We’ve teamed up with angel-led investment platform Angels Den to help startups across the pond access affordable working capital finance.
In continuing to level the playing field for small and medium businesses (SMBs) across the globe, Crowdz is joining forces with Europe’s first and largest online investment platform. Here’s a deep dive into Angels Den, our new partnership, and what it means for small UK business owners.
About Angels Den
Angels Den Funding is an online investment platform that combines the UK’s largest angel network with an equity crowdfunding platform. The platform makes it easy for angel investors to connect and support heavily-curated, early-stage companies with great potential.
What is an angel investor?
Raising capital is a huge hurdle for any startup. Angel investors offer entrepreneurs the chance to expand with seed money in exchange for an equity stake in their company. Usually, these investors are high-net-worth individuals who aren’t beholden to other institutions, unlike traditional debt financiers, allowing them to invest their money much more freely.
Introducing Angels Den Alternative Financing Program
In response to the ongoing impact of COVID-19, Angels Den launched its alternate financing program to help its network of startups access affordable working capital finance. In doing so, the organization makes it possible for startups to improve cash flow, purchase inventory, hire staff, invest in growth, and, most importantly, stay in the game. Participating small and medium businesses can sell invoices from any customer and receive immediate payment from as little as 1.5% of the invoice value per month.
The program perks
Small and medium businesses often find themselves at the mercy of uncertain net payments. While waiting 30, 60, or 120 days to get paid, SMBs risk losing out on growth opportunities. The Angels Den Alternate Financing Program helps registered businesses plug the cash drain caused by long payment terms, removes the headache of chasing customers, and more! Here’s a look at the benefits:
- Quick access to immediate cash flow: once an SMB sells their invoice, they receive payment in less than a week!
- Time savings: selling your unpaid invoices eliminates administrative tasks that cost a business valuable working hours.
- More control: a steady cash flow enables SMBs to meet their rent, payroll, and other bills on time.
- Growth opportunities: Owners can reinvest and expand their business operations and provide services to new clients.
Who is the program serving?
- Companies registered in the United Kingdom and European Union
- Minimum business age of 12 months since incorporation
- Minimum business revenue of £50,000 a year
- No PEPs/Sanctions on the Company or Directors
- No current insolvency proceedings / active County Court Judgements (CCJ’s)
What makes Angels Den’s client network so unique?
Before opening funding to the broader investor community, Angels Den carefully matches startups with a suitable lead investor with sector expertise. The lead conducts due diligence and provides mentorship to help the business grow.
Today, over 92% of the deals Angels Den funded since 2013 are still in business thanks to this model. Read on for a closer look at the platform’s unique strategy.
- Startup selection: Companies undergo an artificial intelligence-driven business assessment, interview with an entrepreneur relations manager, and a legal and compliance review.
- Lead investor matchmaking: Startups can elect to appear in the Seeking Lead Investor section on the platform and pitch at events to find a lead. Next, a lead investor conducts their due diligence.
- Opening the funding to the investor network: Angels Den showcases the business in the Investment Opportunities section. Investors can request further information or choose to invest.
- Online reporting: Entrepreneurs upload relevant quarterly reports, allowing investors to track and analyze the company’s evolution.
Where Crowdz and Angels Den align
It’s no secret that small and medium businesses are at the heart of everything we do. So we are thrilled that fellow tech-driven company Angels Den is also committed to supporting startups and accelerating their growth. Similar to our efforts, Angels Den seeks to help early-stage companies access the type of products that are usually exclusive to larger, more sophisticated companies. Together, we’re leveling up cash flow opportunities for even more SMBs and enabling post-pandemic growth their local economies need.