The UK Business Angels Association (UKBAA) launched a new official qualification aimed at promoting effective investments in Britain’s small businesses, the UK Angel Investing Accreditation.
Angel Investment fulfils a vital role in the economy in supporting entrepreneurs and remains the most significant source of equity for early stage businesses. In 2015, over 1 million investors backed small businesses across the UK, attracted by the opportunities offered by crowdfunding platforms and the government EIS & SEIS tax incentives.
For many first-time investors expected returns can fall far short of reality, in part fuelled by social media and the widely publicised rapid success stories of today’s technology giants. In reality, only a small number of investments will generate the potential for huge multiple returns witnessed in companies such as SnapChat, Whatsapp, TransferWise and Uber. Research shows that over 50% of businesses receiving early stage investment will fail. The Angel Investing Accreditation wants to educate potential investors about that reality, and improve their chances of success. As Michael Blakey, serial tech investor and UK Angel Investor of the year 2015-2016, confirmed, “it takes some time to acquire the knowledge and skills to choose which businesses to back and achieve a successful portfolio of investments.”
The UKBAA Accredited Qualification, the first quality controlled angel training, was developed in collaboration with Intelligent Partnership, the UK’s leading independent authority on alternative investments.
“As the trade body, we are uniquely placed to establish these new quality standards for angel investing, bringing new confidence into the market at a time when so many individuals are attracted to back small businesses,” explained Jenny Tooth OBE, CEO of UKBAA. “Accessible online,” she continued, “this will enable new and less experienced investors across the UK, to gain recognised skills, leveraging the experience and insights of seasoned investors for a more informed approach to backing growth stage businesses. We will also be able to accredit quality training being delivered by our investor members around the regions.”
The UKBAA Accredited Qualitication will be recognised by two leading institutions, the Chartered Institute of Securities and Investment (CISI), and SFEDI, the standards-setting body for Enterprise and Entrepreneurship.