Investment syndicates or Business Angel syndicates as they are also known, offer individual investors more leverage to invest in larger businesses and wield more collective power. There are many investor syndicates to choose from, where individuals may invest anything between £20,000 to several million of their own money with a syndicate who will then suggest investments based on their investor profile, attitude to risk and return expectations.

Many of these syndicates will hold meetings or events were business owners can present their ideas to potential investors which may be of benefit. Similar in concept to the TV show Dragon's Den you will be able to present your ideas to a room full of potential Dragons although none probably as intimidating as the TV version! You will certainly be grilled so be prepared to answer all the difficult questions.

The complexities of seeking funding from a syndicate mean of course that you will more often than not have more than one investor. It's therefore important to get everything clarified and documented including exit strategy for all involved.

As long as you have everything documented and agreed then investment syndicates can offer a good solution. They are likely to be made up of individual investors who have a broad range of skills who may be willing to offer advice as well as funding. This is not always the case which may or may not be a good thing depending on your requirements.

Ideal for:
Businesses who are seeking a large cash injection that is more than an individual investor would consider and less than a venture capital firm would consider.

Return expectations:
As a guide anyone investing their money in a business angel syndicate will be looking to recover at least 5 times their initial investment normally within a 3 - 5 year term.

Advantages:

• Business angel syndicates offer a half way solution between individual investors and venture capital. You'll have access to more money but potentially a lower equity stake.
• You may have more choice as to who you get involved in your business.
• Business angels that invest in syndicates may have relevant expertise that could prove beneficial to you in taking your business to the next level.