£150 million funding for regional ‘angel investors’ expected in budget as part of plan to level up the country.
It is expected that the Chancellor will announce a £150 million pot of funding for the British Business Bank to encourage the development of angel investment networks outside London and the South East.
Run by the British Business Bank, the Regional Angels Programme was set up in 2019 following the government’s Patient Capital Review to support the early-stage equity ecosystem outside of London. It operates UK-wide by developing clusters of angel investors and makes commitments of £5m-£15m alongside early-stage investment funds and angel groups who, in turn, invest into seed and early-stage businesses. This then acts as a catalyst for more investors to back regional businesses
As of June 2021, over 200 businesses have already benefitted from the scheme, with top sectors being technology, life and health sciences and manufacturing. 85% of investments have gone to companies outside of London, including 37% of investments to companies in Scotland, Wales & Northern Ireland.