Business Angel Syndicates
The purpose of HBAN is to raise the profile of business angel investment as an asset class on the island of Ireland and to promote the creation of business angel syndicates. HBAN acts as a resource for both entrepreneurs and investors (singularly and as syndicates) to assist in the promotion of the early stage entrepreneurial community on the island of Ireland.
Business angel syndicates are groups of like-minded investors. They are high net worth individuals who provide smaller amounts of finance (typically in the range €50,000/£40,000 to €250,000/£200,000) at an earlier stage than many venture capital funds are able to invest. It is worth noting that in Ireland and Northern Ireland business angel syndicates are increasingly operating and co-investing in partnership with both seed venture capital funds and government agencies.
Syndicates are two or more private investors working together to share the risks and rewards of investing in private companies. Syndicates differ from individual business angel investors as syndicates are typically comprised of a ‘fixed’ group of people who regularly invest together over a period of time.
The principal benefits of participating in an angel syndicate are:
1. Diversified portfolio: portfolio investing (i.e. investing in more than one company) is a lower risk approach to investment compared to the higher risk ‘all eggs in one basket’ approach of investing in just one or two companies;
2. Pooling of economic resources: pooling of funds provides the opportunity to invest in several companies and/or in larger deals;
3. Pooling of skills, contacts and experience: syndicate members will benefit from each other’s skills, networks of contacts and experience. This all enhances the possible success and returns of investing; and
4. Due diligence: ability to undertake a greater level of due diligence.
5. Recognition: a formal syndicate can leverage its recognition in the investment community to attract deal flow to a greater extent than an individual can
6. Common Purpose: A syndicate tailored towards preferred industries means that Angels with common interests can share common goals and foster a sense of camaraderie.
***Syndicates not for everyone by any means***
Questions to consider
- How much are you prepared to invest?
- How much time can you commit to the process?
- Can you act as a mentor?
- Are your business experiences & skill set something that can benefit the type of companies you wish to get involved in?
- Can you accept new roles(e.g. Company Director) and incorporate them into your business life?
- Can you resist the temptation to micro-manage your portfolio of investments?
- How much are you willing to learn order to become a capable Angel if you have little experience?
How HBAN brings value to Syndicates:
- Helping the syndicate to devise a syndicate charter
- Support in deciding syndicate structure
- Sample Term Sheet & supporting Guidance Notes
- Sourcing of companies for syndicate meetings - companies prepared for pitching in partnership with the Irish BIC's
- Investors Guide - Insights for Business Angel Investors
- Syndicate Guide - available on request
- Entrepreneur Guide - Insights for Entrepreneurs
- On-line software portal - GUST
HBAN works regionally in partnership with the Irish Business Innovation Centres (BICs) in Dublin, Cork, Waterford, and Galway and Halo NI, who each run local angel networks. HBAN attempts to introduce suitable investors to each other and to entrepreneurs. HBAN takes no part in any investment, nor does it provide information to entrepreneurs or investors in relation to particular investments. HBAN does not receive any fee, commission or payment from investors or entrepreneurs in respect of completed investments.
HBAN does not provide investment services under the European Communities (Markets in Financial Instruments) Regulations 2007 and is not an investment advisory firm pursuant to the Investment Intermediaries Act 1995 as amended.
Want to find out more?
If you are interested in forming or joining an existing syndicate, HBAN will endeavour to connect you with active angel investors with similar investment interests then simply submit a membership application or contact the HBAN team.