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liller

Original Poster:

462 posts

56 months

[news] 
Thursday 11th October 2012 quote quote all
Hi, I was wondering if anybody had experience in finding 'angel investors'

I am looking to secure some investment to take my retail business to the next level and I am wondering if there are any alternatives to the bank or dragons den!!

I looked at a few of these angel investor websites a few years ago but didn't really trust them, especially the ones which want a payment up front to join the site.

Any advice would be appreciated! thanks

techrepairsuk

9 posts

25 months

[news] 
Thursday 11th October 2012 quote quote all
I joined one of these so called sites a few years ago, the only responses I received were from dreamers and people who wanted to take over the company for a tiny investment, it was worth the hundred quid just to know...

As for gaining investment now, I would talk to your accountant as they should help you put a package together and get it out to real local investors. The other route is networking or even crowdfunding but put together by yourself, look at a few smaller amounts instead of one large one...

blueg33

13,817 posts

111 months

[news] 
Thursday 11th October 2012 quote quote all
liller said:
Hi, I was wondering if anybody had experience in finding 'angel investors'

I am looking to secure some investment to take my retail business to the next level and I am wondering if there are any alternatives to the bank or dragons den!!

I looked at a few of these angel investor websites a few years ago but didn't really trust them, especially the ones which want a payment up front to join the site.

Any advice would be appreciated! thanks
Have you looked at some of the VCT's (venture capital trusts?). I am working with one at the moment and have secured £6m although its not for retail. What scale of ££'s are you looking at? Is your business plan robust?, have you got much equity in the business?

srebbe64

12,862 posts

124 months

[news] 
Thursday 11th October 2012 quote quote all
I've been to a few pitching events with these guys. Not invested yet, but know a few who have:

http://www.angelinvestmentnetwork.co.uk/home




liller

Original Poster:

462 posts

56 months

[news] 
Thursday 11th October 2012 quote quote all
blueg33 said:
Have you looked at some of the VCT's (venture capital trusts?). I am working with one at the moment and have secured £6m although its not for retail. What scale of ££'s are you looking at? Is your business plan robust?, have you got much equity in the business?
I'm looking to secure investment of between £50k and £100k so not a massive investment (well it depends on what you would call massive!)

I haven't updated the business plan since we opened for business initially but intend to do so, but yes, it's fairly robust and has succeeded so far.

I've not really looked into any method of funding as yet, just thought I would start hunting around for some advice.

Edited by liller on Thursday 11th October 16:39

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liller

Original Poster:

462 posts

56 months

[news] 
Thursday 11th October 2012 quote quote all
srebbe64 said:
I've been to a few pitching events with these guys. Not invested yet, but know a few who have:

http://www.angelinvestmentnetwork.co.uk/home
thanks. will check this out.

blueg33

13,817 posts

111 months

[news] 
Thursday 11th October 2012 quote quote all
liller said:
I'm looking to secure investment of between £50k and £100k so not a massive investment (well it depends on what you would call massive!)

I haven't updated the business plan since we opened for business initially but intend to do so, but yes, it's fairly robust and has succeeded so far.

I've not really looked into any method of funding as yet, just thought I would start hunting around for some advice.

Edited by liller on Thursday 11th October 16:39
I have a meeting with the VCt I am working with next week, depending on how much of a hurry you are in I could ask them if they do retail then? I know they do hotels and development.

£100k is relatively small (sorry, thats probably just because my sector needs quite a bit more than that)

liller

Original Poster:

462 posts

56 months

[news] 
Thursday 11th October 2012 quote quote all
blueg33 said:
I have a meeting with the VCt I am working with next week, depending on how much of a hurry you are in I could ask them if they do retail then? I know they do hotels and development.

£100k is relatively small (sorry, thats probably just because my sector needs quite a bit more than that)
yes, I imagine it is quite small fry for many of the big VC firms! Any leads/help would be appreciated though!

fellatthefirst

263 posts

42 months

[news] 
Thursday 11th October 2012 quote quote all
For 50-100k is there no way the bank can help? If you're company is profitable then there is a good chance you could raise a bank loan or find out if they are offering any enterprise finance schemes etc. Dont just ask your bank, get your accountant to speak to all local bank managers (he/she probably knows them all) and see which one might be able to help.

You could get a private investor from angel investors etc but when dealing with an investment individual you need to know that you can work with them successfully and that you're not going to be pulling in opposite directions. This balance can sometimes be quite hard to find and it's a bit hit and miss. Also you will have to give up a % of your company and from my experience of single investors they always want quite a bit and it might not be the best thing to do in the long run.

VC's are more useful if you are looking for larger amounts of finance and would probably only be interested in companies that are already making a profit or those that operate in high growth markets. As i understand it VC's are generally used for raising larger ammounts of finance that 50-100k.

