Data shows majority of UK startup founders are now over 45

A new survey from the Angel Investment Network found that the majority of UK startup founders are over the age of 45.

The research, based on responses from 435 founders, indicates that entrepreneurship has become more of a second-act career for many in the UK, with a significant number relying on external employment and personal finances to support their ventures in the early stages.

Data from the survey reveals that 67 per cent of UK startup founders are over 45 years old, with 25 per cent over 55. Only a quarter of respondents were under 45. The survey also found a notable gender imbalance, with just over three-quarters of founders identifying as male.

The main driving force behind starting a business was a passion for an idea, cited by 45 per cent of respondents. This was followed by identifying a market gap (21 per cent) and hopes of achieving financial freedom (14 per cent). Despite financial independence being a motivator, many founders do not immediately achieve this goal.

Startups continue to face early financial pressures. The survey showed that 43 per cent of founders maintain a full-time or part-time job to support themselves while building their businesses. Most founders (89 per cent) have used their personal savings to fund their startups, with additional support from family and friends (24 per cent) and bank loans (12 per cent). 

Fundraising has become a significant demand on founders' time. Some 38 per cent spend at least a third of their week seeking investment, and 21 per cent reported spending more than half their week dedicated to this activity. For 11 per cent of founders, fundraising consumes their entire schedule. Almost half stated that this focus on sourcing funds undermines their capacity to actually run the business. Non-financial sacrifices also emerge, with sleep (21 per cent), time with family (18 per cent), and mental health (17 per cent) being the most commonly cited.

Despite these efforts, fewer founders are investing significant time in due diligence when selecting investors. Only a third of respondents reported conducting thorough checks on prospective backers, while a combined 66 per cent are either performing only basic checks or none at all.

Of those who have secured investment, 54 per cent said more than one in ten meetings with investors resulted in funding. The challenges of fundraising featured heavily in the lessons shared by experienced founders.

The top lesson identified was the importance of expecting rejection, highlighted by 70 per cent of respondents. This was followed by the need for a robust network and resilience (61 per cent), and the value of a clear, concise pitch (54 per cent).

Mike Lebus, Founder, Angel Investment Network, said while angel investment is a key source of funding at the startup level, it's important for founders to be prepared for rejection.

"The idea that all successful startups are launched by 22-year-olds with immediate angel investment is a fantasy, perpetuated by TV programmes and social media often ignoring the hard-earned experience and financial stability required to take a calculated risk. Our data shows entrepreneurship is often a second-act career, requiring founders to pay their own bills while they build, using personal savings or salary as their primary initial funding source," said Lebus.