More questions answered

Should I take financial advice?
If you are new to angel investing, you should obtain advice from an accountant or corporate financier experienced in planning your investments and potential returns and in providing tax advice on using the tax breaks, such as the Enterprise Investment Scheme (EIS) CLICK HERE for more information.

Do I need legal advice?
Once you have an investment opportunity, before committing any investment into the business, you should get legal advice for structuring the deal and drawing up the relevant legal agreements. CLICK HERE for details of the legal process and template documents.

Is Angel Investing regulated?
There is a regulatory framework for Angel investing that both protects the Angel and the entrepreneurs. Before receiving investment proposals from entrepreneurs or making investments, you also need to ensure that you are able to certify yourself as either a High Net Worth or Sophisticated Investor, as defined by the Financial Services Authority (FSA) under the Financial Services and Markets Act 2000 (FSMA). For more information CLICK HERE.

What kinds of businesses should I invest in?  
Generally you should look to invest in small businesses, operating in sectors or business areas that you understand or have experience, this helps you to recognise the market and business opportunity and so you can apply your knowledge skills and contacts to help them grow. But you should always do your due diligence on the business before making an investment. For more information, CLICK HERE.

How many investments should I make?
It is advisable to take a portfolio approach and invest in more than one company to give a spread of opportunities to diversify your risks and maximise your opportunities for returns. For more information, CLICK HERE.

Should I invest alone or in a group?
If you are new to angel investing, you should consider investing alongside an experienced Business Angel or as part of a group of angels or syndicate. This enables you to pool your finance and your skills to maximise your opportunities. For more information, CLICK HERE.