"Britain is one of the most exciting countries in the world in terms of both innovation and capability in delivering business growth", an angel investing expert has said.
Speaking to FT Adviser editor Simoney Kyriakou, Modwenna Rees-Mogg, founder of the Angel News network, said it was important to back British businesses, quoted and unquoted, because this would boost the economy and help improve GDP.
She pointed to a recent wave funding of £1bn into an AI-powered driverless car being developed in the UK.
"Many people might have thought that was the preserve of Silicon Valley, and yet we can do it, we are doing it", she said. "Indeed, it has often been Brits behind some of the greatest inventions in the world."
She cited high interest, such as biotech, AI, pharmaceutical and sustainability-focused businesses as areas that have the potential for long-term business growth in the UK. "We want to be doing this for 50 years, not five."
Regional focus
Calling innovation a "British" phenomenon, not just a City of London phenomenon, Rees-Mogg said it was important to remember there are exciting businesses and entrepreneurs across the UK.
"If you go to every county in the UK there are more than 1,000 large companies that are doing well. There is an enormous economy all over the UK of growing and large companies - the challenge however is getting the funding through into those companies."
She looked at how an external investment can make a significant difference to some of the businesses which are likely to develop "high profit margins", not just in terms of funding further research and development but also using collective brainpower to help "make a whole load of difference" and back good management teams.
For example, she spoke of an unlisted company which was challenged by an external investor to improve its profit margin and develop new strategies - and within a year it had turned around a 20 per cent improvement in terms of profit.
Rees-Mogg also discussed the differences between listed and unlisted company investment, exploring how investors can get exposure to unlisted and listed small companies through some investment trusts, or venture capital trusts and enterprise investment schemes.
"I have so much respect for VCT investors", Rees-Mogg adds. "They're the savviest bunch.
"If you have got to the stage where you want to back Britain by investing in VCTs, you are already pretty fly." She says often in meetings they ask the most insightful questions and challenge boards on their decisions."
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