The Top Angel Investor Network
Angel investor networks have grown in popularity as a source of angel capital for startups and scaleups. Investments can range from a one-time boost to help a startup get off the ground to a long-term support structure to help a startup get through its early phases. In this blog, we’ll look at the top angel investor network.
In this blog, we’ll explore
- How does an angel investor network work
- The Pros and Cons
- How to get an angel investment from an angel investor network
- The top angel investor networks
How does an angel investor network work
Angel investors in an angel investor network often have a high net worth and a wealth of business knowledge, which they can use to assist the companies they support. They normally take on an advising position for the leadership of a startup after they’ve invested and acquired their proper ownership.
Angel investors serve as a bridge between self-funding or obtaining funds from friends and family and acquiring investments from major venture capital businesses for most early-stage businesses.
They typically invest angel capital in businesses in which they have experience, which can make them ideal networking resources for startups. They’re frequently well-connected, and they can suggest entrepreneurs to additional private investors as their companies grow.
The Pros and Cons
Pros
- Investors work for themselves, giving them the freedom to make swift investment decisions.
- Collateral isn’t always required.
- They can give you access to their industry knowledge and connect you with their contacts.
- Being affiliated with your investor from an angel investor network allows lends credibility.
Cons
- Angel investors often demand 10% to 50% ownership of your company in exchange for angel capital, which is a significant drawback. This means that if the angel investors determine that they are preventing the company from succeeding, business owners may lose control of their company.
- Finding a good angel investor for your company could take a long time.
How to get an angel investment from an angel investor network
Stay prepared
Angel investors from an angel investor network are unlikely to give money if you offer a great idea without some sort of real backup. They’re entrusting you with a potentially large investment, so you’ll need to demonstrate your trustworthiness.
- Your product or service must be completed or nearly completed.
- You must have existing customers or a sizable customer base that you can prove will buy from you.
- You’ll need a well-thought-out, well-executed business plan in place, as well as realistic and compelling forecasts that show outstanding growth potential.
Research who you’re trying to connect with
- You don’t want to go into an angel investor meeting completely unprepared. Because these kinds of relationships are rare, you should place yourself in a position to take advantage of them. This begins with careful study about your potential funder’s investing history and credentials.
Prepare a thoughtful, effective, and concise elevator pitch.
Have a well-crafted elevator pitch that balances being informed with being concise: a brief, to-the-point presentation that captures the core of your startup.
Yours should be captivating and attention-getting, and it should include information about who you are, what your business does, and your unique value proposition, as well as a call to action.
The Top Angel Investor Network
Based in Westminster, Envestors’ angel investor network of 4000+ sophisticated investors typically invest between £250k and £2m in equity funding, with an exit horizon of 5-7 years.
A network made up of 100+ private investors, 24Haymarket is a sector-agnostic angel network, headquartered in London but with a regional office in Edinburgh
Edinburgh-based Equity Gap is an angel network that invests in high-growth companies across the UK but primarily in Scotland. The network typically invests between £100k and £500k, in a broad range of industries and verticals, excluding property or traditional retail.
Also headquartered in Edinburgh is an angel investor network Archangels which, having formed in 1992, is the world’s oldest continuously-operating business angel syndicate. Investing between £50k and £2m (typically £250k-£1m), the group invests exclusively in Scottish companies that qualify for the Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS), government programmes that offer tax relief to investors in small businesses.
The Cambridge Angels network invests throughout the UK but gives primary consideration to opportunities in the Cambridge area. To date, the group has invested in more than 70 startup and scaleup companies, with a particular focus on the cleantech, biotech and hi-tech sectors. It typically invests between £50k and £500k and has an exit horizon of seven years.
We hope you enjoyed our article on the top angel investor network. We hope that this article will help you to better understand angel investing and will give you the evidence you need before making your decision on whether or not you should invest with an angel investor network. If you have any questions or comments, please contact us by visiting drop.studio.