There are several routes for those businesses who are seeking business angel investment.
What are “business angels”?
Business angels are high net worth, private, individuals who often have a strong commercial experience and are seeking investment opportunities in private companies. In return for a shareholding in the company, the business angel would often seek a position on the board of directors.
What does the “business angel” offer?
A business angel will provide you with an agreed amount of capital in exchange for an equity stake within your company. Therefore you will need to be setup as a Limited Company in order to issue shares, if you are a sole trader or partnership – speak to The Local Bookkeeper. The business angel will offer X amount of capital for Y% of shares within your company.
Go through the following checklist before you approach any investors:
- Do you have up to date management accounts for your business and previous years trading accounts?
- Do you have a full three year business plan with supporting financial forecasts?
- Do you have a pitch ready for when you meet the business angel?
Before you approach any investors, you must have a full business plan with supporting financial forecasts. The Local Bookkeeper can assist you in this matter, without these documents you will not be taken seriously and this will dramatically reduce your chances of gaining investment in your business. Click here for more information about this service
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