Is Angel Investing like Dragons Den or Shark Tank?
This question is Number 1 on this list simply because I get asked it more than any other.
My reply is quite simple: “Dragon’s Den or Shark Tank is the Pantomime version of what we do for real”.
The reality is that it gives a poor impression of how Angel Investors operate. In fact it’s a sort of opposite of the way Angels operate.
The main differences are:
1. Angel Investors are not all £50m business owners. Some of them have a few hundred thousand to invest - but they might have much more to offer in terms of experience or contacts.
2. They are not arrogant about their abilities and their contacts and they don’t need to sell themselves to you either in front of other investors or in private.
3. Real Angel investors are vetted and are defined by FCA regulations in the UK. For example they need to be either High Net Worth Individuals or sophisticated investors. You can get the full definition here: http://www.thebusinessangel.org/high-net-worth-investors.html
4. Real Angel investors take much longer to consider an investment before making a formal offer. In fact they will take time to do their Due Diligence BEFORE making an offer as opposed to afterwards like on the telly. There is one exception to this, and that’s with offers made via CrowdFunding. In that situation all the diligence must be done before the offer is placed live on the portal or website.
5. Angel investors are very interested in the Exit and this is something that is hardly ever brought up on the TV versions.
As well as differences there are three main similarities;
1. Angel investors are quick to spot good investments when they are well-presented (Another reason for you to take advantage of Train the Trainer or any Speaking Courses offered)
2. They look for the credibility of the presenter and the opportunity. Does it stack up? Is it scalable? Is there room for a decent return on their investment either as equity or a loan
3. Angels will expect you to know your numbers.
Image Courtesy of BBC Productions
This and many more subjects will be expanded on in the Raising AngelFinance 2- day Course in Peterborough, England. For more information contact; karlenepartridge@progressiveproperty.co.uk
Or check out www.RaisingAngelFinance.co.uk and click on “Courses”
Ray is a shareholder and Regional Manager for www.AngelsDen.com and Property Angels Den where investors are introduced to entrepreneurs or developers seeking equity finance. If you have a proposal click here: Application form page: http://www.RaisingAngelFinance.co.uk/investment-application-form.html
If you are interested in becoming an Angel Investor, Click here: http://www.becomeanangel.com
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