Things to consider if you want to become an Angel Investor

Karen Gould 10th July 2018

Angel Investors put money into start-up companies set up by entrepreneurs. It’s an attractive way to invest, but there are some risks.

Most investors put money into start-ups in the hope that they will make big returns. Early funders of Microsoft and Facebook and other big companies are now millionaires. This sounds attractive, but there are still risks considering.

There are several types of Angel Investors. Some successful entrepreneurs, for instance, want to invest in a Startup company also to provide advice and inspire other entrepreneurs. Other people simply want to help friends or relatives to pursue their passion. And some others are fascinated with learning about new technology.

The most common type of Angel Investors are family and friends who want to help an entrepreneur who has a great idea.

When it comes to when the money goes into to the company, there are also various types of Angel Investors. For instance, “Seed” investors put their money in at the very beginning, when the entrepreneur is starting up and needs funds simply to survive. Others put their money in at later stages, when the start-up is gaining traction or growing larger and potentially becoming profitable.

angel investors

 

How to find a good investment?

There are a variety of ways that people who want to invest in start-ups can find out about them.

  • Investment Events and Networking One way to find a good investment is to take part in events organised by associations or companies that liaise with angel investors. The UK Business Angels Association (UKBAA), for instance, has been promoting the angel investment community through workshops, research and networking for many years. You can join one of our events with USA Family Office. Our next event is in London 26th July 2018. You can check for other events as well by looking on Eventbrite to find events related to angel investing, for example, or check out talks at incubators that large companies have set up to support start-ups.
  • Search Other Organizations USA Family Office UK is an organization that aims to link investors to start-up opportunities.
  • Learn about Angel Investment You can also learn about angel investing through books or YouTube videos.
  • Speak to Us For more personalised learning, our organisation Gateway2Entreprise provides courses and webinars that educate potential angel investors on topics such as portfolio strategy and evaluating start-ups.
  • Seed Enterprise Investment Scheme (SEIS) – The Seed Enterprise Investment scheme offers great tax efficient benefits to investors in return for investment in small and early stage Startup businesses in the UK. SEIS was designed to boost economic growth in the UK by promoting new enterprise and entrepreneurship.
  • The Enterprise Investment Scheme (EIS) is designed to help smaller, higher-risk companies raise finance by offering tax relief on new shares in those companies that qualify. For the investor, it’s a tax efficient way to invest in small companies. The EIS is aimed at the wealthier, sophisticated investors. People can invest up to £1,000,000 in any tax year and receive 30% tax relief. However, they are locked into the scheme for a minimum of three years. EIS seeks to encourage investment into unlisted companies.

For further information about SEIS and EIS please check one of our partners Family Financial Centre you can find them here http://www.gateway2enterprise.co.uk/partners/

If you are willing to become an angel investor, putting money into start-ups can offer good returns. However, before investing your money it’s best to learn about angel investing and figure out how to deal with the inevitable risks that come with new companies. If you need further information Gateway2Entreprise is an Investment Hub organisation that operates within SME sector. For further information please check our website www.gateway2entreprise.co.uk

Innovative ways to raise Investment

Karen Gould 21st June 2018

Are you hoping to launch a new business that will help you turn your dreams into reality? Are you struggling to get the funding necessary to get your venture off the ground? We have listed the best ways to raise investment.

In addition to traditional business loans, there are a few innovative ways to raise investment for a new business. We have listed some below:

Raise Investment by finding an Angel Investor

An angel investor is an individual who is always searching for the next great business idea that they could invest their money in. Many of today’s biggest brands were funded initially by angel investors, who are willing to give you the investment that you need to get your business up and running or take it to the next level. In return, however, you may have to let the angel investor have a share of equity (LINK) in your company. We have in our Members only INVESTMENT HUB Upgrade a list of Angel Investors which is upgraded every quarter.

Try Online Crowdfunding – Equity

With crowdfunding, you basically use the Internet to connect with people from around the world who may be interested in what you have to offer.

