A Short Guide to Business Angels

Entrepreneurs and business start-ups have acontacts or through Business Angel Networks such
profound effect on the economy.  Through theiras SellMyIdea.
entrepreneurship, sweat and long hours, new jobsBusiness Angels invest as previously mentioned in
and wealth locally and nationally can be rebuilt which inmost industries and sectors and in all stages of a
a time of economic recovery certainly is desirable.business development. Business Angels are the main
Entrepreneur's ideas are however often successfullyand largest source of early stage capital in UK.
helped on their way through the financial andRequirements of the Business Angels:
professional assistance of Business Angels.Private investors and Business Angels want to ensure
So what is a Business Angel?that the risk from investing is at a minimum and
Business Angels are by definition so called high nettherefore they will look into the following in detail
worth individuals who invests in profitable businessesbefore investing:
or ideas, either on their own or as a part of an- Business Angels invest in people as well as the
investment syndicate.  They do not only providebusiness and therefore pay rigorous attention to the
financial support but often make their own skills,expertise and track record of the management and
experiences and business contacts, available to theirteam.
chosen investment.- The growth potential of the business and the
Business Angels therefore often chose investmentmarket of which it operates.
opportunities in industries and sectors where they- The competitiveness of the business compared to
have previous experience end expertise.  Thisthe established competitors – what is the unique
enables them to become a valuable resource for theselling point that will make it stand out from
business as well as increasing the chance of acompetitors?
successful outcome of their investment.- The likelihood of a successful working relationship
As with any other investor Business Angels makesbetween the investor and the entrepreneur –
investments to increase profit. Howeverwhat skills does the business need compared to the
anthropological reasons such as ensuringactual skills of the business angel.
entrepreneurial success locally and nationally and in- How much have the entrepreneur invested and
general putting something back into society is also adoes it show sufficient financial commitment to the
key motivator for most Business Angels.idea.
Business Angels should be an important source ofIt is a two way relationship and the entrepreneur and
funding for new and expanding businesses andbusiness must ensure that they are compatible with
certainly a source to consider given the valuablethe Business Angel.  They should similarly consider if
knowledge that often follows an Angel Investment.a good working relationship can be established and
Who will benefit from Business Angels?that the Business Angels skills match the businesses
Business Angels invest in the region of £10.000 uprequirements?
to £750.000 but sometimes more depending on theIn addition it is highly recommendable that the
investment opportunity.  UK private investorsentrepreneur seeks independent legal advice prior to
account for £800 million and £1 billion of thesigning a deal.
start-up funding available. Private investors will oftenSellMyIdea provides a unique online platform in which
invest the larger amounts as part of a syndicate inthe entrepreneurs and businesses can market their
order to spread the risk of the investment beinginvestment opportunities to potential Business Angels
made.  Syndicates can be founded through personaland Private Investors to raise business finance.