An Open Letter to the Chancellor

Dear Chancellor,

We, the undersigned, urge you to reverse the upcoming changes to the definition of High Net Worth Individual Investor.

The UK has built one of the biggest startup ecosystems in the world. From a few scrappy dreamers in East London, the UK startup ecosystem is now a multi-billion pound industry that is turbocharging growth in the economy. 

The growth of this ecosystem would not have been possible without continued Government support through a range of policies over more than a decade. The EIS and SEIS schemes has enabled startups to raise capital at the earliest stages, providing an injection at the most precarious point in a startup’s journey. 

Your own measures have continued this support: the 2022 expansion of the scheme will further support the earliest stage firms. The extension of EIS and VCT schemes will perform a similar function at a later stage. And the work on late stage capital and pension funds will tackle capital gaps as companies scale. 

This work is being put at risk by the changes to High Net Worth Individual Investor rules planned to come into force at the end of January. They are anathema to the trailblazing startup ecosystem that has been built today.

The changes would mark a huge increase in wealth requirements needed to invest in startups, damaging the ecosystem at such a delicate time. 

We believe the changes are wrong because:

Since they were first mooted, the investment market has changed. The changes were first proposed in 2021 when angel investing and VC investment spiked. Since then, first-cheque investing figures have fallen off a cliff, with the number of first-round seed-stage deals in 2023 down 28% year on year and at a ten-year low at 1,025. This is down from 1,973 in 2021, when this measure was consulted on.

The startup ecosystem will be hit hard. The increase in the thresholds will kick the ecosystem while it is down. Reducing the amount of capital available will limit the growth of job-creating startups, killing off the next generation of scaleups.

Female and underrepresented founders will be hit hardest. Underrepresented founders already have a harder time accessing capital. As female-led angel groups and others have warned, the changes will squeeze out more women and ethnic minority angels. We know these investors are more likely to back companies overlooked by others. This means female entrepreneurs, diverse founders and companies outside London will find it even harder to raise the funding they need.

Angel investing risks becoming an elite-only activity, undoing huge amounts of good work to address this gap. We want investing to be as diverse and open as possible. Technology such as crowdfunding and angel syndicates platforms have enabled the democratisation of the startup ecosystem. The changes risk reverting angel investing to an elite-only activity, leaving people ostracised from the growth of the UK’s tech sector.  

For all these reasons and more, we believe these changes would be a huge error - and one that will damage not just individual startups but the ecosystem as a whole. We urge you to reconsider in the coming days. 

Yours,

Sign the Open Letter:

2900+ Signatories Including:

Roxane Sanguinetti - Co-Lead of Alma Angels

David Fogel - Co-founder of Alma Angels

Andy Ayim - CEO of Angel Investing School

Nnenna Onuba - Angel investor of LBB Skin

Leke Sholuade - Founder of Black Valley

Erika Brodnock - CEO of Kinhub

Harry Bedford - Patent Attorney at Caldwell

Jenny Tooth OBE - Executive Chair of UK Business Angels Association

Sam Simpson - CEO of FounderCatalyst

Kevin Withane - Founder and CEO of Diversity X (Overlooked and Underestimated CIC)

Eline Van Der Velden - Founder/ CEO of Particle6

Volker Hirsch - Tech Entrepreneur & Investor at Tech North Advocates, Blue Beck

Wesley Rashid - Co-founder & CEO of The Accountancy Cloud Ltd

Katie Ramsey - Angel Investor & Co-Founder of The Power Collective

Steve Karmeinsky - Director of NetTek

Martin Rigby - Managing Director of ET Capital Limited

Nayna McIntosh - Founder & CEO of Hope Fashion

Helen Oldham - Co Founder of Lifted Ventures

Wyndham Plumptre - CEO of Future Arc

Edward Chin - Co-founder & CEO of Supersolid

Zoe Yu Tung Law - CEO of New Wave Biotech Ltd

David Webster - Managing Partner of Global Tech Connect

Kristina Pereckaite - Director of South East Angels

Kufa Matiya - Founder of FutureMatch

Chung Yen Looi - CEO of Ablatus Therapeutics Limited

John White - Founder of arketyp.

