What’s the minimum and maximum amount an Angel will Invest?
Over the last 7 years we have seem many, many amounts invested in businesses and property and whilst there is a certain “sweetspot” of activity around the £200k mark, there are no limits on the maximum amount that could be invested.
Having said that, the maximum Angel investment that we deal with would amount to about £2m. Some sources of information on Angel investing may go as high as £5m but that is stretching things a bit.
You could of course get Angel co-investors to stretch to the amount but the deal would have to be exceptional. Amounts higher than this are really for Venture Capital Funds. Like Supermodels, these VC Funds don’t like to get out of bed for less than £5m because the fees they charge and the risk they say they take doesn’t justify it.
VC Funds can do many millions but when it gets to hundreds of millions it becomes Merchant Bank territory, usually overseen by the likes of Goldman Sachs.
There is a minimum amount raised which is £25k. There are a couple of reasons for that; firstly, the fees charged by the lawyers and other professionals would be a bit prohibitive at this level; certainly if expressed as a percentage of the overall deal.
Next, the time taken to get some form of security if this was for a property deal would also add to the costs and therefore its generally accepted as not really worth it.
Finally, amounts up to £25k can usually be sourced from elsewhere. It’s not such a huge amount that you could not cover by way of a personal loan for example or even credit cards.
There are a number of websites and places to get smaller funding, usually at a lower cost than Angel Investors will charge so I encourage you to go online and shop around as there are always deals available.
This and many more subjects will be expanded on in the Raising Angel Finance Course in Peterborough. For more information contact; karlenepartridge@progressiveproperty.co.uk
Ray is a shareholder of www.AngelsDen.com and Property Angels Den where investors are introduced to entrepreneurs or developers seeking 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; www.WestStreetCapital.co.uk: or http://www.becomeanangel.com
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