Home » Pragmatism needed to undo damage from angel investor changes

Pragmatism needed to undo damage from angel investor changes

The UK tech startup and investor landscape is facing significant ramifications from updated definitions for sophisticated investors and high-net-worth individuals under new financial promotion rules. In the absence of a U-turn from the chancellor, a pragmatic approach is required to undo the damage to the tech ecosystem.

From January 31, the salary threshold for a high-net-worth individual investor increased from £100,000 – a level set in 2005 – to £170,000. The net asset threshold increased from £250,000 to £430,000.

In addition, investors no longer qualify by virtue of investing in an unlisted company on two previous occasions. This is a change which many current members of the startup and emerging companies landscape feel undermines the benefit of experience when it comes to angel investing….