Post on 10-Jan-2016
description
Finance from Business Angels
Robert Sheffrin
Northwest Business Angels
5th December 2007
Angel Investors
Enterprise Investment Scheme statistics:Over 20,000 Business Angels in UKInvesting between £800m & £1bn annually
True figure much higher!
Business Angels?
Usually HNWI – gained from businessBring skills & experienceSome are serial investorsMost take an active involvementSome will syndicate
Angel investment…
Start up / early stage / pre-tradingBringing to market / establishedAll sectorsNWBA - up to £500k – typically £50k - £250kSome others - unlimitedPotential high return
Reasons why angels invest
Portfolio diversificationPotential higher return than stock marketBuilt companies before – want to do it againHobby / funHelp young entrepreneurs
Different investment styles
Retired – hobby investorPortfolio builderSerial investorCombination
Some things that they look for…Growth potentialManagement abilityPersonal commitmentHonestyMarketClear financialsWillingness to work with investorsFair valuationExit
Choosing an investor
Ask lots of questions – background, investments, why finds your business attractive?Personal chemistryEstablish trustDeal – fair to both sides
What makes a plan stand out?
I was expecting itTells me what I want to knowMeets fund / my criteriaSuccinct with evidenceBelievableMakes me want to meet you?
Tips to keep the deal moving
Provide information on timeDon’t over negotiateBe pragmaticUnderstand the investor’s positionUse adviser/lawyer who understandsDon’t neglect the business!
Angel delight……….
Enterprise Investment SchemeAnnual investment limit - £400kIncome tax reliefPotential tax free gainsTax relief for lossesIHT relief
Angels love it – apply for Inland Revenue approval
Northwest Business Angels provide..
Advice & assistance on investment processPrepare companies for investmentFunding summaryInvestor Club meetingsAccess to Business AngelsIntroductions to seed and venture funds
The Gateway to Angels
Northwest Business Angels
angels@nwda.co.uk
www.nwbusinessangels.co.uk
Tel. 01925 400 302