Angel Investment Report - What Is An Investment Proposal?

 
 

An Angel Investment Report is an investment report which provides an independent analysis and commentary on business angel investment activities of investors in the visible market and an estimate of the overall scale of angel investment activity. An Angel Investment Report also includes a study conducted by HM Revenue and Customs of the demographic highlights of angel investors getting tax relieves as per the Enterprise investment scheme, Venture Capital Trusts and community investment tax relief via self-assessment. An Angel Investment Report highlights what an investment has made in return for convertible debt or ownership equity.

An Angel investment report is crucial to the financial market since it facilitates an accurate and profound comprehension of the role of an angel investor and his or her investment made in the entrepreneurial finance system. In addition, an Angel Investment Report also provides information that clearly highlights the definition of angel investing and the current state of construing the phenomenon.

 

To be very precise, an Angel Investment Report is supported by four major factors or components:

 
 
    • The strength and size of the angel capital market: This component serves as a major attribute of an Angel Investment Report as it underlines important details of the capital market in which angel investor has divulged his capital.

 

    • The demand present for angel capital: This factor plays a vital role in angel investing and hence needs to be clearly highlighted in an Angel Investment Report. The demand factor associated with angel capital reflects the likeliness of success of angel investment made in terms of its returns.

 

    • The primary characteristics of angel investment: An angel investment report will lose its essence if it does not include the niche details relating to angel investments. The fundamental characteristic of angel investment includes the amount of angel investment made, the returns in exchange of it, etc. Individual angel investors are usually found to divulge up to £ 100,000 as investment and in many cases nowadays, investors find it easy to operate as a part of an angel syndicate i.e. a group of angel investors, which facilitates large amounts of investment accordingly.

 

    • The overview of the company receiving angel financing: An angel investment report also provides a working overview of all the companies receiving angel financing and what they aim to achieve with the help of angel investing. It also includes details of where the angel investments will be diverted and how they will be utilized.

 

Every economy posts it own annual report on angel investment activity taking place in it. This report is known as an Annual Angel Investment Report. The report has myriad benefits and it is very essential for any economy to discern the angel investment activity occurring in its market.

On a general basis, an Angel Investment Report outlines the net investment made by angle investors across the market. Also, the various comparisons are made using the current angel investment levels as whether there has been an increase or decrease in angel investment from the previous years, the net angel investment that has been divulged in reference to the number of angel investors compared to the figures recorded for the preceding years. In addition, the report describes the total amount of ventures that have received funding from angel investors or angel groups. In some cases, there are also certain angel investors that conglomerate together to form angel groups or angel networks in a view to share research and invest together, serving as investment pools.

What is an Angel Investment Proposal?

 
An Angel Investment Proposal is a document formed by the sponsor of a new investment project for angel investors or leaders seeking to make angel investments. In some cases, an Angel Investment Proposal can also be prepared by the management of an already existing company. An Angel Investment Proposal includes the following essential details:

    • 1. The nature of the new project or business for which angel investment is being sought

 

    • 2. Existing history, if there is any

 

    • 3. The scope and the growth potential associated with the new project

 

    • 4. The aim and objectives of the new business project

 

    • 5. The amount of finance or angel investment required for its realization

 

    • 6. The promised collateral or security

 

      • 7. A plan outlining the proper repayment of interest and principal to be made well in time

     

A proper detailing of the above seven factors would serve as the basis of a successful Angel Investment Proposal, ensuring a robust support from an angel investor. Simultaneously, it is imperative for the management or the sponsor to keep the below mentioned points in mind while formulating an effective Angel Investment Proposal:

    • 1. Seek valuable advice and assistance from an experienced person while writing Angel Investment Proposal. Someone who has written several successful business proposals can use his expertise to prepare a convincing Angel Investment Proposal.

 

    • 2. Segregate the proposal in two major parts. The former should include details relating to the project opportunity and its benefits. The latter should outline all the financial data including tax returns, a balance sheet and a small overview of the project.

 

    • 3. The first part should always be limited to first ten pages of the Angel Investment Proposal. However, the main emphasis should always be on the conciseness and clarity of the Angel Investment Proposal.

