roundtable
Henley Business Angels hosted this discussion at Henley Business School’s Greenlands Campus on the River Thames – a roundtable providing the insights of proven business professionals, all ‘angels’ quite literally providing a wealth of knowledge, awareness, experience and importantly commercial success
Early-stage business financing by ‘angels’
Participants
Tim Carswell: Member, Cambridge Capital Group (CCG)
Tony Harris: Member, Henley Business Angel (HBA), CCG and Oxford Capital Partners (OCP)
Peter Hopkinson: HBA member James Malone: HBA member Frank Rodriguez: HBA member
Dan Wagner: Chairman, Bright Station Ventures
The Roundtable team Journalist John Burbedge reports the highlights
What aspects underpin and define angel investment – where has it come from, how has it changed and particularly what impact can and does it have on start-ups, scale-ups and growing businesses? – this Roundtable was asked.
Are we seeing more ‘angels’ nowadays?
Most definitely, stated Jurek Sikorski. “Angel investing has grown substantially over the years. The UK Business Angels Association (UKBAA) estimates there are about 20,000 UK business angels investing in total at least £1.5 billion, higher than the combined total for venture capital.
“The changes are quite significant with more women coming into angel investing – but still low at under 15%; UKBAA aims to boost that to 30%. Angels are also making more investments – the 2009 Nation of Angels Report median was 2.5 investments; by 2015 the median was five.
Angels are increasingly investing alongside other funding vehicles such as equity or
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crowdfunding, and the latest sentiment is that more angels now expect successful outcomes and a higher rate of return from their investments (ROI). It’s estimated the internal rate of return has increased to 22%.
“And, angels are increasingly investing in businesses making demonstrable social impacts, changing and contributing to communities and society, according to Meganne Houghton-Berry the UKBAA’s 2017 ‘Angel Investor of the Year’.”
What makes angel investing attractive?
Tony Harris summed it up: • “It helps mitigate my tax liabilities.” • The thrill and rewards of exiting well.
• “Watching a company succeed and provide more employment because of your capital investment, particularly when banks or other funders wouldn’t help them.”
Fellow Roundtablers agreed.
Frank Rodriguez: “My drivers are to see something flourishing and doing well, having empathy with the business, feeling that you have added value to a company and helped it succeed – as well as exiting well from it, which is a given.”
James Malone: “Every investment I’ve made has generally had some hook. It may have been financial, such as big returns I don’t want to miss out on. Or, helping out individuals with great potential whom I like, want to mentor, and see achieve their ambitions. Or, technologies that I think are simply fantastic and should be supported.”
Peter Hopkinson: “For me it’s important that it is fun, and I’m interested in the business.”
The strategies, rules and business angles of angels
There has to be a tax benefit, stated several Roundtablers.
Harris added: ‘I tend to invest in things I know, so the number of turkeys I’ve had has been relatively small compared with successes.”
THE BUSINESS MAGAZINE – MAY/JUNE 2018
Jurek Sikorski: Executive director for Henley Centre for Entrepreneurship and Henley Business Angels chairperson, led the discussion
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