Frequently asked questions

General

What is xénos, the Wales Business Angel Network?

xénos introduces business angels to businesses seeking growth investment.

What are business angels?

Business angels are wealthy investors with experience of growing successful businesses.

Who do you work with?

We work with business angels, businesses in Wales and professional advisers and referrers, including banks, accountants and legal experts. We also work with local authorities and the Welsh Assembly Government.

Does xénos participate in investment negotiations?

We broker deals, which means we don’t act for either the investor or business seeking investment.

Does xénos conduct due diligence?

Investors and businesses seeking investment must undertake their own due diligence.

I need business advice, can xénos help?

We don’t offer financial, legal or other business advice but we do manage a database of professional advisers.

Our regional managers can offer guidance on making a business more attractive to investors.

For business angels

What can xénos offer business angels?

xénos business angels invest in businesses in Wales in return for an equity share. As well as financial rewards, business angels can choose to play an active role in their investment.

How do I join the network?

You must register on our web site and sign our terms and conditions. You will also sign a statement confirming your status as a High Net Worth Individual or a Self-Certified Sophisticated Investor.

Is there a charge for joining the network?

The enrolment fee is £175 plus VAT to join the network for a year and the annual renewal fee is £75 plus VAT. You can pay the fees either using this web site or by cheque.

How do you match investors with investment opportunities?

Our regional managers use their business expertise to ensure opportunities are presented to our members who would be likely to invest.

Investment opportunities are distributed by e-mail or post and can be read in full at our web site. xénos forums give businesses the opportunities to present to prospective investors.

Do you offer syndicated investment opportunities?

We actively encourage syndicates between our members. Business angels also frequently co-invest with our parent company, Finance Wales.

What is EIS and how can I register?

EIS is the Enterprise Investment Scheme. The EIS offers both income tax and capital gains tax reliefs to investors. To find out more about EIS, contact us.

What should I do now?

Contact your local xénos manager to find out more about joining our network.

For businesses seeking investment

What can xénos offer businesses seeking investment?

We can help businesses find the financial investment required for growth. As well as investment, xénos business angels can add value to their investments by providing skills and contacts that come from years of experience.

xénos regional managers can also offer advice in making business plans more attractive to investors.

How do I join the network?

You’ll need to present your business plan and financial records. Your business must also be based in, or planning to relocate to, Wales.

Is there a cost to joining the network?

You will pay a joining fee, relative to the type of service you require. xénos reserves the right to vary its charges.

What do business angels invest in?

Business angels invest in a wide range of business sectors and stages of development including, start-ups, expansion, acquisition, and turnaround situations. They invest in unquoted, developing companies where the risks and potential returns are high.

How quickly do investors expect a return on their investment?

This is part of the investment negotiation process. Your business plan should inform investors of the potential return and how and when an investor can exit their investment.

Can I join even though I have financial issues?

Previous financial issues don’t exclude you from joining the xénos network, but we strongly advise honesty with potential investors. Investors take account of your past and current circumstances, but they’re equally interested in your business’s growth potential.

Will I be expected to invest in my own business?

We've found that investors tend to favour business managers who demonstrate their commitment by sharing the risk. But we strongly advise honesty with potential investors, so let them know if your circumstances prevent you from investing.

Are businesses guaranteed investment through xénos?

We can't guarantee you'll find an investor. Our success rate is about one in four.

How does xénos guarantee confidentiality and IP security?

Businesses seeking investment will prepare an anonymous executive summary. This is circulated among investors and ensures an initial degree of confidentiality. Businesses can take additional steps to protect their IP, including patent applications and requiring investors sign a non-disclosure agreement (NDA).

How do I go about valuing my business?

It's best to get independent professional advice when valuing your business. Valuation can take into account many factors.

I’m not sure I want to register yet. Can I trial the network?

Unregistered businesses can include a pipeline listing in our monthly bulletin, which is circulated among business angels. Pipeline listings are free and at the discretion of our xénos regional managers. Contact your local xénos manager to find out more about pipeline registration.

What should I do now?

We'll need to see your business plan before you can register, so it's best to first contact your local xénos manager to find out if you're investment ready.