Angel Investors want to see as much investment from an entrepreneur as possible. If an entrepreneur has a serious financial vested interest in their company, the entrepreneur is more likely to work harder to ensure the business’ success.
Conversely, if you invest £0 into a company, it makes it easier for an entrepreneur to walk away. If you have your life savings invested, you are most likely going to do everything possible to make it succeed. Angel Investors love to see this kind of commitment.
Just how much of your personal investment will satisfy an investor depends on the size of the business, industry and some other factors. However, Angel Investors want to know how much you have personally invested, how much you are trying to raise and what percentage of the total amount they will be funding.
Your chances significantly increase if what you have personally invested is a reasonable percentage of the total capital required. In other words you are financially motivated not to walk away.
The ideal range for investment depends on your business, region and industry but anything between £5,000 to £20,000 will be favourable for your chances of attracting business angel investment. If you have personally invested £51,000 – £250,000 cash into your business, an Angel Investor will see this as significant commitment on your part.