130 likes | 272 Views
Finance from Business Angels. Robert Sheffrin Northwest Business Angels 5 th December 2007. Angel Investors. Enterprise Investment Scheme statistics: Over 20,000 Business Angels in UK Investing between £800m & £1bn annually True figure much higher!. Business Angels?.
E N D
Finance from Business Angels Robert Sheffrin Northwest Business Angels 5th December 2007
Angel Investors Enterprise Investment Scheme statistics: Over 20,000 Business Angels in UK Investing between £800m & £1bn annually True figure much higher!
Business Angels? Usually HNWI – gained from business Bring skills & experience Some are serial investors Most take an active involvement Some will syndicate
Angel investment… Start up / early stage / pre-trading Bringing to market / established All sectors NWBA - up to £500k – typically £50k - £250k Some others - unlimited Potential high return
Reasons why angels invest Portfolio diversification Potential higher return than stock market Built companies before – want to do it again Hobby / fun Help young entrepreneurs
Different investment styles Retired – hobby investor Portfolio builder Serial investor Combination
Some things that they look for… Growth potential Management ability Personal commitment Honesty Market Clear financials Willingness to work with investors Fair valuation Exit
Choosing an investor Ask lots of questions – background, investments, why finds your business attractive? Personal chemistry Establish trust Deal – fair to both sides
What makes a plan stand out? I was expecting it Tells me what I want to know Meets fund / my criteria Succinct with evidence Believable Makes me want to meet you?
Tips to keep the deal moving Provide information on time Don’t over negotiate Be pragmatic Understand the investor’s position Use adviser/lawyer who understands Don’t neglect the business!
Angel delight………. Enterprise Investment Scheme Annual investment limit - £400k Income tax relief Potential tax free gains Tax relief for losses IHT relief Angels love it – apply for Inland Revenue approval
Northwest Business Angels provide.. Advice & assistance on investment process Prepare companies for investment Funding summary Investor Club meetings Access to Business Angels Introductions to seed and venture funds
The Gateway to Angels Northwest Business Angels angels@nwda.co.uk www.nwbusinessangels.co.uk Tel. 01925 400 302