Some of the region’s up-and-coming businesses are set to secure new investment through Bay Business Angels.
The initiative, started by business law firm Baines Wilson, facilitates ‘angel’ equity investment in companies in Cumbria and North Lancashire.
At its events, businesses seeking capital pitch to an audience of potential investors including high-net-worth individuals and venture capital trusts.
To date, 60 per cent of those pitching have secured investment, a much higher proportion than is usual for events of this type.
Typically, the angels invest between £50,000 and £500,000 in each business, usually taking a minority stake of up to 25 per cent. They have invested more than £2 million in total since Bay Business Angels began in 2017.
The next event is at The Innovation Suite, Lancaster University Health Innovation Campus, on Friday 16 June from 10.30am to 2pm when half a dozen businesses will pitch to between 50 and 60 angel investors.
Jennifer Bell, partner corporate and commercial at Baines Wilson, said: “These events attract a mix of start-ups and established businesses looking for investment to grow. This time we have a focus on the tech and digital sectors.
“Bay Business Angels has been extremely successful and it’s the only event of its type in Cumbria and North Lancashire.”
Baines Wilson, which has offices in Lancaster and Carlisle, will become Knights following its acquisition by the national law firm early next month.
It runs Bay Business Angels with support from Lancaster University Management School, Baldwin’s Accountancy Services, NatWest Bank and the University of Central Lancashire.
Angel investment has attractive tax incentives and enables businesses receiving the investment to raise capital without having to pledge security to a bank or take on debt, which is costlier given recent increases in interest rates.
Jennifer added: “Quite often new and start-up businesses struggle to borrow from a bank because they don’t have the assets on the balance sheet. Equity investment works better for them.
“Another attraction is that the investor can be a good sounding board, provide contacts and advice, and open up new markets. They don’t want to actively run your business but they are there to offer their expertise.”