We are currently going through the motions of looking to partner with a VC and this is being arranged by our accountant who has involved a company that are connected to many VC's and will "tout the business" so to speak.

My initial avenue of exploration would definitely be the bank for 50-100k especially if you are already profitable?

Birkin1932

292 posts

26 months

[news] 
Thursday 11th October 2012 quote quote all
Liller, I would beg, borrow or xcdvf before I gave anybody any of my company. I had a friend who told me taking on a VC was the worse thing he ever did.

With a bit of personal financial cutting down for 2 years he could have winged it, instead eventually it cost him millions.

One mistake new entrepreneurs make is that they think they need say 100k, but generally thats not needed all at once, so half that will do to get the expansion done, the rest could be funded by profits and cash flow.

I needed 50k a few years ago, I went to sainsburys, M & S and got a loan for a car, a boat... Etc etc. I think you get my drift ;-)

What I am saying is think out of your normal funding box and sell everything before you give equity in your company away



Edited by Birkin1932 on Thursday 11th October 22:57


Edited by Birkin1932 on Thursday 11th October 22:58

rog007

3,500 posts

111 months

[news] 
Thursday 11th October 2012 quote quote all
Last post makes sense. Usual line to take for funding is:

~Self-sell stuff, stop spending as much or remortgage house
~Friends & family
~Bank loan
~Peer-to-Peer loan
~Credit card
~Other!

Additionally, put a teaser in your post in the hope it may catch my the eye of a PHer who has some money lying around not getting much interest...

Good luck!

liller

Original Poster:

462 posts

56 months

[news] 
Thursday 11th October 2012 quote quote all
thanks birkin and fella - some food for thought there. I think you are right, I should try to raise it myself any way possible before going down the investor route.

I haven't approached the bank yet as I felt that they probably wouldn't be up for lending that amount of money without some sort of security.

liller

Original Poster:

462 posts

56 months

[news] 
Thursday 11th October 2012 quote quote all
has anyone had any experience of peer to peer lending? This type of funding/borrowing has cropped up a few times during my web searching.

blueg33

13,817 posts

111 months

[news] 
Friday 12th October 2012 quote quote all
Not all VC's want a slice of the company. You need a clever one that understands different ways of funding within VCT rules.

The one I am working with have NO shares in the company, the cash is just available to us as Senior Debt at a rate a couple of % above bank rates (if I could get a bank to lend!). Yes they have security over the land assets (its a development company) and yes they have a debenture over the company, but that's no more than a bank would want, and their due dilligence is much lighter touch.

Downside are:
Arrangement and legal fees
Interest rate
Cash has to be repaid after 12 months (but that is as much a function of our business model)

Edited by blueg33 on Friday 12th October 10:56

keith52

30 posts

44 months

[news] 
Friday 12th October 2012 quote quote all
Hi
Try Fundingcircle.co.uk

KEITH

LooneyTunes

3,535 posts

45 months

[news] 
Friday 12th October 2012 quote quote all
rog007 said:
Last post makes sense. Usual line to take for funding is:

~Self-sell stuff, stop spending as much or remortgage house
~Friends & family
~Bank loan
~Peer-to-Peer loan
~Credit card
~Other!

Additionally, put a teaser in your post in the hope it may catch my the eye of a PHer who has some money lying around not getting much interest...

Good luck!
All of this is fine, but IMO borrowing from friends and family isn't always the best plan:

o Not all are experienced or objective enough to know when an investment opportunity is a bad one.
o Not all that recognise it is will say so.
o Those who plough money in may regret it - as may you if you valued their friendship.

Personally I'd prefer to have a formal loan from an institution go bad than potentially ruin relationships with those who are much more important in my life.

liller

Original Poster:

462 posts

56 months

[news] 
Friday 12th October 2012 quote quote all
Funding Circle looks good - we don't meet the minimum criteria though. You need to have 2+ years of accounts filed at companies house and we have only been trading for 18 months.

coyft

3,409 posts

98 months

[news] 
Friday 12th October 2012 quote quote all
Have a chat with these guys. http://www.beerandpartners.com/

screwloose

577 posts

92 months

[news] 
Saturday 13th October 2012 quote quote all
I've inveted in 4 companies through angels den. Range of talent/ideas/accumen varies hugely though.

For the nost part Uk and European VCs don't have any cash......they'll tell you they do but take it on good advice they don't.

Beg, borrow and steal instead.

blueg33

13,817 posts

111 months

[news] 
Saturday 13th October 2012 quote quote all
screwloose said:
I've inveted in 4 companies through angels den. Range of talent/ideas/accumen varies hugely though.

For the nost part Uk and European VCs don't have any cash......they'll tell you they do but take it on good advice they don't.

Beg, borrow and steal instead.
VC just loaned me £6m and another £6m coming in Jan. Some have cash

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