We use necessary cookies to make our site work. We'd also like to set optional analytics cookies to help us improve it. Clicking continue will proceed with all cookies and remember your preferences for future visits.
Accept and continue to site
Configure your cookie options

Our use of cookies

We use necessary cookies to make our site work. We'd also like to set optional analytics cookies to help us improve it. These optional cookies can be turned on and off below. Using this tool will set a cookie on your device to remember your preferences.

For more detailed information about the cookies we use, see our Privacy & Cookies Policy.

Necessary cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytics Cookies

We'd like to set Analytics cookies to help us to improve our website by collecting and reporting information on how you use it. The cookies collect information in a way that does not directly identify anyone. For more information on how these cookies work, please see our Privacy & Cookies Policy.

Save & Close

Jenny Tooth, CEO of UK Business Angels Association, discusses what angel investment is and why it's useful for start-up enterprises. 

Angel investment is one of the most significant sources of equity for seed and early stage businesses with around £1bn being invested each year compared to £3.2m annually being invested by early stage venture capital funds.

Most importantly, angels bring both business experience and skills alongside their investment to add value to the business. Angels are looking to take equity (shares) in the business in return for providing the finance, but unlike venture capital they are not seeking to control or take over the business.

Generally, they would always remain a minority shareholder taking not more than about 30% shareholding in early rounds, since they are keen to ensure the business owner is incentivized to grow the business.

Angel investment is also “patient money” since angels do not seek to force a quick exit and will stay in the business for anything between 5 and 8 years to support the growth of the business, often providing further rounds of finance as the business capital requirements change.

The angel investing market is very diverse and angel investors can be operating as individuals, networks and groups, also working with accelerators and incubators, or investing alongside each other in “syndicates”.

UKBAA operates a free online searchable directory listing investor members by region and amount of finance.  Each group has specific investment criteria and you need to approach them directly. You can also download tools and templates on the site to support the investment process.

Further information can be found at: www.ukbusinessangelsassociation.org.uk


About Emma Catlow

This is some info about Emma Catlow.

TrustPilotShare Resource

Related Resources