The missing piece in UK angel investing - openness and collaboration
Britain doesn’t really do bragging - it’s uncouth. We prefer more humility and privacy in our successes. In matters of wealth and financial risk taking we take the same approach - It’s rare to see a wealthy Brit flaunting their riches (unless you’re the king of course, or an annoying celebrity), and we prefer our investments to stay rather private thank you very much.
But I’d like to make the case for the UK to talk about our big bets more - especially in venture investing. Speaking with a UK entrepreneur turned angel investor on his recent Silicon Valley trip:
“Silicon Valley's angels don’t approach early-stage investing in individual siloes, every deal seems to be done as this collaborative exercise across an ecosystem”.
Enough has been written about Silicon Valley’s entrepreneurial dynamism, and ‘culture of innovation’ etc etc. But one aspect where the UK can truly make the most of its already great strengths is how investors can be proactive in engaging with their network, and championing their portfolio openly.
Speak to most founders and they’ll much prefer a well connected investor. “Smart money” beats cash on its own every time. Silicon Valley’s tightly-woven communities understand this - they share deal flow, expertise, and connections, creating a multiplier effect that benefits both investors and entrepreneurs. This collaborative mindset has fuelled the American tech juggernaut for decades.
The most successful investors there understand that their early-stage investments have a greater chance of success when they actively engage with others in industry, championing their portfolio.
By actively participating in the journey of their portfolio companies – opening doors to customers, talent, and follow-on funding – angels can dramatically enhance both company outcomes and their own returns. In the current challenging fundraising environment, this operational support has become as valuable as the capital itself.
Britain's angel investors have distinctive advantages that, when properly leveraged, create an investment environment that rivals any global hub. We would do well to build on these strengths while adopting some of the network-driven approaches and openness that have proven successful in places like Silicon Valley.
The UK has world-leading universities consistently producing cutting-edge research and entrepreneurial talent. Our tax environment is exceptionally supportive of early-stage investments via the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS). These schemes have helped mobilise over £27bn in early-stage funding since their inception, creating a structural advantage for UK angels willing to back promising ventures.
With these foundations firmly in place, the opportunity now is to build even stronger networks within our angel community. The most effective investors recognise that collective intelligence – groups of angels bringing together expertise, connections, and perspectives – can evaluate opportunities more effectively and provide far more comprehensive support to founders than any individual acting alone.
When angels collaborate, they not only make better investment decisions but dramatically enhance the value they provide to founders. A networked angel can leverage the combined resources of their community, creating a multiplier effect that benefits the entire ecosystem.
This is why initiatives like the upcoming Angel Investor Summit conference represent an important opportunity for Britain's early-stage landscape. The conference brings together established angels and high-net-worth individuals exploring venture investing to learn from industry leaders and forge deeper connections. The Summit exemplifies the community-building that can take British angel investing to new heights – a forum where investors can share insights, build relationships, and develop the collaborative mindset that drives exceptional outcomes.
Britain stands at the threshold of an extraordinary opportunity. We have the capital, the tax incentives, the scientific excellence, and the entrepreneurial talent to create world-changing companies. Our angel community is already robust, but by becoming more connected and collaborative, you can really help your investments succeed - you should talk about them.
Jake Fox
Syndicate Lead
South East Angels
