For fast-growing SMEs, mid-market firms and enterprise businesses, access to capital can make or break momentum. Whether it’s launching a new location, hiring key staff or rolling out new tech, finding the right UK investors is crucial. That’s where angel business investors come in – bringing personal funding, experience, and a hands-on approach to supporting growth.
This guide will cover the following:
- Angel investor meaning
- How angel investing works
- Angel investors vs venture capitalists
- Angel investors advantages and disadvantages
- Angel investor examples
- What UK angel investors look for
- How to find angel investors
- UK angel investors list
- Is angel investment the right fit?
- How Dojo supports growing businesses
- FAQs
What is an angel investor?
An angel investor is a high-net-worth individual who uses their own money to invest in a business in exchange for equity. These UK investors typically get involved early – often during fast-growth stages – and don’t just bring funding. Many offer personal support, industry insight and guidance, making them a hands-on partner rather than a passive backer. Unlike loans, the funding doesn’t need to be repaid, which can help protect cash flow while the business scales.
How angel investing works
Most angel financing sits between £10,000 and £500,000. In return, the small business investor receives a stake in the business and can take an advisory role. Many work solo, but angel investor groups and syndicates are also common, often led by a seasoned investor.
In the UK, government schemes like the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) offer tax reliefs, reducing the risk for angels and making early-stage businesses more attractive for UK investors to invest in.
Angel investors vs venture capitalists
Venture capitalists and angel investors both fuel growth in different ways.
Factor | Angel investors | Venture capitalists |
Investment size | Typically £10k–£500k | Often £1M+ in later-stage rounds |
Stage | Early-stage or fast-growing businesses | Later-stage, post-scale businesses |
Speed | Quick decisions, minimal red tape | Longer process with formal due diligence |
Control | Often informal–advisory input only | Might need board seats or voting rights |
Involvement | Hands-on support, mentoring, and network access | Strategic guidance, often less personal |
Ownership impact | Smaller equity share in early stages | Larger equity stakes and higher expectations |
Exit expectations | May aim for future acquisition or investor buyout | Typically, expect a strong ROI through a defined exit |
Flexibility | Terms are often tailored and negotiable | Structured, with standardised legal agreements |
Angel investors advantages and disadvantages
Advantages of angel funding
- No interest or repayments: Unlike loans, angel financing doesn’t require monthly repayments, helping businesses protect their cash flow.
- Hands-on support: Many angel business investors bring mentoring, industry insight and introductions that can open doors.
- Flexible and fast: Angel investor groups tend to move quickly and can be tailored to a business’s unique needs.
- Shared success: Angel business Investors only succeed if the business does, so their goals are often aligned with the team’s.
Disadvantages of angel funding
- Sharing ownership: To raise funds, part of the business is exchanged, meaning founders may own a smaller percentage.
- Pressure to grow quickly: Some investors expect regular updates and signs of rapid progress.
- Not always the right match: If the investor’s style, priorities or vision differs from the team’s, it can lead to friction down the line.
- Expectations around exit: Many angels are hoping for a future return, often through a sale or external investment, which might not suit every long-term plan.
Angel investor examples
Sarah Willingham – Hospitality and cafe investment
A well-known British entrepreneur and former Dragons’ Den investor, Sarah has backed several hospitality businesses. She co-founded Nightcap PLC, which supports independent bars and cafe-style venues across the UK, offering both capital and deep industry experience to help them expand sustainably.
Simon Murdoch – Tech startup angel
One of the UK’s most active angel investors, Simon Murdoch, was an early backer of Shazam and LoveFilm. He now invests through his fund Episode 1 Ventures, supporting tech-focused small business investments at the seed stage, often acting as a mentor during early growth.
Jenny Tooth OBE – Regional angel investment
As former CEO of the UK Business Angels Association, Jenny Tooth has personally supported regional small business investment, with a focus on health, social impact and female-led ventures. Her work has helped connect early-stage businesses with targeted funding and advice across the UK.
What UK angel investors look for
- A strong founding team with complementary skills, sector insight, and commitment.
- Clear traction or demand, such as revenue, waitlists, customer feedback or growth in active users.
- A defined use of funds showing how the investment will unlock growth (e.g. hiring, R&D, expansion).
- Scalable business model, ideally with recurring revenue or clear pathways to profitability.Realistic valuation and forecast-grounded projections matter more than inflated promises.
- Exit potential for some angels, the ability to exit within 5–10 years via acquisition or investor buyout is key.
How to find angel investors
- Angel investor platforms and pitch events: Use sites like Seedrs or Angel Investment Network to connect with active investors.
- Warm introductions: Referrals via LinkedIn or business networks help build trust early.
- Specialist angel investor groups: Look for syndicates that invest in your sector, like food, tech or retail.
- SEIS/EIS eligibility: Highlighting this can make the opportunity more attractive, thanks to tax reliefs for small business investors.
Plenty of angel business investors want to work with high-growth SMEs – it’s about surfacing the right opportunity. You can find more information on investors who invest in startups in our guide on how to apply for a business grant.
UK angel investors list
There isn’t a single official angel investors UK or London angel investors list, but online platforms such as Angel Investment Network, Envestors and Europe Republic allow businesses to connect directly with active angel financiers and investors based on sector, stage and location.
Is angel investment the right fit?
Angel investment tends to suit businesses that are already growing, have a clear plan, and need extra capital to take the next step – whether that’s expanding the team, entering new markets or investing in tech. It’s a strong option for founders who are open to sharing ownership in exchange for hands-on support and long-term backing.
Angel financiers might not be the right fit for businesses that want to stay lean, grow slowly, or avoid giving up equity. The key is knowing what the funding’s for – and whether bringing an investor on board makes sense for that stage of growth.
Not sure what path makes the most sense? Our business guide on how to manage finances offers insights into how other teams navigate these choices, from small company investors to larger-scale partners.
How Dojo supports growing businesses
Raising capital through angel business investors can give businesses a boost – especially when funding’s needed for growth. But increasing cash flow isn’t just about external small business investment. Improving day-to-day operational efficiency with smart tech and a powerful payment suite can make just as much impact.
Leading card machines like the Dojo Go help by speeding up service, reducing admin, and making payments seamless – so staff stay focused, queues move faster, and revenue flows reliably. With features like real-time transaction tracking, built-in tipping, and next-day transfers, start accepting card payments to unlock more value from everyday operations.
Check out the blog for more tips on growing smarter and making everyday operations work harder for your business.
