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New programme launches to turn investors into angels
13/10/2009
Over 70 business people attended an event to mark the launch of a new programme designed to help private investors become Business Angels.
Anthony Clarke, Chair of the British Business Angels Association, Tony Hillary previously of Hillary’s Blinds, Jeff Moore, Chief Executive of East Midlands Development Agency (emda), and entrepreneur, Chris Scarth, were all speakers at the launch event, which took place at Perkins Restaurant in Plumtree, Nottinghamshire.
The Angel Insight programme was launched by the British Business Angels Association (BBAA) and Growth Investment Network East Midlands, and is designed to highlight the opportunities that are available for Angel Investors.
Tony Hillary, who is now a successful investor himself, spoke about his experiences as a business angel. He said: “Business angels need to look at three things. First, the team - you need to make sure that you can trust, believe in and get on with them. Second, you need to thoroughly test their business model and be sure that they have a sure fire way of generating profitable sales. Third, most businesses go bust because they run out of cash, so you need to make sure that after your investment they will have enough money to keep on running. However, it is also important to act as a friend to the business and to provide help and advice when they need it.”
One of Tony’s investments has been in the Nottingham based business, Prime Principle, which has developed Classroom Monitor, a software system designed to help school teachers with their reporting systems. Tony Hillary invested £70k into the business which is already making annual profits of £250k.
Chris Scarth of Prime Principle said: “The money is useful, but it is more the expertise and guidance that comes with it, as well as the discipline of the accountability that really made the difference for us. We wouldn’t be where we are today without our business angel.”
Anthony Clarke, Chair of the British Business Angels Association, stressed the importance of angel funding and its role in plugging the ‘equity gap’ which exists between initial funding from family and friends and larger venture capital funding.
Jeff Moore Chief Executive of emda added: “As a region, we need to increase private sector business angel activity, and in 2004 we brought together a number of regional partners to set up Growth Investment. Growth Investment has become a magnet for bringing together entrepreneurs, intermediaries and investors, and in total its members have worked on deals totalling £12m.
“However, we need to persuade more high net worth individuals in the region that investing in businesses is both enjoyable and profitable, and we believe Angel Insight does just that.”
Growth Investment has grown to total 39 organisations which are paying members of the network, representing a powerful force to support businesses in the region. They are responsible for running the Angel Insight programme, which is part of a national campaign to raise awareness of the opportunities available through investing in small companies.
The Angel Insight events provide potential investors with information such as how to review a business plan, putting together a shareholders agreement and other details about investing in small companies. Recent research has shown that angel investors with a portfolio of investments can expect an average return of 22% on their outlay.
A series of Angel Insight breakfast sessions are scheduled to take place in November to enable investors across the region to find out about the opportunities available to them. These are taking place in Nottingham on 3rd, Leicester on 17th and Northampton on 24th.
For more information about the Angel Insight programme, and to register for any of the events, visit the events page or contact Toby Reid telephone 0115 701 0060, or email toby@ginem.co.uk
Submitted by Sarah Crennell