The UK can expect a New Year boom in private investment in smaller growth companies, according to a new report.
The report, by equity provider AngelBourse, claims that due to the government decision to relax the rules for marketing shares in unlisted companies to private individuals, more firms can look forward to outside investment.
From the end of January, potential investors will be able to self certify that they are ‘high net worth’ or ‘sophisticated investors’, with companies able to promote their shares to individuals who they believe fit into these categories.
John Blowers, managing director of AngelBourse, said: “We very much welcome this move. It’s a natural progression from creating greater tax incentives for investing through Venture Capital Trusts. VCT’s normally put a proportion of their investors’ money into unquoted companies, so why not make it easier for the more financially aware or wealthy individuals to invest direct as well?”
The change comes at a good time for small companies as AngelBourse are seeing more interest amongst institutional investors in the small business market.
Blowers said, “Our expectation is that this will be a shot in the arm for the sector and help to open up a new and vibrant investment class of unquoted companies. It should also make a major contribution to closing the equity gap for small companies.”
