Business angels or venture capitalists are investors who provide the necessary capital for start-ups or growing companies. They usually get involved, to an extent, in the businesses in which they invest, either as a mentor or guide or sometimes, even directly.
Venture Capital London sites offer an online platform where entrepreneurs and venture capitalists can meet. The investment made by the business Angels London is more like an equity investment and not like a loan which the entrepreneur has to pay back with interest. The venture capitalist and the businessman come to an agreement. Businesses and start ups can register the details of their business and the opportunities on the site and the site matches their requests with the appropriate investor on their database. The businessman must provide sufficient details about the business, so that the business angels London investors get confidence in the business. The business growth plans and the way they are planning to use the funds given by the business Angel must also be specified. They can also specify how they are proposing to use the skills, guidance, and advice of the Business Angel in their business.
When the requests of the business matches the business angel or investor’s requirements, the details are provided to the angel and he can decide whether to contact the particular businessman or not. The businessman must have a clear idea of how he is going to make use of the funds in order to demonstrate his skills and encourage the Angle investor to make an investment in his business.
If the Business Angels London does not have confidence in the business or if they see that there is only limited scope for growth, they might not want to invest. They will look for the management’s expertise or talent and the skills of the entrepreneur before investing. Sometimes, they might even ask for character references. The Business angels London sites select members carefully and refer people whenever they are appropriately matched in order to secure the right combination of businessman and venture capitalist.