Guru Q&A/Angel investors

Question

Who exactly are angel investors?

Answer

Opinions vary somewhat but in our experience angel investors are high net-worth individuals who invest in entrepreneurial companies, usually at an early stage.

Typically they provide cash to young companies and take equity in return.

The amounts that angel investors typically invest is small (in the UK between £5k and £50k) when compared venture capitalists do. Generally, but not exclusively, entrepreneurs engage with business angels once they have exhausted their "friends and family" financing options and are either fearful of, or perhaps too small to consider engaging with VCs for capital.

Some angel investors are members of informal groups. This helps them increase their access to investment opportunities (e.g. more than one business angel searching for opportunities) and by investing jointly with other angels they mitigate their risk. Some networks might require a registration fee.

Gobetween Ltd here don’t charge a joining fee and they don’t charge a registration fee either. In fact at Gobetween Ltd there are no fees whatsoever chargeable to the entrepreneur.