Insider Media Limited

A business angel network is being set up in Northamptonshire by the county’s Local Enterprise Partnership (LEP), Insider has learned.

Rob Purdie, executive director of Northamptonshire Enterprise Partnership (NEP) says it is looking at setting up a network of angels – wealthy individuals who invest directly – as a way of getting much-needed funding capital to small and start-up businesses.

"We’ve started to work on a business angel vision because it’s local people who are often the most willing to invest in the local economy," Purdie told Insider.

"These people are not only willing to give money but also experienced time and advice, which can be at least as equally valuable.

"However this doesn’t have to be restricted to individuals. There is no reason why companies in Northamptonshire can’t also act as angel investors, perhaps taking equity stakes in promising businesses."

The project is being backed by the county council and chamber, as well as by business organisations such as the Institute of Directors and Federation of Small Businesses.

The move comes on the back of the launch of the Inv-ent Fund, a £2m project by NEP and the county council to turn businesses into mini-enterprise zones by giving up to £20,000 rebates on rates bills.

The project, aimed primarily at high-growth and advanced technology-led businesses, had already had 19 applications for support, worth more than £269,000.

A decision on which business have been successful is set to be announced shortly. There will be a second call for applications for another £300,000 tranche in the spring.