Business Angels
Looking for investment?
If you are seeking investment of between £20k
and £500K to start-up, expand or move your business forward,
then working with Northwest Business Angels is a great place to
start your search for finance.
If you are looking for investment, the service provides you with
specialist support and a speedy introduction to a pool of potential
investors. The benefit of angel investment to your company is the
ability to raise capital that is far more flexible than other forms
of finance, because repayment is from future profits, not locked
into a repayment plan, as it is with debt finance.
By working with a business angel it is possible for your business
to grow faster and achieve a greater potential than if it were
simply to grow organically. Business angel finance allows you to
share the risk. Angels normally seek to make an investment for a
minimum of three years, though some are quite comfortable with a
longer-term involvement.
Why would a business angel be useful to my business?
Early stage businesses find it necessary to
concentrate their energies in one direction, focusing their
attention on such things as perfecting their product, setting up
their supply chain etc, and find that they have very little time,
or maybe lack the required skills, to apply to other, equally vital
areas such as marketing or organising their finances. This is where
business angels can step in and help the business in a practical
way. The angel has an interest in the business so will want to see
it succeed, and will work hard to ensure that the business develops
to achieve its full potential.
If you are running a more established or mature business, you may
be looking to move to the next level; whether it be expansion,
developing new lines or projects, selling the business or floating
on the stock market, all of these areas are attractive to a
business angel.
What sort of money will they bring?
Bank loans and other forms of finance very often
bring with them a rigid repayment structure, normally in the form
of monthly re-payments. This can be very difficult for businesses
that are at an early stage and have yet to develop strong sales to
service the debt. Business angel finance is usually in return for
an equity stake, which does not have to be repaid until the
business starts to make a profit. The investor will take a share of
the ownership of the company at an agreed percentage.
In summary the main advantages of angel investment to
businesses are:
- Speedy decisions on finance to start-up or grow your business
- Lower levels of funding - individuals will invest sums as little as £10,000, or less in some cases
- Acceptance of higher levels of risk - individuals often invest in projects others would not.
- Private investor backing increases the confidence of debt financiers
- Flexible repayment from profit, long term, and not from cash flow regardless of profit
- The opportunity to strengthen the board or management team with experienced and successful people
- Growth and profit in your business
- Someone to buy or buy part of your business
- Help from people experienced in growing successful businesses.
Once you have registered your interest - what happens
next?
One of our experienced advisors will contact you to
explain the service in more detail and discuss your business
position, financial needs, how best to attract investors -
individual business angels and/or other seed and venture fund
managers.
The service helps businesses by providing impartial advice and
support, counseling and tutoring from an individual, and advice
from our team- one to one support when you really need it. The
advisor will help you to develop your plans and proposals in a
format most attractive to potential investors.
We also provide learning opportunities for both investors and
business owners alike. The focus of this program of events is
investment readiness, providing guidance on investment issues and
an insight into making a deal work for all of the parties
involved.
How do I go about meeting business angels?
You and the advisor will discuss whether business
angel finance is a potential option for your business. Once agreed
the advisor will work with you to develop your business
proposition. Together you will produce a summary of your business
and an extended proposal for distribution to the angel investors.
Investor Meetings take place at regular intervals. These events
give you the opportunity to make a 10 minute presentation to
investors and afterwards the chance to discuss your proposition
informally on a one to one basis.
In summary, the service will increase your chance of success
by:
- Reviewing the amount which is required for your business to grow
- Producing a "key points" summary report for investors
- Helping you to focus your proposition to appeal to investors
- Coaching to develop your 'pitch' to investors
- Distributing your opportunity to a large number of known investors
- Providing sample documentation to assist you in getting the 'deal done'
- Providing fact sheets on key topics such as legal and tax matters
- Giving you the chance to attend various learning opportunities
How much does it cost?
Northwest Business Angels is a service of the NWDA
for the benefit of growth-orientated businesses within the region.
Because of this, there is no charge for companies using the
service. However, we reserve the right to restrict access to
businesses deemed unsuitable for this type of finance, as
determined by the NWBA advisor.
For more information contact Ruth Hollis on 01925 400
302 or email angels@nwda.co.uk
Website www.nwbusinessangels.co.uk
