FINTECH is now one of the most popular areas with the UK’s business angels, according to new research.
The UK Business Angels Market report, which is published by the British Business Bank, found that 24 per cent of business angels favoured fintech.
This put the sector just behind healthcare and life sciences and slightly ahead of software as a service in the areas most sought after.
“Angel investors play a vital role in the economy, bringing patient capital, business experience, and skills to support the growth of smaller businesses,” said Keith Morgan, chief executive of the British Business Bank.
“Their funding and expertise can be the key to unlocking rapid growth for companies wanting to expand, diversify, or enter new markets.
“That’s why we’re launching a new commercial investment programme this Summer to support developing clusters of business angels across the country.”
However, the report also showed a clear regional disparity in terms of where angel investors are based and where they invest.
57 per cent of business angels surveyed are based in London and the South East. Furthermore, nearly a third of business angels’ investments are made in London.
In England, the South West has the largest number of business angels outside of London and the South East while just eight per cent of UK business angels are based in Scotland, four per cent in Wales and only one per cent in Northern Ireland.
“The findings of this report show extremely positive signs of continuing growth in the angel market, but many regions continue to show an underserved level of angel investment,” said Jenny Tooth, chief executive of the UK Business Angels Association.
“We therefore welcome the British Business Bank’s implementation of this major new commercial investment programme to stimulate new regional business angel clusters.”