Our Upcoming Events
Select your Region:
|
 |
Angels Den – FAQs and Resource Centre
|
Hopefully you’ll find here anything you need to know about funding. Everything from
what equity funding is, to how much of your company to give away to investors, to
what Angels Den is all about, plus lots of other interesting stuff.
However, if you read through the FAQs and start to get a little hot under the collar
because we’ve not answered YOUR question, then email the question to us (wings@angelsden.co.uk),
saying you couldn’t get an answer on our FAQ pages, and we’ll see if we can update
it at some point.
|
- Will an Angel investor ask for a permanent stake in my business?
- How much equity will I need to give away?
- What’s the likelihood of anyone seeing my business if I register
it on your site?
- Where can I go for funding and how do I go about it?
- What is the likelihood of my business finding funding with the help
of Angels Den?
- How many business Angels do you have?
- What will it cost me to find funding through Angels Den?
- Deleted
- Is there an option for our plan to be treated confidentially and accessed
only by your registered Angels?
- What is MicroFunding?
- How do I become an Angel investor?
- When do Angels sign a non-disclosure agreement?
- How do I make use of Angels Den's services?
- Can I legally protect my intellectual property rights when using Angels
Den?
- What is the maximum and minimum investment business Angels are willing
to make?
- Do business Angels finance businesses outside the UK?
- Do business Angels invest in existing businesses looking to further
develop and expand?
- What type of businesses do the business investors invest in?
- What is the typical timescale for a business to get funded through
Angels Den?
- What are the advantages of using business Angels?
- What can I expect from Angel funding?
- What do Executive Summaries look like?
- What information are private investors looking for?
- What is equity finance?
- How can I prepare to pitch to an Angel investor?
- What should I wear to a pitch?
- How do I approach Angel investors?
- How do I write a summary of management?
- How do I raise funds for my business?
- What do business Angels expect?
- What makes Angels invest in start-up companies?
- As an Angel investor, what return should I expect from my investment?
- How has the credit crunch affected Angel investors?
- Why should I trust an Angel investor?
- How many investment opportunities are there on your website?
- How much activity is there on the Angels Den website?
|
- Will an Angel investor ask for a permanent stake in my business?
Every deal is different, but it would be considered normal for an
Angel investor to structure an agreement that will see a good return for
them within three to five years. This would be achieved through the sale of the
business, a large additional capital investment or the owners of the business buying
back the investor’s stake.
Top
- How much equity will I need to give away?
The percentage of equity
that you will give away depends on just three things: how much your
business is worth, how much
investment you need, and what you negotiate with an Angel investor.
If your business has been professionally valued at £500,000 and you are looking
to borrow £50,000 then the negotiations are likely to centre on a figure of
10%.
Top
- What’s the likelihood of anyone seeing my business
if I register it on your site?
With over 2,500 business Angels registered on our site, we have Europe’s largest
concentration of Angel investors keen to find
funding opportunities like yours. We’re proud of the fact that almost a fifth
of our entrepreneurs find an Angel, which is – staggeringly – ten times
the national average. Angels Den is regularly
promoted in the national press, our founders regularly
write a number of columns for business magazines
and websites, and there are plans afoot to launch both a magazine and a TV show
to widen the promotion of our website and increase the likelihood of your business
being found by the right Angel.
Top
- Where can I go for funding and how do I go about
it?
With the recent decline in traditional sources of funding
such as banks
and venture capitalists,
Angel funding has become the primary means for many businesses to find the
funds they need to develop their businesses. Registering with Angels Den allows
you to post a brief business summary on our website for our Angels to view. However,
we have found that entrepreneurs
have achieved the most success through our SpeedFunding
events where 42% of all those who pitch one-to-one
to our Angels have found the
business partner they were looking for. For further information about how
Angels Den works, come to our How Does Angels Den Work?
page.
Top
- What is the likelihood of my business
finding funding with the help of Angels Den?
Because we have the largest concentration of business
Angels anywhere in Europe at Angels Den, your business has a better chance
of gaining funding here than through any of our competitors. Although it would be
impossible to offer any form of guarantee, you can increase your chances of winning
over our Angel investors if you attend one of our “What
Angels Want” training sessions before pitching at our
SpeedFunding events.
Top
- How many business Angels do you
have?
Angels Den has grown at a fantastic rate to now have the highest concentration of
business Angels in Europe.
With over 2,500 Angel investors registered and more signing up every day, at Angels
Den your business plan now has the best chance of being found by just the right
investor to boost your business skywards.
Top
- What will it cost me to find funding
through Angels Den?
To register with Angels Den and place your “business
plan” on our website for all of our Angels to see will cost you just
£799+VAT.This includes a space on one of our SpeedFunding events (currently
being held in London, Bristol, Scotland and Manchester) where you’ll also receive
training on how to pitch to the Angels. At SpeedFunding, you’ll get to pitch your
business face to face, one at a time to a room full of Angels. Should you wish to
attend a second SpeedFunding event, it will cost £499 + VAT. When you secure your
funding there is a 5% success fee. We have so many
entrepreneurs looking to pitch to our Angel investors that our fee structure has
been created to separate out only the most serious contenders.
