Laurence Kemball-Cook, CEO, Pavegen Systems Pavegen is a brand new renewable energy system so having the funds and support during the development phase is vital. Business Angel investment gave us both at a crucial time, allowing us to fulfil orders, take on key staff and providing us with a ready-made network of investors who understand our business and share our vision. We're now growing fast with partnerships with companies like Westfield and Diageo. |
Why is Angel investing important?
Angel investing is the most significant source of investment in start up and early stage businesses seeking equity to grow their business. Whilst the market is relatively difficult to calculate since many Business Angels are investing privately, an estimated £850m per annum is invested by angels annually in the UK. This is more than 2.5x the amount of Venture Capital invested in early stage small businesses annually. Whilst it is also estimated that there about 18,000 angel investors around the country, there is a need for more individuals to become Business Angels to provide finance to meet the needs of these growth potential entrepreneurs.
For more information on the Angel Market CLICK HERE.
Government Tax–breaks for Angel Investing
In recognition of the importance of investing in the growth of enterprise and to encourage more Business Angels, the Government has established significant tax breaks for investors in small businesses. The Enterprise Investment Scheme offers up to 30% tax relief against investments made by individuals into qualifying early stage businesses. For more information, please CLICK HERE.
In 2012, the Government has launched a new Seed Enterprise Investment Scheme, offering up to 50% relief for investors prepared to invest up to £100,000 annually in entrepreneurs at the seed and start-up stage of their business. In addition, and exceptionally for 2012, there is a one-off exemption from paying Capital Gains Tax on a gain made in this tax year, if an investment is made into a qualifying small business under the SEIS scheme. For more information, please CLICK HERE.
There are specific criteria attached to these tax schemes. For more information, CLICK HERE.