Investment misallocation: Current SME trends
With the heightened publicity enjoyed by companies in the Tech City cluster, you would be forgiven for thinking that only London-based, early-stage technology and digital businesses are securing angel investment, says Roxburgh Milkins’ Charles van der Lande.
Although this is a misconception, there does appear to be a notable early-stage, regional and sector bias in UK business angel investment.
In fact, of the investments analysed in a recent report by Deloitte and the UK Business Angels Association, called ‘Taking the Pulse of the UK Investment Market,’
- 80% were in early stage businesses
- More than 50% were in digital and internet-based businesses
- 54% were in businesses located in London and the South East
Even HMRC's own figures for companies claiming EIS relief show a strong bias towards...
Register with AccountingWEB for free to read the rest of this article, which includes:
- EIS and SEIS
- Reasons for bias
- The case for investing in later stage businesses