How to become an angel investor

How to become an angel investor

6th June 2012 by Simon Hiscox

Seedrs is about opening startup investing to a wider group of people —going beyond traditional angels and reaching the mass affluent. We think that people who understand the risks of investing and the importance of diversification should be able to allocate a reasonable proportion of their capital to businesses they select and get the benefits of access to the possibly fantastic returns, excitement, portfolio diversity and tax reliefs that investing in startups provides.

But equally, we offer angel investors – high-net-worth individuals who currently invest in startups and early-stage businesses – a new and useful tool for diversifying their portfolio. Some of the advantages for angels in using Seedrs include:

  1. Access to a large range of early-stage, high growth businesses.

All of the businesses you’ll find on Seedrs have been vetted by our experienced investment team. They ensure that the businesses featured on the platform are genuine and have a real interest in growth and providing their investors with great returns. With up to 50 businesses on the platform at any one time, this is a great opportunity for an angel investor, or aspiring angel investor, to find an exciting investment opportunity that suits their interests.

  1. Easily top-up and syndicate rounds.

Top up or close existing offline deals by leveraging the wisdom and support of the crowds for the remaining amount, similar to deal syndication. Seedrs acts as the nominee administrator on behalf of the crowd, and you can either invest under our documentation or you can administer your own (on the same terms as ours).  

  1. Get involved with businesses to help them succeed.

For those who enjoy mentoring and sharing your expertise with businesses, we help you do that. You can interact with, ask questions of and offer your time to entrepreneurs directly through the platform throughout the life of your investment. You can also interact offline if you’d like.

  1. Streamlined legal and paperwork process allows you to be more passive, if you like.

If you are looking to diversify your investments, but you don’t have the time to dedicate to multiple companies, we make it possible by taking the legal and admin paperwork off your hands. So you can choose to be as active or passive with your investments as you like.

UK taxpayers can also efficiently access many SEIS and EIS eligible opportunities all in a single location. These reliefs can provide eligible investors with up to 50% of their investment back*. Nowhere else can you find so many eligible businesses in which to take advantage of these schemes.

  1. Diversify your startup portfolio with investments across different sectors.  

We offer the chance for angels to invest their capital into a broader selection of businesses, diversifying across regions, sectors and amounts so you can reap the rewards of a thoroughly diverse portfolio.

You can find out more about being an angel investor on the UK Business Angel Association, and if you’re interested in becoming an investor check out our current campaigns here.

*UK tax payers should note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. To learn more about how SEIS or EIS works, please read the HMRC guidance or contact your professional tax advisor.


Simon Hiscox

Marketing Director

Digital Agency Kent