Angel Investing in London
When it comes to launching a start-up in London, the city offers a wealth of advantages to the entrepreneur. London has good connections to Europe, Asia, and the United States. This means that for entrepreneurs who are looking to launch a global enterprise, picking London as a base comes with plenty of advantages and has long been an area that has attracted new businesses and start-ups.
Unfortunately, this popularity comes at a price and for early-stage businesses (pre IPO) that require some form of office or retail space in the UK’s capital city, this can prove to be quite expensive. For many new businesses the operating expenses can escalate quickly, and the savvy businessperson will have accounted for these expenses in their business plans.
For London-based businesses, often outside investment is needed to help launch the business in the first place. Many London companies receive initial funding through various types of private investments which might include venture capital or even investment from traditional financial institutions. Unfortunately, traditional means of funding is not always open to brand new businesses, so they tend to have to look at other methods such as equity release to help fund their concept.
How Angel Investors Can Help London Entrepreneurs
Angel Investors are typically wealthy individuals that invest in small businesses and start-ups because they are looking for a profitable return in a viable business venture.
Aside from the monetary benefit from the investment in the business, some angel investors can also provide support and advice, and also provide contacts and experience that can help a fledgling business grow. Often this experience can make the difference between success and failure.
In this kind of arrangement, young businesses work closely with angel investors so that the two are on the same page about the company’s growth and future development.
Often, for new businesses that are in London, private investment may come from angel investors that are based in the local area and the UK. However, it is not uncommon for overseas investors to look to invest money into businesses in a particular country and economy. So, for the new business owner, they may find an investor from outside their local market.
Popular Industries in London
When it comes to setting up a business in London, and for that matter investing in a business in London, there are a few areas of business that are always popular in the capital. Fintech businesses have popped up all over London which support the financial institutes in the City of London. Other high growth areas have included healthcare and life sciences. SAAS, Digital media, e-commerce firms, tech startups and the emergence of cleantech businesses which focus on the environment and sustainability, are also popular industries.
Angel investors and angel syndicates looking to invest in early stage startups or in businesses that are in the initial seed stage can find a large number of opportunities in and around London and the home counties, which have quick and easy access to the city.
One of the differences between an angel investor and a traditional investor such as venture capital firms, is that they will be more inclined to take a risk on a new business without an existing track record. VC funds (and even early stage VC) will look to carry out a significant amount of due diligence prior to making an investment, and this is not always possible to do for a new business that is looking to scale up. This can be a source of frustration for the managing director and management teams at a new business since it can throttle growth.
This also means that there are a lot more options when it comes to business angels finding an investment opportunity. Active angel investors and angel groups can find new businesses that are actively targeting the latest trends and ventures, so that they can get their fundraising in early before the valuations of the business increase too high.
How a business angel network helps
As a British entrepreneur based in London you may have a great business idea or are already running a company which now requires more cash flow and financial help to expand. However, you may not have the right business contacts to find individuals who can invest in your company. Perhaps you are looking for a business partner, that can not only add investment into your business but also add the additional insight and experience that you need to take your idea to the next level. This is where the Angel Investment Network can help.
The Angel Investment Network in the UK and London has been set up to connect business angels with entrepreneurs. This operates differently to crowdfunding platforms since an angel network is a way to find a co-founder or business partner.
Our investor network is a global organisation that can help individuals connect across London and the rest of the world. Entrepreneurs can find accredited high net worth individuals whilst investors can explore a range of business opportunities based in London that they can invest in.