Nearly two thirds (63 percent) of Business Angel investments are made in London and the South East, according to The British Business Bank’s ‘UK Business Angels’ report, which is produced with the UK Business Angels Association (UKBAA).
The research, which included a national study, also found that 10 million Brits stated that they cannot be an angel investor because they do not live in London and that 26 million people do not know any angel investors in their network who would be able to support them in becoming angel investors themselves
A further 22 million Brits do not believe that they have the credentials to become an angel investor, despite 41 percent of these possessing over £250,000 in investable assets
Gender is also seen as a barrier, with 10 million women believing that due to their gender, it would be difficult to be an angel investor, while 37 percent of 18 to 34-year-old respondents stated that it is easier for a man to become an angel investor than a woman. Additionally, nearly half (48 percent) of women said that they did not have the confidence to become an angel investor.
Six million ethnic minority Brits feel that they do not ‘fit into the profile’ of an angel investor, of which 45 percent of respondents had up to £250,000 in investable assets. While 23 percent of 18-34 year-olds who formed part of an ethnic minority did not feel they ‘fitted into the profile’ of an angel investor.
In addition, 6.5 million ethnic minority Brits have expressed that they do not feel confident enough to become an angel investor, while 42 percent with over £250,000 in investable assets do not believe they have enough disposable income to personally invest in UK SMEs.
Jenny Tooth, chief executive UKBAA commented: “Our recent research in collaboration with the British Business Bank showed that there was a strong lack of individuals engaged in angel investing in many regions across the UK. As the trade body for angel investing across the UK, we want to help many more people to use their spare financial capacity and business experience to become angel investors. We have brought together the insights and expertise of a diverse group of 22 experienced angels from across the UK, combined with latest technical details on the angel process, delivered through an easy to use online learning experience.”
The UKBAA is the national trade association for angel and early-stage investment, representing over 200-member organisations and around 18,000 investors.