Strapped & Struggling: UK Entrepreneurs Battle Start-Up Funding Woes as Banks Refuse to Lend

LONDON, April 24, 2013 /PRNewswire/ --

While a bank loan was once a sure-fire means to start-up success, post-recession Britain has left many entrepreneurs looking for alternative methods to fund their new ventures. With crowd funding and family gifts lacking vital mentorship - could the age-old model of angel investments provide heaven to thousands of entrepreneurs thought they'd never find?

Whilst both businesses and banks work tirelessly to keep afloat, many entrepreneurs suffer the after-effects of the recent recession. With a recent reach study naming lack of funding as the biggest barrier to starting a business in the UK, many entrepreneurs are being forced to forego the traditional bank loan and source funds themselves.

Many are turning to the new craze of crowd-funding, later to discover that they were not as successful at raising all of the funds that they were seeking to raise, or the money raised did not provide all of the experience and wisdom that experienced mentors afford.

However, throughout the turbulence and lack of lending power from banks, the age-old model of angel investments is bringing vital hope to many who require both funds and education to get their ventures off the ground. Making or breaking a new idea, the angel investment double-approach is quickly becoming the route of choice for thousands of UK entrepreneurs.

One word of warning, though; finding both legitimate and well-matched angel investors isn't easy. With many lacking their ethical halo or simply being a bad fit for the business in question, sourcing suitable support can make the difference between roaring success and sudden failure.

"Any angel investor requires both a high net worth and heaps of business experience in the market they're investing in. Getting this balance incorrect can render the wrong investor useless to a business," says Rishi Anand, CEO of VentureGiant.com - a service that vets investors and provides a safe environment for entrepreneurs to make connections.

He continues, "However, the right match can bring entrepreneurs something the traditional bank loan never could; the required cash along with limitless advice and guidance in the new businesses' sector. This fusion of money and mentorship can help any start-up launch, grow and expand their business faster than they could have ever imaged."

As advocates for the angel investment model, VentureGiant.com further lessens the burden on entrepreneurs by only charging their fee after finding each venture a suitable investor. Whilst their methods and processes are secret, Anand and his team are overwhelmed with their success.

"Since 2008 we've received over 25,000 small business registrations, facilitated almost 2000 investment deals and received investor interest from a diverse group of over 2500 UK based investors. This has allowed entrepreneurs to raise over £1.6m of angel investment completely commission-free through our online matching platform," he adds.

The numbers serve as proof that entrepreneurs are responding well to the angel investment model. Recent success stories include the former Commercial Director of Visit London using the platform to raise capital for his new major tech start-up and one entrepreneur securing half a million pounds to resurface all Piccadilly Line tube stations.

Coming at a time when banks continue to deny applications due to their own misfortunes, experts predict that angel investments could become the single biggest start-up funding source once again.

For more information, visit: http://www.venturegiant.com

About the Company:

Venture Giant is a business angel investment network that matches vetted business angel investors with entrepreneurs seeking start-up business funding for their new venture or expand their existing business. A full list of Venture Giant's registered Angel investors and Start-up investments are available to view on VentureGiant.com

Contact:

Alex Potter
+44-(0)-207-402-6508
newmedia@venturegiant.com

SOURCE VentureGiant.com