Lancashire County Council have expanded their investment initiative Fhunded to add an angel investment network, thought to be the UK’s first to be led and managed by a local authority.
Set to be overseen by the Lancashire Early-Stage Investment Board (ESIB) – a cohort of private and public sector financial experts with extensive experience working across the early-stage finance landscape – LCC’s Fhunded angels initiative will bring Lancashire start-up businesses to the attention of private investors looking for exciting ground-floor investment opportunities.
All investors with personal money to invest have to be certified as either a high net worth individual, or a certified sophisticated investor, as defined by the UK Financial Promotion Order (FPO) and investments will be within the £50,000-£150,000 range.
Jeremy Gidlow, a successful tech entrepreneur based in Lancaster said of his involvement, he said: “I became familiar with the Fhunded programme through the VC finance events hosted by LCC at Fraser House in Lancaster. After attending several sessions, I was impressed by the innovative and interesting local entrepreneurs seeking finance, and the great opportunity to support them on their journey.
“As someone interested in early-stage investment opportunities, especially in Lancashire’s growing tech sector, I was eager to get involved in the Fhunded angels project. Now that it’s live, I am excited to work with my fellow angels to discover those dynamic and disruptive Lancashire start-ups that are currently under the radar.”
The council sees angel investment as a way for Lancashire to address the chronic lack of early-stage finance available to start-ups more generally in the UK, especially outside of London.
LCC also believes that angel investment could be an effective way to help entrepreneurs from groups significantly underrepresented within the start-up space – including women and people from Black, Asian and minority ethnic backgrounds – to get more access to early-stage finance.
Aidy Riggott, Cabinet Member for Economic Development and Growth at Lancashire County Council, said: “I’m incredibly proud that we are the first local authority to have established a regional angel network as big and ambitious as Fhunded angels. While our existing Fhunded programme has been a great success, the VC interest it generates isn’t suitable for everybody seeking investment, especially if they are at the start-up stage.
“Added to that, on a national scale, the amount of funding secured by start-ups has dropped significantly in recent years, and most of the deals which are being completed are concentrated in London. That’s where local angel investors can make a massive difference to somewhere like Lancashire, bringing equity-based seed finance into the County, guiding and mentoring young businesses with genuine high-growth potential, and helping to strengthen Lancashire’s overarching inward investment offer.
“Enabling prosperity, and creating economic opportunities for everyone, is also at the heart of LCC’s new Council Plan, and angel investment has the potential to help some people who may otherwise be excluded from accessing early-stage funding.”
Rob Binns, CEO of Preston’s Cotton Court Group and chair of the Lancashire ESIB, said: “The Fhunded angels programme has been launched to support ambitious Lancashire entrepreneurs looking to get their foot on the investment ladder. However, angels often bring far more than just finance to the table, and many go on to become passionate champions for the companies they invest in.
“For many angels, it’s being part of the company’s growth journey which really motivates them, as well as the chance to make a return on their investment. Facilitating more angel investment in Lancashire will therefore be a win-win for both the individual investor and the entrepreneur seeking finance, with the County’s wider economy set to benefit massively as a result.”