70%
of Business angels in the
UK invest in technology-
intensive businesses
• What are your timelines?
• Competitors – who and where are they?
The Team
Investors invest in people, who are
fundamental to the success of a company:
• Who is going to execute the plan? Are
they experienced? A well-balanced team
with a track record?
• Would you TRUST them to look after
YOUR investment?
• How much is being taken out in salaries?
Forecast and Finance
Explain clearly how much money you
need and what it will be spent on:
• Have you identified profit margins,
full costs and overheads?
• Is anticipated growth in line with
market penetration and can it be funded
by existing requirements, or will
additional monies be needed?
• Investors understand that inexperience
may miss things. You can make some
assumptions that need more detailed
evaluation, but too many unknowns will
make them worried. You should at least
identify what you think you don’t know!
• EIS and SEIS are significant tax benefits
B us i n e ss A n g e l s o f f e r s e e d c ap i ta l
a n d e ar ly sta g e g rowt h f u n d i n g ,
a h i g h r i s k / h i g h r e war d strat e g y
for investors and most angel investments
are made under these schemes – you
should get advance approval from HMRC.
The Deal and Exit
Of course, investors need to know what
they will get for their money (share of the
company), and how much it is worth:
• What is the current valuation?
• Who are the other shareholders?
• Exit – when, who to and how? What
return might investors achieve?
Potential returns need to be worthwhile,
a minimum of 5x but 10x is more typical
and many are far larger. The last
Minerva Angel exit was at 12x.
• The vast majority of angel investors
like a clear exit strategy but a growth /
dividend strategy may be considered as
an alternative. This would ideally
include a payback option.
• What will the business need to look
like in three-plus years to achieve an
exit based on these key variables:
Market Penetration, Global Presence,
Valuable IP, Customer Base, Revenues,
Profits? And what will determine price
and future market valuation?
Finally, but often forgotten: always
ensure your presentation is
understandable to your audience and
flows well. Know your numbers and aim
to demonstrate energy, ambition, focus
and direction. ■
The UKBAA is the UK’s Business Angels
Association and offers considerable
help, including locating a wide range
of Angel groups via their website:
ukbusinessangelsassociation.org.uk
C ENTRE FOR
HIGHER & DEGREE
APPRENTICESHIPS
University of Kent offers Laboratory
Technologist and Laboratory Scientist Higher
and Degree apprenticeships.
• Taking on apprentices is a cost-effective way to upskill your
existing workforce, or attract talented people, with up to
100% of training costs fully covered by levy payments or
government co-investment.
• Apprenticeships are underpinned by degrees in Applied
Bioscience or Applied Chemical Sciences.
• With flexible start dates (September, January & May), the
degree programmes are delivered nationwide via blended
learning – a mixture of on-line and face-to-face teaching.
For more information, including details on
a fully managed service and other higher
& degree apprenticeships contact
T: 01634 888459
E: [email protected]
www.kent.ac.uk/apprenticeships
r e a d o n l i n e at: u k s pa . o r g . u k / b r e a k t h r o u g h
S u m m e r 2 0 17 | U K S Pa b r e ak t h r o u g h | 3 5