Contrary to popular knowledge, crowdfunding online isn’t just for creative projects, non-profits, and student projects. Many smart entrepreneurs are learning to use crowdfunding to get their company and their products off the ground.

Building your page on one of the many crowd funding platforms is an easy process. You will need to give all the background information on your brand to entice people to donate to your project. Best of all, you can even offer perks for various donation amounts, further encouraging people to secure you funds. We use http://www.gateway2enterprise.co.uk/partners/ because they specialise in Technology platforms.

raise investment

How Pre-Sales can help Investment into your business?

If you have a proven model that you can demonstrate Sales/Traction and Partnership this is favourable to Investors.

Gateway2Entreprise is an Investment Hub organisation that operates within SME sector. For further information please check our website www.gateway2entreprise.co.uk If you are looking to invest your money and considering that next ‘BIG IDEA’ especially in Technology or Fintech our ‘SANDPIT’ then as our Avatar is Angel Investment Venture Capital and USA Family offices please feel to log in to see our Summer Investment Portfolio 2018 updated monthly.

Investing in Private Equity

Karen Gould 14th June 2018
investing in private equity funds

If you are interested in investing, private equity could well be an option. Before digging dip in this type of investment it is good to understand what private equity is:

What is Private Equity?

Private equity refers to investments made in non-public companies through privately negotiated transactions. In private equity investor’s interests are usually aligned with those of management. This combined with long term investment horizons and hands on support for a company’s executive team.

Private equity managers typically specialise in market sectors in which they already have extensive investment experience. They use that expertise to manage assets through economic cycles, as well as to identify attractive investment opportunities.

Private Equity Managers work closely with a company’s management to implement change and increase the company’s value. Once this has been achieved, private equity managers reposition the company for sale at higher value. The spread of performance in private equity is much wider than in other asset classes. Also, managers have a significant influence on investment performance. This makes the selection of managers critically important.

Is private equity safe?

There are a number of routes into private equity, each with its own opportunities and risks. Investors should always consider advantages or disadvantages and remember that, as with all investments, past performance does not guarantee future results.

investing in private equity

Who can invest in private equity?

Investors may choose to invest directly in a private equity funds, but they are expected to lock in their capital for a long time period – usually 7- 10 years in the UK and even more 15 years in the USA.  Also, many private equity firms will only accept high minimum commitments to their funds.

Why invest in private equity funds?

For investors looking for attractive risk-adjusted returns over the long term, private equity has strong credentials and can offer significant benefits when added to a wider portfolio of assets.

Gateway2Entreprise is an Investment Hub organisation that operates within SME sector. For further information please check our website www.gateway2entreprise.co.uk  If you are looking to invest your money and considering that next ‘BIG IDEA’ especially in Technology or Fintech our ‘SANDPIT’ then as our Avatar is Angel Investment please feel to log in to see our Summer Investment Portfolio 2018

Investment Mistakes

Karen Gould 24th May 2018

Some investors make mistakes that could probably have been avoided or at least mitigated. If you are new to investment or wish to get back on track with your investment plans I have listed 4 of the most common investment mistakes.

We all make mistakes in life or in our profession and finance isn’t immune to this. Quite the contrary: investment mistakes are very easy to make.

Some of the world’s highest profile and most successful investors, including Warren Buffett, and Microsoft’s founder Bill Gates, have all publicly shared some of their investment mistakes.

For some people, the fact that big boys also fail is a sign that maybe small investors should save their money or stick to low risk financial products and investments.  Not quite.

In my opinion not putting your money to work is far more perilous in the long term. Proof of this is that the overwhelming majority of the world’s high net worth individuals and ultra high net worth individuals are committed investors.

In the words of play writer Samuel Beckett, ‘fail again, fail better’.

Investing money is about avoiding investment mistakes by seeking professional, independent advice. It is also about learning from others. Not just investors, but successful people of all walks of life.

After all, in an ever-changing world, investing is becoming more and more an important part of your financial success and independence.

