Risk warning While the content on the Angel Business Club website is for general information purposes only and does not form financial or professional advice, any investment opportunity on the Angel Business Club website carries a high degree of risk. Your capital is at risk which can include loss of investment and dilution, illiquidity, lack of dividends and it should be done only as part of a diversified portfolio. Any financial promotion contained on the Angel Business Club has been approved by Angel Corporate Finance Ltd; a firm authorised and regulated by the Financial Conduct Authority in the UK.
It’s been over a year since we started our review of the Angel Business Club, so it is more than high time for an update.
The strange thing however – and this is mainly why we have delayed doing an update for so long – is that we don’t really have any results to update!
Yes it may sound crazy, but even after having been a member of the Club for around 18 months, we haven’t been able to cash in any of our investments.
Before we explain fully, here is a quick reminder of what the Angel Business Club (or ABC for short) is all about: when you join up as an active member, you pay a monthly fee and you may receive free monthly share entitlements at the Club’s discretion and in proportion to your membership level in companies at all stages of development, from start-ups to pre-IPO and even listed companies.
It is kind of like Dragons’ Den apart from you don’t get to choose which companies you get shares in, the Club does that for you on a monthly basis.
The problem is that you need to wait for an “exit event” like an IPO (a flotation on the stock market) or a trade sale (a company being bought out by a much larger company) for your investment to be realised and some profit (or loss) to be made.
There is the option of trading internally on the ABC’s website, but we have tried this a few times and even when putting in the lowest price allowed, we still haven’t found any buyers for our shares. There just isn’t the liquidity available compared to trading on a platform like Hargreaves Lansdown for example. That isn’t surprising as the ABC has around 1100 paying members compared to hundreds of thousands or even millions of traders on a platform like Hargreaves (plus HL have market makers, but that’s a different story altogether).
Anyway, the overall picture is that so far we have paid €2,325 in membership fees and our shares are estimated to be worth around €2,860.
However, this estimated value is the “strike price” attributed to the shares by ABC, which has to be taken with a pinch of salt as it just their internal valuation and as they used to say on those property programmes, an item “is only worth what someone is willing to pay for it.”
So you will only know what those shares are really worth once there is an exit event and you can actually sell them.
In summary then all we can say so far is that the Club is definitely for the long-term investor rather than the short-term one. If you are looking to make a “quick buck” then this isn’t for you. In many cases you will have to wait 3-5 years for an investment to come to fruition, so patience is of the essence.
There are a couple of companies due to have IPOs later this year and Britannia’s Gold – one of the the ABC’s flagship projects – is currently embarking on their third crack at retrieving some gold from WW1 and WW2 shipwrecks, so it may be that we have some concrete results to report in the coming months.
For the moment though, it’s very much a case of “wait and see…”
Angel Business Club – New Review
10th January 2018
If you are a long-term follower of ours you will know that we like to look into a wide-variety of money-making opportunities and not just betting systems.
We like to test out trading systems, forex strategies, cryptocurrencies and really any investment opportunity that we think has the potential to be profitable.
The latest opportunity represents something new again and is called the Angel Business Club.
I attended a seminar they held just before Christmas and was impressed enough by it that I decided to join up as a paying member.
What is the Angel Business Club All About?
In essence the Club provides the chance to be invested in a range of start-up companies.
Normally this is something that is closed off to the vast majority of people and only venture capitalists like the guys you see on “Dragons Den” would have the chance to become involved in start-up companies.
For a lot of investors this is very frustrating because investing in new start-ups can be one of the most profitable forms of investment possible.
Think of the early investors in Facebook, Uber, Airbnb and the like and the vast fortunes they have amassed from being able to invest at the earliest stages of those companies, well before they floated on the stock market.
Venture capitalists who were able to do this have apparently made hundred-fold, or even thousand-fold, their original investment.
There is even a story of a cleaner at the Google offices in the very early days of the company who was given a few hundred shares to thank them for their hard work, and now those shares are worth millions!
Whether it is true or not, the story gives you an idea of the incredible value that can be obtained from being an early investor in a company.
This is where the Angel Business Club comes in. When you join up as an active member, you pay a monthly fee and you may receive free monthly share entitlements at the Club’s discretion and in proportion to your membership level in companies at all stages of development, from start-ups to pre-IPO and even listed companies.
It is all completely legal and legit and has been running for a couple of years now and has:
- – Become Europe’s largest community of business angels with over 10,000 members
- – Developed 10 Companies and driven 2 IPOs with more to come in 2018
- – Built a complex and scalable financial e-platform
The Angel Business Club has an experienced professional team with decades of business and financial experience behind them who vet the potential companies to invest in and then help nurture them.
The beauty of it as an investor is that you don’t have to do anything, just let the team do all the work and sit back and receive the shares.
Of course the big question you are probably eager to know the answer to is what their track record is like in terms of returns.
Well apparently gains on the portfolio have ranged from 40-70% per year for members to date, which comfortably beats the stock market average and certainly any savings account.
A notable success includes Wide Cells Group, a stem cell company which the Angel Business Club (ABC) took from an early stage company to float on the stockmarket and the IPO price represented a doubling in value to the price ABC members received shares at (8p to 16p).
Gains will of course vary and all investments in early-stage companies are high-risk, but the track record so far looks very good
There are currently over 20 companies currently on the ABC books. You can read more about them on the ABC website.
I have recently joined up and will do a full review of the Club here, including the return on investment of my subscription over the course of the year.
This could be a great chance to invest in the next big companies of tomorrow, whilst also becoming involved in an investment community with regular meet-ups, online forums and webinars.