WHO ARE BUSINESS ANGELS?

•  Business Angels are individuals who seek to invest, for 3 or 4 years, in smaller companies with exceptional growth potential – accepting the correspondingly high risks

•  To attract Business Angels to take the higher risk associated with such investments, an above-average prospective return will have to be offered – and the greater the perceived risk, the greater the prospective return required

•  VCL considers it good practice generally to send investment communications only High Net Worth Individuals HNWI s and, in order to register with VCL , such individuals are requested to certify in the terms set out in our form

•  Because of the higher risk of Business Angel investments, Business Angels often invest jointly with other investors in any one proposition

•  For the same reason, Business Angels will usually spread their funds over a portfolio of several such investments

•  Business Angel investments will often complement a Business Angel's existing portfolio of investments in listed companies and other conventional securities

•  Often Business Angels have set up, grown, and maybe sold, businesses – and sometimes more than once. They can thus be an important source of support and assistance to management of companies

•  Those Business Angels will be better placed to judge the prospects of companies. And Business Angels will usually want to be able to monitor and guide companies, maybe as non-executive directors, or through VCL non-executive directors appointed on their behalf

•  Business Angels will, normally, spend a significant amount of time and effort – and rather more than do the dragons in the den!