| Laurence Kemball-Cook, CEO, Pavegen Systems Pavegen is a brand new renewable energy system so having the funds and support during the development phase is vital. Business Angel investment gave us both at a crucial time, allowing us to fulfil orders, take on key staff and providing us with a ready-made network of investors who understand our business and share our vision. We're now growing fast with partnerships with companies like Westfield and Diageo. |
Key considerations
How much money do I need to be an angel investor?
Most angels invest between 5-20% of their personal disposable wealth (excluding principal private residence, pensions and life assurances). You need to take account of your own financial commitments. However, you should take advice from your accountant about planning your investments to identify what level of angel investment is right for you.
How much available time do I need?
Some angels are full-time investors in small businesses, but many people fit this around a range of other activities beyond their normal occupation or personal commitments. You can adapt it to your own availability, taking account of your work and other time commitments, or you may be retired and have more time at your disposal. If you don’t have much time to identify and select deals, you should consider joining a network or group where investment opportunities are pre-selected and where you can invest in syndication alongside more experienced angels. Research has also shown that following the progress of your investee businesses does pay off in terms of improved returns, so you need to consider whether you have time for this. Or you can take a more passive role as part of a syndicate with a lead angel looking after the business on behalf of the other syndicate members. For more information CLICK HERE
Can women be Business Angels?
Yes angel investing is an excellent opportunity for women with spare financial capacity and business or professional experience to bring their skills and finance to support entrepreneurs. Many women (see those featured on the home page) are finding this a rewarding and enjoyable experience and are able to fit this around other commitments including childcare. However, there are not enough women recognising this opportunity to become a Business Angel. CLICK HERE to find out about more Opportunities available for women Angels.
How much do Angels invest in a business?
In general, Business Angel's will invest anywhere between £5,000 and £150,000 in a single venture, depending on the business and the growth needs. But this can be lower and occasionally much larger sums according to the disposable wealth of the individual and opportunity identified. Also with an increasing trend towards angels investing in groups and syndicates, larger amounts of finance above £1m can be raised by pooling their finance and also their business skills. It also advisable to take a portfolio approach to spread your investments and thereby spread your risks and increase your opportunities for returns. CLICK HERE for more information on Risk and Rewards.
