Host of angels takes off
- Added:
- Jun 30, 2000
The company aims to become a web-based intermediary between entrepreneurs and angels with between 50,000 and 1m to spend. CEO Jason Purcell believes there is still an “equity gap” where young companies find it hard to raise cash in the sub 1m range.
According to Purcell, the company hopes to cover its costs with the 195 fee it will charge entrepreneurs to submit their business plans and the 295 it will charge angels. But Purcell said that the company will take a 5% commission on the funds raised using its service which it will usually take in the form of equity.
FirstStageCapital will allow angels to personalise the site depending on their experience and investment requirements.
Unlike traditional angel networks, FirstStageCapital was required to gain the approval of the FSA, the UK's financial regulator, because it is accessible by the general public over the internet. Purcell said FirstStageCapital took seven months to gain approval and was “treated like Merrill Lynch”.