Risks and Rewards

Investment in early stage businesses carries high risks, as well as the possibility of high rewards.

It is highly speculative and before investing you are strongly advised to take advice from an accountant or Corporate Finance expert who is authorised by the Financial Service and Markets Act 2000 (FSMA) who specialises in advising on investments of this kind.

Recent research carried out by NESTA and BBAA, called "Siding with the Angels" showed that up to 50% of investments made by angel investors are likely to  fail i.e. not return the original stake investment.

BUT this research has also shown that where investment has been made in a number of companies across a mixed portfolio, the returns can be very encouraging, ranging from two times the original investment up to 40 times, with an overall return of 22% IRR. This compared well with an identical survey of American angel investors in the US who gained a 27% IRR overall. CLICK HERE to access “Siding with the Angels” NESTA-BBAA 2009.