Business angels invest in businesses in exchange for a share of the business’ equity. Most business angels invest between £10,000 and £750,000.
Business angel investors usually invest in start-ups or young businesses that need to fund activities like product development or market expansion. They can make investment decisions quickly but will still need to see that you have a good business plan before they commit.
Business angels may take an active role in your business and can be a useful source of knowledge and mentoring.
Your business should be ‘investment ready’ before you apply for funding.
You should have:
You may be refused business angel finance because you haven’t made sure that you are ‘investment ready’ before you approach potential investors. For more information, see Getting ready for funding.
You should also identify potential risks and how you might overcome them.
You could benefit by doing a SWOT analysis, which identifies your business's strengths, weaknesses, opportunities and threats.
Investors will want to know if there will be an exit opportunity and that they can recover their investment and make a profit. You should be able to tell them about your business’ long-term plans and ambitions.
Remember to prepare for difficult questions and stay polite and respectful during your pitch.
You can find individual business angel investors or syndicates (groups of investors) through business angel networks in the UK and Europe. These include: