Entrepreneur Frequently asked questions.
What is Best Business Angels?
How do I raise funds for my business?
What are the advantages of using Business Angels?
What is a Business Angel Investor?
What is the difference between an Business Angel Investor and a Venture Capitalist?
What is the likelihood of my business finding funding with the help of Best Business Angels?
I received an email notifying me that a registered investor has contacted me. What do I do?
How many business Angels do you have?
Why should I trust a Business Angel investor?
How much information should I include in my proposal?
How is my privacy protected?
Is there a minimum or maximum investment?
What type of businesses do Business Angels invest in?.
Does my company have to be an established business?
What is the typical timescale for a business to get funded through Best Business Angels?
What can I expect from Business Angel funding?
Will a Business Angel investor ask for a stake in my business?
How much equity will I need to give away?
What do Executive Summaries look like?
What information are Business Angels looking for?
What do Business Angels expect?
What is a typical Business Angel Investor and why invest in start-up companies?
How many investment opportunities are there on your website?
How do I know if my proposal has been received?
How much does it cost to find funding on Best Business Angels?
Why isn’t it free of charge?
Does Best Business Angels receive any compensation for successful funding?
Why isn’t my proposal appearing in the list of recent proposals?
Are the contact requests automated?
Who are the investors on this website?
Why should I use this service?
Do I need to carry out due diligence?
I have other questions. Who do I contact?
What is Best Business Angels?
Best Business Angelsis an online platform designed to connect entrepreneurs (looking for growth or start-up capital) and angel investors (looking for investment opportunities). The Best Business Angelsis unique in that it offers a local, national and global platform with partner networks across North America, South America, Europe, Africa, Asia and Australasia. The Best Business Angelsis continually growing, developing and updating its extensive database of angel investors.
How do I raise funds for my business?
Traditional sources of business funding have recently become increasingly scarce. They would include: asking friends and family, but everyone’s feeling the economic pinch at the moment so there’s little to spare; a bank loan, but it’s been well documented in the press how little of that has been going on despite millions of pounds of government investment; and venture capitalists, whose investment funds have been depleted as their clients have held back their funds until things start to look better. The fastest-growing small business funding market in the UK today is that of business Angels.
What are the advantages of using Business Angels?
The main advantage of using business Angels as opposed to more traditional methods of funding your business is that Angel funding is not secured on any of your personal assets. Business Angels are taking a huge risk with their own money, because if your business fails they will lose their investment but unlike those who offer secured loans they cannot come after you for more.
What is a Business Angel Investor?
This term has become common among the investment community to refer to a high net-worth individual that invests their own personal funds in various businesses.
What is the difference between an Business Angel Investor and a Venture Capitalist?
Business Angels make their own decisions as opposed to a board or group of people making a decision for investors that have pooled money together. Business Angels tend to be more involved in the businesses that they invest in and provide assistance in ways that venture capital firms do not. Business Angels typically do not own as large a stake in the company as a venture capital firm would. Another benefit of being an angel investor is the reception of certain tax incentives from investing in UK controlled small businesses.
What is the likelihood of my business finding funding with the help of Best Business Angels?
Because we have one of the largest concentration of Business Angels anywhere in Europe at Best Business Angels, your business has a better chance of gaining funding here than through any of our competitors. Although it would be impossible to offer any form of guarantee, you can increase your chances of winning by having a well written business plan.
I received an email notifying me that a registered investor has contacted me. What do I do?
Log onto the Best Business Angels website. Once you have logged in, you will be automatically directed to the "Member Home" page. Click on the "View Responses" link to review the inquiry.
How many business Angels do you have?
Best Business Angels has grown at a fantastic rate to now have the one of the highest concentration of business Angels in Europe. With thousands of Angel investors registered and more signing up every day, at Best Business Angelsyour business plan now has the best chance of being found by just the right investor to boost your business skywards.
Why should I trust a Business Angel investor?
At Best Business Angels, we have gone to great lengths to ensure that we comply with guidelines on the legitimacy of Business Angel investors who are registered with us.
How much information should I include in my proposal?
If you are worried about confidentiality we would advise you not to give away too many details in your proposal. Try and write enough to get the investors interested in your project without revealing the key ideas. If you are really concerned about these matters, we suggest seek to protect your intellectual property where possible either directly with the Intellectual Property Office or through a patent lawyer.
How is my privacy protected?
The site was developed using proprietary database management tools and a secure server is used to assure that no one sees your business or personal information. Your information is not offered to any third party for any purposes and is guaranteed to be kept confidential and private.
Is there a minimum or maximum investment?
No. There really are no maximum or minimum restrictions to investments through Best Business Angels. It can range from £thousands to £millions. There really is no average as each deal is different.
What type of businesses do Business Angels invest in?
The quick answer is absolutely any that they see potential in. We have everything from start-ups to successful businesses looking for investment, from every sector you could imagine. If you are looking for small business funding for any venture, no matter what stage your business is at, register with Best Business Angels today.
Does my company have to be an established business?
No, we accept projects at every stage of development – from ideas to start-up companies to mature businesses. Even if your project is still an idea, it could still be of interest to the investors. They might even have the relevant knowhow and expertise to get the ball rolling.
