understand your proposition at a granular level!