Matching great ideas with investment

Envestors, founded in 2004, and Angels Den, founded last year, prove there's money to be made in matching good ideas with investment. But it's not just about cashing in. These firms are also helping to solve a common gripe for early-stage businesses: access to finance.

Scott Haughton, co-founder of Envestors, says his company will match a network of 350 business angels with companies that want to raise up to £2m. He describes the entrepreneurs' eight-minute pitch to investors as "high-energy, real-life Dragons' Den, done properly".

According to Haughton, everybody thinks they've got a fantastic company and don't need help raising finance. The reality is that they often need knocking into shape to become investor ready (another Envestor service). "In the last few months, the banks have shut up shop," he says. "So we also approach lenders and other early-stage venture capitalists."

Having raised £10m for early-stage companies, he says the ideas that strike a chord with investors are "the ones that are easy to understand". A strong management team, those with a good track record, and those who are already trading are also desirable. "The idea is quite cheap. It's about having the whole package," says Haughton.

Lois Cook, co-founder of Angels Den, runs a similar service. She says there wasn't a good enough connection point between angels and firms looking to raise a smaller amount. "Angels don't exactly advertise in the Yellow Pages," she says. "And no angel group wants to take you on at the £50,000 level. This was a way of funding smaller deals."

The Angels Den's networking events are based on the speed-dating format, where you have three minutes to pitch to an individual angel. Cook says: "A private investor tends to like something they have some kind of connection with, or that might change the world. Things that are readily understandable go down best."