The British Business Bank has joined forces with Business Finance Solutions for an angel partnership which aims to secure £10m for businesses in the North West each year.
The Co Angel Investment service will to bring together syndicates of business angels and co-investment from the Angel Co Fund British Business Bank to invest between £150,000 and £4m into businesses in the North of England.
The British Business Bank can invest alongside the funds invested by angel investors, to allow syndicates to complete larger funding rounds and to follow their monies on subsequent rounds to a greater degree.
Paul Breen, director of Business Finance Solutions, said: "Greater Manchester is a thriving entrepreneurial base but the level of business angel activity and success here falls below expectation, with the South East currently scooping 74 per cent of Angel investment.
"Co Angel Investment is a completely new concept that creates better and lower risk opportunities for angels that supports businesses that are struggling to find funding. We want to build an early stage market with the capacity and impact to match that seen in the US and to capitalise on the unique match funding agreement from the British Business Bank."
Tim Mills, investment director at the British Business Bank, said: "This is the first Co Angel Investment service to be launched in the north and we knew it had to happen in Manchester. The service will be a new and powerful force for bringing businesses and business angels together in a completely different way, connecting businesses to investors, investors to syndicates, and syndicates to co-funding.
"This is a huge opportunity for Greater Manchester to show the rest of the country and the world the wealth of business innovation, ideas and people that we need to be actively driving our economy forward."