How to Find and Pitch to Angel Investors as a UK-Based Startup

Angel investors have bridged the gap for startups and small businesses facing challenges in accessing finance to grow in the UK. As they are often in the pre-profit and pre-revenue stages, startups may require capital to launch or develop a prototype that effectively demonstrates their business idea.

Besides writing checks, angel investors have expanded their roles to include mentoring business owners and offering industry connections, which helps businesses establish themselves. While they are becoming an increasingly popular source of business funding, the challenge is in finding the right investor for your business.

In this guide, we explain how entrepreneurs can identify relevant angel investors for their business, how to connect with them, and how to craft a compelling pitch to demonstrate that their business is worth their investment.

The value of angel investors in fueling UK-based startups

It is quite challenging for startups to secure early-stage funding, as many platforms and financial institutions require the company’s credit score or financial documents to see if they are capable of repaying the money.

Apart from helping startups, angel investors may not seek repayment; rather, they may seek company equity in return. Unlike traditional bank loans, angel investors’ funds give the company time to scale its operations and enter the new market.

While we now understand the value angel investors bring to businesses, determining the best one for your business is essential to understanding who they are. An angel investor is not someone with a lot of money to invest in companies, but rather an experienced entrepreneur in the business world who invests their money in exchange for equity. The equity is usually minority between 10% and 25%.

Apart from funds, angel investors also offer advice, mentorship, and industry connections. The business will benefit from the investor’s time and skills, pushing its development forward and breaking through the ever-competitive market.

Where to find angel investors in the UK?

Angel investors often invest in their communities or geographical location, and the industry of their expertise. Let's explore various platforms and places where entrepreneurs can find angel investors.

Angel investor matchmaking platforms

As an entrepreneur, matchmaking platforms are the fastest way to connect with angel investors for your startup. By joining angel investor matchmaking platforms, such as Angel Investor Group, entrepreneurs can find investors to enhance their cash flow.

Most investors listed on these platforms state exactly what they are looking for in businesses, the industry, and how much they are willing to invest. As a business owner, it is easy to peruse through their profile and find the one that matches your needs and description.

Angel investors' matchmaking platforms guide business owners to avoid sending spam emails to many investors who are not relevant to their business.

Industry events

There are various industry events in the UK, such as Techstars startup events and United Kingdom Business Angels Association (UKBAA) showcases, where you can find angel investors. Investors often target these events to experience new businesses in the market and strategic ideas that capture their interest.

These industry events are essential as the company will target sector-specific industry investors, increasing its chances of securing an angel investor.

These industry events operate on an invite-only basis, so entrepreneurs need to book their attendance in advance. To find these events, business owners can leverage online platforms like LinkedIn, Facebook industry groups, and University alumni networks.

Pitch competition

Pitch competitions often connect early-stage entrepreneurs with potential investors and secure funds for their business. These competitions often feature live pitching, question-and-answer sessions, and provide opportunities for networking with investors and other founders.

Apart from getting an investment, these competitions often enhance your startup's recognition and visibility while building strategic connections.

Networking

Leveraging your networks, such as university alumni and LinkedIn connections, can refer you to angel investors in your industry sector. An introduction through mutual connections can increase the chances of investors believing in your business.

Pitching your business: What investors want to hear

When coming up with a business idea, you clearly saw a problem that you can solve in the market, and that is what the investors want to hear. When coming up with a compelling business pitch, ensure you clearly articulate:

• the specific problem in the market
• how your product or service will uniquely offer the solution to the problem
• if there is a growing market need for your solution
• define your target market and explain their willingness to purchase your products or services
• how you plan to generate revenue for your business
• how your business can grow significantly over a period of time
• skills and experiences of your founding team
• how much funding you need for your business
• how the funds will be used
• what equity you are offering

It is essential to remember that most investors want to see confidence, clarity, that you believe in your business, and the measurable impact.

Additionally, it is essential to establish a professional setup before approaching investors. UK-based business owners can leverage the best virtual offices for startups.

There are virtual office options for early-stage businesses, making it easier for startups to set up their operations without being physically located in the location. 

To conclude, finding an angel investor requires a strategy, consistency, patience, and research, among others. Intense preparation on drafting a compelling pitch and researching how other business owners are targeting investors is essential to understanding precisely what you are looking for.

Angel investors not only offer money, but they also advise, mentor, and offer industry-specific connections, which anchor the business development in the market. Platforms like Angel Investor Group have made it easier for entrepreneurs and investors to match for free, supporting businesses’ cash flow.

For more information about the platform, visit their website at https://angel-investors-group.com/.