Angel Investment Network - Any success stories?

[revans]

I know this site has been discussed here before, but I was curious if there are any success stories to report? I've had about 6 investors contact me, but having followed up asking them how they wish to proceed, I have not had further correspondence. Whilst I don't for a moment think the site is a scam, I do wonder how many real investors they have, and if many of their 'investors' are simply people fishing for ideas in business plans submitted by other people.

 

[RBS]

I know this site has been discussed here before, but I was curious if there are any success stories to report? I've had about 6 investors contact me, but having followed up asking them how they wish to proceed, I have not had further correspondence. Whilst I don't for a moment think the site is a scam, I do wonder how many real investors they have, and if many of their 'investors' are simply people fishing for ideas in business plans submitted by other people.

Just search forum, there are few topics on there. But as far as I have seen, no real success stories so far.

 

[GillespieBS]

I think it is a bit early for success stories but they certainly have plenty of really good opportunities.

 

[revans]

I think it is a bit early for success stories but they certainly have plenty of really good opportunities.

How long has it been going? I thought it was quite well established.

 

[GillespieBS]

Your right. Its been around a bit longer than I realised, the last 5 years seems to have flown past. I still think that angel investment is a medium term return. The business has to set up, trade for a few years before some start to repay the initial capital investor. With a recession in between too...

 

[mikelebus]

Here is a link to a recent case study of a company that raised funding through Angel Investment Network: angelinvestmentnetwork.co.uk/testimonials/215

 

[revans]

Here is a link to a recent case study of a company that raised funding through Angel Investment Network: angelinvestmentnetwork.co.uk/testimonials/215

I'd take anything on their site with a pinch of salt. I am looking for independent confirmation of funding secured via their network.

 

[mikelebus]

A full case study with company names, amounts, etc is pretty convincing. It wouldn't be too hard for someone to write to MIT to find out if this case study is true or not.

 

[ecohome]

In my experience they do not work, they are in the main an old school network where they cherry-pick what they think are the extra-wealth, no-brainers.

EVERYONE - Has to decide if a concept or opportunity is for them, and to make an offer based on the funds thay have available, in accordance with expected revenue.

I have looked at this forum for years but as networking isnt my thing I dodnt join.

*** However my question is - are there actually real investors here for if there are I have an opportunity.

Jim.

 

[revans]

In my experience they do not work, they are in the main an old school network where they cherry-pick what they think are the extra-wealth, no-brainers.

EVERYONE - Has to decide if a concept or opportunity is for them, and to make an offer based on the funds thay have available, in accordance with expected revenue.

I have looked at this forum for years but as networking isnt my thing I dodnt join.

*** However my question is - are there actually real investors here for if there are I have an opportunity.

Jim.

The big problem is that anyone can sign up as an investor, no vetting whatsoever is done. This means you get a mixed bag, including

People trying to sell you a loan
People who just want to read other people's ideas
Scammers trying to extract fees for securing your a deal

Of the real investors there, my impression that many....

Want too much equity
Have unrealistic expectations of ROI

 

[ecohome]

What any new business or concept needs (as much as funds) is backers/partners with complimentary skillsets, a client base, or a percentage market share who are prepared to get involved.

Oh for partners like that

 

[ecohome]

The big problem is that anyone can sign up as an investor, no vetting whatsoever is done. This means you get a mixed bag, including

People trying to sell you a loan
People who just want to read other people's ideas
Scammers trying to extract fees for securing your a deal

Of the real investors there, my impression that many....

Want too much equity
Have unrealistic expectations of ROI

This is true revans; as I say skills and involvement as just, if not more important than the cash. IMO if you get an investor with cash who wants to just cream off and not get involved (as much as you want to take the money) politely say no, for the end result will most likely be you'll run yourself into the ground and see your idea going nowhere.

 

[ecohome]

I wish you well with your concept though and I hope this helps...

 

[Searcher]

It seems to me that angel investors want be inject quite bit of money, normally £50k plus and demand high shareholdings and returns. There's nothing wrong with that. The difficult area - which I think covers a lot of people on this forum including myself - is that £5000 to £20,000 range. I really don't know what the options are. Some have mentioned zopa but these are personal loans, not business loans.

 

[Christine Hough]

Zopa have started doing business loans.. for the over 50's I think.

