Cornwall is set to develop its own angel investment network to foster the growth of local businesses.
The Cornwall Angel Network is a joint initiative from the Cornwall Chamber of Commerce and the British Business Bank, aiming to help establish a more diverse investment community in the Duchy. Those behind the network are also hoping it will stimulate higher levels of equity investment in the county.
According to the British Business Bank, the network will complement other angel networks, such as Tech South West’s Angel Investor Programme, and funding streams including the lender's own South West Investment Fund which launched last year.
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British Business Bank chair Stephen Welton recently hosted an event in Newquay, organised by Cornwall Chamber, to bring together a range of existing and would-be angels to discuss the creation of a new Cornwall Angel Network.
He said: “Business angels are an important part of the finance chain for small businesses, and we know from our investment fund experience that there is an appetite for more angel investment in Cornwall.
“We want to work with the Chamber of Commerce and other partners to help forge a strong community of business angels and potential angels 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.”
Mr Welton said Cornwall had seen a "significant uptick" in equity investment activity in the last five years, with an average of 14 deals a 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. According to the bank, Cornwall outpaces the growth rate experienced by the wider South West over the last decade.
Cornwall’s share of deals in the South West increased from 7% in 2014-18 to 12% in the last five years, and its deal volume now exceeds the South West average when measured against the concentration of high-growth businesses in the region, the bank said.
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Kim Conchie, chief executive of Cornwall Chamber of Commerce 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 high-value, 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.”