News

July 05, 2013

SME angel fund spreads its wings

Business minister Michael Fallon has announced the extension of the Angel CoFund scheme – which invests £100,000 to £1 million in small and medium-sized businesses with high growth potential.

The fund is widening its activities to meet the increasing demand from UK companies for long-term equity support. It will benefit from an additional investment of £50 million announced in the 2013 Budget as part of the government's Business Bank programme.

A joint initiative between government and the private sector, the Angel Co-Fund provides support to ambitious entrepreneurs and promising businesses via syndicates of experienced business angels.

Until now, the fund has been administered through the Regional Growth Fund and, as a result, it has only been available in some parts of the UK. Now, thanks to the extension, firms throughout the UK will be eligible for support.

Business and enterprise minister, Michael Fallon, said: "The government is determined to encourage investment in enterprise and unlock access to the capital firms need to grow. Thanks to their hard-won experience in business, business angels can be savvier than banks at spotting winners. By reinforcing their commitment with government support, the CoFund will support the most promising and entrepreneurial businesses, giving growth and jobs a kick-start."

George Whitehead, non-executive chairman of the Angel CoFund, said: "The Angel CoFund works towards simple and sensible principles: we want to support and improve angel investing in the UK; and we want to get cash to good companies that can use the money to really scale their businesses. We are the most active fund in the country and the largest of its type in the world, and we are delighted to be able to support entrepreneurs across the UK in this way."

Since its launch in November 2011, the fund has supported 27 companies, providing £10 million in direct investment alongside £40 million from business angels. Small businesses supported by the Angel CoFund include YPlan, PlayJam and Micrima.