Do you have what it takes as an entrepreneur?

Equity Fundraising can be a tough and competitive slog, time-consuming and often frustrating for entrepreneurs who just want to get on and run their business. To help you through the journey please refer to our 5 step process and hints & tips below.

Our 5 step process will set you on the right path

Please provide us with a succinct summary of your proposition by completing the Application Form here. This will be reviewed by at least 2 of our Directors one of whom will contact you as soon as possible with feedback on our ability to help you raise funds.

If we feel we can help we will discuss your opportunity in more detail, ask to see your Business Plan or Investor Deck so that we can review it, and with your permission possibly show it in confidence to one or two of our investors for their views.

If as a result of our review we believe there is a reasonable chance of securing funds we will ask you to sign a Fee Agreement which comprises a Presentation Fee of £495.00 and a Success Fee payable if we are able to secure funds for your business. We will then work with you to market your opportunity to our network, invite you to present to an Investor Syndicate and generally support you to the best of our ability.

If the funding raise is successful we will work with you as required to assist with completion paperwork, Shareholders’ Agreements. We will then collect from you our success fee which is normally the industry standard of 5% of funds raised.

The journey does not necessarily stop with the first round of funding, and we shall continue to be in touch with you post funding to keep abreast of your progress and to be ready to support you if further funding is required as is usually the cases as businesses grow and develop.

Hints & Tips

While not intended to be exhaustive or prescriptive the following points may assist you as you prepare your business for investment readiness:

  1. Valuation. Notoriously difficult to evaluate particularly as the normal metrics of mature company valuation cannot be applied to pre-revenue or early stage businesses. Be reasonable, do not base valuation on multiples of revenue several years ahead: many businesses don’t get that far, yours might be among them.
  2. If all goes well Investors will want to undertake Due Diligence, a detailed examination of your business so it would be helpful at an early stage in the process to have ready Company formation docs, e.g Memorandum & Articles of Association and an “angel-friendly” Shareholders’ Agreement, which gives investors pre-emption rights and helps prevent their stake being diluted by future funding rounds. Your accountant should be able to help here, otherwise contact us.
  3. Pre-approval from HMRC for SEIS or EIS is an essential pre-requisite for most investors, as the schemes confer significant tax advantages. Not all business sectors are eligible for the scheme (including financial services and property-related schemes) please visit the HMRC website for more information https://www.gov.uk/guidance/seed-enterprise-investment-scheme-background

 

Your business is likely to attract investor interest if it can demonstrate some or all of the following features (in no particular order):

  • Robust & defensible Intellectual Property.
  • Scalable, replicable business model, i.e. not a lifestyle business or over-dependent on one individual. (Nothing wrong with lifestyle businesses, but they don’t attract investment).
  • An experienced Management Team, preferably with a proven record of success in earlier ventures
  • Clear and understandable Business Plan demonstrating knowledge of market, routes to market, and the business model
  • Clear exit strategy
  • A mention of any skills gaps that an Angel Investor could help with.

Register for Investment Assessment

Thank you for your interest in Advantage Business Angels.

You can register your business at no cost for a confidential assessment with us by filling in the simple form below. It will only take you a few moments to complete.  We know it is a bit frustrating having to complete a form but without certain information we can’t make a judgement on our ability to help you.

We promise you will hear from us within 48 hours if we think we can help with your fundraising.

Advantage Business Angels take confidentiality very seriously. Your information will only be seen by our Partners or trusted investors  – we never share any information outside the business without getting your permission first.

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