Top
- Deleted
Top
- Is there an option for our plan to be treated confidentially
and accessed only by your registered Angels?
All of our Angels have signed our Non-Disclosure
Agreement, which is vigilantly policed to ensure the confidentiality of
the information that you place with us. Once you have uploaded your business plan
our systems will add it to our regular “New Opportunities” email, which
is sent to all 2,500+ of our registered Angels. You do have the option not to be
included in this email, although this is not recommended as it restricts your chances
of finding the right Angel to fund your business.
Top
- What is MicroFunding?
This innovative funding method is open to entrepreneurs and inventors who have great
business ideas but neither the time nor the acumen to build a business from concept
to launch. For a small fee you can register your idea with our
MicroFunding website, and if it is taken up by a business advisor they will
source the funding, create the prototypes, attain the patents and run the business
to a point where it can be sold. As the originator of the idea you retain a 30%
share in the business. To find out more about MicroFunding, visit
www.MicroFunding.co.uk
Top
- How do I become an Angel investor?
All UK residents must represent and warrant to us that they are either a “Certified High Net Worth Individual” or
a “Self Certified Sophisticated
Investor” as defined by the FSMA, an “Authorised Person”
(someone recognised by the FSA as an investment professional) or an “Operator
or Secretariat” for an investment club or network of business Angels.
All non-UK residents must act in conformity with the laws of their country of residence
pertaining to this subject.
Top
- When do Angels sign a non-disclosure agreement?
All registering Angels sign our Terms and
Conditions, which includes a non-disclosure agreement that extends to all
of the information that entrepreneurs place on our site.
Top
- How do I make use of Angels Den's
services?
Registration on the Angels Den website is quick and simple, and will enable you
to upload a very brief summary of your business or
business idea. This summary is then sent out to our registered business
Angels, who all have signed our Non-Disclosure Agreement to protect your
intellectual property. On upgrading to full membership, your complete business
plan can be uploaded to our site for Angels to view and you will then have the chance
to present your business opportunity to Angels on a one-to-one basis at our SpeedFunding
events. As a Microsoft BizSpark partner, we are also able to offer qualifying companies
free Microsoft development tool software.
Top
- Can I legally protect my intellectual
property rights when using Angels Den?
Although all of our Angels sign our Non-Disclosure Agreement, you should seek to
protect your intellectual property where possible either directly with the Intellectual Property Office or through a patent lawyer.
Top
- What is the maximum and minimum
investment business Angels are willing to make?
There really are no maximum or minimum restrictions to investments through Angels
Den. The lowest investment we’ve ever had was for £6k, the highest was
£1m and the average is around £220k.
Top
- Do business Angels finance businesses outside the
UK?
Angels Den has been set up under UK law; therefore even though our Angels are not
restricted to only invest in UK ventures, you
may find them more reluctant to invest in non-UK opportunities currently as there
are fewer protections on foreign investments.
Top
- Do business Angels invest in existing businesses
looking to further develop and expand?
Absolutely – although in these circumstances Angels are most likely to be
interested in an already successful business that is asking for a substantial investment
to give it an additional boost or prepare it for sale or
flotation.
Top
- What type of businesses do the business investors
invest in?
The quick answer is – absolutely any that they see potential in. We have everything
from start-ups to successful businesses looking for investment, from every sector
you could imagine. If you are looking for
small business funding for any venture, no matter what stage your business
is at, register with Angels Den today.
Top
- What is the typical timescale for a business to
get funded through Angels Den?
The average is 10 to 11 weeks, but timescales will be determined by the complexity
of the legal agreements and the flexibility of the parties concerned. We know a
number of law firms that our entrepreneurs have used in the past who offer fixed-fee
packs and fast-track templates for this type of agreement, to speed up the process.
Top
- What are the advantages of using
business Angels?
The main advantage of using business Angels as opposed to more traditional methods
of funding your business is that Angel funding is not secured on any of your personal
assets. Business Angels
are taking a huge risk with their
own money, because if your business fails they will lose their investment
but unlike those who offer secured loans they cannot come after you for more.
Top
- What can I expect from Angel funding?
Angel funding is gloriously less structured than traditional means of raising capital.
The relationship that you have with your Angel will depend on the individual wants
and needs of each of you. Sometimes it will involve a simple transfer of money,
while at others the Angel will require or offer a more hands-on approach. Many Angels
recognise that their expertise and address book will fast-track your business to
a more profitable success for all parties.
Top
- What do Executive Summaries look
like?
An Executive Summary is arguably the
most important part of your business plan. As the first section that any investor
will read, it will determine whether they are interested enough to read the rest
of your document. It is not a boring index of sections, nor is it a hyped-up sales
tool. The Executive Summary should be an honest representation of the main points
from your business plan, offered in a form that will excite the reader’s interest.
Top
- What information are private investors looking
for?
