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Ambitious economic body plan launched
AN ALLIANCE of organisations has set out its plans for a North East Economic Partnership (NEEP)
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Investment Readiness Workshops. Future Events...
What you need to know before facing the investors to help you attract the investment you need for real growth.
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14 - 15/09/10 What you need to know before facing the investors to help you attract the investment you need for real growth.
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26 February 2010Business Angels Make SMEs Fly
Business angel investing is the most significant source of equity for early stage businesses in the UK, with between £800m and £1bn being invested in SMEs on an annual basis. Recent NESTA research found that business angels have become more significant as a source of early-stage investment since 2000, increasing from 16 per cent of all early-stage deals with private involvement in 2000to 41 per cent in 2007. Start-ups have been turning to angels where previously they relied on their own or family funds. Although there is no comprehensive survey of business angel activity available in the UK, in 2000 there were estimated to be between 4,000 and 6,000 business angels, investing up to £1 billion annually.
Entrust Chairman, David Bowles gives his view on this important source of finance:
“In the challenging economic climate that we currently find ourselves in it is imperative that business angels continue investing and we attract more, as they are vital to nurturing the innovating businesses of tomorrow and in maintaining the future competitiveness of the North East economy.
Recent research, conducted by NESTA and the British Business Angel Association (BBAA), has shown that whilst angel investing carries risk, investments in SMEs can bring attractive returns, demonstrating its value as a key asset class for any investor.
Microsoft, Body Shop, Google and Innocent Drinks were all started with help from business angels. Angels bring “smart money”, offering not only finance, but important skills and experience to build small businesses. This mentor capitalism enhances profitability as well as funding growth.
It is often thought that you have to be very wealthy to be an Angel Investor, but in fact many individuals invest from around £10,000 in any one company, however obviously some Angels invest much more.
There isn’t just the financial investment and reward that makes business angel investing attractive; Business Angels often make their own skills, experience and contacts available to the company and this can be very rewarding in itself. We know there are many people out there with both wealth and industry knowledge to become effective angel investors.
I am excited by the launch of the North East Angel Co-investment Fund and the added stimulus this will bring to angel activity in this region.
At Entrust we are delighted that Anthony Clarke, Chairman of the British Business Angels Association is coming to the North East to raise the awareness of business angel investing.”
A regional event to highlight angel investing is being held on Thursday 4th March 2010. For further information contact Sarah Thorpe on 0191 244 4000.