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Why angel investment, not foreign direct investment, is key for UK SMEs

Contributor Staff

8 Sept 2022, 2:19 am GMT+1

As the UK remains the top EU destination for foreign direct investment, Jenny Tooth, CEO of the UK Business Angels Association, comments on why UK angel investors are so important

Despite concerns over Brexit and the impact that it will have on international investments, London remains the number one city in the world for foreign direct investment. In addition to this, Manchester, Liverpool and Birmingham have also featured in the top 20 cities highlighting the fact that the UK contains many geographical regions that have growing industries outside of the capital city.

Jenny is of the opinion: "While it is great that the UK attracts a significant amount of foreign direct investment, it is vital that we continually recognise the importance of domestic investments and the value of angel investors in the UK. Angel investors provide crucial support and industry knowledge that mirrors their financial input. In order to ensure that UK entrepreneurs and investors can connect, the UKBAA  has launched many successful Investor Angel Hubs outside of London that serve as a focal point for the early stage investor community. These are designed to improve regional infrastructure with hubs in Manchester and Leeds opening soon. I am optimistic about British businesses and their ability to continually reach unprecedented heights, but we cannot become overly reliant on foreign direct investment, and must look at the benefits that angel investments can bring."

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