This is a very individual thing, as it depends on the amount of involvement an Angel
is willing to offer to a business and how much they believe in the potential of
your opportunity. However, it would be fair to say that a clear and concise description
of the business or concept, a full business plan including
financial projections, the background of all those involved in the building
and direction of the business, and a “reasonable”
business valuation are all prerequisites of a successful pitch.
Top
- What is equity finance?
In simple terms, equity finance
is when you seek finance from external investors in exchange for a percentage of
your business. The two main providers of equity finance are venture capitalists,
who invest from a fund of their client’s money, and business Angels, who invest
their own money in businesses that they believe have true potential.
Top
- How can I prepare to pitch to
an Angel investor?
These could be the most important three minutes of your business life, so it’s
essential that you prepare your pitch carefully. Our
SpeedFunding events are busy affairs, with approximately 15 Angels sitting
through 15 one-to-one three-minute pitches, one after another – so yours must
stand out from the crowd. We offer two training sessions to help you make the most
of your time in front of each potential investor:
• The first is a three-hour seminar on “What
Angels Want”.
• The second is our two-hour pitching training school.
To find out more about either of these, click here.
Top
- What should I wear to a pitch?
This is not TV’s Dragon’s Den –
you won’t be ushered out of our SpeedFunding
event, tail between your legs, if you’re not wearing a suit and tie, but we’d
suggest smart casual is best all round. It’s most important that you are comfortable
and presentable, to give the best first impression.
Top
- How do I approach Angel investors?
Registration on our website is the first step.
But once you have uploaded your full business plan to Angels Den, you will have
the opportunity to attend one of our SpeedFunding
events where you can pitch your business directly to a number of business Angels
in one evening.
Top
- How do I write a summary of management?
Business Angels will want to see that your management team have the skills,
experience and expertise to drive your business towards success within a defined
timeframe. Any background working in a similar sector or experience of
running your own business is relevant, as are the details of anyone who
adds credibility to your business. Management weaknesses are a common reason for
Angels to pass on an investment opportunity, so be thorough in your summary.
Top
- How do I raise funds for my business?
Traditional sources of business funding have recently become increasingly scarce.
They would include: asking friends and family,
but everyone’s feeling the economic pinch at the moment so there’s little
to spare; a bank loan, but it’s been well
documented in the press how little of that has been going on despite millions of
pounds of government investment; and venture capitalists, whose investment funds
have been depleted as their clients have held back their funds until things start
to look better. The fastest-growing small business funding market in the UK today
is that of business Angels.
Top
- What do business Angels expect?
Business Angels are primarily looking for a profitable
return on their investment within three to five years. This is usually achieved
through a management buy-out of their share in the business, or the sale of the
business as a going concern. Other than that, each business Angel will have their
own wants and needs from the relationship. Some will simply wish to invest their
funds and act as a silent partner, whereas others will want a more hands-on involvement
because they recognise that in this way they increase the chances of the business
succeeding.
Top
- What makes Angels invest in start-up companies?
Some Angels are successful business people who are looking to expand their
portfolios, broaden their business risk or re-invest their profits. Others
are retired self-made millionaires who are looking to keep their grey matter active.
Still more are interested in helping start-ups
and small businesses to succeed. There really is no single reason that motivates
a business Angel, but the one thing that they all have in common is a desire to
fund only those ventures that have the potential for great success. It is therefore
essential that you present your opportunity in the best possible, realistic and
honest light in your business plan and in your pitch at
SpeedFunding events.
Top
- As an Angel investor, what return should I expect
from my investment?
Bearing in mind that no returns can be guaranteed, an angel could ideally expect
to double their money over a period of around 2 years, or treble their money on
a period of around 3-4 years. Another way of looking at this is to say that they
can expect a cumulative return of approximately 50% for each year of the partnership.
Of course the reality is often quite different, depending on the quality of your
investment decisions and the assistance you are prepared to give a business to ensure
its success.
Top
- How has the credit crunch affected Angel investors?
The economic climate has been excellent
news for Angel investors. Traditional business funding sources such as banks and
venture capitalists have greatly cut back their investments, opening up a huge funding
gap that is being filled by Angel investors.
Small businesses are continuing to launch, although valuations are down,
so Angels have found that they are able to achieve a higher shareholding in their
new relationships.
Top
- Why should I trust an Angel investor?
At Angels Den we have gone to great lengths to ensure that we comply with the FSA guidelines on the legitimacy
of Angel investors who are registered with us. Also, all of our Angels sign a non-disclosure agreement when they
register with us to protect your intellectual property.
Top
- How many investment opportunities are there on
your website?
With over 9,000 entrepreneurs,
inventors and small
businesses registered on Angels Den, business Angels have an excellent opportunity
to meet some of the most inventive individuals offering the best business opportunities
in Europe.
Top
- How much activity is there on the Angels Den website?
We may have more business Angels registered than any other website in Europe and
over 9,000 entrepreneurs looking for small business funding, but we’re not
resting on our laurels. With an average of over 100 business Angels and over 250
entrepreneurs and inventors registering on our site every month, we are growing
very fast indeed. This of course gives everyone new daily opportunities to build
successful, profitable business relationships.
Top
|
|
|
 |
|
|