Introduction to Angel investment
Angel investing has been recognised as the most significant source of equity investment in startup and early stage businesses seeking to grow. Investors would normally take shares (an equity stake) in a business in return for providing a cash injection to to help the business grow. They not only provide funds, but also bring their experience, knowledge and connections to help speed up the growth rate. Individual investors invest either alone, or as part of a syndicate (a collective group of investors). Angels differ in their appetite for certain deals, and usually invest between £10,000 – £500,000. Deals of up to £2m are becoming more common, due to syndication. Angel investors seek to gain return of 7x - 12x on their investments as they are aware that some of their investment will fail but for the few that exit and sell, this usually make up for the failures. Angels typically keep their investments over a period of 3-5 years.