An angel is an individual, especially angel investors in uk investing in high-growth companies.
who’s usually but not always a high-net-worth individual.
As opposed to VC funds, where financial backing comes from large institutional or corporate investors.
angel investing is more personal, especially in the UK.
Unlike most venture capitalists, a significant number of angels have made their money through exiting their own startups with us.
Also, this acts as an invaluable source of experience and support for early-stage companies.
Angel networks in the UK are investment groups of these angel investors.
who share introductions to early-stage businesses and investment opportunities.
They often syndicate their funds into a single pot to make joint investments.
Which deal do angel investor networks in the UK typically invest in?
Between 2011 and 2013, we have recorded 1, 577 equity fundraising involving angel networks in the UK.
Altogether, these rounds have raised £1.67b. Of the 1,029.
companies that have received investment from the UK angel networks in this time.
Also, 77 have since exited the private market, either through an IPO or an acquisition.
In addition, 45% of businesses were at the seed stage at the time of investment.
while a slightly higher proportion (47%) were categorized as venture stage companies.
Meanwhile, 7% were at the growth stage, and just 1% were established, reflecting a strong preference by angel networks.
for investing in earlier-stage businesses with high growth potential.
Most of the UK’s highly active angel networks have roots in either London.
or Edinburgh, but there are several other hubs across the UK.
Also includes Glasgow, Cambridge, and Oxford.
Whilst many of these groups consider opportunities from all over the country.
most prefer to focus their funding on their local areas.
Around 42% of the companies that received angel network investment since 2011 in the UK
have been in the technology or IP-based business sector.
Angel groups invest across a wide range of industries in the UK
However, and several of the networks listed in this article specialise in niches like social impact investments.
Effect of covid-19 on angel investors in uk
Despite quite a lot of variation between quarters each year,
the number of equity deals involving angel networks has increased fairly steadily since 2011.
2019 was a particularly strong year for angel group investing.
with the number of announced or disclosed deals reaching its highest point ever (228).
The value of these deals has also risen over time, although it plateaued between 2016 and 2018.
2019 saw a dramatic increase in deal size, however, growing to nearly £423m—more than double that of the previous year.
Angel network investing in the UK seems to dropped significantly in 2020.
likely due to the pandemic and subsequent economic uncertainty affecting investment decisions.
The value of fundraisings fell to around £40m in both years, far lower than any of the previous year’s quarters.
The 3rd year saw a slight increase to £53.4m, but the number of deals remained at its lowest since 2012.
The UK’S most active angel investor network
We’ve drawn up a list of few of the most active UK business angel investment networks .
Edinburgh-based Equity Gap is an angel network which invests in high-growth companies across the UK but primarily in Scotland.
The network typically invests between £100k and £500k, in a broad range of industries.
and verticals, excluding property or traditional retail.
. It has participated in more than 100 funding rounds in the UK.
Equity Gap provides support for its portfolio companies throughout the investment cycle.
including pitch coaching, mentoring, board-level input, and exit planning.
The Cambridge Angels network invests throughout the UK but gives primary consideration to opportunities in the Cambridge area.
To date, the group has invested in more than 70 startup and scaleup companies.
The group has participated in 104 funding rounds (totaling £248m) with an average deal of £2.46m.
Cambridge Angels pride itself on the fact that around three-quarters of its members are excited, entrepreneurs.
giving them “real-world experience of building and scaling businesses”.
Want to find angel networks for co-investment?
Jason Morgan investment company helps you find the most appropriate funds to co-invest with.
Contact us anytime we are available.
Satisfying customers is our priority. We work 24\7 to ensure that we get in touch with every customer anytime.