This results in three big advantages:
- Business Angels can leverage their capital and reduce the need to use venture capitalists particularly in follow-on rounds.
- Business Angels can get their investment decision validated by a small group of sophisticated investors that vote with their money. It works like complementary due diligence without either party being liable to each other.
- Sophisticated investors that have no interest in becoming active Business Angels can build a portfolio of smaller investments in startups.
Using SR website, the Fast Forward Funding Programme is able to raise finance from within its own wider network of contacts or from all SR members increasing visibility for both FFFP and the company raising funds.