Victoria Square in Birmingham
Investors in the Midlands would rather invest locally than be pushed towards London according to a new report by the UK Business Angel Association (UKBAA).
With the vast majority of equity investment concentrated towards London and the South East, an acute lack of funding poses a significant threat to the progression of start-ups and scale-ups across the regions, but especially in and around the UK’s second city.
The nationally representative data of 2004 respondents
The report reveals an overwhelming desire among investors to invest in their local entrepreneurs, but a frustration that the available infrastructure consistently channels the funding to London instead.
18% of Birmingham-based investors are actively looking to invest in their local area, but find their advisors prioritizing London-based SMEs instead, showing there is a clear need to boost the availability of advice and investment infrastructure across the Midlands Engine area.
The UKBAA is a not-for-profit organization that represents the views and interests of the national angel investment community.
The UKBAA will be holding the Midlands Investment Summit on the 20th March, which will enable regional investors to connect with, and invest in, their local entrepreneurs.
Jenny Tooth, CEO of the UKBAA, said of the report: “There is a lack of infrastructure which means that neither angels or entrepreneurs are visible to each other.
“The presence of funds is not enough as you have to create an environment where entrepreneurs are investment ready.
“Alongside our landmark investment summit on the 20th March, the UKBAA will also be announcing the opening of an Angel Hub in Birmingham to provide a focal point for angel investors of all levels to connect with each other.
“It will also provide an opportunity to see some of the innovative and creative local businesses, who will have an opportunity to pitch to the angels.
“We will continue to help entrepreneurs to be investment-ready, how to pitch and present effectively.”
The report also found that:
The UK Business Angels Association (UKBAA) is the national trade association for angel and early-stage investment, representing over 160-member organisations and around 18,000 investors.
Business angels in the UK collectively invest an estimated £1.5 billion per annum and are therefore the UK’s largest source of investment for startups and early-stage businesses seeking to grow.
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