UK Angel
Investment is growing

UK Angel
Investment is growing

The Angel market in the UK is growing, according to the UK Business Angels Market report released earlier this month.
According to the survey, produced by the British Business Bank alongside the UK Business Angels Association (UKBAA), 41% of Angel investors increased their level of investment in 2016/17, with almost 70% of Angels investing in between one and five companies.
But despite an increase in investment value and volume, there remains a huge regional disparity and low levels of diversity when it comes to Angel investment.

“The findings of this report show extremely positive signs of continuing growth in the angel market, but many regions continue to show an under served level of Angel Investment. At the same time there remains an untapped pool of women Angel Investment.”

Jenny Tooth CEO at UKBAA

London and South East dominates

The majority of Angels are based in London and the South East (57%) with 43% of all Angel deals made in the same area.

Outside of London and the South East, the South West (6%) has the largest number of Angels, with the North West and the East of England (both 5%) following behind.

Outside of England, just 8% of Angels live in Scotland, with 4% in Wales and just 1% in Northern Ireland.

Matt Adey, Chief Economist at British Business Bank, said: “The UK Business Angels Market survey compounds what we already know, that the location of business Angels and the firms they invest in are centred in London (31% of investments) and the South East (22%).

“If we are serious about increasing regional access to finance and unlocking rapid growth for ambitious companies, then programmes such as the British Business Bank’s new initiative to support clusters of regional Angels take on even greater importance.”

Growing maturity among UK Angels

Despite regional disparities, there are some positive trends too within the Angel market, notably the fact that it’s maturing.

More than half of all Angels that answered the survey have more than five years’ experience as an Angel investor, while 40% held their investments for six years or more.

This growing maturity is reflected in the age range of Angels, with 75% aged 45 or over, and 21% aged over 65.

But things are improving at the other end of the age range too, with 16% aged 35 to 44 and 9% aged 18 to 34.

Read the full UK Business Angels Market report.

What does a typical UK Angel look like?