Angel Investments

While the money helps, angels also offer valuable mentoring, support and knowledge, and access to contacts.

What is angel investment?

An angel investor is someone who invests their own money in a small business in exchange for a minority stake (usually between 10% and 25%). They tend to be entrepreneurs or people with extensive experience in the business world.

However, angel investment is about more than just money. Angels offer mentoring and support, and businesses that receive investment will generally benefit from the investor’s time, skills, contacts and business knowledge.

Angels take a hands-on approach. They will spend lots of time with the entrepreneur and help to push the business forward. It’s crucial that the angel and the entrepreneur have a strong relationship, as they’ll typically spend at least five years working together closely.

Who’s involved?

Syndicate

Angels can invest alone, but usually they invest together as a syndicate. This is when a number of angels work together to pool their money and experience.

Lead angel

When a syndicate invests in a business, the lead angel is the person who co-ordinates the investment deal. The lead angel will also have the most contact with the business after the deal. They can act as an adviser or even as a non-executive director.