Research shows increase in angel investment in UK

Research from the British Business Bank and the UK Business Angels Association (UKBAA) has shown an increase in angel investment in the UK.

The study revealed more than 40 per cent of angels invested more in 2016 than in the previous year.

Growth

Angels reported that on average, 75 per cent of their portfolio has seen turnover growth, while 80 per cent were found to have undergone employment growth.

London and the South East were found to have seen some of the highest levels of angel investment activity last year, with these regions accounting for 47 per cent of deals.

The study also found that more than 85 per cent of angel investors used EIS or SEIS tax schemes for at least one of their investments last year.

The research comes after the Autumn Budget called for the British Business Bank to provide support to business angels outside of the capital. The bank will also be supporting £13 billion of long-term capital for smaller companies using £2.5 billion of extra resources.

Support

Commenting on the research and the support that the British Business Bank will be providing for business angels, British Business Bank Chief Executive Keith Morgan said that the study reveals that angel investment is up, but small businesses in Britain still suffer from an equity gap outside of London.

He added that they are planning to support business angels across Britain and ensure that smaller businesses can have access to the finance that they need to grow and succeed, wherever they are located in the country.