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Angels Den, the online matchmaking service which connects entrepreneurs to potential investors (www.angelsden.co.uk), has experienced a 31% rise in membership from high-net worth individuals (known as angel investors), who each have a minimum of £250,000 to invest. 268 angel investors joined Angels Den in December 2008, almost a third more than in November 2008.
Bill Morrow, co-founder of Angels Den, said: “Angel investors are becoming increasingly frustrated with conventional investments and are looking for new ways to invest their money. People are telling us daily that they are sick of people losing money for them and would prefer some control over their business affairs.”
To join Angels Den, investors must have at least a quarter of a million pounds of available capital to invest directly into early stage companies. Investors can reap huge returns from these new business ventures.
Angels Den is also seeing a surge of interest from entrepreneurs, as banks are increasingly cautious about investing in fledgling businesses. The site welcomed 400 start-ups in December 2008. From just £99, entrepreneurs can post an outline business summary online on the Angels Den site which is then accessed by the 2000 plus registered potential investors.
Last year, Angels Den completed over 200 deals, of companies securing funding from angel investors, at an average size of £220,000.
Angels Den also holds monthly Speedpitching events, where entrepreneurs can give a three minute pitch to a business angel, seeing up to 20 angels at one event. Angels Den is the only company to offer individual, one-on-one pitches, which it says are less intimidating and more rewarding for both the person pitching the new business concept and the angel investor.
Angels Den was set up by Bill Morrow and Lois Cook after Bill himself had trouble securing funding and wasted almost £15k on traditional angel networks co-founders.
Posted by Katie Moore on 28/01/2009
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