A look at business angels:
Raising investment from London Business Angels
Some of the world’s most successful businesses can be found in London. The city has a reputation as one of the most entrepreneurial places. One of the advantages of London is a large number of business angels or those who invest in startups. This is due to the high-quality business ideas that originate in London. But what does it take to get investment from a London-based business angel?
This article will cover how to get investment from a business angel and some insider tips and tricks.
- Identifying London business angels
- What do London business angels look for when investing?
- Approaching London business angels
- How to pitch your idea to a London business angel
Identifying London business angels
If you are unable to raise funds on your own or through conventional loans, you might seek investment from business angels. Business angels are high-net-worth individuals or groups of investors looking for new ways to invest their money. They will frequently assist you with your business start-up or expansion. You can also benefit from their business experience and contacts.
Business angels typically invest between £10,000 and £500,000 in a company, however, angel investments of more than £2 million are becoming more common. Angel investors receive varying amounts of equity in exchange for their investment. A good place to start looking for London Business Angels is right here.
What do London business angels look for when investing?
Angel investment is best if your company has a lot of potential for growth and you’re willing to give up some ownership in exchange for money.
When looking at return on investment (ROI), Angel investors will be needing a healthy return on their investment in your company if they acquire an equity position. The specific rate of return they expect will be determined by the investor, the sector and the initial size of your business. If they want to invest, business angels sometimes require some involvement in the management of your company. This isn’t due to a lack of faith in your ability, it’s because business angels can bring specialized knowledge and commercial acumen to your company that you might not have otherwise. To follow the right procedure with business angels, have a look at our specialised support service.
Approaching London Business Angels
There are numerous ways of accessing London Business Angels as an entrepreneur or executive of a small business. While some investors prefer to be involved in a venture on their own, accessing deals through networks and syndicates is becoming more popular.
Access to accelerator programs or incubators may also be an option. Following that, the person seeking funding must present his or her company strategy in order to pique investors’ interest, whether through live pitching events, showcasing events, or online. In general, it may be a less complicated option than seeking funding from venture capitalists or borrowing money from a bank.
How to pitch your idea to a London business angel
A pitch deck should be no more than 10 or 12 slides long. You should include information about:
- Your team
- Previous accomplishments
- Product/service, your market
- Growth strategy
- Financial projections
- The amount of money you are seeking
If you get the opportunity to meet your potential investors in person, whether at a business event or elsewhere, you should have your elevator pitch ready because you may only have 30 seconds to talk about your company. You should prepare a 30-second or one-to-two-minute pitch. You must be able to summarize your company quickly and avoid discussing minor specifics. Talk about your current traction and what you want to achieve.
If an angel investor is intrigued, they will (usually) ask some numbers or market-related questions. Don’t be late in responding to the questions. Make sure you have a Dropbox folder or another location where you can simply access and share all of the pertinent information about your industry and business.
We hope you found our view on business angels and what you need to know for your next investment to be informative and entertaining. If you want to get into angel investing, London is a good place to start. We understand that angel investment is a lot of effort, but it can also be a good way to make money while simultaneously having some of the most positive pro-social influences. Please contact us at any moment if you would want to learn more about how to get started and with angel investments in London. We’d be delighted to hear from you!