For entrepreneurs, the plateau effect is an all-too common phenomenon. They get their business up and running, prove to themselves that their big idea works, and even begin to make some sales. Then they face some harsh realities. How will they turn this early stage business into a commercially viable enterprise when they lack the funding, the experience and the connections to make such a leap?
Stuck on this plateau, as many as 60% of new UK businesses fail in their first three years. But for a growing number of entrepreneurs, there is now help at hand. The UK is home to 10,000 active business angels seeking to support these early stage ventures.
“Our business-angel community is the same size as the rest of Europe’s put together,” says Roderick Beer, managing director of the UK Business Angels Association (UKBAA). “We’ve been doing this very successfully for the past 30 years.”
Business angels are individual investors who take small stakes in immature businesses, either working alone or alongside other angels. Their investment provides valuable funding for the company
