Business
Angels are high net worth individuals who invest on their own, or as
part of a syndicate, in high growth businesses. In addition to money,
business angels often make their own skills, experience and contacts
available to the company.
Business Angels rarely have a
connection with the company before they invest but often have
experience of its industry or sector. The commitment of business angels
is often very strong.
The majority of Business Angels make
investments for financial reasons. However, there are also other
motives for investment, for example, taking an active part in the
entrepreneurial process, and the enjoyment from being part of the
success of a good investment and the sense of putting something back in.
Business
angels are an important but still under-utilised source of money for
new and growing businesses. A typical business angel makes one or two
investments in a three-year period, either individually or by linking
up with others to form a syndicate. Some business angels invest more
frequently.
An audio introduction to business angels and business angel finance can be obtained by
clicking here. This introduction by Anthony Clarke (BBAA Chairman) is courtesy of
RedBusiness.
Are Business Angels for you? Business
angels invest between £10,000 and £750,000 in an investment. Where
larger amounts are invested in a business, this may be' as part of a
syndicate organised through personal contacts or a business angel
network. The lead investor is sometimes referred to as the "archangel".
Business
angels invest across most industry sectors and stages of business
development, but especially in early and expansion stage businesses.
Most prefer to invest in companies within 100 miles of where they live
or work. Investors in technology companies tend to be more prepared to
travel longer distances.
What do Business Angels look for?
If
you have read all of the above information and decided that Business
Angels are suitable for your organisation you will now have to take the
next step. Before you take the next step you will have to ensure
that your organisation has a lawyer, an advisor and a comprehensive
business plan. If you are missing any of these items you may wish to
contact one of
BBAA’s associates or members who may be able to help. Another organisation which may be able to help you is
Business Link who providestraightforward
business information and access to a wide network of business support
or visit the Department of Trade and Industry's Small business Service
website.
As
a trade association we do not specifically provide contact to Business
Angels however our Members do. All of our members are business angel
networks or groups who have signed our best practice
code of conduct. We recommend you take a look through our
member directory and
choose the business angel intermediary that is the most suitable for
you, based on geographic location or the intermediary’s particular
specialisation.
If you have any questions or queries please do not hesitate to contact us at
info@bbaa.org.uk 