 

    • 4. While preparing an emphatic Angel Investment Proposal, it is highly recommended to site different sources to outline the market opportunity.

 

    • 5. An angel investment proposal should be strong enough to convince the angel investor. What makes an angel investor proposal different from those of the prevailing competitors should be the main highlight.

 

    • 6. The main target arm of the market should be mentioned. The sponsor should highlight the ways by which he seeks to grab an edge over its competitors and grab maximum market share.

 

    • 7. Sponsor should mention the prospective customers he seeks to target.

 

    • 8. The related regulatory issues that the company might have to encounter should be underlined.

 

  • 9. Last but not the least, an Angel Investment Proposal should mention explicit and in-depth details about the amount of money required from the investor and how it will be used.
 

Follow Our 26 Steps For Kick Starting Your Business

 
 
Step 1: How To Find Angel Investors?

Step 1: How To Find Angel Investors?

Angel investors have been recognized as a high-ranking source of finance for entrepreneurial businesses in the UK for over 20 years. The UK Government has been supporting Angel investors both directly and indirectly in several ways like supporting...
Step 2: Approaching A Business Investor - Business Pitch Or Business Plan?

Step 2: Approaching A Business Investor - Business Pitch Or Business Plan?

Among the vital attributes of investing, the two terms Business Pitch and Business Plan are deemed to play an essential role when an individual seeks investment. The process of pitching a Business Plan for seeking investment is called a Business...
Step 3: Elevator Pitch - What And How Long?

Step 3: Elevator Pitch - What And How Long?

An elevator pitch is a technique adapted to establish interest in a product or an idea and getting the prospective buyer, investor, or customer to set aside the time to listen to an investment proposal. The term is derived from the fact that the...
Step 4: First Meeting With An Angel Investor

Step 4: First Meeting With An Angel Investor

In finance circles, the term angel investor is usually linked with affluent and wealthy individuals who serve as prospective investors for emerging or yet-to-initiate businesses. For first time entrepreneurs or less experienced entrepreneurs, angel...
Step 5: How Much Investment Capital Do You Require?

Step 5: How Much Investment Capital Do You Require?

The words capital and investment are relative terms that find high usage in business-related affairs. People often talk of investment capital in case of business investment, corporate ventures and business loans, but a few have a proper understanding...
Step 6: What Are You Willing To Give Away?

Step 6: What Are You Willing To Give Away?

Business has been a powerful growth for the humans in this world. There have been times when people struggle to earn a job or a living which lead them to know the power and the value of money. The term nothing comes for free decides and clearly...
Step 7: How Much Equity To Offer?

Step 7: How Much Equity To Offer?

The money raised for company activities by selling preferred stock to individuals or investors is called equity finance. The ownership interests in the corporation are always provided by the shareholders. Equity finance exists in various forms....
Step 8: What Is Your Investor's ROI?

Step 8: What Is Your Investor's ROI?

Investment is always a risky business as it brings alongside a certain chance of a probable monetary loss. There are several ways and theories in the market namely CAGR, EPS, ROE etc that help find out the investment profits in a particular business...
Step 9: What Industry Are You In?

Step 9: What Industry Are You In?

Industries, which have a powerful impact on the economy of a country, operate purely on the basis of their primary category. The category of an industry determines the line of business for the industry and also how the industry is going to operate....
Step 10: Determine Your Strategy For Growth

Step 10: Determine Your Strategy For Growth

Have your strategy planned out Funding is the issue where any new start up business is concerned. Potential investors need to be impressed with factual business acumen for success. Exaggerated information would prove to have a detrimental effect...
Step 11: Determine Your Business' Scalability

Step 11: Determine Your Business' Scalability

Local - Regional - National Make your business proposal water tight for confirmed success. Investors are a sceptical lot. They need facts supported by lots of data to be convinced about the feasibility of the investment. After all, it is their...
Step 12: Growth Forecasts, Revenue, Profits

Step 12: Growth Forecasts, Revenue, Profits

Have your stats on your fingertips and well backed Now, that you have a business idea you need to look for finance. Getting a business proposal ready for review by financiers is not an easy task. It requires meticulous planning, collection...
Step 13: Current Business Assets - Intellectual Property - Proprietary Assets

