In the UK start-up world, there’s some good news. Good news that will also eventually have a positive impact on the UK economy. The phenomenon of angel investing is growing and that means that a larger number of start-ups get the chance to survive the first few particularly difficult years.
Receiving an angel investment can be the one thing saving a start-up. Even though the last couple of years has been hard for many start-ups, statistics show that angel investing is becoming a more common phenomenon in Wales. The last couple of years has, despite the pandemic, actually meant an increase in the number of start-ups and development of the start-up scene in the UK.
What is an angel investor?
An angel investor is a private individual that invests in start-ups or provides other financial help to entrepreneurs and small businesses. Usually, an angel investor is someone close to the people behind the project, but not always. Often an angel investment is the primary funding from which a start-up is built. Angel investors play a huge part in fostering innovation, a growing entrepreneurial environment, and societal financial growth. You can read much more on angel investors here.
Funding a start-up
That angel investing is a growing phenomenon is the good news for start-ups. One of the particularly interesting industries is the tech industry which comes as no surprise. Getting an angel investment early on can be a break it or break it event for a start-up. Many start-ups struggle with funding in the very early stages, and the needed helping hand is of course the reason for the term angel investor. Most angel investors take a chance on a start-up because they believe in them. They usually get an ownership equity percentage in return.
If you have a start-up or thinking about starting your own business, you should remember the possibility of angel investment. Before you go looking for funding, you need to create the best terms for yourself. This includes creating a transparent brand with a good name and a clear vision. This is one of the important things that’s going to make investors interested in your business. To get started finding a good name for your business, you can use the business name generator on https://biznamewiz.com/.
The future of the start-up scene
If the development that we’ve seen in the last couple of years continues, it could have a massive positive impact on the start-up scene. And the conditions of entrepreneurship have an impact on the innovative prosperity of society and economics. That means that a continuous increase in angel investment could have a positive impact on all of society.
Most angel investments are quite risky for the investor, and the appeal of risky investments seems to be a general tendency at the moment. More and more investors are spicing up their portfolios with risky but potentially profitable investments. It will be interesting to see whether this trend will continue in the coming years.