Angels support for Midlands SMEs
A MIDLANDS-based investment network formed to support fledgling SMEs is celebrating a successful year of growth.
The Minerva Business Angel Network, based at the University of Warwick Science Park’s Venture Centre, in Sir William Lyons Road, was set up 15 years ago to assist SMEs with high growth potential to access the funding needed to fulfil their promise – with particular emphasis on private equity.
Tim Powell took over as head of the network during the height of the recession around 12 months ago and immediately took on the challenging task of developing a Business Angels Investor Group prepared to meet and support businesses through investment funding and expertise.
Using his extensive local business network, and linking into the University of Warwick Alumni Association, he hosted angel investor development seminars every few months.
These events, sponsored by regional development agency Advantage West Midlands, gradually attracted enough individuals interested in becoming business angels to form a syndicate of investors.
These investors now meet every month at the University of Warwick Science Park to view potential investment opportunities identified and prepared by Mr Powell.
The seminars and the concept of the investor syndicate has proved so popular that more than 30 Business Angels have now joined the Minerva group with more expected in the future.
As a result of this success, Minerva has decided to split itself in half to form two separate syndicates for investor presentations.
Mr Powell said he was delighted with the reception the Minerva Business Angel Investor Group (MIG) had received and he was looking forward to developing it further in the future.
“Angels and businesses benefit enormously from live presentations,” he said.
“Businesses get immediate feedback on their proposal and investors get the chance to ask awkward questions – but this dynamic interaction is mutually beneficial for both investors and businesses and I think this is why it has proved so popular.”
He said that in a tough economic climate, with access to funding difficult, Minerva had succeeded in providing early stage opportunities to many firms who had been unable to secure funding elsewhere.
“Preparing a company for investment is often useful in itself as the process will sometimes highlight weaknesses and strengths not previously identified and can help them plan for the future,” said Mr Powell.
“Investing in early stage businesses has always been considered a high risk investment but the model allows investors to manage the risk and hopefully see a healthy return if the idea takes off – and that provides even more incentive for the investor to do everything they can to help the business succeed.”
The business network not only aims to secure additional funding for business, but also provides access to business support facilities available through the University of Warwick Science Park and elsewhere in the region.
Pictured are members of the Minerva Business Angel Investor Group, from left: Duncan Kerr, Tim Powell, Paul Corbett, Andrew Lester, Neil Morris, Steve Martin and David Ashcroft.
