The below documents are intended as a guide only are not a substitute for appropriate professional advice. London Businesses Angels Ltd can take no responsibility for actions taken based on this information.
Raising Business Angel Funding
Further resources including standard term sheets, shareholders agreements and due diligence check lists are provided to all chosen companies.
Overview
What we're looking for
Key benefits to working with LBA
The Funding Process
Cost
How do I apply?
Companies
At London Business Angels we carefully select 42 innovative entrepreneurial businesses seeking growth capital between £100,000 and £750,000 from the 800-1000 business plans we review each year to present to our business angel investors. We especially focus on London and the Home Counties, but we are also interested in receiving proposals from companies located as far as Birmingham, Bristol or Southampton.
We hold seven Company Presentation Events throughout the year; six companies present to the London Business Angels investor community at each event.
We evaluate businesses based on the management team, market opportunity and high growth potential with global application, and are prepared to become involved at all stages from proof of concept through to growth capital in a wide variety of business sectors. To stand out from the rest of the crowd, make sure that you meet our investment criteria and that you are fully prepared with a polished business plan.
Key benefits to working with London Business Angels
At LBA we have an established network of over 130 investors with a total of £50m available for investment. London Business Angels investors are experienced, successful entrepreneurs, FTSE 100 board members and directors and City professionals. Our angels generally invest together in syndicates and can provide added value through strategic, operational advice following investment. For the risk and added value they provide, angels seek returns of at least ten times their investment.
In addition to our membership base the network also operates a co-investment fund, the London Business Angels EIS Roundtable Fund, which is raised via our membership each year and looks to invest annually into circa 5 companies as a cornerstone investor.
Each company selected to present to the network receives an intensive training programme in the run up to the company presentation event at our offices run by our expert team to help you prepare for your 12 minute funding pitch. We will also provide you with support by telephone and email in the run up to the event.
Our training includes the following:
- Advice on the investment process and how to interact with our investment community;
- Professional pitch training;
- Fine tuning your PowerPoint presentation and executive summary;
- Specialist legal advice about the investment process.
We also provide each chosen company with a copy of our LBA Entrepreneurs Bible which includes standard term sheets, shareholders agreements and due diligence check lists. Following the event we will continue to be available to you to help secure your funding, and our board rooms are available free of charge to hold your syndicate meetings with our investors.
Submitting a plan - Send a copy of your executive summary or business plan to companies@lbangels.co.uk
All applicants should fulfil the selection criteria:
- Strong management team - experienced management team with relevant operational or sector experience.
- Attractive market - large, growing market with an international expansion strategy.
- Sustainable competitive advantage - a clear technological advantage, scalability and high barriers to entry.
- Potential for explosive growth - your company should have the potential to become a market leader in the near term.
- A product or service that can be taken to market without further development (i.e. past the initial concept stage or for hi-tech investments beyond ‘Proof of Concept’).
- Some sales validation within the market place. (For high-tech companies this may include 3rd party validation of the technology).
- Prepared to accept syndicates of angel investors with part time representation on board.
- Be located in London, the Home Counties or the south of England (we consider companies as far as Birmingham, Bristol and Southampton).
- Be eligible for EIS tax relief.
- Seeking between £100k and £750k of equity in return for a negotiable equity stake.
Initial meeting - Should the team feel your business plan fits our selection criteria, they will invite you to our offices for an initial meeting to review all aspects of your company. This meeting normally takes two to three hours.
Company presentation offer letter - Should your business plan be accepted for submission to our core investors you will be invited to register with London Business Angels and present at one of our company presentation events. These events take place once every seven weeks and you will be one of six EIS qualified companies who will present their business proposal directly to the London Business Angels Network of investors.
Company presentation training sessions - After you register, you will be required to attend two half-day training sessions to help you prepare for your 15 minute funding pitch. As part of these training sessions you will be provided with guidance on your presentation and executive summary contents, an overview of how to raise business angel funding, as well as training on delivery of your pitch.
Company presentation event - The company presentation event will be held at one of several central London locations. There are plenty of networking opportunities throughout the event to discuss your business opportunity with the London Business Angel members.
Syndicate Meetings and Securing Funding - Following the event you will arrange syndication meetings with our investors with a view to securing your funding. We will continue to be available to offer advice to help you secure your funding, as well as providing free access to our board rooms to hold your syndicate meetings with our investors.
London Business Angels does not make a charge for reviewing your Business Plan nor for an initial meeting. Should you be chosen to present to the network a fee of £750 + Vat is payable. This covers our costs to provide presentation training and marketing collateral prior to the event. The initial fee is to be paid prior to the first training session.
Upon raising funding London Business Angels charges a 5% +vat success fee on any monies raised through the network. This is paid on completion out of the funding raised.
Please send your business plan or executive summary to companies@lbangels.co.uk, clearly stating your contact details, company location and funding requirements.