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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