Must Be Missing An Angel

Today we’re talking the actual process to take when engaging Angels (and other investors for that matter)…..

But first, today’s highlights:

🏃‍♂️We’ve partnered with TECH SY to help aspiring tech founders in South Yorkshire validate their ideas quicker and more effectively. Know someone in South Yorkshire who could benefit from FREE support? Pass this onto them. TECH SY idea validation programme.

🪜We’ll be at Climb 25 in Leeds on Wednesday 2nd and Thursday 3rd July. If you’re there, come find us and have a chat. We’ll be loitering around the TECH SY stand or catch Chris talking about building a high growth startup culture at 13:15 on Wednesday 2nd in the People Zone.

🛠️ We’ve built a toolbox for entrepreneurs who are starting again. It’s free (for now at least). More tools coming every week.

The Process of Raising Angel Investment

Raising angel investment sounds glamorous. So did trench warfare, until you were in the trench.

Before you leap into fundraising, remember: you’re signing up for a second job. One with pitch decks instead of paycheques, rejection emails instead of bonuses, and the occasional question about whether your cousin secretly owns half your business.

Here’s how to tackle it without losing your mind.

🧭 1. Decide to Raise

Raising money isn’t compulsory. Bootstrapping keeps your cap table clean. Revenue finance might save your equity and your stress levels. But sometimes, equity funding is the only way to build speed or keep the lights on.

If you decide to go ahead, know your numbers. In the UK, angel rounds usually fall between £100k and £500k.

Don’t raise “because startups should.” Investors want to know what the money will unlock over the next 12 to 18 months. MVP built? Sales pipeline proven? Team in place? Nobody funds vague ambition.

And don’t forget SEIS/EIS eligibility. Advance Assurance is your entry ticket to most investor conversations.

👉 Takeaway: Be sure you truly need the money and know what it’s going to buy you. A bigger business, or just a bigger headache?

📦 2. Prepare the Fundraising Materials

Raising money without a pitch deck is like turning up to a black-tie dinner in pyjamas. Memorable, but not in a good way.

Your deck should be short, sharp, and clear. Investors want five things: the problem, your solution, the size of the market, proof you’re the ones to win it, and how much you’re raising.

A one-pager is handy for warm intros or quick follow-ups.

Your financial model doesn’t have to rival Goldman Sachs, but it must make sense. A billion in revenue while your deck says “early MVP” doesn’t compute.

Get SEIS/EIS Advance Assurance sorted and mention it early - before you speak to Angels. It makes you far more attractive.

Finally, think about a data room, even if it’s just a neat Google Drive with your pitch, model, cap table and key docs.

👉 Takeaway: Investors invest in clarity. Confusion costs you cash.

🔎 3. Find and Engage Angels

Fundraising is like dating. Everyone claims to want a “meaningful connection,” but ghosting happens often.

Start warm. Friends, mentors, former colleagues or existing investors are more likely to take your call, and maybe write a cheque.

Then branch out. Angel networks like UKBAA, Angel Investment Network, or Envestors can help, as can syndicates pooling money and risk.

Wherever possible focus on investors who are familiar with your industry. Exited founders who ran companies in the same space as you.

Accelerators and incubators are valuable for their investor contacts.

Events and demo days are good for visibility, but rarely deliver instant cash. Manage your expectations.

And LinkedIn works, if you personalise your messages. Cold, generic DMs get ignored.

Remember…

Just don’t fake it. Investors can spot a pretend “just seeking guidance” a mile off.

👉 Takeaway: Fundraising takes hustle and real relationships. Play the long game and follow up.

Chris is a member of Sheffield Angels so has first hand experience on both sides of the coin. Feel free to get in touch with him to chat.

💬 4. Pitch and Build Momentum

Investors are like cats. If they sense you’re desperate, they disappear. If they sense competition, they suddenly want in.

Treat your fundraise like a sales funnel. Time-box it so you’re not stuck pitching forever while your cash burns away.

Get a lead angel early. Others often follow conviction.

Tailor your pitch. Some angels care about ROI, others about impact or bragging rights. Know who’s who.

All of them want to understand the story - why you, why this problem, how have you solved it so far, what’s next.

Handle questions with honesty. “I don’t know, but I’ll find out,” earns respect.

And when a lead says yes verbally, get it in writing. A term sheet turns talk into a deal.

👉 Takeaway: Momentum isn’t magic. It’s built through process and speed.

📄 5. Negotiate and Close the Round

There’s a reason lawyers drive nice cars. This is one of them.

Once you have a term sheet, get legal help. A good lawyer saves you pain and cost later.

Your term sheet covers valuation, the amount raised, your option pool, and investor rights. You should provide the first term sheet if possible - many Angels will just accept these terms rather than negotiating endlessly.

The key legal docs are the Subscription Agreement and Shareholders’ Agreement. Tools like SeedLegals or Ignition help simplify this.

Expect some due diligence, even from angels. They’ll check IP, your cap table, and confirm your founders aren’t on the run.

Don’t forget the SEIS1 or EIS Compliance Statement. File it with HMRC after investment so your investors can claim tax relief. Forget this, and your angels may not stay angelic.

👉 Takeaway: Closing a round is huge. Get support but don’t let your lawyer burn your entire raise in fees.

✅ 6. Post-Investment – Keep Angels Close

Angels who give you cash are nice. Angels who help you grow are priceless.

Investors can’t read your mind. Keep them updated, monthly or quarterly. Be honest.

Share metrics and wins, but also struggles. Always include your cash runway so nobody’s surprised if you need to raise again.

Don’t be shy about your asks. Need a key hire, intros, or advice? Speak up. Angels love to help, especially if it means bragging rights.

Remember, you’re not just selling equity. You’re buying speed, credibility, and networks that could supercharge your business.

Dilution anxiety is real. But so is the cost of going nowhere fast. As they say:

In a £10m exit, giving 10% to angels still leaves you with £9m. Hardly a tragedy.

👉 Takeaway: Keep your angels close. They’re now part of your team and might be the difference between a spark and a roaring fire.

Final Word

Raising angel investment is part strategy, part stamina, part storytelling. Done right, it can transform your business and your future.

Onwards.

Introducing the iMVP Compass

If you are ready, start with alignment. That’s why we built the iMVP Compass — a simple but strategic tool from our Founder’s Toolbox that helps you:

• Clarify what you actually want out of this next business

• Pressure test your idea across four critical lenses (Desire, Demand, Delivery, Durability)

• Avoid building a business that looks good on LinkedIn but feels bad on Monday

See you same time next week.

Carl.