Angels Den Blog

A new tax-efficient Fund launches today which will invest in early stage private companies with high growth potential.

The Best of Angels Den Fund is a joint venture with one of Europe’s largest Angel Networks, who attract around 5,000 early stage businesses each year. The Fund will invest in a portfolio of companies with high growth potential which are going through the Angels Den process and looking for funding within a tax efficient Enterprise Investment Scheme (EIS) structure.

The Fund will help them to grow, ensuring that they are appropriately backed and manage them through to the point when another company buys them or they are growing sufficiently fast to consider a listing on the Stock Market. It allows the investor to enjoy the same exposure to companies that wealthier investors follow, but without devoting large amounts of time and money.

The fund will be managed by specialist EIS manager, Pre-X Capital Management.

Angels Den came to prominence in 2007 and has attracted the attention of the media with its unique ‘SpeedFunding™’ events, a similar concept to Speed Dating. Its investor base numbers over 3,000 business angels, with links to thousands more via syndicates, making it one of Europe’s largest Angel networks. At its SpeedFunding™ events, investment-ready entrepreneurs are able to pitch to investors on a one-to-one basis. (It is the only company to offer this service). 90% of entrepreneurs, on average, gain interest from at least one angel and some have as many as ten from a single event.

Bill Morrow, founder of Angels Den said: “We have created a world class network of qualified investors and Britain’s brightest, new companies and it’s time to allow other investors to reap the rewards of these fantastic investment opportunities. Being a business angel can be extremely rewarding but it takes up a lot of time and money. This Fund allows the investor to enjoy the same exposure to companies that wealthier investors follow, but without devoting large amounts of time and money and doing it in a tax efficient fashion.”

He added: “We’re determined to professionalise the process of investing and managing an investment in start-up companies where the returns can be spectacular.”

Pre-X is authorised and regulated by the Financial Services Authority and is run by a team of experts familiar with both the unquoted market and fund management in the UK. The Fund Manager has assembled an Investment Committee comprising experts in a range of sectors to help them screen and evaluate companies seeking investment.

The closing date for investments in The Angels Den EIS Fund 2010 is 4 April 2010.

For further information visit www.angelsden.co.uk/fund.

For further information, photography or interviews, please contact Frances Knox on 01582 713890 or frances@angelsden.co.uk .

Notes to Editors:

• The Fund Manager’s aim is to invest selectively in such companies to produce capital gains within a period of three to five years while managing risk. The investments will be in both established businesses as well as selected early stage businesses all of which qualify for EIS* tax relief.
• Enterprise Investment Scheme (EIS) – the tax breaks

With the 50% income tax band nearly upon us, the EIS provides a useful tax planning vehicle and capital gains made over the previous two years can be deferred using an EIS fund.

Tax Incentive - Enterprise Investment Scheme (EIS)
Income tax relief – 20%
Amount that qualifies for income tax relief – £500,000
Qualifying holding period – Three years
Inheritance Tax Relief – 100% IHT relief after two years
Capital Gains Tax Deferral – 100% CGT can be deferred on tax due from other capital gains whilst you hold the fund (from gains made in the past 3 years*)
Capital Gains Tax Relief – No CGT to pay on your fund gains
Loss Relief – Up to 52% offset against income tax or CGT liabilities (60% for 2010/11)

About Angels Den

• All that most people searching for investment need is a little divine inspiration from an Angel to provide the funding needed to help their businesses grow and flourish.
• Angels Den is passionate that every business, with a good idea and a sound business plan, should have the opportunity to access funding. It is a straight-forward, transparent, cost-effective and fast service connecting entrepreneurs with potential investors.
• Angels Den is seeing a surge of interest from entrepreneurs, as banks are increasingly cautious about investing in fledgling businesses
• It has one of the largest Angel networks in Europe
• It provides a direct route to an Angel investor and 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 at its regular SpeedFunding™ events (a similar concept to Speed Dating).
• It provides it entrepreneurs with an excellent service to get them ‘investment-ready’ in order to give them the best possible chance of securing funding.
• Over 3,000 individual pitches, on average, take place a year between entrepreneurs and investors
• At a single SpeedFunding™ event an average of 225 one-to-one pitches are made. 90% of entrepreneurs, on average, gain interest from at least one Angel and some have as many as eight from a single SpeedFunding event
• Angels Den does not vet companies looking for funding and it has no minimum funding requirement

About Pre-X Capital Management

Pre-X is a fund management and broking service which makes investments in growing companies that are 12-18 months away from listing their shares on a stock exchange. This area of capital raising represents a major hurdle for companies and an investment opportunity for private investors.

Pre-X was founded by John Blowers in 2005 and is FSA authorised as a fund management company, with operations in London and Guernsey.