Member Article

Angel investors increase in North West

The number of secret investors in the North West is on the rise, with individuals increasingly turn to angel investor networks to find investment opportunities.

The North West Business Angels (NWBA) network saw a 200% increase in the number of investors who joined this year, from 60 in June 2012 to 120 in June 2013.

Several factors have been cited to explain this jump, including the poor returns available to investors through traditional routes, generous tax reliefs granted to angel investors, and the diversity of businesses who are seeking investment.

NWBA is part of the Business Growth Hub, which is a community for businesses of all sizes across Greater Manchester and the North West.

The network has raised over £22m for over 250 companies since its inception in 1993, with angels investing between £20,000 and £500,000.

NWBA manager, Steven Wall, commented: “This quite remarkable rise in new angels coming forward to invest in growing businesses is fantastic news for the Northwest.

“Investors today just aren’t able to get a decent return on their money via the more conventional savings routes so many are looking to invest in businesses who just need that extra revenue injection to really help them to expand.

“The concept of being an angel has also become a more widely recognised one recently, with programmes like Dragon’s Den and The Apprentice drawing in huge audiences.

“A few years ago, the tech boom meant that we had a lot of IT businesses but that’s not for everyone and our new selection processes means that we now have a far more diverse range of really exciting companies to present to the angels.”

One such angel from Greater Manchester anonymously commented: “When I retired I didn’t want to just disappear from the world of business altogether.

“Being a business angel gives me the opportunity to help another local business to grow and create jobs for the future and to make a far better return on my money than I can get from most investments.

“The range of businesses I’m seeing coming forward for angel investment in 2013 is wider than it has ever been, as companies increasingly look beyond the bank for finance.”

This was posted in Bdaily's Members' News section by Miranda Dobson .