The findings, by the Enterprise Research Centre (ERC) at Aston Business School and commissioned by the UK Business Angels Association (UKBAA), highlight the number of women ‘angels’ is rising – 14 per cent up from seven per cent in earlier research. The report also reveals that business angels are younger with 16 per cent of investors now under 35 years old.
The UK Business Angels Association is the national trade association representing angel and early stage investment in the UK. (England, Wales and Northern Ireland). Each year private investors account for between £800 million and £1 billion of early stage investment in the UK – the single largest source of early stage capital in this country.
The report finds that;
• Women now represent one in seven angel investors, double the rate observed in 2008.
• Three quarters of angels are aged under 55, with 44% under 45 and 16% under 35 years. In London and the South East the shift is more pronounced, with 46% of angels aged under 45 compared with 37% across the rest of the UK.
• 25% of angels are invested in ventures connected with social impact.
• 79% of angels are re-investing their gains in small businesses.
• 58% of business angels are investing outside their home region and 22% outside UK. No longer just about investing ‘close to home’.
The results of the study demonstrate the important role that ‘angel investing’ is playing in the economy in bringing risk capital and business experience and skills to support the growth of small businesses, but also through creating social impact through their investments.
The report was conducted by Prof Mark Hart, Deputy Director, ERC, Aston Business School, Prof Mike Wright, ERC, Imperial Business School and Dr Kun Fu, ERC , Imperial Business School.
Read the full report here.
Notes to editors
Nation of Angels: The unsung heroes of Britain’s economy’ is the largest ever study of the investment behaviour and impact of UK business angels. Commissioned by UKBAA and CFE and carried out by the Enterprise Research Centre, the study was sponsored by Barclays, Deloitte and BVCA. 403 angel investors shared portfolio information through an online survey, 28 syndicate and network leads representing 8,000 angels completed an online survey and 43 angels discussed their investment behaviour through telephone interviews.
The Enterprise Research Centre was commissioned by the UKBAA in association with the Centre for Entrepreneurs (CfE) and with the support of the BVCA, Deloitte, Barclays and the ESRC, to produce the Research Study Report.
About the Enterprise Research Centre
The Enterprise Research Centre (ERC) was established in 2013 to answer one central question, ‘What drives SME growth?’ Its mission is to become the focal point internationally for research, knowledge and expertise on SME growth and entrepreneurship. ERC develops and brings the evidence base on SMEs and enterprise together, and works with policy makers and practitioners to ensure research shapes better policies and practices which can help SMEs to grow. The centre is a collaboration between five University Business Schools: Warwick, Aston, Birmingham, Strathclyde and Imperial College and currently receives funding from the Economic & Social Research Council, the British Bankers Association, the Dept. for Business, Innovation & Skills and Innovate UK.