31st January 2019
Business Angels are private investors, usually “High Net Worth” individuals, who invest in unquoted – often very early stage – businesses where they inject cash, and often know-how and experience, in return for a shareholding. Business Angels tend to hold a few investments at the same time and typically retain those shareholdings for 3-5 years. As well as hoping for a sensible return on their investment, Business Angels often enjoy the journey and are excited by the growth prospects that their businesses offer.
Business Angels come in all shapes and sizes, but many are members of clubs, networks and associations. They often de-risk their investment through tax efficient schemes such as the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS).