Are you looking for the 1 in 10 investments to return x10 to pay back all the failures? And expecting another 4 to return the money invested? How many investments do you need to make to have an expectation positive return? How big should your portfolio be? Business Angel investment is said to be a game for High Net Worth (HNW) individuals - just how high must the net worth be? We look at the maths behind investment probabilities to examine the realities of investments in SMEs. And the conclusion is that the HNW should be worth...
Not enough high quality leads for investment? Would you like more? If the answer’s “yes”, then use your “ideal investment” specification to open the conversation with (in no particular order)…
- Local & National Angel Networks – In the UK there are many local networks (e.g. SWAIN, Xenos, etc.) and national networks (e.g. Envestors, Angel’s Den, Beers & Partners, etc.). They provide a filtering and some Investment Readiness training to those seeking money so you only get to see the best.
- Professionals (Bankers, Lawyers, Accountants & Venture Capitalists) – Find out who the lead professionals are for companies that meet your investment criteria and introduce yourself to them. Make sure they are aware of what you are looking for and how they can contact you.
- Incubators or Business Accelerators – Many universities have attached Business Accelerators (for example, in the South West, Bristol University has SETsquared and The University of the West of England has UWE Ventures). By targeting the use of your experience and expertise you may find the right company that is looking to expand.
- Increase visibility – Become a known, credible investor by publishing articles, giving interviews, and giving speeches. By being in demand you can increase your negotiating power as well as increase the stream of contacts.
- Executive Recruitment – Recruitment companies look to place high quality management personnel within companies from the Managing Director down. Some companies seek “investing candidates” in order to enhance the prospects of success for the placement (typically called a Management Buy In).
- Business Angels – Work with other Investors, share your quality leads and co-invest with them. They will bring quality deals to you as well as providing feedback on deals you are working on.
- Make an investment – By making an investment all those involved know what you are looking for and know that you are serious.
This blog is a brief review of leads for an investor that is covered in much more detail on the course “Finding the Opportunity”.