Creating an entrepreneurial legacy through angel investing

By Hannah Smith, Anglia Capital Group

The impact of supporting early-stage businesses as an angel investor goes far beyond the initial investment.
Published in Norfolk Director magazine, Summer|Autumn 2022
Never Miss A Copy
Sign up now to receive for free the latest magazine as an e-publication

Angel Investing: Anglia Capital Group

In a recent survey by The UK Business Angels Association*, 51% of business angels actively supported businesses they invested in, with 85% of those providing strategic advice to founders. This ‘smart capital’ is vital to early-stage companies that are looking to grow.

Local legacy

Norfolk has a thriving start-up scene supported by organisations such as The University of East Anglia and Norwich Research Park, Hethel Engineering Centre, Akcela incubator, Sync Norwich and New Anglia LEP, to name a few. Many business mentors and investors are doing incredible work to ensure that entrepreneurs and founders have access to the support, guidance, and funding they need to compete in a challenging business environment.

By supporting local businesses in their early years, angel investors set up a legacy of business success, employment and economic growth. Further, we see that for those early-stage companies who achieve a successful exit, a new angel investor might be born. Many founders become angel investors and share their hard-won knowledge and capital with the next generation. It’s a legacy of entrepreneurship.

Speaking about the value of angel investors, Sarah Mintey of Norwich-based Developing Experts (an Anglia Capital Group portfolio company) said: “It was our investors’ commitment to me and the vision that was more important (than the money). I hadn’t realised, as a founder, how instrumental they would be in helping me develop my business acumen and business skills to develop and grow the company to what it is today.”

Family legacy

A love of entrepreneurship, creativity and ideas is something that many angel investors want to pass on to their children. Involving them in angel investing can be an incredibly engaging way to do this. Imagine asking your teenage children if they would like to be involved in the real-life Dragons’ Den! It’s a fun idea to get them involved in watching pitches, to get their views on the different deals and have a think about topics such as valuations, innovation and managing risk.

By sparking interest at an early age, you may be preparing the next generation of entrepreneurs and angel investors.

Environmental legacy

Sustainability is increasingly a motivating factor for angel investors. Investing in companies focused on positively impacting the environment for future generations, offers angel investors the chance to really affect change that they can be proud of.

What better legacy to leave, than enabling a new technology or innovation that could benefit the lives of future generations?

“In terms of financial legacy, it is important to note that, subject to meeting certain conditions, SEIS investments are entirely inheritance tax-free, meaning that investors can pass down the full value of their shares without inheritance tax being applied” Paul Harris, Private Client Services Partner, RSM UK

We offer prospective angels the chance to attend one of our live pitching events. To find out more please contact us on the details below.

Investment in early-stage companies involves risks such as illiquidity, lack of dividends, loss of investment and dilution.  Investment in and start-up companies are at  higher risk and should be considered as part of a diversified portfolio. Tax benefits are subject to personal circumstances. Subject to changes.

*Source – www.ukbaa.org.uk/wp-content/uploads/2020/10/20201008-BBB-Business-Angels-Report-Final.pdf

Creating an entrepreneurial legacy through angel investing 1

 

Hannah Smith, Managing Director of Anglia Capital Group

E: investor@angliacapitalgroup.co.uk
Or visit www.angliacapitalgroup.co.uk 

Table of Contents

Investing in the future

Connecting you with smart capital

Share This
Suffolk Director Magazine

SIGN UP

WHEN RELEASED WE WILL SEND YOU THE latest digital version.