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How To Become A Business Angel: Practical advice for aspiring investors in unquoted companies by Richard Hargreaves

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Chapter 5: Investment Terms

Introduction

This chapter discusses the terms on which you might invest in a venture. Unless these are acceptable you should pass, however much you like the fundamentals of a business.

Valuation of the business is at the heart of this topic and is an obvious possible deal breaker. However, the subject of investment terms is much more complex than just that. By way of a template, I have included my own preferred early stage deal terms against which I measure any actual proposed deal.

From an angel’s point of view, EIS reliefs are central to any assessment of terms today because of the huge tax advantages. These are discussed in this chapter but the scheme itself is fully described in Chapter 6.

I have included ...

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