Your journey to Angel Investment

This article outlines what it takes to get Angel Investment

Angel investors use their money to help your early-stage business grow. As well as finance, you'll benefit from your Angel's knowledge and experience too.

Are you ready for Angel Investment?

  • Are you a pre-revenue, pre-profit or profitable early stage business?
  • Is your annual turnover less than £5m?
  • Are you seeking between £15,000 to £500,000
  • Is your business growing or has clear plans to grow?
  • Are you willing to hand over a share of your business?
  • Are you willing to work with an Angel for three to eight years?

Get your house in order

Not many businesses pitch to one Angel and get a yes straight away. You'll speak to different Angels with different questions. So preparation is key.

  1. Know your finances: Turnover, profit, sales, growth, and their forecasts
  2. Know how much finance you need: "About 40k." wont cut it
  3. Know how you'll use the finance: "To grow." is a bit vague
  4. Know what impact the finance will make on your business: "We'll grow faster." isn't enough

Finding the right Angel

  • Ask your professional network.
  • Go to pitch events.
  • Search angel directories.
  • Speak to a business that have worked with an Angel.

Life's a pitch: How to pitch to an Angel

You need to nail your pitch, so learn it inside out. But what do Angels look for in a pitch?

  1. Tell a story - facts and figures don't get many people excited
  2. Be passionate - show how committed you are to your business
  3. Be honest and open - transparency is key when it comes to numbers and financials
  4. Be clear in your needs and ambitions - you need to know exactly how much you need, how you'll use it and the impact it will have on your business
  5. Be prepared to provide evidence - Angels will want to see proof that what you're saying is true
  6. Try to make a connection - Angels invest in you as much as your business. If they don't connect with you, they're unlikely to invest

We have compiled this list with Jenny Tooth, CEO at UK Business Angels Association (UKBAA) and Angel Investor.

Living with an Angel

Once you've found your Angel and a deal has been struck, it usually takes around six months to get your finance.

You and your Angel

Angel Investment isn't just financial, it's more involved than that. You get:

  • Finance 
  • Knowledge and Experience
  • A shareholder
  • An Ambassador
  • Networking

Did you know? Angels typically stay with a company for 3-5 years!

Reference to any organisation, business and event on this page does not constitute an endorsement or recommendation from the British Business Bank or the UK Government. Whilst we make reasonable efforts to keep the information on this page up to date, we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. The information is intended for general information purposes only and does not take into account your personal situation, nor does it constitute legal, financial, tax or other professional advice. You should always consider whether the information is applicable to your particular circumstances and, where appropriate, seek professional or specialist advice or support.

Making business finance work for you

Our Making business finance work for you guide is designed to help you make an informed choice about accessing the right type of finance for you and your business.

Read the guide to making business finance work for you

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