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Finance
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1 ) What are Business Angels?
Business Angels are normally successful business
people in their own right . In addition to bringing
funding to the business, they can contribute strategic
advice, marketing, finance and accounting skills
as well as networking (especially with potential
customers and other sources of finance).
2) What amount of money can I raise from Business
Angels?
Generally the investment will be between £25,000
and £1million. Additional funding is often
syndicated. Often, the injection of cash by Business
Angels enables the company to leverage substantial
funds from other sources.
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Do have expertise
in this, or any other area of running
a business?
We are looking for expert individuals
or companies to provide information
for and/or sponsor certain business
topics. If you are interested please
contact Steve
Davis at the Southampton Enterprise
Hub.
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3) Will I need to sell shares
in my business?
You must be willing
to sell a percentage of the issued share capital in exchange
for funding. To ensure that your interests are protected,
you should seek professional advice when structuring
your deal.
4) How does
angel investing differ from venture capital?
Venture capital firms are professional investors
who dedicate 100% of their time to investing and building
innovative companies. Most venture capitalists have a
fiduciary responsibility to their investors. The angel
investment community is an informal network of investors
who invest in companies for their own interests. Typically,
angel investors invest less than £1 million in
any particular company, whereas venture capitalists usually
invest more than £1 million per company.
5) How do
venture capitalists realize a return on their investment?
Most companies that venture capitalists invest in
are private enterprises. Accordingly, the venture capitalist
only realizes a return on their investment if the company
goes public (IPO) or is merged or purchased by another
company (M&A).
Related Resources Online
The net is stuffed full of advice,
here are some of the sites we recommend.
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