We see a lot of early stage businesses hoping to raise capital. And while the market is tighter at the institutional level, there is liquidity at the angel end of the market and we’re lucky enough to have a strong network of angel investors actively seeking investments. We often get asked how to attract angel investment and what do they look for.... so some pointers below.
Commercialise quickly – investors are looking for less risky investments and evidencing that you’re generating revenue is a solid way to do so
SEIS/EIS relief makes an investment massively more attractive
An attractive, quantified valuation (in a tight market investors have greater choice, and lean into less risky deals)
Not just a good idea but unique execution
It might sound obvious but make sure you have some form of accounting software in place so financial reports are easily accessed (investment is a numbers game make sure you have them)
If your employees are your asset and key to success you need to demonstrate why they’ll stay the course. Implementing an employee retention scheme can be a good way to do this to recognise their contribution so they share the success or put some skin in the game through a share option scheme. It means that the employee needs to stick around to benefit from the “carry” and if they don’t they walk away with nothing.
Concise communication & performance dashboard (it’s easy to be overloaded with data, try to consolidate data into an easily communicable dashboard, it cuts out a lot of dialogue and queries)
And more broad character traits - zeal and unshakeable tenacity, brilliant sector expertise, contacts and knowledge
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