Business angels invest £2.8m in North West SMEs

Around £2.8m has been ploughed into 19 North West businesses over the last 12 months through the Business Growth Hub’s North West Business Angels (NWBA) programme, according to new figures.

The Business Growth Hub, which forms part of the Manchester Growth Company, an economic development organisation, uses the programme to find angel investors for the region’s promising SMEs.

Last year, the organisation helped 74 companies through the process of pitching to the NWBA, with 19 going on to secure investment.

Philip Hargreaves, the Business Growth Hub’s access to finance manager, said: “The success of the North West Business Angel network highlights the appetite for a variety of finance options from firms here in Greater Manchester and the wider North West.

“Our programme gives aspiring entrepreneurs the opportunity to pitch to investors, in addition to providing them with detailed business planning and financial modelling to prepare them for investment.”

He added: “An angel backer provides a company with a real opportunity to learn from an experienced businessperson, opening up new avenues and contacts, as well as securing the capital required to grow.”

North West property developer 10ACIA is one firm to receive backing from the NWBA in 2015. The firm, which operates across Cheshire, Greater Manchester and Lancashire, received a £500k boost that allowed it to deliver new projects.

The founder of 10ACIA, David Price, commented: “The NWBA and Business Growth Hub have played a pivotal role in pushing my business forward.

“They laid out a very simple path in front of us, allowing us to fund a number of projects simultaneously. [They have] already set the business up for a period of sustainable growth.”

The firm is now looking to secure further angel investment to allow it to sign on new contracts.

The NWBA network comprises more than 300 individuals seeking to invest in North West SMEs, providing between £10k and £500k to support business growth in the region.

Kieran Quinn, the Greater Manchester Combined Authority’s head of investment strategy and finance, said: “It’s great to see the growth of small to medium enterprises as a result of working alongside the business angels and I look forward to seeing many more success stories in the future.”