84% of UK angel investors say they plan to invest more into startups in 2022 than they did in 2021
London, UK. 23rd November 2021: Over 40% of the UK’s angel investors said that they waste 40 hours per month in search of relevant startups to invest in, which equates to one full working day each week, according to a study by Connectd.
The Norstat poll, commissioned by angel investment growth marketplace Connectd, found that despite this, only around a third of entrepreneurs (35%) say they look to angel investors as a route to bring in much-needed capital to grow their businesses. When asked which funding routes they explored to start their business, two thirds of entrepreneurs said they had used their own savings.
With most investors planning to invest more in 2022 than they did this year, 66% said they are also looking at investing in regions outside of cities considered to be startup havens, such as London, because they no longer feel restricted by location. Almost half (46%) say they no longer feel the need to meet in person for meetings.
Only 35% of investors said that they have suffered a reduction in returns, with the remaining 65% on track to see returns grow or remain the same as prior to the pandemic.
Answering the call from over 90% of survey respondents for a better resource to connect investors and entrepreneurs, founder of Connectd, Roei Samuel commented: “There is a clear need to bring investors more relevant opportunities and ensure that entrepreneurs turn to angel investment as a route for funding their startup venture.”
Many investors are spending a staggering 40 hours per month searching for the right startups to invest in, and over half admit to receiving up to 20 irrelevant approaches every month according to 53% of investors.
In other findings, investor productivity has increased by 50% on average due to the lower travel time for meetings during lockdown, and 46% believe that they have become far more analytical in their decision making.
When entrepreneurs were asked whether they would change anything in their own journey, 43% said they would have spent more time searching for investors and 43% also said they would change their source of investment.
Samuel continued: “Deal sizes are increasing, and the amount of funding rounds are decreasing despite the restrictions imposed by the pandemic. Efficiency is pivotal for investors right now; they do not want to be stuck on calls or in rooms with startups that simply aren’t a good fit for them. Equally, it is a complete waste of time for an entrepreneur to engage with an investor that wouldn’t offer them the right kind of engagement for their business, so more must be done to close this gap.”
“At Connectd, we’re fully committed to championing the next generation of entrepreneurs, who are time-poor and in need of trusted, valuable advice and guidance from experienced individuals.”
Please view more results and insight in our angel investment trends eBook, here.