Step 13: Current Business Assets - Intellectual Property - Proprietary Assets

The world of business is all about cut throat competition and putting your best foot forward. Most of us are trying to fight it out for suitable deals. Whether it’s dealing with competition or garnering investment, they all have to do with positioning a...
Step 14: Your Management Team

Step 14: Your Management Team

An organization is driven by its people. No matter how unique or brilliant a business idea might be, after all the ideas need to be propagated and executed by people. Therefore, success of a venture is primarily dependent on its core management...
Step 15: Team's Industry Experience

Step 15: Team's Industry Experience

Establishing firms from scratch is a very difficult task. Too often than not, there are various issues and dramas that arise when you start-up a company and self-inflicted injuries that cause failure, thus, it would definitely make sense that a...
Step 16: Founder's Role and Salary

Step 16: Founder's Role and Salary

Whenever a start-up company fails to meet expectations, the leader is the first one to walk out. Even those who are fortunate enough to gain early user grip still face the fight of finding out cost effective ways to adopt users at scale and if they...
Step 17: Exit Strategy For An Investor

Step 17: Exit Strategy For An Investor

An exit strategy is actually a plan to get oneself out of a specific situation. Exit strategy is frequently applied to military engagements and investment in business. An exit strategy is said to be important to assist in bringing about a positive...
Step 18: Angel Investor Expertise

Step 18: Angel Investor Expertise

Angel investors are people that invest in businesses seeking for higher returns than they would obtain from traditional investments. Many angel investors are actually successful entrepreneurs that want to help other entrepreneurs get their business...
Step 19: How Much Have You Invested Yourself In The Business?

Step 19: How Much Have You Invested Yourself In The Business?

"Everyone needs to believe in themselves, because if you don't, nobody else will" – somebody rightly must have said these lines. To get your idea or your start-up business on to the next stage, it takes some investment. Before you get out and s...
Step 20: Funding Already Received

Step 20: Funding Already Received

If you are seeking outside financing for your business, either through investors or loans, the potential investor will be keenly interested in the funds you have already received and what you are going to do with the money. They would also want...
Step 21: What Is Your Sweat Equity Worth?

Step 21: What Is Your Sweat Equity Worth?

What is Sweat equity? Sweat equity is the time and effort the founders of a company invest in order to get it off the ground when it initially started. While Sweat equity isn’t determined by the money owners invest into the business, Sweat e...
Step 22: Your Confidence Level With Your Investment Pitch

Step 22: Your Confidence Level With Your Investment Pitch

When presenting your business plan to potential investors, the common factor remains that you have a limited amount of time to convince quizzical individuals that your company merits investment. If your investment pitch goes well, you could well...
Step 23: Would You Pay A Fee To An Investor For Investing?

Step 23: Would You Pay A Fee To An Investor For Investing?

New entrepreneurs may encounter many occasions while they are looking for funds, where an upfront fee is demanded by the potential investor for investing in your business. Though you are desperate to get funds for your business, NEVER pay any upfront...
Step 24: Is Your Business Plan Ready?

Step 24: Is Your Business Plan Ready?

What is a Business plan? Business plans are basically necessary for 2 reasons To make sure you have not forgotten anything And to be able to communicate your business idea and plan to prospective investors Business plan is a comprehensive...
Step 25: Is Your Executive Summary Ready?

Step 25: Is Your Executive Summary Ready?

In any business plan, the first and foremost part which attracts the potential investors is the Executive summary. So what is the Executive summary? Executive summary is a brief version of your business plan; which ideally contains your business...
Step 26: Is Your Investment Summary Ready?

Step 26: Is Your Investment Summary Ready?

A good investment summary or investment proposal is a springboard towards the establishment of a new business. An investment summary is an important tool for companies intending to raise funds. So what is an investment summary? An investment summary...
Get Investor Ready

Get Investor Ready

Every new set up thought of being financed by an archangel investor. But according to the most recent data from Angel Soft, merely about three out of hundred companies who initiate the official request procedure actually get funded here and the...