UK Angel Attacks Pay-To-Pitch Culture of Many European Angel Networks
Permjot Valia (@permjotvalia) is a prolific angel investor and in 2008 co-founded Flight & Partners. Here he talks about his frustrations with the UK Angel investor scene, especially the anti-entrepreneur ‘pay-to-pitch’ culture.
In 2008/09, £44.9m was invested by UK Business Angels registered to Angel Networks in UK based companies. Across the 5,500 registered Angels that is less than £10,000 per Angel. These figures are very poor and do not bode well for future economic growth. So what is a UK based digital company looking for funding to do?
I have invested in 20 companies in the UK over the last six years, and three companies in Canada as a Business Angel. I am by no means an expert but with the experience I have had in Canada with Angel groups and as of recently with Seedcamp, I do find the UK ‘organised’ angel scene very depressing.
In North America, most Angel groups are run by Angels (whom for the most part have been successful entrepreneurs) for Angels. Across Europe most networks are run by administrators for the benefit of the network and not necessarily for the benefit of either the entrepreneur or the angels.