The Fundraising Process

This is the comprehensive seven stage guide to raising equity finance from our investors.

1. Send us your application form

To begin your funding process, you will need to fill in this short application form.

An Advantage Business Angels team member will carefully review your completed form. If your application looks promising, we will ask you to submit a business plan.

You won’t be charged anything for this initial stage.

2. Submit your business plan (free assessment)

Your business plan will be thoroughly examined by one of our Directors. They will decide if your business plan has the potential to become a successful investment pitch. If so, you will be invited to discuss things in more detail with one of our team.

This is also a chance for you to quiz us. You can find out:

• Exactly what Advantage Business Angels can do for you
• All about our track record in raising equity finance since 2003

Again, this business plan review and meeting won’t cost you a penny.

If the discussion goes well, and we are convinced by your proposal, you will be asked to sign a standard arrangement fee agreement.

3. Sign a standard fee agreement (£495)

This standard agreement costs £495  (remember applicants meet our Investors within two weeks of having their business plans approved by our team) and will cover:

• Support in preparing and targeting your specific investor pitch
• Comprehensive assistance with negotiating your funding deal
• An entire month’s marketing help for your proposal
• Your own priority telephone access to one of our Directors during the fundraising process

Should your initial pitch be unsuccessful, you have two choices. First you can cancel the retainer fee without charge. Secondly, you can choose to continue with the retainer, and we will find your further investors to pitch to: fundraising is tough and you will need persistence to succeed.

We strongly recommend that you factor in the retainer fee in your funding application. This effectively allows you to recoup this initial outlay should you win your pitch (see below).

5. Prepare your Investment Bulletin

We then help you write a specially-written Investment Bulletin to show to our investors.  This two-page sales document:

• Summarises the valuation, strategy and critical issues for your company
• Clearly, concisely and persuasively makes your funding case

6. Get ready for the pitch

To maximise your chances of securing funding, we will thoroughly prepare you for meeting investors. Our team has been involved in a considerable number of pitches – so we know what works, and what doesn’t.

You will get detailed advice on every aspect of your presentation. Plus we will rehearse the questions you are likely to face – and agree their answers.  You may have spoken to potential investors in the past but been unable to secure their commitment?  You may need some additional support?

No problem.

Throughout the fundraising process, you will have exclusive direct telephone access to one of our Directors.

7. Pitch to the investors

The moment of truth.

If you are pitching to one of our syndicates then typically your pitch is one hour long, and starts with you giving a ten minute presentation. That leaves 50 minutes for the investors to ask you about all elements of your business, and your plans for its future.

Alternatively we may line up carefully targeted investors to meet you, depending on our assessment of the best way to help you raise the funds. And sometimes we get a single key individual to commit to your deal, and then use our own database, other syndicates and contacts with venture capital funds or banks to get the full amount you need.

Worried about facing a “Dragons Den” interrogation? Don’t be. Although our investors ask some searching questions, they promise to treat you with respect at all times. After the pitch, if you have made the right impression, you will usually meet with two of our investors in the due diligence process. This is a detailed check on your plans prior to completing the deal.In all areas of our work, the Advantages Business Angels team is highly focused and determined – key attitudes needed for raising money.

8. Legally complete your deal and secure your finance (5% success fee)

The final stage of the fundraising process. In order to legally complete your deal – and to give you access to your funding – you and your new investors will sign a Shareholder Agreement. As part of our service, Advantage Business Angels can provide you with a standard Shareholder Agreement and help you tailor it to your individual circumstances.

This part of the Advantage Business Angels service:

• Is completely free
• Can save you many thousands of pounds of legal fees on your transaction

If you would like to take independent legal advice on this Agreement, that is your right – and your responsibility. And if you would rather have your own lawyer draft you a bespoke Agreement, you can do this too – but again you will have pay for this yourself.

Advantage Business Angels will then take 5% of the funding raised as a standard success fee. We would recommend that you factor in the success fee to your initial bid, so effectively you do not pay anything for our services. More about this here.

Getting in touch

Want to read about some of our previous successful bids? Then check out our portfolio section.

If you have any questions about the Advantage Business Angels fundraising process, please contact us today.