Business Angels

Business Angels: How to Find Them, Pitch and Secure Investment

Business Angels: How to Find Them, Pitch and Secure Investment

If you’re looking to secure investment above £25,000 and below £750,000, then a business angel could be the way to go. A business angel is any individual prepared to provide you with capital at their own personal risk. The personal nature of their investment means an experienced angel can also offer hands on knowledge and expertise than can help grow your business. This guide will give you advice on finding a business angel that suits your needs, how to pitch to them successfully and how to secure their investment. When should I consider using a business angel? An angel should only really be considered if you are able to fulfil the following conditions. You must be: Trying to raise £25,000-£750,000 Equity finance over £250,000 is generally the preserve of syndicates – angels investing toge... »

(Business) Angels of the North

Dragons’ Den without the humiliation When most people think of angel investing they picture a scene from Dragons’ Den, the BBC television business programme. The programme presents the investors as intimidating figures, reclining in comfortable chairs beside their piles of cash. They preside over pitches from nervous entrepreneurs presenting businesses of varying quality. A deal is struck in minutes, or not at all, and more often than not the entrepreneur leaves the den with nothing but dashed hopes and wounded pride. Whilst this might make for good television, in the real world, angel investing is conducted rather differently. Steve McEwen is the North of England regional director for Beer & Partners, the UK’s leading business angel network. Beer currently has 1,700 registered busines... »

Best Business Angel Network? Beer and Partners

Beer & Partners business angel network saw off stiff competition last night (23/09/10) to win the prestigious Investor Allstars, private investor network of the year award, sponsored by Schroders Private Banking. The annual awards ceremony attracts the who’s who of investment professionals and has been described as the ‘Oscars’ of the venture capital community. Each year over 500 investment professionals attend the event, gathering to celebrate another year of lucrative exits, innovative investments and professional excellence. Serial entrepreneur Luke Johnson, previously Chairman of PizzaExpress and Channel 4 and now owner of Risk Capital Partners, acquired a major shareholding in Beer & Partners in April of this year. Just 5 months on, and the company has received the award for b... »

Business Angel Networks: 20 Questions to Ask

The financial crisis has had a significant impact on the way SMEs are finding funding in 2010. Mervyn King admitted in a recent report from the Bank of England on 12th August 2010, that banks lending terms to businesses have worsened significantly since the financial crisis began, making it almost impossible for small businesses to secure funding through the traditional channels. Whilst this is not altogether surprising, considering the credit crunch was caused by overeager bank lending, the result is that thousands of SMEs have been left unsure of where they can go to raise the capital to grow their businesses. The answer for many such SMEs, is through business angels. Business angels are high net worth individuals who invest money in companies in return for a share of the equity. They ha... »

Cable Looks to Boost Small Business Lending

Cable Looks to Boost Small Business Lending

Financing a Private Sector Recovery In an attempt to increase lending to small business the Business Secretary, Vince Cable, has been criticial of banking institutions by saying that banks are "…not acting in the national interest. I don’t think they get it." Mr Cable has suggested that there may need to be a "carrot and stick" approach to bank dividends and bonuses. In a report released today Financing a Private Sector Recovery, HM Treasury and the Department for Business Innovation and Skills (BIS) put forward the case for "sustainable and secure sources of finance for investment". Both Vince Cable and The Chancellor of the Exchequer, George Osborne, acknowledge the importance of UK SMEs as the focus for this finance drive by stating that: &ldquo... »

Business Angels: How to make Profit from Risk

New research published today by NESTA (National Endowment for Science, Technology and the Arts) in collaboration with the BBAA (British Business Angels Association) reports for the first time that Business Angels stand to make a substantial profit from investing in start-ups, with an average Internal Rate of Return (IRR) of 22% over four years, compared with 27% IRR in the US. Business Angels – investors who put personal money directly into young unquoted companies – are a significant source of early stage finance. But despite their increasing importance, little is known about their outcomes and returns in the UK. The report reviewed 1,080 investments. More than half were directed at very early stage, pre-revenue start-ups – the riskiest time of a company’s life. Th... »