Co-investment for syndicates
Our Wales Angel Co-Investment Fund is available to syndicates of Investors seeking co-invest in Wales based SMEs. Syndicates will be managed by Lead Investors who have been pre-approved by Angels Invest Wales.
How does it work?
Lead Investors will need to apply directly to us initially for approval (two intakes per year). Use our contact us form to get started.
Upon a successful application, the Lead Investor will then need to form a syndicate with other experienced investors (syndicates must have a minimum of three investors including the lead).
Once a syndicate has been formed they can apply for co-investment. The Lead Investor and company will complete an application form provided (and relevant search docs) for submission. The syndicate will have carried out all due diligence on the company/project before presenting it to us.
Your application is then considered and if approved, solicitors will be instructed on a joint rep, pro rata, parri passu basis. Funds will be sent directly to solicitors only, on undertaking that they have received investor funds.
What is the investment criteria?
- Equity and loans from £25,000 - £250,000
- Maximum exposure to any individual syndicate is £700,000
- Syndicate members must not have existing investments in the company/project
- Family or friends of syndicate members, who are involved in companies/projects, will be deemed a conflict of interest
- As co-investor we can contribute up to a maximum of 50% of the total deal.
What's next?
Contact us to find out more.
Lead Investors will be sent a short application form to complete and may be invited for interview.
General
What is Angels Invest Wales?
Angels Invest Wales connects business angels with Welsh businesses seeking growth investment.
What are business angels?
Business angels are wealthy ‘sophisticated’ investors with experience of growing successful businesses.
Who do you work with?
We work with our ‘registered’ investors, businesses in Wales and professional advisers and referrers, including banks, accountants and legal experts. We also work with local authorities and the Welsh Government.
Does Angels Invest Wales participate in investment negotiations?
We broker deals, and ‘showcase’ investment opportunities which means we don’t act for either the investor or business seeking investment.
Does Angels Invest Wales conduct due diligence?
Investors and businesses seeking investment must undertake their own due diligence.
I need business advice, can Angels Invest Wales help?
We don’t offer financial, legal or other business advice but if required, we can provide details of professional advisers who may be able to help.
Our regional managers can offer general guidance on making a business more attractive to investors - and provide ‘signposting’ to organisations that can assist with relevant ‘investor readiness’ advice.
For business angels / investors
What can Angels Invest Wales offer business angels?
Angels Invest Wales business angels invest in businesses in Wales in return for an equity share. As well as financial rewards, business angels can choose to play an active role in their investment.
How do I join the network?
You must register on our Investment Platform and confirm your status as a High Net Worth Individual or a Self-Certified Sophisticated Investor, please contact us for further information.
How do you connect investors with investment opportunities?
Our regional managers use their business expertise to ensure opportunities are quality checked before being presented to our members who would be likely to invest.
Investment opportunities are regularly added to our Investment Platform which investors can view at their leisure. Investment Forums give businesses the opportunity to ‘pitch’ to prospective investors.
Do you offer syndicated investment opportunities?
Angels Invest Wales actively encourage syndication between our members. Business angels also frequently co-invest with our parent company, Development Bank of Wales.
What is EIS and how can I register?
EIS is the Enterprise Investment Scheme. The EIS offers both income tax and capital gains tax reliefs to investors.
What should I do now?
To find out more information or speak to one of our team contact us.
For businesses seeking investment
What can Angels Invest Wales offer businesses seeking investment?
We can help businesses find the financial investment required for growth. As well as investment, Angels Invest Wales business angels can add value to their investments by providing skills and contacts that come from years of experience.
Angels Invest Wales regional managers can also offer advice on making business plans more attractive to investors.
How do I join the network?
Opportunities can be uploaded directly to our Investment Platform, please contact the team for more information. Your business must be based in, or planning to relocate to, Wales.
Is there a cost to joining the network?
There are no joining fees for registering with Angels Invest Wales. However, a 5% administration fee will be payable on any successful investment being co-ordinated and completed.
What do business angels invest in?
Business angels invest in a wide range of business sectors and stages of development including, start-ups, expansion, acquisition, and turnaround situations. They invest in unquoted, developing companies where the risks and potential returns are high.
How quickly do investors expect a return on their investment?
This is part of the investment negotiation process. Your business plan should inform investors of the potential return and how and when an investor can exit their investment.
Can I join even though I have financial issues?
Previous financial issues don’t exclude you from joining the Angels Invest Wales, but we strongly advise honesty with potential investors. Investors take account of your past and current circumstances, but they’re equally interested in your business’s growth potential.
Will I be expected to invest in my own business?
We've found that investors tend to favour business managers who demonstrate their commitment by sharing the risk. But we strongly advise honesty with potential investors, so let them know if your circumstances prevent you from investing.
Are businesses guaranteed investment through Angels Invest Wales?
We can't guarantee you'll find an investor. Our success rate is about one in four.
How does Angels Invest Wales guarantee confidentiality and IP security?
Businesses can take steps to protect their IP, including patent applications and requiring investors sign a non-disclosure agreement (NDA).
How do I go about valuing my business?
It's best to get independent professional advice when valuing your business. Valuation can take into account many factors.
What should I do now?
We'll need to see your business plan before you can upload your opportunity to the Investment Platform, so it's best to first contact us to find out if you're investment ready
