2. Angel Investing: where do I start?
Curious about angel investing, but not sure where to start? Here’s Angel Academe writer-in-residence Jodie O’Keeffe with the low-down.
1. Find your tribe
Beginners benefit from investing with a group, particularly to learn from more experienced investors. There is the female-focused Angel Academe, for example, sustainability at Green Angel Syndicate, fintech at European Blockchain Angels, along with many region-based or university associated groups like Oxford, Cambridge, Kent, North East and North West UK, Wales and more.
2. Get connected
Once you’ve decided on a syndicate, contact them to find out what they offer and what they’d like from you. Angel Academe welcomes new members to pitch events to get a feel for how the group works. Expect to sign a self-certification form before you attend. Ask to speak to a current member to find out what their experience has been, how many businesses they’ve invested in, what they value most about the group. Aligning expectations and values early on can save time and effort later, particularly if you’re comparing several groups with a view to joining just one. Membership fees vary, with some networks offering free membership but little support, while others charge fees of £500–4000 annually with more structure and collaboration. Some groups, like Angel Academe, also offer a couple’s membership rate, useful for couples where one partner can take advantage of the EIS and SEIS tax breaks on behalf of the other.
3. Attend a pitch event
Pitch events really showcase what a syndicate is all about. There’s plenty of work behind the scenes before and after the event, but the event itself is where the potential investor gets to know how the syndicate operates. The choice of venue, the welcome, the format of the event, the opening remarks, the way investors and entrepreneurs are made to feel comfortable, the level of interaction among and between investors and entrepreneurs are all clear indicators of the angel group’s ethos. You’ll meet the investor group — your potential co-investors — and watch the entrepreneurs pitch their business ideas, gaining an insight into the quality of deal flow and depth of investor experience. There’s no pressure to indicate your interest in a deal at this stage, but if you’re compelled to find out more, raise your hand to be included in the follow-up communications.
4. Cover the basics
In the hour preceding each pitch event, Angel Academe hosts an information session on a relevant topic, such as taking advantage of EIS and SEIS tax benefits, or the legal aspects of angel investing. Open to everyone attending the pitch event, these sessions are hosted by Angel Academe partners haysmacintyre Chartered Accountants and tax advisors and legal representatives Kingsley Napley. The sessions provide an overview of the positive tax implications of angel investing, as well as the legal aspects of negotiating a term sheet and completing a deal — invaluable information for first-time investors.
5. Attend Investor Academe Workshop
For a deeper insight into the angel investment process, Angel Academe invites all existing and potential members to participate in the Investor Academe Workshop, an intensive programme covering the fundamental aspects of investing in start-ups, from deal-sourcing and syndicate formation through to exit. The Workshop is designed and delivered by experienced angel investors and includes tailored advice from expert advisors. Learn the basics and know what to expect when you move onto the next stage — doing your first deal. (Read all about how to apply here.)