How to find an angel investor for your business

Make sure your start-up business has the right type of backer before signing a deal, says David Prosser.

Still from Dragons' Den TV programme
A meeting with an angel shouldn’t be as one-sided as Dragons’ Den
(Image credit: © BBC)

Business angels are spreading their wings. The Angel Investment Network says last year saw a record number of people registering as angels – investors who are prepared to back start-up businesses with funding and their expertise – and the number of connections between angels and entrepreneurs rose 16%. That is good news for business owners looking for support for their fledgling enterprises.

Business angels come from a variety of backgrounds and may operate individually or as part of a syndicate, investing their own money in start-up ventures. They are typically prepared to back companies at an earlier stage than investors such as venture capital and private equity firms. And they often offer valuable insight, as well as cash, helping inexperienced entrepreneurs to navigate the path to growth.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.