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94% of Companies Funded Through Leading Angel Platform are Successful and Still Trading

94% of Companies Funded Through Leading Angel Platform are Successful and Still Trading

Angels Den, a leading equity crowdfunding platform, has this week revealed that 94% of the businesses that raised funds through the site are still trading, despite the leading research stating that approximately 50% of all angel investments will fail. Technology start-ups and those operating in the food and drink sector emerged as the top performing industries in terms of successful start-ups, with London and the South-East the most likely locations for them.

A newly-released infographic designed and compiled by a leading crowdfunding platform and angel network has revealed that as many as 94% of the businesses that have raised funding through the site have gone on to achieve financial success and are still trading. This statistic has come to light despite a recent finding from NESTA that suggests around 56% of angel investments will fail to make any return on capital.

The team at www.AngelsDen.com wanted to showcase their accomplishments and experience in the crowdfunding field after seven years of helping to match business people and start-ups with entrepreneurs and angel investors who could add value through their expertise and knowledge. Deals funded through the company have ranged from £15,000 up to £1.7m, with ‘involvement’, ‘adding value’ and ‘to make money’ the three main reasons angels invest in a particular start-up or company.

Of the businesses funded through Angels Den that are still trading successfully, the top-performing sectors were revealed as follows:

• Technology- 31%

• Food and Drink- 17%

• Other- 15%

• Consumer Products- 11%

• Leisure and Travel- 8%

• Health and Education- 8%

• eCommerce – 6%

• Media and Entertainment- 4%

The regional breakdown of the successful deals through Angels Den is as follows:

• London- 31%

• South-East- 19%

• Scotland- 16%

• East of England- 12%

• North of England- 12%

• South West- 6%

• The Midlands- 4%

Bill Morrow, Founder of Angels Den, made the following comment about the information included within the infographic:

“Angels Den has been in the market for over 7 years now and our battle hardened team meet inexperienced business owners every day who ask us for “just for the cash” or have ridiculous valuations. They feel they don’t need investors who can add value or provide contacts or experience. We try to convince them of their folly but if they persist, we know enough, to send them away. In our experience, the cash is a small component of the deal and we are very proud to buck the trend of angel investing.

There are two big reasons for this;

1. We super-curate our deals (meeting 20 to get 1 ready to pitch) to put in front of our angels.

2. We place experienced business people into the company as angels, rather than people who are more concerned with their tax mitigation.

3. We provide free training and resources for our investors to help them invest wisely and add value.”

94% of Companies Funded Through Leading Angel Platform are Successful and Still Trading

By Angels Den26 Nov 2014