Startups that are just in their early stages are often looking for funding through means such as angel investing UK angel investors are fueling the economy and helping startup businesses get off the ground. startups and small businesses are fundamental to the UK economy. They provide jobs, services, and new innovative products.

So, what exactly are the basics of an Angel funding? UK angel investors are using their resources to invest in startups or other small businesses to help them flourish in the market.

UK angel investors either function alone or can choose to invest as part of a syndicate. This common practice has enabled thousands of new businesses to get underway, through financial investment. If you want to know all about how angel investors work, read on for more information in this article created by our team at TMS

How Angel Investors Work

Here’s the outline of the basics of angel funding.  UK angel investors are business savvy people and knowledgeable professionals. They have high net worth and seek out business investment opportunities. These are often in startups or businesses about to take off. In return for around 5-25% ownership equity in the company, they usually will invest about £25,000 to £300,000.

They may invest a large amount of money just once into the startup, or it can be a regular cash top-up to help with their running costs. Angel investors are also sometimes referred to as business angels, seed investors or private investors. Regardless of their name, they are the lifeblood of the startup industry.

Those who become angel investors come from all walks of life, genders, and personalities. Many are retired business people looking to keep an eye on the business market, or other entrepreneurs.

The difference between UK angel investors and venture capital finance is that the latter invests from managed funds. This means that it is not an individual with complete decision-making control over the money, which may be either public or private funds. Whereas, business investors in the UK will usually meet personally with startup owners. They have complete control over their own investment decisions.

It’s normal for angel investors to provide between £10,000 to £500,000 as an investment in a startup. The amount will vary according to business needs and investor capabilities. It would also depend on how the investor sees the growth potential of the company.

Sometimes angel investors come together as a network to connect with each other, other investors and entrepreneurs. This happens not only in the UK but worldwide. Angel Investment Networks is one such network that connects UK investors.

There is actually a regulatory standard for being an angel Investor in the UK. Individuals can self-certify as either Sophisticated Investors or High Net Worth Investors. These are determined by the FCA according to the Financial Services and Markets Act 2000 (FSMA). You should check that your UK angel investors have one of these certifications before showing them your business plan. This keeps you safe from fraudulent individuals who may want to steal your ideas to pass off as their own.

Best Networks to Find Angel Investors in UK

We’ve created a verified list of the best UK angel networks available. Some of the most revered entrepreneurs and business people are part of the networks listed below. If you are looking for an angel investor UK, it’s best to prepare a pitch before reaching out to a network or an industry contact.

24 Haymarket

24 Haymarket

24 Haymarket is a group of angel investors in the UK who partner with entrepreneurs to help them build their companies from the ground up. They are a network of experienced investors and focus on equity investments of up to £5 million.

Their investments so far have focused on companies specializing in industries including technology, healthcare, consumer and industrial industries.

Angel Academe

Angel Academe

Angel Academe focuses its investments on technology startups founded by women. They call themselves ‘the UK’s leading angel network for women’ and are made up of mostly female investors. They support the role of diversity in better decision making, efficiency, and returns on investment.

So far, they’ve been investing in Digital Media, Education tech, FinTech, B2B and Cybersecurity.

Angel CoFund

Angel CoFund

Since 2011, Angel CoFund has been investing in UK businesses and developing the angel investment market. They are a £100m investment fund who often make investments of a £100k to a £1M, with the help of business angels.

Angels Den Funding

Angels Den Funding

Angels Den Funding is an online investment platform.  Through the use of AI, it simplifies the process of startups finding angel investors in the UK. This technology ensures that investors find companies who meet the criteria.

Their focus is on startups with the potential for high growth in various industries.

Angels in MedCity 

Angels in MedCity 

In 2014, Medcity and Newable Private Investing created a partnership known as  Angels in the MedCity. Business investors come together with life sciences experts to support life sciences companies.

This network focuses on digital health, medical device technologies, and diagnostics. They hold regular events where entrepreneurs can pitch their companies to investors. Through this, 42 life sciences and healthcare companies have raised a staggering £14M between them.

