West Briton (Camborne, Redruth, Hayle)
Cornwall Angel Network determined to help ambitious businesses prosper
ANEW angel investment network is to be created to foster business growth and prosperity as part of a joint initiative between the Cornwall Chamber of Commerce and the British Business Bank (BBB).
The new Cornwall Angel Network will see investors pump their own money into a small business in exchange for a minority stake, or equity, in that business, as popularised on the BBC television series Dragons’ Den. As well as investment, angels can also bring a wealth of experience, expertise and contacts, helping to drive the business forward.
BBB chair Stephen Welton hosted an event in Newquay last month organised by the chamber to bring together a range of existing and would-be angels to discuss the creation of the new network.
The event was part of a threeday visit to Cornwall by Stephen, where he met with local businesses, organisations, investors, Falmouth University’s venture studio and business incubator, Launchpad Futures and Cornwall Council to discuss economic growth and business access to finance.
The aim of the network is to help establish a more diverse investment community to support the growth of Cornish businesses, and to stimulate and support higher levels of equity investment.
Stephen said: “We want to work with the chamber of commerce and other partners to help forge a strong community of business angels and potenangels in Cornwall and the Isles of Scilly.
“This will improve the important role early-stage equity plays in bringing investment, skills and experience to Cornish businesses to help them grow, innovate and create jobs.”
Stephen said Cornwall had seen a significant uptick in equity investment activity in the last five years, with an average of 14 deals per year with a total investment value of £188m.
This compares to six deals a year on average in the five years before that, with a combined investment value of £45m over the period. This outpaces the growth rate experienced by the wider South West over the last decade.
As a result, Cornwall’s share of deals in the South West increased from 7% in 2014-18 to 12% in the last five years, and Cornwall’s deal volume now exceeds the South West average when measured against the concentration of high growth businesses in the region.
Kim Conchie, chief of the chamber, said: “In recent years we’ve seen great strides to improve the equity landscape in Cornwall. This includes our own innovation investment network, the British Business Bank’s South West Investment Fund and Falmouth University’s Launchpad which has fostered the creation of highvalue, high-growth businesses.
“We want the Cornwall Angel Network to be a dynamic part of the business growth ecosystem and are delighted with the positive response from the investor community.”
The Cornwall Angel Network would complement other angel networks like Tech South West’s Angel Investor Programme, and funding streams like the BBB’s £200 million South West Investment Fund.
The network would also build on the success of the Bank’s Cornwall and Isles of Scilly Investment Fund, which funded businesses over the last five years and helped attract more than £100m of private investment into local companies.
To find out more about the Cornwall Angel Network contact the chamber to register an interest.