Everything you need to know about investing in unquoted companies

By Richard Hargreaves

Investing as a business angel offers fun and financial reward but the real world is much tougher than portrayed in the reality TV show Dragons’ Den.

Anything can go wrong with a young company, from an unreliable product to a lack of customers, unexpected competition to management failure and, most commonly, simply running out of money.

But small companies are a vital part of the economy, and the tax breaks for investing are a great incentive. And supportive investors are vital.

Now is a better time than ever to invest in small companies hoping to make it big. There’s a tsunami of investable businesses disrupting old industries with new technology and new methods. The rewards can be huge if you are patient, sensible and smart. And there’s the satisfaction of helping to bring a new and valuable thing into the world.

Whether you’re a newbie or an old hand, Business Angel Investing is your comprehensive guide on how to invest, what to invest in, how to manage your investments and how to make money.

Richard Hargreaves has invested in young companies for almost 50 years. Let him show you how being a business angel can be fascinating, fun and profitable.

Dr Richard Hargreaves was educated as an engineer and conducted research in materials science before entering the world of venture capital with the 3i, as it now called. After ten years of making investments in unquoted companies, he left to start Baronsmead plc which he developed over 13 years until its sale in 1995. During this period Richard was involved in the development of the venture capital industry through the BVCA (the leading industry body and public policy advocate for the private equity and venture capital industry in the UK), where he became chairman.

After its sale, he managed Baronsmead for two years before he started Classic Fund Management Ltd. He sold that company in 2004 and co-founded Endeavour Ventures Ltd, which invests in young technology companies for its client base of high net worth individuals. He retired from Endeavour in 2018 to focus on being a professional business angel investing only in B2B software driven opportunities.

He has nearly 50 years experience investing in young companies and helping them grow. He is an experienced non-executive director and professional business angel with significant understanding of the US market.