Jeremy Silver - Director of Mediaclarity Limited

Katie Nicholson - Director of LCR Angel Network

Robert Walsh - Managing partner of QVentures

Martha Silcott - Female Founder of fabLittleBag

Chloe Vernon-Shore - Solicitor and Angel Network Lead at Michelmores LLP

Alexandra Rico-Lloyd - Founder / Board Advisor of Bike Club / Various

David Maxwell - Angel Investor of MPB NI

Xavier Ballester - Head of Broking at Angel Investment Network

Andrew Clyne - Advisor of Davis Family Office

Goncalo Vasconcelos - Founder of Rnwl

Ian Stevenson - Chair of the Online Safety Technology Industry Association

Alexander Hirsch - Founding Director of ProCervo LTD

Iulia Tudor - Portfolio Director of Ascension

Arnold du Toit - Director and investor of DTA design and technology LTD

Charlie Richardson - CEO of Lumio

R Hardisty - founder of RLH Marketing

Peter Monteza - CEO of MyARC

Daniel Rajkumar - CEO of rebuildingsociety.com Ltd

Laura Church - Investor Platform Lead of Connectd

Joseph Zipfel - Chief Investment Officer of SFC Capital

Laura Mallaburn - Head of Business Support/Angel Network Manager of Lincolnshire Business Angels

Jack Clegg - CEO of Platter

Denise Noyan - Co-founder &CEO of Wealt

Edward Falzon - Advisor

Natasha Makhijani - CEO of Oliver Sanderson Group PLC

Martin Fincham - Partner of The Gorilla Factory LLP

Mo Rassolli - Startup Mentor of Circle 42 Ltd

Marie Korde - Co-Founder and COO of Two Magnolias VC

Rhodri Llewellyn - CEO of Axial Capital Partners

Geoffrey Keeys - Private investor

Claudia Stankler - COO of Connectd

Gary Turner - Angel Investor of Gary Turner

Marguerite Crossfield - Compliance Officer of SFC Capital Partners Ltd

ANDREW CAESAR-GORDON - ANGEL INVESTOR of SOUTHERN ANGELS INVESTMENT CLUB

Lorna Cobbett - Founder & CEO of Blue John

Sheridan Ash - Founder and Co CEO of Tech She Can

James Gambrell - Director of Supponor

John Wedge Auckland - Founder of TribeFirst Limited

CatherineAnn Reid - CEO of Doqit

Anthony Clarke - Retired Fund Manager and Chartered Accountant, Serial Angel Investor

Claudine Owens - Investment Manager of Clarendon Fund Managers

Ceanne Fernandes-Wong - Director / Investor of Hanover Rise Consultants / Personal investor

Kelwyn Looi - Founder & CEO of Espers

Andrew Aldridge - Partner of Novazure

Kanu Batra - Founder of Speek Health

dominic holmes - Ceo of eXRt

Marco Hacon - Investment Exec of Green Angel Ventures

Matthew Louis - Broker of Angel Investment Network

Eniye Okah - Founder of Beame

Chris Rees - Co Founder of Aspect Angels

Michael Martin - Partner of Anvil Partners LLP

David Levine - Principal at Manchester Angels

Kevin Easom - Accessibility Engineer of Forzuna

Huw Bishop - Director of Camau Nesaf Limited

Romualdo Scotto di Carlo - Director of MGStone ltd

Jocelyn Lomer - Founder/Investor of nuVa Enterprises Ltd

Oscar Hakenäs - CFO of Connectd

Jordan Dargue - Founder of Lifted Ventures

Alice Knibbs - Investor of Love Ventures

Dan Cathie - Director & CEO of Silveray

Kris Jones - CEO of MagicSauce Online Ltd

Adrian de Ferranti - Chairman/Founder of Ferranti

Tristan Fletcher - CEO of Commodities AI ("ChAI") Ltd

James Campbell - Director of Walmer Group

Eliza Eddison - VP Operations of FabricNano

Davide Ferrara - Director of Macrina Investment Management

Scott Haughton - COO/Co-Founder of Envestors Limited

Emma Jones - Founder of Enterprise Nation

Victoria Milne - Director, female investor, entrepreneur of Tenshi Consulting Ltd.

Oliver Woolley - CEO of Envestors Limited

Timothy Barnes - CEO of The Centre for Entrepreneurs

Oliver Tarpey - VP of Marketing of Connectd

Richard Foster - Director of Carbonamine ltd

Dec McLaughlin - Co-Founder of Foras

Ilya Mikin - CEO of Wallid.co Ltd

Alex Davies - CEO of Wealth Club

Mike Lebus - Director of Angel Investment Network

Björn Schimmöller - CEO of iuvantium Ltd.

