How does angel investment work?
An angel investor is a high-net-worth individual who provides financial backing for small start-ups or entrepreneurs, typically in exchange for ownership equity in the company.
Angel investors often fill the gap between friends and family, and more formal venture capital funds. Some people invest purely for profit whilst others look to make an impact by investing in causes and categories, they are really passionate about.
Angel investing is risky, but potential high returns and satisfaction from nurturing a start-up can make it worthwhile.
If you are interested in understanding more about how angel investment works, you may find these sources useful:
The UK Business Angels Association – Click here is a good reference point. There are 650 members including SAIC.
Many angel investments are subject to SEIS or EIS tax incentives. If you would like to know more, see this government information: Click here