A NATION OF ANGELS Assessing the impact of angel investing across the UK January 2015 A Nation of Angels Assessing the impact of angel investing across the UK Mike Wright Enterprise Research Centre
[email protected] Mark Hart Enterprise Research Centre
[email protected] Kun Fu Enterprise Research Centre
[email protected] Acknowledgements: The study has been conducted by the Enterprise Research Centre. The study is supported by financial contributions from Barclays, Deloitte and the BVCA and has been conducted in partnership with the UK Business Angels Association and the Centre for Entrepreneurs. Contents About Us 4 Foreword 5 Executive Summary 6 UKBAA Response to Research Findings 7 1. Introduction 8 2. Angel Background and Investing Activity 10 2.1 Who are the UK’s Angels? 10 2.2 Experience and Scale of Angel Activity 12 2.3 Where do Angels Invest in the UK? 15 2.4 What Type of Activities do Angels Invest in? 16 2.5 What use do Angels make of EIS/SEIS Tax Relief? 17 2.6 How far do Angels Co-Invest with other Sources of Finance? 18 3. Impact of Angel Investments 21 3.1 Positive Exit 21 3.2 Angels’ Perspective on their Portfolio Growth 22 3.3 Returns on Investments 25 3.4 Angel Experience and Expected Returns 29 3.5 Regional Differences in Performance of Investments 31 3.6 Investment in Social Impact Businesses 33 4. Summary and Conclusions 35 4.1 Introduction 35 4.2 Summary of Findings 35 4.3 Conclusions 36 Appendix 37 A Nation of Angels / 3 About Us The UK Business Angels Association The UK Business Angels Association (UKBAA) is the national trade association representing angel and early stage investment in the UK.