Business angels are private investors or syndicated groups providing equity based finance to fund business opportunities. Their strength is in raising investment capital between £50,000 and £2m. There is usually no preference for business sector since most have a very wide range of interests. Generally, the funding made to a company is against the purchase of shares so if £100,000 is required and the company is valued at £400,000 then 25% of the equity would be sold in return for cash. Angels always want an exit and it maybe that after two years the company agrees to buy back the shares for £200,000. The angel has doubled his/her money, been able to help the company through contacts and expertise, and the company has used the cash to expand. For a much larger sum Bill Gates founded his empire on these principles.
In grooming companies Capital Brokers work closely with Black Cat Profiling
Capital Brokers can help you find the right Angel for your business and prepare the necessary paperwork to catch his or her interest.
A review of your business and marketing plans is made and if necessary these are re-written in a form to attract investors. When it is believed that the right business angels can be found a consultant will advise you of the anticipated deal structure. After this a summary is mailed to a targeted list of angels; those that are interested will get the full report and will be contacted to see if they would like a formal presentation. If this is the case, a group will be brought together and the project presented to them by the consultant and aided by you the entrepreneur.
Project management is provided to completion. This includes negotiating with the potential investors on your behalf and advising on legal formalities, which is where our consultant's experience and skills come into their own.
Due diligence is usually undertaken by the angel but mainly involves their own accountant validating historic trading figures and their lawyer ensuring that the entrepreneur is a fit and proper person.
Presenting this information correctly can ensure keen interest from business angels as well as prompt responses to an application. To start the process please click the request box below and leave your information.