Angelbourse, the market for matching start-up companies with funding from so-called business angels says new research makes clear there are few altruistic reasons for handing over cash.
Conducted together with the University of Bristol, the research suggest profit easily ranked as the most important motivation behind investments made, ahead of factors such as personal enjoyment, tax relief, sharing knowledge and portfolio diversification respectively.
The least quoted reason for acting as a business angel was “to enliven retirement”.
John Blowers, managing director of Angelbourse says companies looking for funding “shouldn’t confuse business angels with fairy godmothers.”
”They will want to drive a hard bargain, but they are often prepared to take risks and consider relatively small investments that others will shun.”
Other findings of the research include:
Angelbourse expects growth in the market for private investment once new rules relaxing marketing of shares in unlisted companies take effect by late January.IFAonline
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