Member Article

North West receives multi-million pound boost with new co-investment angel service

Business Finance Solutions (BFS) and the British Business Bank is launching the co angel investment service in the North West.

The co angel investment service is aiming to mobilise £10 million of investment into North West businesses in each 12 month period of its operations.

The new service will bring together syndicates of business angels and co-investment from the Angel Co Fund British Business Bank to invest between £150k and £4 million in each of the successful businesses in the North West of England.

The British Business Bank can invest alongside the funds invested by angel investors, to allow syndicates to complete larger funding rounds and to follow their monies on subsequent rounds to a greater degree.

Unlike traditional angel networks, the co-investment angel service provides an active vehicle to create syndicates and complete deals.

Crucially it also works alongside investors and the businesses throughout and beyond the investment process.

By bringing more investors together the service enables angels to pool their skills and contacts and invest in a wider range of companies with a reduced risk factor.

Business Finance Solutions is a government-backed, community development finance institution and a service of The Manchester Growth Company.

Established in 2002 it has a strong history in providing technical support and alternative business finance across the North West to entrepreneurs who wish to start and grow their businesses.

As part of the government’s solutions for business services, BFS has a range of affordable business loans and services delivered on behalf of the department for business innovation and skills by a team of experienced lending professionals.

BFS offers finance from £500 with advice on availability of up to £5 million.

Director of BFS, Paul Breen said: “Greater Manchester is a thriving entrepreneurial base but the level of business angel activity and success here falls below expectation, with the South East currently scooping 74% of angel investment.

“Co angel investment is a completely new concept that creates better and lower risk opportunities for angels that supports businesses that are struggling to find funding.

“We want to build an early stage market with the capacity and impact to match that seen in the US and to capitalise on the unique match funding agreement from the British Business Bank.

“This is an incredible opportunity for investors and businesses alike.

“We know that business angel investment is on the rise as investors look for alternative sources of revenue but there is a finite number of people with the funds to invest significantly in growing companies.

“Co angel investment will make the business of investment simpler and more secure by matching hand picked groups of investors with businesses that are prepared and poised to make the very most of that funding.”

This was posted in Bdaily's Members' News section by Sophia Taha .