1. Angel Investing Steve Wall North West Business Angels Steven.wall@A2Fnw.co.uk 07824472105

2. Who are business angels They are high net worth individuals who wish to invest in private equity They acknowledge high risk /reward Often experienced business leaders 3. How do they invest They generally aim to have a portfolio of SMEs They look for around 10 businesses They expect 4 to fail 4 to tread water 2 to grow exponentially 4. What's in it for them Growth businesses can increase their values substantially in a short period of time Typical exit term 3-5 years Typical exit multiple 3-5X investment ,can be more 50% fail thus the exit value of the successful businesses needs to be high 5. What motivates the Angel Investor They all have different reasons ,but all desire good returns Tax incentives Putting something back Building a greater investment return via a class of asset not available through institutional investing 6. Tax Reliefs E.I.S 30% tax relief on initial investment S.E.I.S 50% tax relief on initial investment (up to 100K per investor ,max 150K per company less than 2 years old ) Capital gains tax relief 14% All gains are inheritance tax free All gains are C.G.T free Tax loss relief available at 50% 7. Angels invest in Start-ups pre-revenue Start-ups pre-profit Expansion to next level Distressed businesses 8. Angels invest in Where they can add value Right personal chemistry Agreement with founders vision Not having to teach business basics That is for mentors, not the same thing There are minimum skill levels to succeed 9. Angels dont invest in Bank fundable projects (eg real estate) Loans only (insufficient return) Very large (>500k) Unwieldy share agreements ie too many other shareholders Non-UK, or even not local Angels always get involved 10. Angels dont invest in Projects without a medium-term exit or no influence over exit Full-time attendance requirement Poor or un co-operative management Absent or unrealistic business plan Projected return less than double because at least half fail 11. Case Study Door Manufacturer Breakaway management team Sales director /Operations director /Foreman High growth/ fast start Required 375K - 10K available Profitability projected in Year 2 12. Door Manufacturer Turnover 2M by year 2 Turnover 3M by end year 3 125K invested Sales finance 250K Year 4 saw the business expand due to demand to 5M- new premises purchased with Commercial Mortgage 1M Last heard to be up to 11M t/o Investors 30% stake now worth 2m plus 13. How can we help you Provide the business angel support to enable capital introduction . Help you bolster your balance sheet Support for distressed businesses . Provide support for you to become Business Angel Investment ready . Provide growth funding otherwise not available 14. How can you help us We need to continue to refresh our investor network we are continually looking for new Investors . We want to help young businesses to grow - more opportunities required . We want to help mature businesses that need capital injection to capitalise on opportunities. 15. Any Questions? Steve Wall North west business angels Steven.wall@A2FNW.co.uk