Your Questions Answered - Angel Investment Network

Here's a list of a few questions you may have about the Angels Den offering but may not have found an answer for.

How much does Angels Den cost?
To put your request for business funding in front of active Angel investors, costs a total of £499 + VAT. This is broken into two payments.

Initially you would create a summary of your business, which acts to entice Angel investors to contact you if they are interested in your offering.

When an Angel has shown an interest (and even before) you can create a detailed business plan in the searchable format that is favoured by Angel investors.

If you are successful and an Angel invests in your business there are no additional fees, hence your outlay to attract funding is kept to a minimum.

Angels Den isn't a free service as it is a commercial service and there is fantastic value in our offering. We take a lot of the pain out of attracting business funding, however it takes a great deal of time and effort to develop a solution that allows us to do this for you.

How does Angel Den's costs compare to angel groups?

Angel Groups often assign an advisor to help you write a business plan and offer coaching as part of a package. With this there is often an upfront fee, a monthly fee of hundreds of pounds, or even a set up fee of several thousand pounds. Often these groups would expect to take an fee of 4-5% or around 5% of the business.

In many circumstances this potential outlay makes Angel investment an unattractive option. Angels Den aims to open Angel investment to more businesses that require funding.

Furthermore, we offer the two payment stage to further help with your finances and to limit your financial exposure.

How can I protect confidentiality?
Protecting your confidentially is built into the Angels Den offering and we take the protection of your intellectual property (IP) very seriously.

We ensure that Angel investors can only review your information if they have signed a confidentiality clause. Furthermore, we ensure that any Angel investor that is registered has made such investments before, have over £100k in unsecured assets or are FAS registered.

We also recommend that you take steps to protect your IP as soon as possible by registering it with the relevant trademark, copyright or patent authorities.

Angels Den is a company you can trust. We are the only online service that is an Associate member of the British Business Angel Association and are active members who work alongside several Angel groups and have individually over 25 years experience in business.

Why should I use Angels Den?
Not only is the price attractive, not only can we deliver you access to over 2000 angels but we understand the process that you will go through to find Angel investment. We help you through the process and offer both telephone and email support to ensure that the path to securing funding is one that you will enjoy.

How much of my business should I offer to an angel investor?
The first task is to establish the value of your business. If you offer 10% for £75,000 then you are obviously saying that your business is worth £750,000 - is that a realistic figure.

Current and future sales figures aren't the entire story when valuing a business for Angel investment. Angels would also take into account your (including your management team's) level of experience in business generally and the target industry specifically.

You should look at what steps you have taken to protect your IP. A business idea with a strong brand which is fully protected is worth more than an idea that is open to direct competitive pressure.

When should I think of my "exit strategy"?
Now. If you secure Angel investment that will be dependent on your Angel investor agreeing an exit strategy. The Angel investor is putting money into the business in the expectation of a certain level reward at an agreed date. Make sure you think through your exit strategy as soon as possible and try and understand how long you would expect an angel investor to remain an interested party.

I'm not sure if securing Angel investments is right for my business, what else can I do?
You can try debt financing, the Small Firms Loan Guarantee Scheme, bank loans, credit cards, overdrafts, re-mortgaging your home, money from your family, your savings, or venture capital - just to name a few. All have their pros and cons so research all opportunities and take an informed decision.

We recommend that you approach an accountant and a lawyer as soon as practical. However, often the business link is seen as the first port-of-call for many new businesses.