A prominent Preston businessman is to head up a ‘Dragons Den’ style business programme for Lancashire.

Lancashire County Council is creating an ‘angel-funder network’ where individuals can pitch to private investors for business ideas they have.

Chief executive of Cotton Court and successful entrepreneur Rob Binns is to chair the Lancashire Early-Stage Investment Board which will oversee the scheme.

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The county council say the plan – which may help businesses access funding, from private equity sources – could unlock between £50,000-£150,000 in backing for many start-up businesses.

It builds on the current fhunded programme which runs in many places in Lancashire after beginning in Lancaster and which the county council claims has seen 80 per cent of equity raised in the county linked back to businesses who are part of the Fraser House based fhunded events. No exact figures were given on the amounts generated.

Mr Binns 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. Facilitating more angel investment in Lancashire will therefore be a win-win for both the individual investor and the entrepreneur seeking finance, with the County’s wider economy set to benefit massively as a result.”

The scheme is being backed by the county council, although all funding will come via private investors, and no figures have been given for how much the county council invests in the fhunded concept itself.

Cabinet member for economic development and growth at the county council, councillor Aidy Riggott, 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. While our existing fhunded programme has been a great success, the VC interest it generates isn’t suitable for everybody seeking investment, especially if they are at the start-up stage.

“Added to that, on a national scale, the amount of funding secured by startups has dropped significantly in recent years, and most of the deals which are being completed are concentrated in London. That’s where local angel investors can make a massive difference to somewhere like Lancashire, bringing equity-based seed finance into the County, guiding and mentoring young businesses with genuine high-growth potential, and helping to strengthen Lancashire’s overarching inward investment offer.”

The ‘angels’ involved in the scheme are a mix of successful entrepreneurs, founders and sector specialists with personal money to invest – they tend to be high net worth individuals.

The identity of the ‘angel investors’ is not revealed but the county council said most had a strong connection to Lancashire and wanted to help boost the county’s innovation economy.

One angel who is taking part in the scheme is Jeremy Gidlow, a tech entrepreneur based in Lancaster.

He said: “I became familiar with the fhunded programme through the VC finance events hosted by LCC at Fraser House in Lancaster. After attending several sessions, I was impressed by the innovative and interesting local entrepreneurs seeking finance, and the great opportunity to support them on their journey.

“As someone interested in early-stage investment opportunities, especially in Lancashire’s growing tech sector, I was eager to get involved in the fhunded angels project. Now that it’s live, I am excited to work with my fellow angels to discover those dynamic and disruptive Lancashire startups that are currently under the radar.”

Members of the Lancashire Early Stage Investment Board include: Miranda Barker OBE – Chief Executive, East Lancashire Chamber of Commerce. John Daly – Non Executive Director, Panaz, Ann Dean Jordan MBE DL – Chair of Lancashire Digital Skills Partnership, Stuart Thompson – Reorient Consulting Ltd, Amin Vepari – Senior Projects Officer – Business Finance & Scale Up Business Growth, Lancashire County Council, Jessica Wenmouth – Head of Research Commercialisation at Lancaster University, Nikki Whittle – Partner, Brabners, Cllr Tim Ashton – Chairman of the Lancashire County Council, Cllr Ron Woollan – Lancashire County Council.

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