Angel group

As a business owner, you will face numerous problems and roadblocks. An angel group is a good place to start if you’re seeking a one-stop solution. They provide a source of funding for startups and growing businesses. 

An angel group can assist entrepreneurs in achieving greater consistency, structure, and organization in their businesses, as well as streamline and simplify the fundraising process. This blog will discuss angel groups and how they can assist you in funding your startup.

In this blog, we’ll explore:

  • What is an angel group
  • How to find angel groups for your startup
  • What angel group investors want to know before investing in your startup
  • Angel groups that have invested in London startups

What is an angel group

An angel group is a group of angel investors who work cooperatively, usually in person, to analyze and invest in businesses. They usually focus their efforts on a narrow geographical area, such as a single state or state region, or, in some cases, a single city or metropolitan area. 

The goal is to make use of the group members’ local or specialized knowledge and connections, as well as to bring together a group of like-minded individuals with a diverse set of talents, abilities, and experiences.

How to find angel groups for your startup

There are a variety of ways to find angel groups, including: 

  • Business and personal networking
  • Attending pitch events
  • Through local coworking spaces and accelerators
  • Angel investor associations
  • Internet

However, keep in mind that angel groups are made up of people from all walks of life. With it comes an incredible variety of unique personalities and perspectives, finding the proper group to invest in your business is important.

Factors to consider include: 

  • Finding investors eager to fund in your location
  • Investors excited about funding innovations in your industry
  • Level of experience versus how much flexibility they will give you
  • If they are willing to be lead investors
  • If they often participate in follow up rounds
  • If they have a track record of successful exits
  • The level of due diligence and proof of concept they require
  • The amount they are willing to invest

What Angel Group Investors Want To Know Before Investing In Your Startup

Angel group investors recognize the significant likelihood of a startup’s failure. As a result, investors must believe that the potential rewards from investing outweigh the dangers.

Before investing in a startup, angel group investors look into a number of crucial aspects and conduct due diligence.

These factors include:

Is there an ambitious founder and team

Many investors place a higher value on a startup’s personnel than on its idea or product. Investors will want to know that the staff have the necessary talents, drive, expertise, and temperament to help the company thrive.

Do the founders understand the financials and key metrics of their business?

Investors seek out founders that have a thorough understanding of their company’s finances and critical indicators. You must demonstrate that you understand all of them and that you can communicate them logically.

Is the market opportunity big?

Most angel group investors are searching for businesses that can scale and grow into something substantial, so make sure you explain why your company has the ability to grow significantly.

What are the potential risks to the business?

Investors are interested in learning about the business’s potential risks. They want to know how you think about things and what actions you’re taking to minimize the risks. Any company strategy, however, will undoubtedly contain risks, so be prepared to address these concerns.

Angel Groups that have invested in London startups

Here are 5 angel groups that have invested in London startups across the last two years

24 Haymarket

Typically invest between £60k and £4m and focus on bringing proven products and themes to the market.

Angel Investment Network

Investment ranges between £10k and £10m from over 200,000 registered investors.

Angels Den Angel Network

Investments typically range between £100k – £600k. The fund provides pitching and ‘SpeedFunding’ events as part of its Angel Club package, which includes pitch coaching, a half-hour pitch at a Club event, and the opportunity to meet the angel network.

Angels in MedCity

Typically invests in the healthcare, medical technology and life sciences sectors with an average ticket size of £300k

Cambridge Angels

The network of 50+ investors typically invests between £50k and £500k although it may well commit further funds over several rounds.

We hope you enjoyed our blog post about angel groups and how they can help fund your startup! It’s important to know the ins and outs so that you don’t get scammed or miss out on the opportunity to raise a huge amount of capital. We are here to tell you how they work, how you can join them, what kind of companies are good for this, and more. If you have any questions or comments, please don’t hesitate to reach out to us at Drop Studio

If you would like a free consultation on business angels, get in touch below: