Record Funding Year for Angels Den
2013 was a record year for Angels Den, with deals closed worth £3.5 million.
In just 12 months, 36 businesses were funded, with an average deal size of £97,000. Angels Den also launched the world’s first integrated angel and crowdfunding platform in 2013 – so far two campaigns totaling £180,000 have been successfully funded.
Founder Bill Morrow says the impressive performance is the result of having 6,000 real angels on board, actively funding businesses in the Den combined with the expertise of 20 regional managers working with entrepreneurs to support their fundraising activities. “2013 was all about combining the success of our existing pitching events with our new crowdfunding platform,” said Morrow. “Now in 2014 we’re looking to help even more businesses get funded – all over the world.”
In 2013 110 companies pitched through Angels Den with one in three going on to be fully funded. On any one day, Morrow says he receives upwards of 100 new business plans from ambitious entrepreneurs looking for funding to launch or grow their businesses. “At Angels Den we’ve been successfully matching entrepreneurs and angel investors for six years and we’ve invested £16 million in that time. With the volume of entrepreneurs putting their ideas forwards and the enthusiasm of both our existing angel network and new backers from the crowd, 2014 will be even better.”
Angels Den runs monthly Speedfunding and Angel Club pitching events across the UK, Europe and Asia – from these events 90% of entrepreneurs got initial interest in their business from an angel, with an average of 3.4 angels interested at each event. It’s a unique model, made even more unusual by the addition of crowdfunding – equity, peer-to-peer lending and rewards-based crowdfunding.
Independent reports* have predicted alternative funding in the UK will top £1.6 billion next year, providing £840m worth of business finance for startups and SMEs in 2014 – and Morrow believes Angels Den is perfectly positioned to take advantage of the opportunity.
“Entrepreneurs are turning away from the banks and towards angel investors who can provide the cash and, more importantly, advice on how to spend it,” said Morrow. “This shows the decline of bank lending and the growth of alternative finance for SMEs.”