How do I get started with Angel Investing?
Updated: Jan 23
Don’t go it alone Whilst some Angel Investors do work alone, most find it helpful to be part of a group or syndicate. Being part of an Angel network has a range of other benefits which go further than having access to regular, screened deal flow.
Angel networks generally run regular pitching events which give you the opportunity to meet with other Business Angels, this can be both a fun and useful exercise for learning from other, more experienced investors. It can be helpful to collaborate with other investors, whether that’s by co-investing or simply bouncing ideas and opinions around with your peers.
Anglia Capital Group also offer specialist advice and education to Angel Investors through partner organisations on everything from portfolio management and legacy planning to legal and accounting matters.
Research your options There are many different Angel networks. The UKBAA has a wealth of information on the different groups across the country. Whether you want to attend in-person events in your region, you’re happy to watch all your pitches online or you have a specific sector which you’re interested in, there will be a group which fits with your goals.
In a survey of our members, access to screened deal flow was listed as the key benefit of membership to Anglia Capital Group. If you decide to join an Angel network, it is vital to ensure that there is a thorough screening process in place so that you know it will be worth your time and effort to attend events and engage with the entrepreneurs.
It’s a good idea to take a look at the portfolio companies in prospective Angel Groups. Analysing the success of the portfolio can give you an indication of how robust the group’s screening process is. Anglia Capital Group is proud to say it has only had one failure to date in a 40+ company portfolio.
Attending a pitching event will give you a good idea of how the group works. Anglia Capital Group offer prospective Angels the chance to come along to one of our pitching events to get an idea of how things work before joining. This is a great opportunity to speak to the management team of the Group and also Group Members.
Prior to attending a pitching event, be prepared to self-certify as either a High Net Worth Individual or Sophisticated Investor, as defined by the FCA under the Financial Services and Markets Act 2000 (FSMA).
Making your first investment
Pitching events can be exciting, especially when you see a business or an entrepreneur that you really connect with. For many investors, people are the most important component of a business. Assessment of the expertise and commitment of the management team is often a key element in the decision on whether or not to invest.
“I want to feel some sort of connection with the business – both in terms of the management team and the sector. Connection with the people involves building trust in them as individuals and confidence in their expertise in their sector. Ultimately, I want to feel that the business mission is something that I’m happy to support and that the management team are well placed to deliver on their objectives.”
Helen Withers Anglia Capital Group Member
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.