Angels Den

Angels Den is an online investment platform that connects businesses with angel investors.[1] It was founded in 2006 and is authorised by the Financial Conduct Authority (FCA).[2]

Angels Den
Business Service
Industryangel investing, Private equity
HeadquartersLondon, United Kingdom
Area served
Worldwide
ProductsAngel-Led Investing, Angel Clubs, Masterclasses
Websitewww.angelsden.com

Angels Den - now Angels Den Funding - offers an online investing platform, which allows investors to invest in pre-vetted SMEs.[3] 92% of Angels Den funded companies since 2013 are still active today.

Angels Den is headquartered in Faulkner’s Alley, Clerkenwell, London, and also has a presence in Poland and Romania, constantly looking for new opportunities to extend.[4]

History

The process of matching business owners and investors was initially done online, but in July 2008 Angels Den introduced the concept of "SpeedFunding" where entrepreneurs pitch to investors on a one-to-one basis.[5]

In July 2013 the runner-up of the BBC television series The Apprentice, Luisa Zissman, found 16 investors to fund her new business through Angels Den.[6][7]

In October 2013 Angels Den launched an online platform and a new rebranded website.[8]

Angels Den Funding is currently led by CEO Manuel Costescu and the team is constantly growing, having 10 members from 2 countries at the moment.

Model

Angels Den is an online investment platform[9] promoting investment in pre-vetted SMEs (Small and Medium Enterprises - see SME finance.) Investors often play an active role in the business, providing the initial funding, expertise and contacts to drive growth. Once an anchor investor is on board, Angels Den opens funding to other investors.

Angels Den provides various offline pitch events such as "SpeedFunding" events,[10], where entrepreneurs present short elevator pitches to numerous investors on a one-to-one basis.[11][12][13] Angels Den also runs "Angel Club" events for pre-screened businesses, as well as private viewings. In addition to this, Angels Den offers free, informative masterclasses to improve knowledge in all areas of investing.

EIS and SEIS

The Enterprise Investment Scheme was launched in 1994.[14] According to Michael Portillo, the EIS' purpose is "to recognise that unquoted trading companies can often face considerable difficulties in realising relatively small amounts of share capital. The new scheme is intended to provide a well-targeted means for some of those problems to be overcome".[15]

The EIS covers five separate forms of tax relief: 30% Income tax relief, Capital Gains Tax Deferral Relief, CGT Freedom, Loss Relief, Inheritance Tax Relief. In August 2012 Chancellor George Osborne launched the Seed Enterprise Investment Scheme which aims to "increase the generosity on the Enterprise Investment Scheme", as well as to " extend this scheme specifically to help new start-up businesses get the seed investment they need".[16] The SEIS provides a 50% Income Tax relief against personal income tax as well as a 28% Capital Gains Tax relief on SEIS eligible investments of up to £100,000.[17]

Most businesses presented to angels via Angels Den and especially via the Tech Club are EIS or SEIS eligible.[18]

Example campaigns

Equity

Equity pitches on Angels Den offer investors the opportunity to purchase shares in the company. Below are a few example of companies that have raised funding through this method:

Business Amount Raised Equity Amount Date
WhiskyInvestDirect £1,076,472 20% May 2015[19]
Stylect £100,000 5% Feb 2015[20]
NY Slice £300,000 25% Dec 2014[21]
Antaco £213,840 10% Aug 2014[22]
Beer 52 £100,000 10% Jan 2014[23]

