The truth is, angel investors aren't what they used to be.
As exit activity has slowed upstream, so has the minting of new ultra high net worth angel investors. When was the last time you saw a mega exit in the UK, churning out an army of angels ready to invest in the next generation?
The era of the super angel is over
The reality is those days are long gone. The era of super angels making 50+ cash investments has ended.
Most active VC funds are either crowdfunding or accepting £25k tickets. They are hoovering up the mid market.
What this means for founders raising now
So what does this mean for us in the market now?
- Smaller tickets from the likes of dentists, corporate C-levels and business owners
- Smaller, more curated portfolios, with a focus on setting up the next chapter in their own career
- More competition from VC, which means timing is critical
- Anyone with "angel investor" in their bio is spammed beyond belief, and a waste of time to go after
Hunt where no one else is hunting
Ultimately, your job now as a fundraising founder is to search for green fields. Hunt where no one else is hunting and you will find success. Think outside the box.
The UK financial regulator states that anyone earning over £100k is a high net worth investor. Use this as your primary filter and go from there.
The angels are still out there. They just don't look like they used to.