Could Anyone Be A Business Angel?

Written on July 11, 2010 – 6:10 pm | by Michael Harris

I’ve written this article to inspire those who are considering becoming a business Angel and to help those who are seeking finance from one to understand the mindset of such a person.

To my mind the business Angel is the white knight of British business. We need their help today more than at any time in the past to help drive British companies, entrepreneurs and innovation forward. So if you recognise any of the following traits as your own then my job is done here and I sincerely hope that you enjoy the prosperity, the thrill and the personal rewards that being a part of a new venture’s success is likely to afford you.

So what is it that makes a business Angel who he or she is?

1. Wealth
Well, obviously a business Angel needs to have the means behind them to be able to invest in the first place. However you should not think that just because you need to be a high net worth individual to be a business Angel that you’d have to break the bank with every investment. We see investments as low as £10,000 from new Angels, though the average is between £20,000 and £500,000, and some of our more experienced investors will commit in excess of a million pounds where they are sufficiently confident of a decent return.

2. Business acumen
A business Angel, more often than not, has achieved his or her angelic status through their own entrepreneurial or corporate achievements. To feel that you have the ability to recognise the potentially spectacular from the potential disaster and to have the money to back up that intuition you’ll probably have been there and done it all before. This is very important because while some investors wish only to contribute their cash, others either would wish to or demand to offer their expertise into the bargain. If you are able to work together this could mean the difference between your business doing well, and doing very well indeed.

3. Risk-taker
If you are risk obverse then business Angel is not a career choice for you. No matter how much experience you have in life and in business, no matter how well you scrutinise the business plan and the financial forecasts of an investment opportunity, and no matter how efficiently you interrogate (in the nicest possible way) the principal of that investment opportunity, you are still taking a risk with your money, all-be-it a calculated one. Being a business Angel is not for the squeamish!

4. Character
Life, at some point is going to knock you down, it’s how you pick yourself up again that determines your character. A business Angel needs to take the good with the bad as some investments will fail and some will succeed. But to be good at what they do a business Angel needs to have the strength of character to make tough decisions, to see them through, and to learn from their mistakes.

5. Passion
A business Angel needs to be passionate about business. Now this may take the form of passion for the money it generates, the buzz of a successful deal, the desire to give something back to the younger generation or even a need to do something good in this world, but whatever it is a business Angel needs it. If you are going to be risking your hard earned money on a venture with a virtual stranger you need to be passionate about some element of the deal.

Every business Angel that I know has something that they are looking for in a pitch or from an investment opportunity, so why do you want to be a business Angel?

If you would like to find out more about becoming a business Angel then why not call us on 0203 318 0230 and we’ll be delighted to provide you with all the information you’ll need.

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