The British Business Investments has launched a new £100m Regional Angels Programme this month. The programme is designed to help bring more balanced regional access to early stage equity finance for smaller businesses across the UK. Finance opportunities like this can play an important role in funding businesses with growth ambitions. The programme aims to address this issue by increasing the availability, supply and awareness of angel and other early-stage equity investments across the country, particularly in areas where these might be harder to come by. Through committing funds for investment alongside business angels and other early stage equity investors, the new Regional Angels Programme will act as a catalyst to bring longer-term capital to smaller businesses.
Earlier this year British Business Bank in partnership with the UK Business Angels Association published research that shows 57% of business angels are based in London and the South East, with 35% in London and 22% in the South East. Furthermore, nearly a third of business angels’ investments are made in London (31%), followed by the South East (12%). In England, the South West has the largest number of business angels outside of London and the South East (6%), followed by the North West (5%) and the East of England (5%). In the devolved nations, 8% of UK business angels are based in Scotland, 4% in Wales and just 1% in Northern Ireland.
Catherine Lewis La Torre, CEO, British Business Investments, said: “British Business Bank research shows that the UK’s high-growth smaller businesses suffer from regional imbalances in the supply of early stage finance. The new Regional Angels Programme will deploy £100m of new funding to help redress the balance. This programme will ensure that more ambitious smaller businesses can access the early stage equity finance they need to grow and succeed, wherever they are in the UK.”
Following last year’s Patient Capital Review, a series of measures were put in place, the Regional Angel Programme being one of them. These measures, focus on increasing the volume, diversity and accessibility of longer-term finance so that smaller businesses can access the finance they need to achieve the growth they desire. They are expected to generate up to £13bn of new funding. The programme was originally announced as part of the government’s modern Industrial Strategy in November 2017. Like all British Business Investments programmes, the new programme expects to generate a market rate of return on its investments.
Kathleen McLeay, CEO of NCM Fund Services said: “NCM are delighted to note the launch of a new £100m Regional Angels Programme by British Business Investments. We see a huge amount of money being invested in and around the South East and so the programme which is designed to help bring more balanced regional access to early stage equity finance for smaller businesses across the UK is a welcome addition to the UK's thriving private equity environment. NCM already work with a number of angel entities such as the Angel Co-Fund and would be delighted to speak with any entities looking to tender for funding to assist with the administration of their new vehicle.”
Jenny Tooth, CEO of the UK Business Angels Association, said: “As the trade body for angel and early stage investing, we are delighted to be working with British Business Investments to support the launch of this new £100m funding initiative, introduced following the Patient Capital Review. This new commercially-focused funding stream will bring a real boost to the finance ecosystem in the regions where angel capacity is currently uneven. This additional investment capital offers the opportunity to stimulate vital new sources of angel capital to back entrepreneurs with growth potential, many of whom currently have to seek the angel investment they need in London and the Southeast.”
The Request for Proposals (RfP) for the programme has been published on the British Business Investments website at www.bbinv.co.uk/regional-angels-programme