Angels tend to invest at the start-up or early growth stage and are unlikely to assist at the prototype or research stage.  You need to have your product or service ready to launch into the market place, having fully researched the potential market and developed a credible business plan.

Your Executive Summary or Investment Proposal is published on the members only area of the YABA website.  You may be asked to present your opportunity at an Investor Meeting which is a forum for YABA investor members only.  Do not disclose any information which you are not happy to be in the public domain. 

Following your introduction to YABA members, the early discussions, due diligence conducted by the Angels, negotiation of the deal and completion of the documents, can make this a lengthy process.  Simple start-up completions can take two months, but more complicated deals have been known to take several months.

Angels are generally looking for at least 3 to 4 times their investment in 3 to 5 years, however they will often expect it to take longer to realise this return.  Exit can be by buy-back of shares, flotation on AIM or similar market.  Occasionally they will agree dividends during the investment period and sometimes take fees for non-executive directorships.

This is negotiable and depends on the trading value of the business or, if the company is just starting, on the potential value as projected in the P&L and Balance Sheet forecast.  The angels do not tend to take a controlling share of the business but the percentages could be as high as 30 to 40%.

Generally, sums of £10,000 to £3000,000 are invested by individual members with the average investment by YABA members being £60,000.  Quite often angels will form a syndicate of investors with a lead angel negotiating the deal and assisting the company post-investment.  3 in 20 companies which approach YABA receive investment.

YABA has over 100 Angel members with experience from a wide range of business sectors including manufacturing, engineering, retail, food and IT to name a few, and skills in sales, marketing and finance at all levels including plc directorships.

Business angels are generally private individuals who invest their own money in return for shares in the company.  They also have a wealth of business experience and skills at all levels to offer, but are not looking for a full-time role.  However, they are often prepared to give a few days per month to assist the business.  Angels have a wealth of contacts and credibility in the market place and can often assist with the strategic planning for the business.

Business angels are looking for patented products or niche market services with a high growth potential, in any market.

Further information on the Enterprise Investment Scheme (EIS) for companies and investors can be found at www.eisa.org.uk