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
The forces at play in investment - most obviously, regulatory change, uncertain markets and shifting demographics - are as strong today as they were when Professional Adviser launched its sister magazine Multi-Asset Review in 2017.
Regulator has visited some firms already
Platforms react to Fidelity blocking Income Focus purchases
Chris Hill's letter to Treasury
Cash balance surges