This report looks at angels’ investment approach and experience, what returns are being made and what factors affect successful investment.

Key findings:

• Business angel investing is risky, but overall appears to generate attractive outcomes.
• Better investment outcomes were linked to angels with industry and entrepreneurial experience and carrying out regular due diligence. 
• Tax incentives appear to have a material effect on encouraging business angel investing.
• The average investment size is £42,000 per investor and each on average acquired 8 per cent of the venture.

After entrepreneurs develop an opportunity, and use up their own resources, they often turn to business angel investors for early investment to keep the venture growing.

At this point in the development of new ventures the risk of failure is significant. Yet there are a growing number of investors known as 'business angels' willing to invest at this point.

We hope that with the lessons learned from this research we can enable the UK angel investment community to achieve its full potential impact in supporting the successful growth of early-stage businesses in our economy.

Author

Robert E Wiltbank