See also

References
  1. "Whisky investment firm raises £1m through crowfunding". Retrieved 2015-06-02.
  2. Angels Den. "Angels Den." Crowdsourcing. 21 May 2013. <http://www.crowdsourcing.org/site/angels-den/wwwangelsdencom/26052> Archived October 6, 2013, at the Wayback Machine.
  3. "Three fifths of startups have tried but failed to get funding - Real Business". realbusiness.co.uk. Retrieved 2015-06-02.
  4. "UK Business Angels Association". www.ukbusinessangelsassociation.org.uk. Retrieved 2015-06-02.
  5. Morrow, Bill. "Speedfunding." Intellectual Property Office. UK Trademark 2,492,697
  6. Cheung, Sonja. "‘The Apprentice’ Runner-Up Zissman Talks Highs & Lows of UK Startups", The Wall Street Journal, 26 July 2013 <https://blogs.wsj.com/venturecapital/2013/07/26/the-apprentice-runner-up-zissman-talks-highs-lows-of-uk-start-ups/>
  7. Andrew, Amy. "Would you invest in an Apprentice loser? Crowdfunding taps into start-ups and bright ideas, but how big are the risks?", This Is Money, 1 August 2013 <http://www.thisismoney.co.uk/money/investing/article-2377698/Crowdfunding-Invest-start-ups-bright-ideas-winning-businesses.html>
  8. "Angels finally touch down on the crowdfunding for business scene", Smarta, 8 October 2013 <http://www.smarta.com/blog/2013/10/angels-finally-touch-down-on-the-crowdfunding-for-business-scene/>
  9. "Whisky investment firm raises £1m through crowfunding". Retrieved 2015-06-02.
  10. "Speed funding: pitching to angel investors in four minutes - video". the Guardian. Retrieved 2015-06-02.
  11. London Loves Business. "Business Owners to Pitch Ideas at Speed Funding Event." London Business News. 29 Feb. 2012. <http://www.londonlovesbusiness.com/business-news/business/business-owners-to-pitch-ideas-at-speed-funding-event/1811.article>
  12. Brummelhuis, Simone. "Get your business flying with Angels Den speedpitching events", The Next Women Business Magazine, 09 January 2009 <"Archived copy". Archived from the original on 2014-01-02. Retrieved 2013-08-10.CS1 maint: archived copy as title (link)>
  13. Business Matters, "Angels fall in love with speedfunding", 7 July 2008 <http://www.bmmagazine.co.uk/angels/167/angels-den-speed-funding/>
  14. Alliotts Chartered Accountants and Business Advisors. "Enterprise Investment Scheme and Venture Capital Trusts." Alliott Group. <"Archived copy" (PDF). Archived from the original (PDF) on 2015-12-24. Retrieved 2013-08-01.CS1 maint: archived copy as title (link)>
  15. Accolade Partnership Limited. "History of EIS UK." The Enterprise Investment Scheme in Great Britain. <http://enterpriseinvestmentscheme.co.uk/history_eis_17.html>
  16. Accolade Partnership Limited. "Changes in 2012 to EIS - UK Enterprise Investment Scheme." Changes in 2012 to EIS - UK Enterprise Investment Scheme. <http://enterpriseinvestmentscheme.co.uk/changes_in_2012_21.html>
  17. Sapphire Capital Partners. "Changes in 2012 to EIS - UK Enterprise Investment Scheme." Changes in 2012 to EIS - UK Enterprise Investment Scheme. <http://enterpriseinvestmentscheme.co.uk/changes_in_2012_21.html>
  18. Dunsby, Megan. "Angels Den Tech Club Invests Six-figure Sum in Intelligent Positioning." Growing Business. 3 June 2013. <http://www.growingbusiness.co.uk/angels-den-tech-club-invests-six-figure-sum-in-intelligent-positioning.html%5B%5D>
  19. "Whisky investment firm raises £1m through crowfunding". Retrieved 2015-06-02.
  20. Newton, Richard. "Flirting with footwear on Stylect, a Tinder for shoe lovers". Financial Times. ISSN 0307-1766. Retrieved 2015-06-02.
  21. "Pizza takeaway concept NY Slice hits crowdfunding target | Lunch Business". lunchbusiness.co.uk. Retrieved 2015-06-02.
  22. "Biowaste Company Smashes Fundraising Target | UK Business Angels Association". www.ukbusinessangelsassociation.org.uk. Retrieved 2015-06-02.
  23. "Craft beer club Beer52 raises £100,000 through Angels Den crowdfunding platform - Startups.co.uk: Starting a business advice and business ideas". Retrieved 2015-06-02.
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