The UK government’s new Angel CoFund is willing to provide equity or quasi-equity investment of between £100K and £1M into eligible SMEs alongside business angel syndicates.
The Angel CoFund will not invest directly into companies – so is, in effect, money that matches a syndicate.
Hence, business angels should look to their local syndicates to see if they are raising additional funds through the Angel CoFund and entrepreneurs should look to their local syndicates.
The Angel CoFund will invest alongside other Business Angels (or their syndicates) and assumes that the same investment assessment as the syndicate.
The Angel CoFund will invest up to 49% – so, practically doubling the money available to a syndicate.
This will allow the syndicate to spread its investments more broadly and hence, act as a reduction in risk. It also provides the syndicate with more money should the syndicate wish to stay active in a second or third round of investment.
Investee companies must also fall within the European Commission SME definition (headcount not exceeding 250, turnover not exceeding € 50M and balance sheet assets not exceeding € 43M).
Syndicates expected to participate include
- Oxford Innovation Network (OION),
- Braveheart Investment Group,
- Hotspur Capital Partners,
- Octopus Investments and
- Venrex Investment Management.