Angel Investors: Backing Vision, Not Just Numbers
If you're a founder with a bold vision and a business on the cusp of growth, angel investing might be the launchpad you’ve been looking for. Often misunderstood as informal or niche, angel investment is actually a powerful way to secure early backing, build strategic relationships, and lay the groundwork for future institutional funding.
What Is Angel Investing?
Angel investors typically fund businesses at the seed stage … before revenue, traction, or even a fully formed product. They’re not just investing in your business; they’re investing in you.
- Early-stage focus: Angels invest before venture capitalists (VCs) get involved.
- Smaller ticket sizes: Often up to £500k, used to prove concept and attract larger institutional funding.
- Relationship-driven: Angels want to build trust and work closely with founders over time.
As Oxford-based angel investor David Ford puts it, “I’m backing your vision, not a fully baked plan. We’re going on a journey together”
What Angels Look For
Forget the polished pitch deck. What matters most is vision and trust.
- Clarity of purpose: Can you articulate your mission and where you’re headed?
- Openness and responsiveness: Are you transparent and organised in your communications?
- Team dynamics: Do you have the right mix of skills? Do you know where to bring in support?
- Trust: It’s a two-way street. Angels need to trust you, and you need to trust them.
How Angels Engage
Angel investors aren’t just writing cheques … they’re often involved in governance, investor relations, and strategic advice.
- Selective involvement: Angels may help with board matters, bringing in new investors, or advising on shareholder dynamics.
- Not operators: Many angels, like our guest David, come from investment backgrounds rather than entrepreneurial ones. They support, but don’t run the business.
Building Relationships
Angel investing is personal. Decisions aren’t made overnight.
- Time matters: Angels prefer to meet founders before fundraising begins.
- Multiple interactions: Trust builds through consistent, open communication.
- Local networks: Being embedded in an active innovation cluster like Oxford helps founders and angels connect organically.
Fundraising Realities
Raising equity is a full-time job. Founders often underestimate the time and energy required.
- Typical timeline: 3–9 months to raise up to £500k from angels.
- Momentum matters: A strong lead investor can attract others and accelerate the round.
- Divide and conquer: If you have co-founders, split responsibilities to keep the business running while fundraising.
Common Challenges
- Lack of financial expertise: Founders shouldn’t be embarrassed - Bring in help where needed.
- Scientific mindset vs commercial decisions: Founders from technical backgrounds may struggle with imperfect data and fast decisions.
- Capital constraints: UK startups often lack access to scale-up funding compared to US counterparts.
Failure and Resilience
Angel investing is risky. Most startups fail … and that’s okay.
- Failure is normal: 70–90% of startups won’t succeed. It’s part of the journey.
- Lessons learned: David’s failed investments weren’t due to poor management, but lack of market need.
- Long-term view: Exits can take 7–12 years. Angel investing is about building something meaningful, not quick wins.
Final Thoughts
Angel investors are more than funders, they’re partners in your growth. They bring experience, networks, and a genuine desire to see your business succeed. As David Ford says, “I’d like to be involved in businesses that are building something meaningful and making a difference in the UK”
If you’re a founder with a bold vision and the humility to ask for help, angel investing could be the perfect launchpad for your next chapter.
Listen to our related Finance Focus Podcast: How to secure Funding from an Angel Investor
