Posts Tagged ‘investor’

Secure Funding Through Business Angels

If you are looking for funding for your business and you have exhausted the 3 F’s – friends, family and fools; and you no longer have a line of credit with your bank, nor other sources of funding, then business angels may be your next port of call.

Typically business angels are high net worth individuals or companies with funding behind them that are interested in investing money into companies where they will receive a handsome return for the money they have put in.

The amounts involved range from £25,000 to £750,000 for which you give away a stake in your business in the form of shares. Usually business angels will also want to be personally involved with the business or may appoint a non-executive director to oversee their investment and help with the company’s performance to plan. In addition, they are looking for high returns – in the region of 20-30 percent per annum over the lifetime of the investment which in most cases will be 3-5 years.