According to Investopedia angel investor is an individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. The funds that angel investors provide may be a one-time investment to help the business get off the ground or an ongoing injection to support and carry the company through its difficult early stages. These stats below show how the angel investment has benefitted small businesses in recent times:
So what does the Angel Investment landscape look like at the moment? Well…
- 57 per cent of business angels made an investment between April and July 2020
- 46 per cent of business angels plan to build their portfolio in the current financial year
- 72 per cent of angel investors are confident about the future growth in value of their portfolio
In the largest study it has ever conducted, the Angel Investment Network surveyed the views of 645 UK startups 18 months after the pandemic first hit to find out how confident they felt. Despite 59 per cent seeing growth negatively impacted, nearly three quarters (72 per cent) are now optimistic about the next 12 months, with 42 per cent very optimistic. This is a huge, positive shift from 23 per cent when a similar survey was conducted at the start of the pandemic.
A prime example of Angel Investment in action is the BBC show, Dragon’s Den, which first came onto our screens in 2005 and is still popular 16 years later. Thousands of UK entrepreneurs regularly attempt to raise capital by pitching their companies, products and ideas to so-called angel investors.
Some of the most successful products to have grown through the Dragons’ investment are ‘Skinny Tan’ false tan currently worth £5 million, and Levi Roots table sauces worth over $45 million.
But Angels (or Dragons in this case) don’t always make great decisions – Tangle Teezer and Trunki were both laughed out of the presentation room and have gone on to be worth £65 million and £9.5 million respectively. So when you’re looking for Angel Investment, always make sure you present a compelling argument and have a tried and tested product (the handle of Trunki snapped during the presentation, demonstrating a huge safety issue on a product made for children).
If you’re wondering how Angel Investment can help your business, you need to decide which working capital you need. From working capital to paying staff salaries, we can help you to get that cash injection for your business.
Nudl has its own money that we love to invest in great projects, as we want to help grow and develop successful businesses. Creating jobs in the local area is not only a huge benefit for the business but for also for the local economy, and we want both to succeed!
Don’t just sit there and get your Nudl in a twist, upgrade your business today by picking up the phone and dialling 033 344 8428 or drop a line to info@nudl.co.uk
