Do you want to find an angel investor from the UK?

One of the largest sources of angel investors in the UK is the National Business Angels Network.  This network allows entrepreneurs to provide a brief description of their business that gets visibility with a large number of angel investors from all over the UK. 

Another source of business angels in the UK is the British Business Angels Association.  However, this group does not exist specifically to foster greater angel investment.  Rather, it strives to underscore the contribution business angels make to the startup community, support its members by lobbying government, and facilitate the exchange of experiences and ideas between its members.  Even still, you may find a variety of good contacts through the BBAA that could eventually lead to a deal.

What is your next step after you find an angel? 

Once you have obtained the contact information for a few angels, you should begin filtering out angels.  Most angels invest in a relatively tight funding range, and if you are seeking significantly above their ceiling, they may not be a good fit.  Even if they are interested, they probably will not invest unless you can form a syndicate of investors.  Be careful with this or you will waste your time.  However, if a thorough review of your use of funds shows that at minimum you need the amount you are requesting, then do not hesitate to put in some effort finding a “superangel” or convincing an angel network to do a large deal.

What makes a business attractive to an angel investor in the UK?

Typically angel investors provide anywhere from $10,000 to $1 million.  Most venture capital firms do not consider deals smaller than $1 million, leaving business angels in an excellent position to pick up the slack that family and friends cannot.   

The second criterion many angel investors in the UK use when filtering out deals is the location of a potential investment company.  They want to be close enough that if any urgent communication needs to be done face to face, it is convenient to do so (say within a few hour drive).  This does not mean you should eliminate angels on your list that are not in your area.  It does mean that you should ask them as soon as possible in your first meeting. 

Third, business angel investors in the UK tend to invest in industries with which they are familiar or have experience.  Some are retired, successful businessmen who still want to use their knowledge and contacts they have developed.  Others feel uncomfortable investing in an area they know little about. 

Is there an easier way to find angels based on these criteria?

Fortunately, www.Invstor.com has already come up with a solution to finding angel investors based on these criteria.  With a free membership you can create a profile, allowing investors browsing the profiles to view information about you and your company. 

If you prefer a more proactive approach, you can purchase a subscription which lets you view the contact information for any member of The Invstor.com Network.  Then you can search for an angel investor from the UK who is seeking an opportunities like yours.

Alternatively, you can post a “request”.  A request is similar to a classified ad that gets sent to targeted investors.  If they are interested, they will contact you.  Then the due diligence and negotiations begin!