Lancashire County Council has launched angel investment initiative – fhunded angels – in an attempt to bring ambitious Lancashire startups to the attention of private investors.
The angels are a mix of successful entrepreneurs, exited founders and sector specialists.
The amount of angel investments are often within the £50,000-£150,000 but angels can also invest jointly.
“I’m incredibly proud that we’re the first local authority to have established a regional angel network as big and ambitious as fhunded angels,” said Aidy Riggott, cabinet member for economic development and growth at LCC.
“While our existing fhunded programme has been a great success, the VC interest it generates isn’t suitable for everybody seeking investment, especially if they are at the startup stage.
“Added to that, on a national scale, the amount of funding secured by startups has dropped significantly in recent years, and most of the deals which are being completed are concentrated in London.
“That’s where local angel investors can make a massive difference to somewhere like Lancashire, bringing equity-based seed finance into the County, guiding and mentoring young businesses with genuine high-growth potential, and helping to strengthen Lancashire’s overarching inward investment offer.
“Enabling prosperity, and creating economic opportunities for everyone is also at the heart of LCC’s new Council Plan, and angel investment has the potential to help some people who may otherwise be excluded from accessing early-stage funding.”
Jeremy Gidlow, tech entrepreneur and angel investor on the fhunded angels programme, added: “I became familiar with the fhunded programme through the VC finance events hosted by LCC at Fraser House in Lancaster. After attending several sessions, I was impressed by the innovative and interesting local entrepreneurs seeking finance, and the great opportunity to support them on their journey.
“As someone interested in early-stage investment opportunities, especially in Lancashire’s growing tech sector, I was eager to get involved in the funded angels project. Now that it’s live, I am excited to work with my fellow angels to discover those dynamic and disruptive Lancashire startups that are currently under the radar.”
Gidlow is among several angels who have already been welcomed on to the programme.
In addition to complementing the work of the current fhunded programme, LCC sees angel investment as a way for Lancashire to address the chronic lack of early-stage finance available to startups more generally in the UK, especially outside of London
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