What is the typical timescale for a business to get funded through Best Business Angels?
The average is 2 – 3 months, but timescales will be determined by the complexity of the legal agreements and the flexibility of the parties concerned. We know a number of law firms that our entrepreneurs have used in the past who offer fixed-fee packs and fast-track templates for this type of agreement, to speed up the process.
What can I expect from Business Angel funding?
Angel funding is gloriously less structured than traditional means of raising capital. The relationship that you have with your Angel will depend on the individual wants and needs of each of you. Sometimes it will involve a simple transfer of money, while at others the Angel will require or offer a more hands-on approach. Many Angels recognise that their expertise and address book will fast-track your business to a more profitable success for all parties.
Will a Business Angel investor ask for a stake in my business?
Generally yes but the amount will depend on what is agreeable to both parties. Every deal is different, but it would be considered normal for an Angel investor to structure an agreement that will see a good return for them within three to five years. This would be achieved through the sale of the business, a large additional capital investment or the owners of the business buying back the investor’s stake.
How much equity will I need to give away?
The percentage of equity that you will give away depends on just three things: how much your business is worth, how much investment you need, and what you negotiate with a Business Angel investor.
What do Executive Summaries look like?
An Executive Summary is arguably the most important part of your business plan. As the first section that any investor will read, it will determine whether they are interested enough to read the rest of your document. It is not a boring index of sections, nor is it a hyped-up sales tool. The Executive Summary should be an honest representation of the main points from your business plan, offered in a form that will excite the reader’s interest.
What information are Business Angels looking for?
This is a very individual thing, as it depends on the amount of involvement a Business Angel is willing to offer to a business and how much they believe in the potential of your opportunity. However, it would be fair to say that a clear and concise description of the business or concept, a full business plan including financial projections, the background of all those involved in the building and direction of the business, and a “reasonable” business valuation are all prerequisites of a successful pitch. Investors are not looking for "pipe dreams" or unprofessional sounding proposals. They expect a reasonably sound business plan as well as an understanding from entrepreneurs that an investor is not going to just blindly hand over significant sums of money with no strings attached whatsoever.
What do Business Angels expect?
Business Angels are primarily looking for a profitable return on their investment within three to five years. This is usually achieved through a management buy-out of their share in the business, or the sale of the business as a going concern. Other than that, each business Angel will have its own wants and needs from the relationship. Some will simply wish to invest their funds and act as a silent partner, whereas others will want a more hands-on involvement because they recognise that in this way they increase the chances of the business succeeding.
What is a typical Business Angel Investor and why invest in start-up companies?
Some Business Angels are successful business people who are looking to expand their portfolios, broaden their business risk or re-invest their profits. Others are retired self-made millionaires who are looking to keep their grey matter active. Still more are interested in helping start-ups and small businesses to succeed. There really is no single reason that motivates a business Angel, but the one thing that they all have in common is a desire to fund only those ventures that have the potential for great success. In addition to funds, angel investors can often provide valuable management advice and important contacts.
How many investment opportunities are there on your website?
With thousands of entrepreneurs, inventors and small businesses registered on Best Business Angels, Business Angels have an excellent opportunity to meet some of the most inventive individuals offering the best business opportunities in Europe.
How do I know if my proposal has been received?
You will know that your proposal has been received if it appears in the list of "Active Proposals" in your member's area. If there are no proposals in your member's area then you will need to resubmit your proposal. Always write your proposal in another programme and cut and paste to avoid the page timing out.
How much does it cost to find funding on Best Business Angels?
You pay nothing. It's 100% FREE.FREE to register. FREE to get contacted by investors. You pay nothing. For anything.
Why isn’t it free of charge?
Didn't you hear us? It's a 100% FREE service because we don't want to charge any money from start-ups because they can't afford it.
Why isn’t my proposal appearing in the list of recent proposals?
If you have just submitted your proposal, it is probably because we haven’t approved it yet. We have to read and activate each proposal before it is released to the investors. Alternatively it may be because you have just edited your proposal, which means that it is removed from the system until we reapprove it.
Are the contact requests automated?
No, all the contact requests you receive are from investors who have read your investment proposal and decided they want to discuss your project in more detail.
Who are the investors on this website?
The investors on our website have been compiled from databases of Business Angel investors, company directors and private investment groups. They also include individual investors who have registered in the hope of finding investment opportunities. Our database is continually expanding with new investors looking to invest in companies like yours.
Why should I use this service?
As an entrepreneur, you are already aware of the growing resistance of banks in the UK to finance small business. It is virtually impossible to obtain financing without having secured assets, providing personal guarantees, etc, etc. Angel investors are the logical source to provide financing to small business. With £1 billion invested annually in the UK and growing all the time, the main obstacle is locating and presenting your idea to this large group of investors. Best Business Angels allows an entrepreneur to: 1) Find a source of capital. ; 2) Find an experienced investor that can provide guidance and support; 3) Make it all come together in a fast and efficient way.
Do I need to carry out due diligence?
Please be aware that after the initial match has been made it is the entrepreneur's responsibility to carry out diligence on the investor. Please inform us of any suspicious behaviour.
I have other questions. Who do I contact?
Contact us by email.