Envestors’ research shows private investors make a 14.7% IRR on angel investments

Over the course of 2021, Envestors conducted in-depth research into the real returns of angel investing.  As well as contacting its 4,000 sophisticated investors, Envestors received input from the UK Business Angels Association as well as other leading investor groups such as Cambridge Angels, S100 and Stakeholderz.

The survey collected data from individual private investors (“business angels”) who have invested over £250,000, in at least five companies over 10 years.  This resulted in reviewing investment totalling £75.4m into 1,660 companies.

The research found that the Internal Rate of Return (IRR) from investing in early-stage ventures was 14.7%.  This return excludes the tax relief benefits under the Seed/Enterprise Investment Scheme (S/EIS).  Of the £75.4m invested, the value of exited and existing portfolio companies totalled £208.5m*, resulting in a gain of £133.1m.

But angel investing is not without its risks:  of the investors who responded 89% showed a net gain whilst 11% showed a net loss from angel investing.

To help investors make better decisions and companies become fully investment-ready, Envestors has launched a comprehensive knowledge resource, including the Envestors’ Guide to Investing and the Envestors’ Guide to Raising Finance please visit https://resources.envestry.com/

Envestors, which has matched £100m+ of investment into over 200 companies, endeavours to lead the way in being the safest FCA regulated platform for angel investors looking to invest £10,000+ in high-growth start-ups and scale-ups.

  • For companies seeking investment of up to £5m, please submit your proposal for review through our secure platform at https://envestors.envestry.com/raising (no cost for review, FCA sign-off required before publication)
  • For investors interested in investing £10,000+ into tax-efficient, screened  dealflow (which have been signed-off by our FCA regulated team), please register for free at https://envestors.envestry.com/register (no cost and no obligation to invest.  Registration required for regulatory and confidentiality purposes).  
  • For networks, looking to connect to our enlarged community of investors and companies via our FCA regulated platform, please contact Mike North at Michael.North@envestors.co.uk

*  Value of exited deals: £61.2m. Plus estimated value of existing portfolio, based upon recent fundraisings or events to justify a revaluation of shares: £147.3m

For further information, please contact Natalia Lena Natalia.Lena@envestors.co.uk