A pioneering angel investment initiative, fhunded angels, has been officially launched by Lancashire County Council (LCC).

Part of LCC’s highly successful fhunded early-stage finance programme, fhunded angels is thought to be the UK’s first angel network to be led and managed by a local authority at such a scale.

Set to be overseen by the Lancashire Early-Stage Investment Board (ESIB) - a cohort of private and public sector financial experts – LCC’s fhunded angels initiative will bring ambitious Lancashire startups to the attention of private investors looking for exciting ground-floor investment opportunities.

Such investors – often referred to as ‘angels’ - are typically a mix of successful entrepreneurs, exited founders, and sector specialists, with personal money to invest.

ESIB chair Rob Binns, Cllr Aidy Riggott from LCC, ESIB director Miranda Barker and fhunded's Rory Southworth

placeholder image — ESIB chair Rob Binns, Cllr Aidy Riggott from LCC, ESIB director Miranda Barker and fhunded's Rory Southworth

The amount of individual angel investments – which are usually made in return for shares in the business - are often within the £50,000-£150,000 range, but angels can also band together and invest jointly.

LCC has already welcomed several investors to its fhunded angels network. Most have a strong connection with Lancashire, and share an interest in wanting to help boost the County’s innovation economy.

Aidy Riggott, Cabinet Member for Economic Development and Growth at Lancashire County Council, said: “I’m incredibly proud that we are the first local authority to have established a regional angel network as big and ambitious as fhunded angels. Enabling prosperity, and creating economic opportunities for everyone, is also at the heart of LCC’s new Council Plan, and angel investment has the potential to help some people who may otherwise be excluded from accessing early-stage funding.”

Rob Binns, CEO of Preston’s Cotton Court Group and chair of the Lancashire ESIB, said: “The fhunded angels programme has been launched to support ambitious Lancashire entrepreneurs looking to get their foot on the investment ladder. However, angels often bring far more than just finance to the table, and many go on to become passionate champions for the companies they invest in.

“For many angels, it’s being part of the company’s growth journey which really motivates them, as well as the chance to make a return on their investment."

In addition to complementing the work of the current fhunded programme, LCC sees angel investment as a way for Lancashire to address the chronic lack of finance available to startup businesses more generally in the UK, especially outside of London.

The Council also believes that angel investment could be an effective way to help entrepreneurs from groups significantly underrepresented within the startup space to get more access to finance and funding.