Angel Investing School FAQs
What is Angel Investing?
An angel investor is an individual that finances (invests) in privately owned small businesses. They leverage their experience, expertise and network to add value and support the company through growth. They receive equity in exchange for this with the hope to share in the returns if the company experiences a liquidation event such as an IPO or acquisition.
Who is this course designed for?
The curriculum is designed for individuals who have not invested in private companies (startups) or have invested in just a handful (incl. equity crowdfunding) and want to learn how to become a more effective angel investor through learning from other more experienced angel investors.
It is ok for you to have no prior knowledge of finance and investing as we cover the basics, share content in advance of the course and hold your hand through the experience answering your questions along the way.
Whilst many founders could be interested to gain insight and empathy into angel investing, it is only suitable for founders interested in getting started with angel investing. We will not be eroding the quality of the learning experience with cross-selling e.g. from accountants and lawyers attending the class with the goal of selling services to participants.
Professionals from all backgrounds are welcome, from teachers and nurses to plumbers and creatives. We want to widen participation in this opaque asset class to professionals from all backgrounds.
What topics will the course cover?
The course will cover 8 key topics:
- Overview of angel investing
- Developing a thesis
- Sourcing & assessing deals
- Transaction economics
- Legal process (incl. term sheets and understanding tax relief)
- Adding value beyond capital (post-deal support)
- Structuring a deal
- Building a brand
What happens after the course?
You will have lifetime access to the resources and links shared along with the relationships you build. There will be a private community (AIS Alumni) that shares useful information such as demo days, deals within the network, relevant events and more.
How much does the course cost?
One-time fee of £495 (incl. VAT)
How long will this course take to complete?
The course duration is 8 weeks long, every Wednesday from 6.30pm – 8.00pm, ran virtually, so you can join from the comfort of your home.
Do I need to be in London to take this course?
No, we run courses every April and September remotely. So you can join us from the comfort of your home or office.
For those who can’t commit to attending each and every Wednesday, we have created an On-Demand course that you can take at your own pace.
Can my company get in-house training?
We offer a 4 week of tailored corporate training experience. Please email team@angelinvestingschool.com to learn more.
We also offer for corporates to sponsor the April and September cohorts to widen accessibility for diverse professionals.
How do I get a return on my investment?
It is important to understand that investing in privately held companies is an extremely risky asset class. Riskier than investing in buy-to-let properties, mutual funds, index funds and other asset classes. The truth is, most new businesses fail and therefore there is a high probability you may not make a return on your investment.
Andy Ayim MBE treated his initial investments as skin in the game to gain practical learning experience rather than risk money he couldn’t afford to lose (which is not advisable). He is comfortable at a minimum learning about new technology, business building and new markets through his investments. Focusing on nurturing long term relationships regardless of the outcome.
What are the course founders & facilitator investment backgrounds?
The course was curated by Andy Ayim, MBE who has invested in over a dozen startups and has worked for over a decade in the London startup ecosystem, firstly as a founder, before developing his craft as a product manager and more recently as an investor.
The facilitators are a diverse range of angel investors who each have experience investing in privately held companies. Most of what they will teach will be through personal stories and lessons learned with tools and templates shared throughout the experience.
Why did you create the course?
I personally wanted to learn how to get started with angel investing and learn from the experience and lessons learned by others. I want to democratise access to knowledge so that people from all backgrounds can learn whether or not angel investing is right for them.
Are there any regulatory requirements for being an angel investor?
The guidance from a regulatory perspective, under the FCA rules Financial Promotion Order and Markets Act states that you can be an angel investor and make investments in a small business through your own decision if you can self-certify as either High Net Worth or Sophisticated investor.
Simply put, you need to understand the high risk associated with investing in small businesses and therefore be able to invest an affordable sum of money. Don’t invest what you can’t afford to lose. Once you invest your money could be tied up for a number of years and still result in a loss. Ensure that this money is not part of your lifestyle costs or money tied up with your monthly costs, it should be a sum of money you can afford to invest.
I know it sounds pessimistic, but it is important to level set before even taking the course. This isn’t a get rich quick scheme or promise of any riches. There is a possibility that you could make a return on your money and potentially access some tax reliefs, which will be covered in the course.
Is there a minimum amount of money one should have when starting out in angel investing?
Personal finance is what it says, ‘personal.’ So given how risky this asset class is, you don’t want to expose more than 5% of your annual income to angel investing. For an illustrative example, If I earn £100,000 per year. I wouldn’t risk more than £5,000 on angel investing per year. On the course, we teach how you can invest as little as £1,000 alongside other angel investors.
Disclaimer: this is not to be deemed as financial advice, please seek advice independently from a registered financial advisor.
Why do you aim for 50% of the course to be women, men of colour, LGBT and/or non-binary?
We believe the ‘opportunity cheque’ or the first money invested into a small business can be pivotal to the outcome of whether that business can grow to succeed or fail. Therefore with less than 1p in every pound going to all-female teams and the lack of funding going to diverse-led startups we believe if we can train up more diverse angel investors, more diverse startups will gain investment as a result.