angel finance

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Angel Finance is the term given to investments made into early stage companies by experienced investors on an individual basis, known as Business Angels.

 

Business Angels fill an investment gap in that they operate above the level in the market at which the finance requirement of an investee company (and the associated risk) can be satisfied by ‘friends and family’ but below the level likely to be required to enable an attractive return to be delivered to an institutional investor.

 

An additional attraction of business angel investment is that the individual investing will often be able to bring some business experience to the area in which the investee company operates and may offer to mentor the founders or to sit on its board.

 

Key negotiations in a business angel investment tend to focus on minority protections such as anti-dilution, restrictions on expenditure, control of business plans and budgets and information rights.  White & Black advises on all these aspects.