Cristian Gherhes - CEO of Lexverify

BINDI KARIA - Founder of bindi ventures

tom roberts - CEO of Xterna Group

Marcus Tarling - Owner of M Tarling LLP

Alice Garnier - VC Partnerships of Capsule Insurance

Anthony Flaton - VC Marketing Consultant of Occulus Consultants

Lawrence Jones - Associate of planD

Dev Amratia - CEO of nPlan

Martin Avison - MD of angelgroups

Ryan Mendy - CCO of Zilch

Merilee Karr - Founder and CEO of UnderTheDoormat Group

Jamie Lesser - CEO of NewSpace Finance

Bradley Greenway - Produc Lead of Connectd

Ching-Yun Huang - Head of Growth and Product of Angel Investment Network

Jonathon Clark - Angel Investor of Capital Enterprise

Eric Warner - FOUNDER of ExxFire BV

George Dewdney - Investment Principal of TSP Ventures

Jamie Hutchinson - CEO of Cordon Technologies ltd

Steve Berry - Chairman of Waterbridge Capital

Tony Smith - Adviser to start ups and clients selling businesses - GreenTribe

Alan Mosca - Co-founder & CTO of nPlan

Anna Sofat - Chair of One Loud Voice for Women

St John Hughes - MD of Avenir Energy Ltd

Toby Firkins - Acquisition Marketing Executive of Connectd

Kevin Flanagan - Founder of Co-Opts Ltd

George Robinson - Investment Associate of Vala Capital

Richard Jackson - Consultant of Web Business Builderz Limited

Graham Poulter - CEO of Corporate Intellgence Ltd

Fernanda Aguiar - Product and Growth Lead of planD

Mo Aldalou - Programme Director of Baltic Ventures

Finlay Kerr - Director of Raising Expert

Rupert Lewis - CEO of Oyster Venture Partners

Simon Bell - Angel Investor of Future Flux Solutions

Stephen Bloch - Partner of Innovation Warehouse Capital

SENE PAPE MBAGNICK - Investissement of TRANSPORT

Merlie Calvert - CEO of Farillio

Stephen Ong - CEO of The Hub Exchange Limited

Vimesh Roopun - Co-founder of Hatch Impact

Angelika Burawska - Chief Operating Officer of SFC Capital

Siobhan Clarke - Director of Particle Leap Ltd

Phil McSweeney - Director of CoachPositive Ltd

Gareth English - Founder of Superpowerme Ltd

Steve Procter - Founder of l2o

Harry Cresswell - Web developer of Angel Investment Network

Jon Teale - Customer Success Manager of Connectd

Samuel Morris - Associate of Connectd

Katy Medlock - Gm of Back market

David Murray-hundley - Ceo of Pario Ventures

Alex Heaton - Founder of Athlete

Gill Wildman - Director of Upstarter Ventures

Paul Marchant - Founder of Stroli

Daniel Sawko - CEO of shipshape.vc

JONATHON ILETT - VP Sales at Cognism

Sameer Singh - Venture Partner at Speedinvest

Nana Parry - Founder of Tectonic

Stephen Allcock - Investor - Euphorium Pubs Ltd

GREG RICE - Director of Activate Studio Ltd

Emanuela Vartolomei - Founder & CEO of Sevva AI

Rupert Lyle - Fund Principal of Midven

Joanna Pacholec - SVP Corporate Development of Footballco

John Stenhouse - Manager of Angels@Essex - University of Essex

Simon Emary - COO of Growthdeck

Rosie Turner - Cofounder of InChorus Group

Bobby A - Founder of Lobster Money

Martin Macdonald - Director of weeteq

Jordan Ong - Investment Associate at Midven

Edward Gray - Account Executive of Connectd

Ben Green - Angel Investor & Startup Founder of Merqury Technology Limited

James Thomas - Angel Investor - Cambridge Angels

Safia Qureshi - CEO of CupClub Limited

Stuart Gaffikin - Senior Investment Manager of Clarendon Fund Managers

Harry Nightingall - Product Manager of Expedia

David Prais - Chairman of Greater London Investment Fund

Chris Oliver - Investment Manager of OION / OIG EIS Fund

