As featured in
The Sunday Telegraph
According to a recent survey conducted by Venture Giants, an online matching service that connects investors with entrepreneurs seeking to raise business funding, over 72 per cent of its network of private high net-worth individuals, UK-based millionaires and investors from the Sunday Times Richlist believed there was still significant ‘potential for profit’ by investing in UK start-ups over traditional investments such as stocks and property. This is a sentiment shared amongst business angels and investment groups.
Business angel investors are private high-net worth individuals that choose to invest their own money and experience into unquoted businesses (£25,000 to £500,000), with the aim of achieving significant financial return from a potential exit via a trade sale of the business.
According to Barclays Wealth there are now 619,000 millionaires currently residing in the UK and, according to some estimations, only 5 per cent of these millionaires would class themselves as full-time business angel investors.
Investing in the UK has never been so popular. Many people sitting on extra cash are now looking to invest in seed and early-stage investments as a result of low saving rates in banks, diversification from traditional ‘safe’ investments and the recent surrounding huge buy-outs and pay days for early investors in many start-up companies. The average investor return into start-ups and established businesses has been an impressive 2.6 times the initial investment, according to a study conducted by the Ewing Marion Kauffman Foundation – which is an internal return rate of 27 per cent, similar to the average investor return rate seen by venture capitalists.
Venture Giants is a well-established online platform that enables potential investors to browse investment opportunities from some of the brightest and most talented entrepreneurs in the UK, looking to raise investment capital to help them start or take their business to the next level.
Increase in applications
Given the current tightening of the credit markets for SMEs, it’s perhaps no surprise that Venture Giants has seen an increase in over 67 per cent of investment proposals over the past year from businesses seeking equity finance.
Venture Giants has received more than 25,000 entrepreneur registrations, featured over 1,500 investment deals and received 2,500 investor applications to use its service. It has funded more than £1m of deals, including finding funding for www.London.com; a tech project set to become a heritage internet property for the tourism sector in the UK.
Rishi Anand, managing director of Venture Giants said: “Investment capital may seem vitally important to an entrepreneur, but an investor’s experience, contacts and mentoring can make all the difference to a start-up’s success or failure.”
Registration on Venture Giants is currently free of charge for high net-worth individuals and anyone looking to invest in start-ups is advised to browse the opportunities listed on Venture Giants.
Article Source: Business Reporter