A Connected Market for Angel Investing

14 February 2012

Business Angel Investing

Business Angels: A key source of finance

Angel investment is the most important source of capital for start-ups and early stage businesses in the UK. The BBAA estimates there are approximately 15,000 angel investors operating in the current market, investing nearly £1 billion per annum.

Forming partnerships in 2012

It is crucial that entrepreneurs and small businesses in Britain can access the right finance in the right place at the right time, whether they are starting up or growing. Our goal is a connected market place for businesses which enables them to find the appropriate finance for their stage of development. The way to achieve this is through partnership, with finance providers of all types working together to provide a coherent finance pathway for entrepreneurs.

Anthony Clarke, Chair of the British Business Angels Association:

“The year ahead should be one of increased integration of all the sources of finance for enterprise. We will continue to foster close ties with the British Private Equity and Venture Capital Association and will also, notably, be strengthening our links with the banks, working closely with the British Bankers’ Association and the Business Growth Fund. We wish to ensure that there is a connected market place for companies to access the right finance at the right stage to grow their business.”

Angela Knight, Chief Executive of the British Bankers’ Association:

“Raising awareness of the many and varied forms of help available to small businesses is crucial. We want to see British businesses flourishing and are firmly committed to working together with organisations representing finance providers to help create a coherent and interconnected finance market place for entrepreneurs. We especially recognise the vital part that angel investing plays in this market place and look forward to collaborating with the British Business Angels Association to increase awareness of this finance source.”

Stephen Welton, Chief Executive of the Business Growth Fund:

“Angel investors are critical to creating and sustaining a vibrant start-up and venture capital community in the UK. The angel community is growing, the funding is quick to raise and tax policy is encouraging it still further. We are demonstrating our commitment and support for British angels by becoming a significant sponsor of the BBAA. We look forward to working closely with them, and their network members over the forthcoming months.”

The challenges ahead

A focus of our work in 2012 will be encouraging more people to participate in business angel investment: we would like to see the numbers of UK angel investors double or even treble in order to significantly grow the start-up / early stage investment market. We will also strive to communicate to businesses how they can make the most of the ‘ladder’ of finance: increasing their awareness of how to access angel investment and alternative sources of finance.

More information

1. Find out more about Angel investing at the BBAA’s website: http://www.bbaa.org.uk/

2. An investment directory detailing angel networks, early stage venture capital and seed funds can be found here: http://www.bbaa.org.uk/member-directory

3. More information about the BBA can be found at: www.bba.org.uk

4. More information about the BGF can be found at: www.businessgrowthfund.co.uk