Bure Valley Group is an investment introducer platform which links successful investors with exciting, innovative UK startups seeking funding. This content is for information purposes only and should not be taken as financial or investment advice.
Investors come in many different varieties. A “lone wolf” may prefer hunting for investment opportunities independently, whereas the “pack hunter” leans more towards investing with others. Irrespective of your style, being part of an investor network can be immensely rewarding for many types of angels.
Below, we explain seven concrete benefits of membership and how investors can get the most out of their network. We hope these insights are helpful. To learn more about our EIS projects and other early-stage opportunities, visit our portfolio page. For enquiries regarding our latest projects and funding, you can reach us via:
+44 160 334 0827
#1 Diverse deal flow
As an individual investor, you will have your own unique skills, experiences, networks and contacts (e.g. from your previous industry employment). This can be both an advantage and a disadvantage to an angel investor.
Whilst it can help to make you an expert in your particular investment field, it can also lead to restricted options for deals. By being part of an angel investor network, however, you can access a more diverse range of opportunities from new markets and niches.
#2 Shared expertise and due diligence
There is an old proverb which goes: “As iron sharpens iron, so one person sharpens another”. In other words, everyone can benefit from collaboration, mentorship and mutual learning. This includes angel investors.
Another investor may have more insight and experience than you in a particular field, such as artificial intelligence (AI). You might have the edge in a different area, such as green tech. By putting your heads together, you can highlight potential opportunities and risks in a prospective startup investment which both (or one) of you may have missed alone.
Angel investor networks expand this benefit to higher scales by bringing together individuals from diverse backgrounds, experiences and expertise.
#3 Pooled resources
By combining your funds with other investors, you improve your own chances of participating in more (and larger) investment rounds. You could also improve bargaining power when negotiating equity stakes with startup founders.
Pooling resources can, in some investors’ eyes, dilute potential returns because you have to share the spoils of startup growth with others. However, it can also lower your individual investment risk. Perhaps committing alone would over-expose your portfolio to diversification risk. If so, joining forces with one or more other angels could help to mitigate this.
#4 Mentorship and support
Angel investors are typically committed to lifelong learning. They understand that, to become more successful in their investment decisions, they must continually improve their knowledge, understanding and skills. Yet where do you turn?
An angel investor network is an ideal forum for sharing mentorship programmes, support services and dedicated courses to serve specific angel investor needs. These might include hosted seminars with industry experts and “buddy pairing” between older, more seasoned angels and younger more inexperienced members.
#5 Innovation exposure
Some of the world’s most exciting startup investor opportunities are only accessible – or, are most easily accessible – via a professional network. If you want exposure to the cutting edge of innovation in 2024, there are few other better places to look.
Many of the startup projects in our own angel investor network, here at Bure Valley Group, are breaking new ground in exciting sectors – e.g. cloud computing and electric vehicles (EVs).
Here, investors can access pre-vetted investment opportunities which improve their own due diligence processes, opening up new doors to emerging trends and disruptive technologies.
#6 Philanthropy
Many investors want to give back to the world and to their communities. By being part of a network, you could gain more visibility of socially responsible startups in which you could invest. The result, hopefully, is not just better returns – but also a positive moral impact.
We all have our unique passions and interests regarding ethical issues. By working alongside other angel investors, you gain more insights into other key areas which you may previously have overlooked. They can also guide you on how to get involved.
#7 Networking
The old saying still holds true: “Who you know” is arguably just as important as “what you know”. An angel investor network helps individuals to achieve just that – networking.
By broadening your contacts, you increase your chances of discovering new investment opportunities, strategic partnerships and valuable business relationships. This also helps you keep abreast of industry trends, emerging technologies and market opportunities.
Conclusion and invitation
Working with other angel investors helps with diversification, knowledge-building, networking, philanthropy, exposure to innovation and due diligence processes. In short, there are few reasons to not be involved.
Interested in finding out more about the exciting startup projects we have on offer to investors here at Bure Valley Group?
Get in touch today to start a conversation with our team and discuss some of the great investment memorandums we have available here:
+44 160 334 0827
