Here are answers to the many questions we get asked every day
We have been referring Angel Investors to businesses since 1992. Most businesses who register with us meet with angel investors. From there it is up to the parties involved to strike a deal. Read some of the testimonials on this website.
This depends how prepared you are. Do you have a clear idea of how you will deploy the angels investment? Many investors say that businesses are not clear about the way ahead and think that money is the answer to their problems. Apart from that, it can take a while for the investor to complete their due diligence and for everyone to be happy with the Shareholders Agreement.
Our list of investors is active and up to date. The list is populated from our in-house matching database which we use continually to match the files. It is essential for our work that the database only contain active investors. Some investors, however, may not have advised us that their time is committed elsewhere at the moment. Other investors are not very active, preferring to stay on the database waiting for a specific type of opportunity to register. The other side of this is that your listing can attract interest from investors visiting our site (traffic to our site estimated at around 6000 each month).
Around ninety percent of the businesses who register with us are referred to investors. Not all enter into an arrangement with Angel Investors for a variety of reasons. Apart from those mention above, the inability of the business and the angel to broker a deal, incompatible personalities, are some of the major reasons. More information about this is available in the guide Private Capital for Private Companies.
There is no fixed answer to this. Here is one example.
With x , I would get initially get 7.5% of each company for $75K cash and 'earn' a further 7.5% in each company through working in both companies over the next 2 years, taking me to 15% of each company by end of Y2 (a bit complicated!). This is agreed pending a review of the books, which I think will be fine. X is preparing a letter of intent. Shareholders agreement will follow and we hope to wrap the whole thing up and get on with the real work by the end of July.
When investors do not respond to a referral it is usually because the proposition is not put to them from their point of view, but only from the businesses point of view.