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<\/p>\nA survey of UK angel investors regarding their investment strategies during the COVID-19 pandemic has found that over 65% of angels investors are continuing to invest in startups during Lockdown, but with predominantly new deals. Many are completing more deals and increasing their cheque size by as much as 18%.<\/p>\n
However, the pandemic has reduced their total capital to invest in 2020 by just over 61%, while just under 60% think the effects of COVID-19 will negatively affect their ability to invest for the rest of 2020. Over 250 angels completed the full survey in the last two weeks, after TechCrunch <\/a> exclusively<\/a> published it.<\/p>\n These are the findings of new UK initiative Activate our Angels<\/a> (AoA). The initiative comes just as the UK government’s “Future Fund” for startups, which has been criticized as being inadequate for the needs of Angel and Seed-stage startups, is poised to be launched some time this week.<\/p>\n AoA was started by Nick Thain the former CEO and co-founder of GiveMeSport, which was acquired last year and includes representatives from 7percent Ventures, Forward Partners, <\/a> Portfolio Ventures, ICE, Foundrs, Punk Money, Humanity, Culture Gene, Barndance, Bindi Karia <\/a> and Stakeholderz.<\/p>\n Activate our Angels started its campaign just under two weeks’ ago with the goal to give founders actionable data to help them make funding decisions, during and post-lockdown.<\/p>\n The survey shows that while angels are currently investing, founders will need to lock this funding down fast, as 59% of angels surveyed says their future investing will be negatively affected the longer the lockdown goes on.<\/p>\n This becomes more important if a startup has raised under £250,000.<\/p>\n Furthermore, the survey concluded that angels are investing 18% more per deal and have increased the frequency of deals in Lockdown by over 122% from 0.27 deals per month in 2019 to 0.6 deals per month in the last 3 months.<\/p>\n Angels are looking for increased runway and revenue generative businesses, and they’re seeing reduced valuations and smaller rounds.<\/p>\n Additionally, angels are told the survey that they have 61% of the capital to invest in 2020 compared to 2019. This suggests that angels are “making hay while the lockdown-sun is shining” said the survey.<\/p>\n Consequently, angels will have significantly less money for the rest of 2020.<\/p>\n For start-ups that have not raised yet, the findings suggest they should do their first round as soon as possible.<\/p>\n For start-ups who have already raised, this impending angel capital crunch \ufffcmakes initiatives such as the forthcoming government-backed Future Fund as important as ever, says the survey.<\/p>\n “If angels are not investing in Lockdown, they are holding cash and waiting to be confident that COVID-19 is over. The best way to contact them is via an introduction\/recommendation, email or linkedIn, not via Social Media,” it added.<\/p>\n The results from the survey have been summarised below.<\/p>\n \u25cf 66.7% of Angel investors are still investing during Lockdown<\/p>\n \u25cb 77% of those are investing in new deals<\/p>\n \u25cb 23% of those in existing portfolio deals<\/p>\n \u25cf 33.3% of angels are not investing in lockdown<\/p>\n \u25cb 71% of those are reviewing deals Tags:<\/b> Mike Butcher<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" A survey of UK angel investors regarding their investment strategies during the COVID-19 pandemic has found that over 65% of angels investors are continuing to invest in startups during Lockdown, but with predominantly new deals. Many are completing more deals and increasing their cheque size by as much as 18%. However, the pandemic has reduced … Continue reading UK angels still active during lockdown, but startups need to be quick<\/span><\/a> Continue Reading ![\"\"](\"https:\/\/techcrunch.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-15.22.27.png\")
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\u25cb 29% of those are not investing at all
\u25cf 17.6% more is being invested per deal during Lockdown.
\u25cb £23,071 invested per deal in Lockdown
\u25cb £19,620 invested per deal in 2019
\u25cf Angels completed an average of 1.81 deals during lockdown, angels completed an average of 3.24 deals in the whole of 2019
\u25cb 1 deal every 3-4 weeks (approx.), since Lockdown on 23rd March 2020
\u25cb 1 deal approximately every 7-8 weeks (approx.), in last 1-3 months
\u25cb 1 deal every 3-4 months (approx.) in last 4-12 months
\u25cb 1 deal every 3-4 months (approx.) in 2019
\u25cf 58.1% of angels believe that Covid-19 will have a negative impact on their ability to invest in 2020, 27.2% No Change and 14.7% said it would have a positive impact
\u25cf 51.4% of angels surveyed said they would be investing Less in 2020
\u25cb of those angels said they would invest 61% less capital in 2020 compared to
2019.
\u25cf 33.3% of angels are not investing in Lockdown
\u25cb of those 47.6% are only going to invest again when they are confident Covid- \u202819 crisis is over
\u25cb of those 28.6% are not planning to invest again.
\u25cf 64.9% of angels are changing the business sectors they’re looking at including; Healthcare, Fintech and gaming
\u25cf 54.1% of angels have changed their investment requirements, with longer runway, revenue generative and recurring revenue being the most important factors.
\u25cb 46.9% of angels had no change in investment requirements
\u25cf 68% of angels have seen deal terms with reduced valuations as a result of Covid-19 and 35% have seen smaller Investment rounds.
\u25cf When it comes to getting in contact with angels, 72% want to be contacted via recommendations\/introductions. \u2028\u25cb 54% via email\u2028\u25cb 32.6% LinkedIn\u2028\u25cb <\/a> 30.9% Angel network.\u2028\u25cb Facebook <\/a> and Twitter being the least effective way to contact angels with \u2028less than 3% of respondents selecting this.
\u25cf 70% of angels said SEIS\/EIS was important, very important or critical to their investment decisions, of those 58% said they would not invest more if the SEIS allowance was increased to the £200k from the current £100k cap.<\/p>\n<\/div>\n
Contact Information:<\/b>
Mike Butcher<\/p>\n
<\/a>, Wire<\/a>, United States<\/a>, English<\/a><\/p>\n<\/div>\n
Contact Information:<\/h3>\n