Amy Pierechod explores the impact of updated investor definitions on startups and angel investing
Tuesday 27th February 2024
Amy Pierechod, partner and head of startups and emerging companies has featured on UK technology industry publication, UK Tech News.
Her article explores the impact on the UK tech startup and angel investing landscape following the new definitions for sophisticated investors and high-net-worth individuals.
From 31 January, 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.
The changes are intended to help investors and shield them from risking their capital. However, the new definitions have significant ramifications on the available capital for startups and the potential for angel investing.
Amy also explores how the new definitions will have a disproportionate effect depending on which region founders and investors are located and whether they are male or female.
Alongside discussing the impact of the new thresholds, Amy explores how the response from the startup and tech landscape has highlighted other areas of the startup journey and how these can be leveraged to support founders.
You can read Amy’s full article in UK Tech News here.
