Angels Key To Start-Ups: More Tax Relief Required

However the government should be helping with a higher level of tax relief for angel investment in start-ups. Currently tax relief is 20 per cent under the Enterprise Investment Scheme (EIS) and it should be 30 per cent, says the BBAA

Most angel investments (56%) make a loss, with 9% generating a 10X return on capital, says the BBAA.

Average Business Angel investment in the UK is £42,000. A typical Angel does six investments acquiring eight per cent of the company invested in. Typically there will be five investors.

"Business Angels are now the key source of investment in early stage high risk companies", says Anthony Clarke, Chairman of BBAA.