A question that comes up from time to time, when businesses are looking for Business Angel investment, is what information we as Business Angels at KIN typically ask for, when deciding which businesses to pitch to us at our meetings every 2nd month.
We meet at a different venue each time, never more than an hour or so from London, and nearly always in Kent – and between times meet with business to vet their business plans and suitability for our help.
The first important rule – is that at KIN we do not give specific advice on how to put a presentation pack together: we expect a business to basically be investment-ready.
After all, there is already a lot of guidance from different sources out on the internet. It is important to get the business plan and the executive summary right, as the opportunity may not be considered if we feel they do not contain the correct information – we take that as an indicationn you haven’t done your homework yet!
When deciding which businesses to put before our meetings – between 12 and 20 Angel Investors at each one – we are careful not to waste the time of so many people, especially as we make no charge to the businesses presenting.
But given the above: the items to be covered are not unexpectedly:
- a description of the business
- an analysis of its competition,
- latest accounts,
- the status of any intellectual property,
- the background and track record of the management team,
- the amount of investment the business is looking for,
- the amount of money that is put in by the owners of the business,
- what the investment money is going to be spent on,
- financial projections,
- the deal that is on the table for investors, and some thoughts on the exit strategy
- Plus disclosure of material facts relevant to an investor’s decision (such as, for example, relevant past, ongoing and potential disputes, convictions and insolvencies).
We don’t grill people when they present to us, unlike Dragon’s Den on TV – after all we’re not trying to make entertaining TV but get to the heart of a business investment proposition.
But we will turn down approaches if they don’t seem to be investor ready, with the above based covered.
If businesses are in any way unsure about what information to provide, we recommend that, so as to minimize the chance that they waste their time, they seek professional advice before they do anything else.
For example: High Growth Kent with whom we work together provides an initial appraisal as well as a guidance free of charge, as part of an arrangement with Kent County Council.