 

[Director AIN]

Interesting debate. Contrary to REvans comments we do carry out a number of checks at AIN on each investor as they register, ip checks, address verification, profile checks and phone interviews are often carried out. Only around a third of those investors that apply are accepted as members. We then carry out regular checks on existing members and ask for feedback from entrepreneurs. I hope this information is of help.

 

[Kett]

Out of interest, do your also allow investors and entrepreneurs to specify values and attitudes to business. For example if an investor wanted only to invest in green technologies or companies run along particular ethical of religious lines? And do you match accordingly?

 

[Director AIN]

We do allow investors to express particular criteria for their investments. Such as GreenTech. We also do profile some of our key investors to allow us to match up more directly specific investments for them. I am afraid we do not however tend to match up on ethical or religious grounds but it is possible for an entrepreneur to express this within their proposal.

 

[Textlocal]

It works very well..... Angel Investment Network changed my life!

I put up a proposal for a business partner -someone who had some time to spend and some marketing background. I was not looking for cash - just someone with experience and prepared for hard work!!

After filtering through the 30 responses - I met my friend and now MD. He liked my idea and worked for 18 months without salary to help get the business flying... and now we own 50/50 of a £multimillion business and life is peachy.

Best £99 I ever spent.

Al.

 

[revans]

It works very well..... Angel Investment Network changed my life!

I put up a proposal for a business partner -someone who had some time to spend and some marketing background. I was not looking for cash - just someone with experience and prepared for hard work!!

After filtering through the 30 responses - I met my friend and now MD. He liked my idea and worked for 18 months without salary to help get the business flying... and now we own 50/50 of a £multimillion business and life is peachy.

Best £99 I ever spent.

Al.

Not asking for a financial commitment helped a lot I imagine.

 

[revans]

Interesting debate. Contrary to REvans comments we do carry out a number of checks at AIN on each investor as they register, ip checks, address verification, profile checks and phone interviews are often carried out. Only around a third of those investors that apply are accepted as members. We then carry out regular checks on existing members and ask for feedback from entrepreneurs. I hope this information is of help.

What would you say is the success rate of AIN in percentage terms?

 

[revans]

A more general complaint I have about the Angel investors in the UK is that they are generally spectacularly unadventurous. They talk about their desire to fund innovative ideas, but the reality is that they generally prefer to fund a 'me too' venture as it means there is a tested market. Banks operate like this, but the expectation is that Angel investors are somewhat more maverick, sadly it seems that it is seldom true. The wider consequence of this, when coupled with the extreme reluctance of banks to provide business loans on reasonavble terms, is that ventures that could be generating wealth in the UK, will end up going abroad.

 

[Textlocal]

Not asking for a financial commitment helped a lot I imagine.

Leaving a well paid full time job, and working without salary for 18 months.... all based on a "concept" I dreamed up in my mind is a pretty big financial commitment!

 

[revans]

Leaving a well paid full time job, and working without salary for 18 months.... all based on a "concept" I dreamed up in my mind is a pretty big financial commitment!

Having a good idea, that you have self funded, and offering someone a buy in on the basis of a commitment of time, is very different to securing funding. I find it very telling that the only respondent to report success using one of these Angel funding networks, did not actually secure any funding. By not asking for money, you bridged the credibility gap into which so many seeking a financial investment fall. In essence, the attitude seems to be, 'if you're so full of good ideas, why is it you find yourself in need of my money?'. Not being a financial success now, seems to many to preclude the possibility of you being one in the future.

 

[Searcher]

A more general complaint I have about the Angel investors in the UK is that they are generally spectacularly unadventurous. They talk about their desire to fund innovative ideas, but the reality is that they generally prefer to fund a 'me too' venture as it means there is a tested market. Banks operate like this, but the expectation is that Angel investors are somewhat more maverick, sadly it seems that it is seldom true. The wider consequence of this, when coupled with the extreme reluctance of banks to provide business loans on reasonavble terms, is that ventures that could be generating wealth in the UK, will end up going abroad.

Yes, I agree with all of that.

 

[ecohome]

Having a good idea, that you have self funded, and offering someone a buy in on the basis of a commitment of time, is very different to securing funding. I find it very telling that the only respondent to report success using one of these Angel funding networks, did not actually secure any funding. By not asking for money, you bridged the credibility gap into which so many seeking a financial investment fall. In essence, the attitude seems to be, 'if you're so full of good ideas, why is it you find yourself in need of my money?'. Not being a financial success now, seems to many to preclude the possibility of you being one in the future.

Well said....