The below documents have been put together by London Business Angels Ltd.
This information is intended as a guide only whilst the information contained is believed to be correct it is not a substitute for appropriate advice. The 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 given to all chosen companies.
24/04/08
Quotient raises £200k from London Business Angels
08/04/08
GLE Group signs landmark acquisition to become Europe’s largest source of early stage funds in Europe
04/04/08
Magpie raises £0.5m to fund technology development and expansion
12/02/08
What we're looking for
The funding process
Cost
How do I apply?
London Business Angels in conjunction with Business Plan Services is offering a pre-London Business Angels investment platform for businesses looking for under £150,000
Click here for further details.
Companies
The London Business Angels consider equity funding in 42 innovative entrepreneurial businesses seeking growth capital between £100,000 and £750,000 located in the South East of England. We have a network of over 130 business angels (private investors) with a total of £50m available for investment.
Individually, angels typically invest between £10,000 and £100,000 per transaction and from £100,000 to £750,000 as a group. They invest in one to six transactions per year. For the risk and added value they provide, angels seek returns of at least ten times their investment.
The London Business Angels investors are experienced, successful entrepreneurs, FTSE 100 board members and directors and City professionals. Typical investment syndicates include multiple business angels that could provide added value through strategic, operational advice.
The London Business Angels holds seven company presentation events throughout the year where six companies present to the London Business Angels network. The London Business Angels team review 750 business plans annually to select the top 42, which are trained and invited to present to the network. Last year, 18 companies successfully raised in excess of £6m from The London Business Angels, London Seed Capital and The London Business Angels' EIS Tracker Fund.
We evaluate businesses based on management team, market opportunity, growth potential, as well as other factors. 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.
Submitting a plan - Send a copy of your executive summary or business plan to sarah@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
- Eligible for EIS
- 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.
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 £1,250+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% 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 sarah.rowe@gle.co.uk