Funding Your Business Plan in the UK
I recently spoke to Bill Morrow, co-founder of Angels Den. They have created a site where UK entrepreneurs and angel investors are brought together under one roof (that is, one website).
To start, you simply send in a summary of your business plan for an independent review (for just £99). You'll then get some preliminary feedback and, if an angel is interested, you'll be requested to submit a full business plan to them (an extra £400).
What I like about this idea is the fact that you get access to a group of UK angels without having to waste time tracking them down individually. (Angels are notoriously difficult to find.) The cost is also low considering this time savings, and the fact that you get an independent review of your business plan.
As an equity funding option, I prefer angel investors as they will typically introduce contacts, offer expertise, etc. without all the baggage and the demands of venture capitalists. Nor do they come with the demands of debt funding!
With this system, it is natural to be a little nervous regarding where the plans go, so it is likely you'll pare back some of the sensitive materials. If you do so, be sure you make this clear in your summary. Once you get to meet the angels, I am sure you can then reveal all.
If you want further information on pitching business plans, these two articles should help:
If you want information on the differences between the alternative types of funding generally available, click here.
A regional development agency would provide these types of services for free.
http://www.nwda.co.uk/areas-of-work/business/business-finance-solutions.aspx
Posted by: John Harrison | January 23, 2008 at 11:44 AM