With the vast majority of equity investment concentrated towards London and the South East, an acute dearth of funding poses a significant threat to the progression of start-ups and scale-ups across the UK's regions. Ahead of tomorrow's launch of their new Angel Investment Hub in Bristol, I wanted to present the UKBAA's new report on the regional funding disparity affecting the South West area.
The nationally representative data - of 2004 national respondents - analyses the sentiment of investors based in the South West towards regional SMEs and entrepreneurs. The report reveals an overwhelming desire among investors to invest into their local entrepreneurs, but a frustration that the available infrastructure consistently channels the funding to London instead. With 23% of Bristol-based investors actively looking to put funds into in their local area, but finding their advisors instead prioritising London-based SMEs, there is a clear need to boost the availability of advice and investment infrastructure across the South West. As the UKBAA launches Bristol’s first Angel Investment Hub, which will enable regional investors to connect with, and invest in, their local entrepreneurs, please find the full headline results below:
- 20% of South West-based investors would like to invest in regional but are unable to due to lack of accessibility to available options
- 27% of South West-based investors believe there is significant entrepreneurial talent in their region, but that it is neglected compared to London
- One in ten investors based in the South West find that the financial advice they receive prioritises London opportunities over those in other regions.
- 24% of Bristol based investors want to invest in their local area but suffer from a lack of access to regional opportunities
- 23% of South West-based investors also say that they receive London focused advice, prioritising SMEs in the capital over entrepreneurs in their own backyard
- 27% of South West-based investors believe that there is significant entrepreneurial talent in their home region, but that it remains neglected in the way of investment and growth infrastructure—compared to London SMEs
- 23% of investors in the South West would actively like to invest in that local talent, but find that a lack of education on how to go about it hampers their ability.
Jenny Tooth, CEO of the UKBAA, said of the data:
“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. This week we have announced the opening of a new hub in Birmingham, and tomorrow we will be formally launching a new Angel Hub in the heart of Bristol 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.”
About the UKBAA 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. The UKBAA’s members include angel networks, syndicates, individual investors, early-stage VCs, equity crowdfunding platforms, accelerators, professional advisers and intermediaries. UKBAA acts as the voice of the angel investment community and strives to build and connect the angel investment ecosystem so as to ensure a coherent landscape for financing high-potential entrepreneurs.