Speedfunding: the word may conjure up a certain image in your head - go with it, it's probably right on the money. Yes, it's just like speed dating - except this time it's business angels rather than prospective love matches you're hoping to woo, and it's a new way of bringing entrepreneurs and investors together. While a raft of networking events, such as First Tuesday and Second Chance Tuesday, are already doing this very successfully, Angels’ Den has taken the concept that one step further and turned it into something so audacious that it actually works.

Here’s the set-up: Budding entrepreneurs and those already running a business who are looking to take it to the next level can register on the site: http://www.angelsden.co.uk/. It’s first come, first served, so there’s no limit on who can attend or what kind of businesses can pitch – which immediately sets it apart from many other networking events which tend to be web-focused.

Earlier this month at the launch event I met 12 entrepreneurs and 12 angels with a combined net worth of millions and all eager to invest in the next big thing. The contenders ranged from two 17-year old lads looking to build on their successful Young Enterprise company to a man who is working on a multi-million pound project that, if he pulls it off, could have a monumental impact on the developing world.

So how does it work? Much like its love-seeking predecessor, the angels sit in the same spot for an hour while the entrepreneurs work the circuit, selling each of them a three-minute pitch, followed by a one-minute Q & A, before moving on to the next. It’s formal but fun, and there's an unmistakable buzz as 12 entrepreneurs emphatically pitch their business ideas in a chorus punctuated by whistles and a cow bell to keep the time-keeping strict.

It may sound a little out there, but it's based on the idea that pitching for funding is a numbers game - the more investors you pitch to, the more likely you are of finding one that's willing to take a punt. Angels invest in people, and it gives them just enough time to figure out whether or not there's chemistry there. If they click, cards are exchanged and they can meet up at a later date to talk through things in more details, if they don’t, that’s fine because there’s plenty more angel-fish in the sea.

I was lucky enough to sit in on the action with an angel and hear all 12 pitches, once the entrepreneurs had been briefed on the  house rules and the angels came down from the, er, bar. When I ventured into the Den beforehand the entrepreneurs were busily practising their pitches, with one notable exception. “Shouldn’t you be practising or are you quietly confident?” I said. “I haven’t done a pitch,” he said, to my surprise. “If you can’t summarise your business off the top of your head in three minutes, there’s something seriously wrong,” he added. “But have you memorised all your financials?” I said, envisaging scenes from its BBC-namesake and a Deborah Meaden-style shootdown. “I know all the essentials – they won’t be grilling down that far in three minutes anyway.” And to be honest – he seemed the most relaxed out of all of them – perhaps there’s something to be said for a more natural approach – so long as you know your stuff and have thought about the questions you might be asked. 

On that note – wow was I surprised by several people who clearly hadn’t prepared answers to the most basic things that any investor in their right mind would want to know, such as how will you stop a large company from stealing your idea. What also struck me was the inability of several to describe their business in a clear way. One bright spark brought a presentation on a USB stick for each angel to take away, should they be interested, which meant he was a lot more relaxed during the pitch because he wasn’t worried about leaving anything out. 

But onto the advice that really matters. After the hour-long grilling session I asked my companion what he thought had been the strongest pitch and what he looked for in an investee generally. This is what he said:

"Sometimes entrepreneurs have an idea that they’re so passionate about that they don’t want to think about anything or anyone who could threaten it. Don’t be afraid to talk about your competitors – acknowledge them but make it clear how you will secure and increase your market share. What is special about your business and how will you fend off the competition – especially multinationals looking to steal your idea once you’ve alerted them to a new and potentially lucrative market."

He said he likes to have some control over his investments, so will have to have a good rapport with the CEO and have some involvement in decision making, doesn’t want to be one of six investing in a funding round where this input will be diluted, is reluctant to invest in a business that hasn’t actually created anything yet and five years is usually longer than he wants to be tied into a business.

There are a few key things that he wants to know and expects to be told:

What your business does and what market it serves.

How big is that market in the UK / abroad?

What sets your business apart – how will you grow your share of that market?

What is your business’ valuation and how have you figured it out?

How and when will you give him a return? What is the exit plan?

That said, there were several entrepreneurs who showed great promise and I would be surprised if they end up walking away empty-handed. Bill Morrow, co-founder of Angels’ Den told me that at the first ‘test’ event, of the 24 companies who attended, 16 are now in talks with angels they met on the night. One business has already struck a deal. My companion had already arranged a meeting by the end of the night and was interested in hearing more about several.

Could be a match made in heaven.