Cambridge Angels

Cambridge Angels

Those looking for angel investors in the UK will be pleased to hear about The Cambridge Angels. This network of investors has a high individual net worth. They are specifically looking for startups around the greater London and Cambridge area.

They invest in cleantech, biotech, and hi-tech companies to provide the owners with contacts and advice, as well as capital.

Clearly Social Angels

Clearly Social Angels

Clearly Social Angels is used by 149 enterprises. They work with startups that are delivering positive environmental, social and/or ethical impact. Since they began in 2008 and more than £264 million has been invested by angel investors in UK through this company.

They support making investment decisions based on business impact. This means a big change to the financial system, but one that is better for the world.

Craigie Capital 

Craigie Capital 

The Craigie Capital headquarters can be found in London. It is an angel syndicate still in its seed-stages. So far, it has provided investments for more than 30 companies..

Its focus is on startups that are in London, in the Big Data, Cyber Security, FinTech, RegTech or SaaS industries. They are also open to emerging market entrepreneurs.

Fig

Fig

Fig supports high-growth companies in the startup phase to secure investment opportunities. This includes introductions to industry contacts and helps with marketing strategies. They also assist with business model development.

They work with UK angel investors who are looking to invest in any sector. Investors usually invest between 5£500k to £5m. They are working across the US, Asia, and Europe with all types of companies and investors

Firestartr

Firestartr

Firestartr has UK angel investors who invest up to 2M in promising digital startups. The average investment amount is £100k.

Firestartr holds a tech event in London called The Firestartr Spark Series which provides information on topics such as AI and blockchain technologies. It is a great networking opportunity for entrepreneurs and investors.

FSE Angel Investment

FSE Angel Investment

FSE Angel Investment looks for those UK angel investors who want to invest in UK companies with high growth. The business investors are usually those with high net-worth. They are often entrepreneurs who want to support other entrepreneurs.

The network is aimed at companies who post proof of contact and are near to, or, already making revenue. Investors in this network usually invest around £10k to£50k. Sometimes they work together to invest more.

Green Angel Syndicate

Green Angel Syndicate

Green Angel Syndicate was created to invest in the Green Economy, either in processes and installations or tech in its early stages. It is actually the only UK syndicate that focuses on eco-friendly companies, especially those who are participating in warding off global warming and climate change.

OION

OION

Oxford Investment Opportunity Network (known as OION) is another UK angel investors network. They connect business owners and entrepreneurs with potential investors. These investors may provide monetary investment or help out through their experience or industry contacts.

OION focuses on investing in EIS and SEIS companies (Enterprise Investment Scheme and Seed Enterprise Investment Scheme).

Wild Blue Cohort

Wild Blue Cohort

WBC holds programs for mentorship and provides introductions to entrepreneurs and investors. Usually, they invest with other angel groups amounts totaling up to £1m.

Venture Giant

Venture Giant

This syndicate for UK angel investors is a leading business funding and investment network. It connects investors with entrepreneurs specifically in the UK.

Venture Giant can be used to give your business a head start with capital funding or seed investment capital.

Ending thoughts on these UK angel investors

The use of UK angel investors is one of the most common ways to obtain funding for startups and companies in the beginning stages. These investors are often entrepreneurs who want to support other entrepreneurs or people who support innovative business ideas. UK angel investors receive the benefit of obtaining shares in these high-potential companies.

In order to obtain funding, it’s very important to be able to contact potential investors. Often a potential investor will first see your website..s. They hear you’re looking for funding, then they look you up online; the most common practice today. You want them to feel just as welcome when they visit your site as if they walked into your office in person. A sleek and elegant website is vital to your business success.

Pro Tip:

TMS can assist you in making an incredible website that will convince investors of your business potential. They specialize in customizing websites and also developing apps. They have a team of specialists who are experienced in creating amazing websites for startup companies.

If you enjoyed reading this article on UK Angel investors, you should check out this one about the best London coworking space.

We also wrote about a few related subjects like tech companies in London, SEIS and EIS, EMI scheme and Venture capital firms in London.