Being a business angel offers the prospect of a high return, and unlike a stock market investment there is scope (usually non-exec or part-time) to use your skills and experience to help the company’s managers to raise the performance of the business and add value for all shareholders.
If you really want what we term – “sunk” – long term capital in your business that you don’t have to worry about paying back in the same way you would a loan, then selling shares in return for funding may be right for you but that is too simple an answer when there is alot more involved in that simple transaction.
No, it can be appropriate for start-ups and established businesses alike.
You don’t give anything away. An incoming investor would buy shares in your company at a price that you both agree. If you don’t agree on price, you don’t proceed.
No – but it’s true to say that most business angels like to think the company they invest into is near enough to visit although in truth they rarely ever do that. Most of our Angels are based in and around the Midlands but at least 25% are dotted around the UK.
For the business seeking funds …the usual advice is to start looking for your investors well before you need the money ..6-12 months is not out of line with the time it takes to actually complete an equity deal. It can of course be a lot quicker but that will depend on the information available, evidence, clarity and validation of the key facts. Being well prepared beforehand so there are no surprises and you know what you are likely to be asked will always speed the process.
Investing in unquoted companies is inherently more risky than investing in shares traded on public markets, and advice should always be taken from a suitably qualified independent adviser before making any commitment.
No – although we are part of the University of Warwick Science Park we receive enquiries from companies around the UK and sometimes beyond. We have no specific sectors nor stages of maturity that we concentrate on. See the range of companies we have already invested into …
There is no fixed sum, although generally most investments never start lower than £5,000, with no upper limit we do not put any member of the network under pressure to invest, although, clearly if you join the Angel network there is an expectation that you will invest in the right opportunity.
The Minerva Business Angel Network has been around a long time – infact longer than most netwoks in the UK and indeed the world – but that is no guarantee we only ever see the best and probable “stars” of the future.