Angel Investing: The New Asset Class – Reflections from xénos and UKBAA event

Author

Development Bank of Wales

31 January 2014

Angel investment is an important asset class and now more main stream than ever. It has the potential to play an even greater part in financing new businesses in future, which was highlighted at the event – ‘Angel investment – the new asset class’recently by key figures from xénos, the UK Business Angels’ Association as well as the Angel CoFund, Business Growth Fund, British Bankers’ Association, AIM and HMRC.

xénos Manager, David Maas reflects on some of the recent developments in angel investing covered at the event which was hosted by xénos and the UK Business Angels’ Association.

The Seed Enterprise Investment Scheme (SEIS)

The introduction of the Seed Enterprise Investment Scheme (SEIS) in 2012 sharpened the focus on angel investing as a potentially class-leading option for both private investors (business angels) and businesses seeking investment.

SEIS offers tax relief to angel investors investing in early stage companies and according to UK Government figures published on 7th November, more than 1,100 companies have already raised £82 million in investment. (Source: HMRC).

Angel Co-Fund

Increased to £100 million in 2013 and opened up to Welsh businesses and investors, the CoFund can co-invest with syndicates of three or more angel investors.

Around £13 million has already been invested alongside some £50 million of angel investment since the CoFund’s 2011 launch.

Regional Growth Fund

Aside from its role as a provider of follow-on funds, the Regional Growth Fund now offers angel investors an alternative exit option as it can now buy out angel investors from existing investments.

It has invested £180 million in 36 companies to date.

AIM

Exits are an essential consideration for angel investors and the Alternative Investments Market (AIM) can provide an effective exit route for early stage businesses.

Dragon Seed Advantage SEIS Fund

Seed Mentors’ innovative new Dragon Seed Advantage SEIS Fund has secured £250,000 to achieve its first close.

Seed Mentors will work with xénos, the Wales Business Angel Network to identify some of the best deals on offer in Wales.

UK Business Angels Association

The UKBAA has introduced a new deal sharing platform that its members, which include xénos,can use to introduce deals to a new angel investors throughout the UK.

Conference speakers

Speakers at the conference include: Angel CoFund Investment Director, Tim Mills; Paul Oldham of the Business Growth Fund; the London Stock Exchange’s Lucy Tarleton as well as Welsh business angel and Angel Investor of the Year, 2012 – 13, Peter Saunders OBE.

contact xénos:  http://www.xenos.co.uk/contact_us.aspx

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