Investing into a company? Top 5 points to consider

Angel investing comes with risk but it can lucrative; the key is to do your due diligence.

Following are the top 5 points we feel you need to consider before investing:

Day to day

How much do you want to get involved in the day to day running of the company? It is important to establish the parameters of your relationship from the outset; whether you want to be a part of the management team or merely updated as to the progress of the business at set intervals.

Veto rights

You’ve bought into the management team, they are part of the reason you decided to invest, but you will also want to protect your investment. One way of doing this is to include veto rights over certain decisions e.g. director’s salary, sale of the business and fund raising. However, when exercising veto rights, bear in mind that most successful business relationships involve compromise.

Warranties

A lot of information has usually been provided to you which you have relied upon when determining whether to take a seat at the table. Warranties (promises) can be provided to protect your position by backing up the representations which have been made to you during the pre-investment phase.  Examples of typical warranties included are in respect of the business plan, IP, employees, liabilities of the company and tax.

Warrantors

Who is willing to stand behind the assurances given? Generally, you would expect them to be given by the company, the shareholders and maybe the directors. You must remember that warranties are only as good as the financial worth of the parties giving them to you.

IP protection.

In today’s landscape, IP is a crucial asset of the company which must be protected and managed to maintain a competitive advantage. IP may increase a company’s valuation, decreasing the risk of the investment and making it an appealing acquisition target.

This is not an exhaustive list of things to consider when investing into a company, but is a good starting point.

Top

Our Pitch Events

There are four pitch events per year, held in February, April, June and October. Usually hosted at the Bournemouth Carlton Hotel or virtually via Zoom.

At each pitch event there will be 5 business presentation pitches of 10-15 minutes, to suit all investor appetites. These will be selected by the Dorset Business Angels directors nearer to the event. Short summaries will be posted to our Events page and distributed via our newsletter ahead of the event. Each pitch includes a Q&A session and is followed by a investor debate, held privately.

These pitches and our other social events are ideal opportunities for networking and learning about what is new and trending in a variety of industries. If you would like to be involved you can find out more on our Investors Membership page.

Our Next Pitch Event

Registration to our next event on April 26th 2021 is via our Eventbrite page.

Please be aware that online events will run whilst social distancing is advised.

2021 Pitch Events

Monday 26th April 2021 - Book now!
Monday 14th June 2021
Monday 4th October 2021