Angel Investment

Business angels provide financial investment in return for an equity share

A more personal form of funding, business angels are high net worth individuals investing their own disposable finance in a cause worthy to them.  Acting on their own or in a syndicate, they can also bring valuable experience and guidance to a growing business.

Angels seek opportunity

Business angels look for investment opportunities where companies are showing the potential for growth.  They provide financial backing to start-ups and early stage businesses as well as to established businesses looking for expansion capital.

Angels will often facilitate a high-risk investment where the potential for an excellent return is clear.

Is it worth losing equity in my business?

Angel investing is a form of equity finance, so in exchange for much-needed funds, you give up equity or shares in your business.  But angel investors are more than just money.

Most angels can offer invaluable, first-hand experience of early-stage and growing businesses.  This knowledge and skill set, coupled with their network of contacts, could transform your journey and help you to grow at a faster rate.

High net worth individuals investing their own wealth

Is a business angel right for me?

An angel investor is likely to take a very hands-on approach to supporting your business, assuming an active role in decision-making as well as providing the finance.  This can be invaluable to some businesses but a rude awakening to others.


  • Angels can invest for the long-term, often in multiple rounds
  • Angel finance is accessible and quick without complex assessments
  • Angel investors are willing to take on high risk financing
  • Angels bring a wealth of knowledge and experience


  • Finding the right angel can be time-consuming
  • The money isn’t a loan, you’ll lose equity shares in your business
  • The expected rate of return can be high in a short space of time
  • You will need to be open to external input into the day-to-day running of your business

Key points to consider

  • Business angels often invest between £10,000 and £500,000 in a single venture
  • Angel syndication can raise this to deals of up to £2m
  • A return on investment is expected over a period of 3-8 years
  • Angel investment can work alongside other sources of finance to boost the pot
  • There are costs associated with securing angel finance
  • You need an exit plan in place for the angel, allowing them to leave the business
Angels provide knowledge and experience too

“I was the lead-in investor and required additional funding to complete the acquisition. Some of this was found from within the client’s existing senior management team, and Pegasus obtained the additional £100,000 required via two investors from its Business Angel network. I recommend Pegasus.”

Bill Daubly, CEO – Prestige Car Servicing Ltd.