What is Angel Investing & is it for me?
Angel investing means backing early-stage businesses with your money and experience. Join us at virtual and in-person pitch events, and invest alongside members across the East of England. New or experienced, you're welcome here
A Business Angel is someone who makes use of their personal disposable finance to invest directly into small businesses that they have identified as having the potential to grow, scale and exit. An Angel Investor would normally take shares in the business in return for providing equity finance.
There’s no such thing as a “typical” Angel Investor. However, before receiving business plans or beginning to make Angel investments, you should ensure that you are self-certified as either a High Net Worth or Sophisticated Investor, as defined by the FCA under the Financial Services and Markets Act 2000 (FSMA).
Many Angel Investors seek to bring not only finance but also personal experience and contacts which will help the company succeed.
“At Eastern Angels we welcome Angels from a variety of backgrounds with experience in a range of sectors. The more diverse the group the better because businesses need a range of different approaches and experience to help them succeed.
We would love to see more female investors coming on board. We’re delighted to be seeing many more female founders bringing their businesses to us to seek funding so it would be great to increase our female Angel engagement as well.”
Sam Graham, Managing Director, Eastern Angels
Mitigating Risk
Early-stage investing can be rewarding, but it is high risk. Returns rarely come quickly. You will typically wait seven to ten years for an exit, and you could lose all the money you invest.
All early-stage, high-growth businesses carry risk. According to UKBAA, 58% of angel deals may not return the original stake, and most returns come from 10 to 20% of the portfolio. Many angels spread their money across a number of smaller investments to help manage this.
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Give time and support. Helping the business you invest in gives it a better chance of success. Some angels join the board, while others prefer a more informal advisory role.
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Tax relief. Investing in qualifying companies can bring access to EIS and SEIS tax reliefs, which help reduce risk. Most deals approved by our screening process are eligible. Tax treatment depends on your circumstances, so take advice if you are unsure.
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Screening and due diligence. Our screening process helps shortlist deals before they reach members. You should still carry out your own due diligence before investing.
What is an Angel network?
An angel network offers more than access to regular, pre-screened deals. Members meet founders at pitch events, learn from more experienced investors, co-invest, and talk ideas through with their peers. Networks often also offer specialist advice through partner organisations, from portfolio management and legacy planning to legal and accounting matters.
Angel investing isn't for everyone. But if you have the capital, can weather the risks and want a rewarding way to put your experience to work, you would be welcome here.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.