Myth Buster: Angel Investing is only for wealthy and men

In the world of investment, there is a persistent myth that angel investing is exclusively reserved for the wealthy.

It’s a misconception that has discouraged many potential investors from exploring this avenue. However, the truth is far more accessible and inclusive than commonly believed.

Let’s debunk this myth, once and for all.

Firstly, let’s address the notion that angel investing is only for those with deep pockets. While it’s true that some angel investors possess substantial financial resources, the landscape has evolved to welcome a diverse range of participants. Angel investing is no longer about large sums of money; it’s about strategic allocation of resources, expertise and networks.

Many angel investors are not ultra-high-net-worth individuals but rather business leaders who are passionate about supporting innovation and entrepreneurship. They come from varied backgrounds including academia, professional services, manufacturing, tech, health and venture. What unites them is their belief in the power of startups to drive positive change.

Another misconception is that angel investing requires a deep understanding of complex financial instruments and markets. While financial literacy is valuable, it’s not a prerequisite for angel investing. What is more important is a willingness to learn, an openness to taking calculated, measured risks, and a commitment to supporting promising start-ups.

Angel investing offers opportunities for investors to diversify their portfolios and potentially achieve higher returns than traditional investments. By spreading investments across multiple start-ups, angel investors can mitigate risks and increase their chances of backing successful ventures.

At its core, angel investing is about more than just financial gain. It’s about being part of a community that nurtures innovation, fosters creativity and empowers entrepreneurs to grow value in their businesses. Angel investors provide not only capital but also offer invaluable mentorship, guidance and connections that can significantly impact the direction of a start-up.

If you have ever thought that angel investing was out of reach for you, think again. Whether you’re a seasoned investor or someone who has dipped their toes into the world of start-ups for the first time, there’s a place for you in the vibrant ecosystem of angel investing.

There have been several angel groups which have launched in the past three years which have a very accessible minimum ticket level of £2k-£5k. Many of these are groups focussing on supporting female founders. As the number of women angels in the UK is greatly under index’s that of men: 15%/85%, a movement to encourage more women to invest is growing.

Research from the UKBAA says that the greatest barrier to women becoming angels is a lack of visibility and knowledge of this investment opportunity alongside a belief that the gateway to becoming an angel is super wealth. Helen Oldham from Lifted Ventures said, “In our experience, smaller tickets often aggregate across a network into a larger sum, they catalyse attention from co-investors and embed expertise and networks into the business at a formative stage.”

Jordan Dargue, Co-Founder at Lifted Ventures states “We firmly believe that investment opportunities should be more inclusive and accessible for all. We recognise that every contribution, regardless of size holds significant value. Whether it’s a substantial investment or a modest-sized cheque, each contribution plays a vital role in empowering early-stage founders and driving innovation forward”. Jordan also followed on to say “We have no minimum investment criteria in our network”.

Let’s dispel the myth that angel investing is only for the wealthy. It’s time to understand that angel investing is for anyone passionate about driving innovation, supporting entrepreneurship, and making a positive impact on the world. So why not join us on this exciting journey? Together we can shape the future of innovation and entrepreneurship one investment at a time.

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