Fuchsia Curry - Head of Private Client Marketing of Deepbridge Capital LLP

Jogchum Brinksma - CEO of Flobas Ventures

Aahuti Rai - Advisor and Investor of Four Points Health

Jarmila Halovsky-Yu - Managing Director of YUnique Marketing Ltd

Pier Paolo Mucelli - CEO of eOffice

Lucy Woolfenden - founder of The Scale Up Collective

John Oliver - Sales Director of Vala Capital

Alison Lewy MBE - Founder of Fashion Angel

Jatin Patel - Creative Director/ Founder of Kalikas Armour

Geoff Revill - Managing Director of Safe Space one Ltd

Becky Lodge - Director of Little Kanga Ltd’s

Andy Snuggs - Chief Growth Officer of Peppercorn AI Technology Ltd

Raj Ramanandi - CEO of InChorus

Richard Godfrey - CEO of Rocketmakers Limited

Rajia Begum - Business Development of Connectd

Peter Hawkins - Director of Zerons Publishing Ltd

Jordon Cornish - Co-founder of Kinsail

Adam Engberg - Co-Founder of Kirmada Ltd

Amy Newton - Director of Newtons Theory

Andrew Levi - Angel Investor

FELICIA Meyerowitz Singh - Founder / NED of Engage Smarter.ai

Mark Neild - Programme Director for Student Start-ups of University of Bristol

Brenda Hobday - Ceo of SuperStore Systems

Christian Rouffaert - CEO of Teragence

Emma O'Rourke - Finance Director of Northstar Ventures Limited

Elena Itskovich - President of Nest Catalyst

Mandy Nyarko - Angel investor at Startup discovery school

Kate Hutchinson - Founder of The Sustainability Community Ltd

Mark Blair - Founder / Partner of Ziplake Limited

Kwabena Amoah-Gyamfi - Social Media Manager at Connectd

Becky Lane - CEO of Furbnow

David Astles - Director of JMA Solutions Ltd

Emrah Saglik - Director of SGL Technology Limited

James Green - Cofounder of DQ Ventures

Sally-Anne Hunter - Consultant at Lifetime Consultancy

Peter Kara - Principal at Corporate Direction

Jesse Heasman - Investor of Prefcap

Ian Merricks - Proposition Lead of VenturePath Investment Community

Mike Bank - Founder of Underdog Accelerator

Glenn Halliday - Co-Founder & COO of LSF

Martha Jary - CFO Partner of Scaleup Finance

Laurence Watson - Co-founder of Furbnow

Olivia Parkes - Founder & CEO of itoms

James Cracknell - Co-Founder and CEO of Relocon Ltd t/a The Weave

Megan Bingham-Walker - Co-founder& CEO of Anansi Technology Ltd

Emmie Faust - Founder of Emmie Faust Consulting Ltd

Rachel Polhill siner - Operations manager of Baltic ventures

Emmanuelle Spriet - Owner / Founder of GETS Consultancy Services Ltd and SEMBA Ltd

David Newman - CEO of Firenze

Claire Lewis - CEO of Baltic Ventures

Emma Kenny - Non-Executive Director, Adviser, Investor of VR Entertainment Ltd

claire cooper - GTM Strategist of CGTM consulting

Alex Lusty - Head of Operations & Compliance of Equity Gap

Andy Davis - General Partner of 10x10 Capital

Dan Goss - Associate of Connectd

Emma Westley - VP Marketing of DCX

COLIN TILSON - CEO of Deckrider Scooters Ltd

Peter Storey - CEO of Greenlit

James Marshall - Co-founder and Chief Science Officer of Opteran

John Courtney - CEO of Boardroom Advisors Ltd

Hanna Lewis - Co Founder of Teamhouse

Steve Nalty - Commercial of Block DojoLimited

Robin Russel - Co-Founder, COO of Satva Trust

John Souter - Founder and CEO of Soutersmith Ltd

Toby Austin - CEO of Beauhurst

Patrycja Maksymowicz - Director of StartupGrind

Hugo Rodger-Brown - Director of YunoJuno

Vasily Alekseenko - Founder of Rare founders

Kevin Smith - CEO of BOOM & Partners Ltd

Dama Sathianathan - Investor of Bethnal Green Ventures

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