Certain industries have garnered more attention than others over the past few years. The most interest has been in software, followed closely by healthcare, biotech, business products and services, consumer products and services, hardware and media and entertainment. Identifying the appropriate industry helps to garner the appropriate investors’ attention. Angel investors also look for companies or concepts with growth/export potential[Read More…]
Business Startup Resources
This comprehensive section of business Startup articles provides free information and resources to Startups and Entrepreneurs looking to raise external investment and business financing from business angel investors and Venture Capital. This section deals with the many questions and answers to getting your investment proposal, investor ready, and raising the necessary funds for your business.
What is your Sweat Equity worth and how do you calculate it?
What is your Sweat Equity worth and how do you calculate it? A pre-money start up or early stage valuation is definitely the most difficult to value (vs an established business) but there are some rules. For example, at the very minimum, a business is worth at least 100% of the invested capital. £100,000 cash invested = 100%. You can dilute from there keeping[Read More…]
What is your potential ‘return on investment’ for an Angel Investor?
Most experienced Angel Investors will expect no less than 31-40% annual returns on their early stage and start up angel investments. This is the ideal range someone seeking to raise investment should aim for in their business plan and financial projections that are sent to an Angel Investor. Anything less than a 31-40% annual ROI might not be of interest to an[Read More…]
What will you present to an Angel Investor in your first meeting?
Have you thought seriously about what you will present to an Angel Investor when you meet them to discuss your funding requirement with them? Which of the following are you intending to present to a prospective Angel Investor? Executive summary Abbreviated business plan Complete business plan with appendices and supporting material Prepared investment pitch Nothing If you selected (1) executive[Read More…]
Why Angel Investors would expect you to have invested first!
Business Angel Investors want to see as much investment from an entrepreneur as possible. If you have a serious financial vested interest in your company and its success, you will likely work harder to insure that the business succeeds. The perception is that if you have not invested anything into a company, it makes it easier for you to walk[Read More…]
How much Angel Investment Capital do you actually need?
Angel Investors today have many choices and each part of the decision making process is an opportunity to assess the capabilities of the entrepreneur. Determining the amount of angel funding that your business requires is one of the most important steps in the process. Many small businesses have failed simply because they were under-capitalised. Asking too little could negatively impact the[Read More…]
What types of UK Limited company shares should I offer an Angel Investor?
There are several options for compensating an angel investor for their investment in your company. Most of the time, Angel Investors are offered equity in the form of common shares and usually receive additional compensation in the form of dividends. Once dividends are declared, they are paid to all common shareholders based on the number of shares each individual owns.[Read More…]
The difference between your Investment Summary & Executive Summary
Having a business plan is an absolute requirement when approaching and pitching to angel investors for capital. Its initial purpose however, is not to provide an angel investor with an overly extensive document at the first meeting. It is in fact a preparation stage for yourself. The steps necessary to create a solid business plan will make you more knowledgeable about your business and[Read More…]
Picking the right management team: picking the right people for your start-up
As important as the concept of business, angel investors are also investing in the people who will lead the business. In early stage companies which are risky and have a high chance of failing, angel investors want to be sure that you have what it takes to run the business. They need to be convinced that there is leadership with sufficient knowledge and[Read More…]
What is your investment proposal’s growth strategy?
The ideal growth strategy is usually dictated by the ambition of the entrepreneur. The type of business and the target market could also be a factor in deciding on the ideal growth strategy. However, growth can be measured in many different ways: size, revenue, locations, profitability, employees etc. What would you say is your ideal strategy for growth from the[Read More…]