Here are my top four investment mistakes to avoid to seriously building your wealth:

Don’t Move in and Out of the Market. Time the Market

When it comes to investing, typically, the goal is to create income or multiply wealth from capital. The best way to achieve this is to consistently stay invested rather than moving in and out as the market shifts.

History teaches that, over a longer time horizon, financial markets have an upward trajectory. Achieving financial success, it is all about time in the market, not timing the market.

Don’t Put All Your Eggs in One Basket. Diversify, Diversify, diversify

Not putting all your eggs in one basket is, as everyone knows, one of the pillars for good investments. But it is always surprising the high number of investors who don’t manage to get this quite right.
Diversify assets across different sectors and geographical regions.

investment mistakes

Don’t Invest All You Have. Have money available

The good old ‘saving for a rainy day’ it is especially true in these days of computers, investment algorithms and high frequency trading. Keeping a reserve of cash offers a financial security blanket. That said it is important to get the balance right. Holding too much cash over extended periods can be detrimental to your long term financial goals, as inflation can gradually erode it.

And finally, number for of the most common mistakes made by investors…

Don’ Get Carried Away. Know Your Objectives

It’s good to know where to invest. But before looking for good investments, you should know why you are investing in the first place.

Emotions have a very special place in our lives. However, with investing, letting emotion take the lead can lead to bad decisions and loss of money. There should be no place for undue loyalty, keeping up appearances or adopting a herd mentality.

We all make mistakes. But markets are full of investment opportunities

Mistakes are an inevitable part of life. However, I believe that should we avoid these errors, we should be well positioned to mitigate potential investment risks and take advantage of the many considerable investment opportunities.

Ready to put your money to work and start investing? Here are some inspiring investment quotes to get you started.
Gateway2Entreprise is an investment hub organisation that operates within SME sector. For further information please check our website www.gateway2entreprise.co.uk

If you are thinking about becoming an Investor Angel or joining an Angel Syndicate, then we would be happy to have a chat about this journey as we have over 2000 Angel Investors within our network and growing. Our ‘Sandpit’ is Fintech, Technology, AI and all Tech … Our Avatar of Investor Network is Angel to Venture Capital to now widening our Family Offices UK and USA.

New Government Fund Helps Raise Capital in the UK

Karen Gould 20th May 2018
raise capital uk

The UK Government plans to help businesses raise Capital through the British Business Bank.

A U.K. government backed bank started a funding program to encourage British businesses to source Capital within the UK instead of SME’s having the costly expense of travel to the likes of Silicone Valley USA etc.

raise capital ukBritish Business Investments published recently a request for business proposals for its Managed Funds Program, which could eventually drive as much as 1.5 billion pounds ($2 billion) into high potential companies in Britain, according to BBI Chief Executive Officer.

The average U.K. venture capital fund is one third smaller than in the U.S; and a few years’ back it was not unusual for British SME’s to take the plunge across the pond indeed whilst a Business Accelerator Growth Coach for Grant Thornton and Winning Pitch previously this was encouraged.

BBI, a subsidiary of British Business Bank Plc, will invest 500 million pounds of government equity into large scale funds of funds as part of the program, which was announced by Chancellor of the Exchequer Philip Hammond last year to close the U.K.’s patient capital funding gap. That money could leverage another 1 billion pounds from the private sector, including from pension and investment funds.

Here at Gateway2Enterprise we also feel that UK businesses don’t have to travel to USA to raise Capital in USA – through our website www.http://www.gateway2enterprise.co.uk in partnership with USA FAMILY OFFICE – 1500 Family offices the largest in the USA our new Partnership in UK – we just worked with them on 27 April 2018 London ‘CAPITAL RAISE BOOTCAMP’ next one 26 July 2018 London Piccadilly Meridian Hotel and Investors Dinner Mayfair and  you can also  JOIN US Miami 11 Dec 2018 for the Global Deal Summit with our CEO

To know more on raising money for your business please keep reading our blogs or check our website at http://www.gateway2enterprise.co.uk