Investor FAQ

• What is the UK Angel Investment Network? The Angel Investment Network is an online platform designed to connect entrepreneurs (looking for growth or start-up capital) and angel investors (looking for investment opportunities). The Angel Investment Network is unique in that it offers a local, national and global platform with partner networks across North America, South America, Europe, Africa, Asia and Australasia. The Angel Investment Network is continually growing, developing and updating it's database of investment proposals.
• How do I change the proposals I receive? If you wish to change your proposal settings at any time, login to your account and enter "My basic profile". You can then change any settings you need to, such as industries, regions, and investment levels.
• Who are the Entrepreneurs? Existing UK (small to medium size) business owners as well as start-ups involved in a diverse range of businesses. Opportunities presented here include everything from manufacturing companies to property opportunities and everything in between. Generally, these entrepreneurs have exhausted traditional lending sources and their own private equity sources and must look for ways to bring in outside sources of capital for growth (i.e. angel investors). They are often too small to be eligible for venture capital funding and/or have business models that don't interest traditional bankers.

  Many of the entrepreneurs found here are proficient in their particular field of expertise but may be more inexperienced in the realm of finance so an extra dose of patience and understanding may be required.

• What does Authorisation Pending and Contact Authorised mean? Once you have issued a contact request the entrepreneur will be notified of your interest. They are asked to pay a small contact fee. Once they have paid this fee they will receive yours and any other interested investors' contact details.
  "Contact Authorised” means they have paid the referral fee and should be in touch soon.
  "Authorization Pending" means they have not yet paid the referral fee.
• How much can I expect to make for a return on my investment? This is very dependent on the situation, size of investment, size of company, industry trends, etc. However, it is estimated that many angel investment returns in UK small businesses and start-ups have been in the range of 20-40% return on investment (ROI). Some prove to be less but they are sometimes much, much more.
• How does this service work? As an angel investor, you first register as a member on the site for free and identify your basic investment preferences. We send you proposals that match these criteria. Each email includes a link to our website that allows you to view further details of any opportunity that interests you and to initiate contact with the corresponding entrepeneur. If the entrepreneur subsequently chooses to respond, you will be contacted via your preferred contact method (email, phone etc.). Alternatively some Premium Service proposals will include company details allowing you to contact entrepreneurs directly.
• What are the costs? The UK Angel Investment Network is completely free to investors. There are no hidden or additional charges of any sort. The entrepreneurs are charged a one-time fee to receive the contact information of interested angel investors.
• How is my privacy protected? The site was developed using proprietary database management tools and a secure server is used to assure that no one has access to your business or personal information. Your information is not offered to any third party for other purposes and the information you enter into the website is guaranteed to be kept confidential and private.
• Are there any tax benefits to be gained from angel investing? Yes. There is a program of relief under the Enterprise Investment Scheme (EIS) and has four elements:

  Income Tax Relief

  Capital Gains Tax Relief

  Loss relief against income or gains

  Inheritance Tax ? Business Property Relief

  The EIS offers generous tax incentives to private investors in a trading company where the gross assets before the EIS investment are ?15m or less. Most companies seeking angel financing through the UK Angel Investment Network are within this threshold. Companies must not be quoted on the stock exchange, although for EIS purposes AIM listed companies are treated as unlisted. The company must use the money raised within 12 months, or in the case of a new company, no more than a year after trading begins.

  In order to qualify under the EIS Rules, businesses must be a "qualifying company": it must not be controlled by another organisation and must carry on a "qualifying trade" which includes most manufacturing and service businesses.

  In order to claim relief, investors must not (for two years before and five years after the issue of shares):

  -Be connected to the company in any way (including by employment or partnership).

  -Own more than 30% of the voting rights.

  The minimum investment in any tax year is ?500 and there is an annual overall limit of ?150,000. Reliefs include 20% income tax on the maximum investment and no capital gains tax on the disposal of the EIS shares provided they are held for at least five years from the date of the issue. Other capital gains can also be deferred until the EIS shares are sold.

  For further details on the EIS program and guidelines, please refer to

  Inland Revenue - The Enterprise Envestment Scheme

• I have other questions, who do I contact? Contact us by email: admin@angelinvestmentnetwork.co.uk