ANGEL INVESTMENT
The term Business Angel was introduced to us from the USA. To begin with Angels operated largely on their own or with close associates and friends but as time has passed the benefits of investing as part of a syndicate have become apparent. Syndicates (like DIFL) allow individuals to "pool" not only their financial resources but also their expertise and skills. The combination of incisive business knowledge together with cash is often referred to as "Smart Money". We at Discovery Investment Limited believe our money is always smart.
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Angels invest for a number of reasons but chief for DIFL members is to be able to use their personal experience, knowledge and success to help and grow fledgling businesses. The desire to achieve a return above that could be reached from investing in conventional publicly traded stocks and shares is also crucial. It is important to note that with early investment comes risk although the rewards can be high.
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To promote investment in private businesses from the Angel community the government provides a number of
Tax incentives and prime among those is EIS and "rollover" relief. To some extent these initiatives help to offset some
of the risk associated with investing in young businesses.
Angels come in different shapes and sizes - some will want little involvement in the business while others may
seek to act in an advisory capacity, perhaps even as a Non-Executive Director. Often the expertise and contacts
they bring can make a significant impact on a young growing business.
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Investment from a Business Angel syndicate can help turn a young struggling business into one which is able to
grow rapidly and profitably and that is ultimately the aim of Discovery Investment Fund Limited.