Welcome to Business Angel Investors
How can I become a Business Angel?
Anyone can become a business angel but in order to be successful you will:
- Need to have capital that you can invest and a willingness to accept risk with the investment.
- Need to have experience of running your own successful business or businesses.
- Need to be keen to get involved in start-ups and developing companies in a hands-on way.
- Preferably have many contacts in your area of business.
- Preferably be 'known' in your particular industry, as companies seeking investment will like the idea of your name bringing them a certain prestige.
Advice for business angels
- Invest only in industries you feel happy and comfortable with.
- Look to invest in entrepreneurs and businesses that want your expertise and knowledge, not just your money.
- Reach a valuation that is fair to both sides.
- Be careful with the legal details - practice due diligence and seek detailed advice from your accountant, solicitor, financial advisor etc.
- Plan how you intend to achieve a return on your investment, for example from dividends, fees and capital gains.
- Make sure you have considered an exit strategy.
- Try to spread your risk across multiple investments rather than backing a single product or company.
- Consider starting out by investing alongside an experience business angel who can act as your mentor.
- Join a business angel group.
- Be patient. It can take a lot of time to find the right company for you to invest in.