Case study: Angel Investments

1. Background
Angel Investments plc (AI), is based in Warsaw, Poland. It provides finance for start-up
or young companies which need capital to develop their businesses. AI is run by a group of
extremely rich people of various nationalities who made their fortunes in the computer and
financial services industries. They enjoy the excitement of working with start-ups and small
companies, and believe that Central and Eastern Europe offers outstanding opportunities for
investment. They are willing to take risks and back projects which seem unusual or
extraordinary. However they also expect to make money, usually by taking a stake in the
business or a share of the profits.
A team of AI investors is currently considering several proposals. After hearing
presentations from individuals and companies, AI will decide which projects it will invest in, and
how much money it will give to each one. They have 5.5 million to invest in the projects.
2. Roles:

AI Investors
Entrepreneurs/ Presenters

3. Examples of Project proposals

New magazine
You need to finance the first edition and launch of a new magazine. Amount required: 2.5
million, to finance production, editorial, office administration, distribution costs and promotion.
New sport league
You have a background in sport and public relations. You want to set up a league for a sport
which at present is not well-known, but could become very popular. Amount required: 2.5
million to finance administration and promotion, endorsements of the league by famous sports
people, travel and legal costs.
Your own idea for a product or service
You have an idea for a product or service.
You have not yet written a business plan, but the AI team are willing to listen to your
presentation. Amount required: At least 3 million, to finance development, production,
personnel, launch and marketing costs.
Flotation tank centres
At these centres, stressed business people can float in tanks and forget about their problems.
Other services will include advice about diet and skin care, a solarium, and sunbeds, etc. Amount
required: 2 million, to finance premises, equipment, staff and promotion.
Airships
Your company wants to manufacture airships to advertise companies' products and to entertain
potential customers, etc. Amount required: 5 million, to finance research and development
costs, production, and marketing.
1

Note:
Students may choose a proposal from the list above, or may come with their own proposal.

4 a. Briefing Notes: AI Investors

Before the meeting:
1. Study the proposals that the entrepreneurs have chosen and discuss which appeal to you
most. Consider which are the most risky and which have the greatest potential profits.
2. Prepare questions which you wish to ask each person.
During the meeting:
1. Listen to the presentation of each person. Ask questions to help you decide which project
to invest in.
2. Discuss the projects. Decide which to invest in, and how much money you will give to
each.
Remember: You have maximum limit of 5.5 million pound to invest, but can invest less.

4 b. Briefing Notes: Entrepreneurs/ Presenters

Before the meeting:
Choose one of the proposals or present your own idea for a product or a service.
3. Prepare a presentation of your product or service. Use the Key Points as a guide for
structuring the presentation.
4. Your aim will be to persuade AI to give you the money you need. Try to predict what
questions they will ask you.
During the meeting:
3. Give your presentation and answer the AI team's questions.
4. While waiting to hear AI's decision concerning your request for finance, analyse your
presentation objectively:
a) Was your presentation effective?
b) Do you think you will be successful?
c) How well did you answer their questions?
d) What problems did you have, if any?

5. Key points for product presentations

1. The Business
A description of the business -What does it do? Who is it for? Brief details about the team (age,
education, experience, etc.).
2. The Product or Service
A brief description including artwork, if possible.
What are the advantages of the product or service? What need does it fill?
What are its unique features?
3. Marketing
Who are the existing or target customers?
Who are the competitors or possible future competitors?
What are the competing products, if any?
What about pricing policy?
How will the product or service be launched and promoted?
What are the selling and distribution methods?
4. Finance
How much finance is required and for what purposes?