How to get started: 

​

Step 1: Check you're eligible

​

Early stage investments carry a high level of risk, so there are rules about who can be shown them. Before you can attend a pitch event or see investment opportunities, you'll need to self-certify as either a High Net Worth Individual or a Sophisticated Investor, as defined by the Financial Conduct Authority under the Financial Services and Markets Act 2000 (FSMA).

​

Step 2: Think about what you'd like to invest in

It helps to think early on about what matters to you. Are there sectors you know well or feel passionate about? How much would you be comfortable investing across several companies, bearing in mind you could lose it all? Would you like to be closely involved with the businesses you back, or would you rather stay in the background? There are no right answers, and your approach will naturally develop as you go.

​

Step 3: Find a network that suits you

Many angels invest as part of a group rather than on their own. There are many angel networks across the UK, and the UK Business Angels Association is a helpful place to compare them. Some focus on a particular sector or region, some meet in person and others work mainly online.

Whichever you're considering, ask how companies are selected before they're put in front of investors, and see if you can go along to an event as a guest first. It's the best way to get a feel for a group before you commit.

​

Step 4: Go to your first pitch event

At a pitch event, founders present their business and answer questions from the room. It's a great way to hear lots of ideas in one go and to see how more experienced angels approach a company. We encourage prospective members to come along to one of our events, online or in person before they join. 

​

You don't need to invest in anything at your first event. Many people spend a little while listening and learning before they make their first commitment.

​

Step 5: Ask lots of questions

If a business catches your interest, this is the time to dig deeper. You might ask for the business plan and financials, or join a follow up call with the founder and other interested investors. Things worth exploring include:

• The investment thesis

• The deal structure

• The team

• The financials

• The market

• The competition

• The exit strategy

For many angels, the people matter most. The skills, experience and commitment of the founding team are often what shapes the final decision.

​

Step 6: Do your own due diligence

A network will usually carry out checks as part of its selection process, but the responsibility for deciding whether an investment is right for you rests with you. Take the time you need to feel comfortable. Sharing research with other investors interested in the same deal can make this much easier, and it's a good way to learn.

​

Step 7: Make your commitment

Once you've decided to invest, you'll say how much you'd like to put in and on what terms. When due diligence is complete, the terms are agreed and the full round is in place, you'll be asked to confirm your commitment and the legal paperwork will be prepared.

​

Rounds can take time to close, as founders are often raising from several sources, so a little patience helps. When the round completes, you'll receive the final documents and instructions for transferring your funds. The company will then send you a share certificate, and you'll officially be a shareholder in an early stage business.

​

Step 8: Decide how involved you want to be

What happens next is up to you. Some angels offer their experience, contacts or time to help the business grow, while others prefer a quieter role. Companies may also come back for further funding as they grow, and you can choose whether to take part in future rounds. It's worth remembering that early stage investments can take many years to deliver a return, if they do at all.

​

Ready to take the first step? If you'd like to come along to one of our pitch events as a guest, email hello@easternangels.co.uk.

​