What are angel investors?

An angel investor is an individual, or part of a group, who will want to put money into a business opportunity, and also utilise their own skills and knowledge to help it grow. The most well-known example is the Dragon’s Den TV series, which shows a much more dramatic version of the process with well-known entrepreneurs receiving pitches from applicants.

In reality, discussions tend to be less formal and antagonistic than on television. But angel investors typically look to invest amounts ranging from around £5,000 to £500,000 in early-stage businesses which are exchanged for equity. Along with dividends and the value of their stake in the company, typically angel investors will make money when the business is acquired or goes public.

Angel investors often work together as a syndicate, pooling their money and experience, and relying on a lead angel to coordinate an individual investment opportunity.

It’s important to remember that along with gaining 10-40% of your business, an angel investment also means hands-on involvement, so you may be working closely together for a number of years.

Whether you want to bootstrap your way into a sustainable self-employed career, or build a world-changing startup, there are a number of things you can do to get off to a good beginning, and you’ll find advice on them in our section dedicated to those new to self-employment.

You can also find more detailed advice on budgeting, invoicing and debts with our financial wellbeing guidance, and how to scale up your progress with articles on growing your self-employed business.