What you need to know.
Why is the Obu angel investment platform going offline?
On 31 January 2024, the government’s new rules on angel investing came into force. Among other things, they significantly increase the amount of money you need, either as earnings or assets, to qualify as an angel investor in the UK. These changes mean huge numbers of people are no longer eligible to invest, tens of thousands of them women.
In the short-term, this dramatically reduces the number of people legally allowed to invest through platforms like ours. In turn, this makes it unviable (for now) for us to retain our regulated status, which means we’ll need to temporarily take the platform offline. As a result, for an interim period while we further evaluate the impact of the government changes, we won’t be able to offer any new opportunities to invest in start-ups directly through our technology platform.
We’re working hard to challenge the changes and it’s our goal to reinstate the platform as soon as we can, as well as find alternative ways to support women who want to invest, and be invested in.
When is the Obu angel investment platform going offline?
16th February, 2024.
What will actually happen on that date?
You’ll no longer be able to log into the Obu angel investment platform or see any investment opportunities, which means the platform terms and conditions will no longer apply.
What happens to the founders raising on Obu right now?
They’ll be continuing with their investment rounds and we’ll continue to cheerlead for them – just not via our platform. If you’re interested in backing them, you can reach out to them directly. You can contact WorkTripp here. And Gaia Learning here.
What happens if I’ve already made an investment commitment on Obu?
If you’ve already made an investment through the Obu platform, that agreement is between you and the founder you’ve chosen to invest in, and isn’t changed by the platform going offline. Your relationship with them will remain the same as it is now – a direct working relationship, without the ongoing involvement of Obu.
Can I still make investments on the platform?
No, once the platform goes offline on 16 February 2024, you’ll be unable to log in or use it to make any new investment commitments.
What if I still want to invest in Gaia Learning or WorkTripp?
If you’ve been exploring our current raises with Gaia Learning or WorkTripp and you’re interested in finding out more or investing, you can still reach out to them directly – we know they’d love to hear from you. You can contact WorkTripp here. And Gaia Learning here.
Will Obu be supporting any new raises?
Yes. It’s really important to us to keep supporting women founders and helping them access vital investment, but we’ll need to pause to take stock and reshape our proposition for founders. We’re exploring new ways we can support them in raising investment and we’ll keep you updated as those plans take shape.
Has Obu’s mission changed – and can I still support it?
No, our mission hasn’t changed. In fact we’re more determined than ever to increase the number of women and ally angel investors in the UK and get more funding into women-founded businesses.
Which means we’d still really love your support. Despite the investment platform going offline, there’s a lot happening at Obu right now, and you can get involved. We’ll be in touch soon to tell you more about it.
Can I still contact the Obu team?
Absolutely. If you can’t find the answers you need on this page, just email us at help@obuinvest.com and we’ll get back to you as quickly as we can.
What if I have a problem related to my experience as a user of the Obu platform?
We always work hard to give both angels and founders a positive experience, and that’s not going to change. But if you’re unhappy with the service you’ve received from us, please reach out to our support team by emailing help@obuinvest.com
If you’re unhappy with our response, you may be eligible to refer your complaint to the Financial Ombudsman Services at South Quay Plaza, 183 Marsh Wall, London E14 9SR. You can also call them on 0800 023 4567, or email complaint.info@financial-ombudsman.or.uk
Alternatively, you can also reach out to Khepri Advisers Limited, who looked after the platform’s regulated status when it was live. You can call them on 0203 376 5900 or email compliance@khepri.com
What will Obu do with my personal information?
We’ll always take the utmost care of your personal information. If you’ve made an investment through Obu’s angel investment platform, UK financial regulation requires that we need to keep your data for five years following that investment.
If you’ve never made an investment through the platform, your profile details will no longer be visible online but if you’d also like us to delete them from our records, or require further information, just email help@obuinvest.com
How can I withdraw funds from the platform?
The platform has never taken or held funds. Angels used it to make investment commitments to founders, but those investments were made directly from angels to founders, off-platform. There are no funds in the platform, so they can’t be withdrawn.
Where will capital repayments or distributions due be sent?
Capital repayments and distributions due have never been part of the Obu investment platform’s reach. Once investment rounds are closed, angels and founders work directly with each other, and exchange capital, entirely separately to the platform.
If you’ve invested in one of the businesses we supported on the Obu platform, please reach out to the founders of that business, or check the legal agreements you signed with them, to check where your capital repayments or distributions due will be sent.
If I used the Obu platform but never made any investments, how will I be impacted?
You won’t be able to access the platform anymore, so you won’t be able to view the founder profiles or information previously available there. But if you’re still interested in investing in the founders we’ve been supporting – Gaia Learning or WorkTripp – you can reach out to them directly. We know they’d love to hear from you. You can contact WorkTripp here. And Gaia Learning here.
Just because the platform’s going offline, doesn’t mean Obu’s going anywhere. You can still follow us on LinkedIn and Instagram and you’re still a part of the Obu network.
How exactly are the government changing the rules on angel investing?
Angel investing is high risk. In many cases, to be eligible, the government requires you to meet at least one of the following criteria, the majority of which have just become much more stringent.
Here’s how they’re changing:
Before 31 January 2024
You need to earn at least £100k, or…
You need net assets of £250k (not including your home or pension), or…
In the last two years, you need to have been a director of a company with a turnover of at least £1 million, or…
In the last two years, you need to have made more than one investment in a company that’s not on the stock exchange, or…
In the last two years, you need to have worked in private equity or finance for small and medium sized enterprises, or…
You need to have been part of an angel network (like Obu) for at least 6 months.
After 31 January 2024
You need to earn at least £170k, or…
You need net assets of £430k (not including your home or pension), or…
In the last two years, you need to have been a director of a company with a turnover of at least £1.6 million, or…
This no longer makes you eligible.
This isn’t changing.
The good news is, this isn’t changing.
Why will the changes disproportionately impact women?
Because, on average, women earn less and have lower net assets than men. And with these new rules in place, fewer women will have the opportunity to grow that wealth by building their investment portfolio, or securing the investment to scale their business.
The same applies to diverse and non-London-based founders and funders. We believe this is a rule change that will help to keep wealth in the hands of the same wealthy people, and stifle women’s innovation, impact and influence.
Looking at the earnings criteria alone, across the UK, the number of men eligible to be angel investors fell by 61.48% on 31 January 2024, from 810,000 to 312,000. Meanwhile for women it fell by 70.54%, from 280,000 to just 76,000. In Northern Ireland and the North East of England, no women now earn enough to qualify in this way.
I want to be an angel but the new rules count me out – is there anything I can do?
Yes. The good news is, being part of an angel network for six months qualifies you to start angel investing. You’re already part of our Obu network, so you’re already working towards that six-month target. In fact, some of you will have reached it already.
For those of you that haven’t, we’re working to turn that six-month window into a real positive. We’re putting together a structured, empowering programme that takes curious angels (or those recently made ineligible) through six months of powerful, practical learning and inspiration, so they can hit the ground running when they reach that six-month milestone.
If you’ve got any questions, we’re here to help, so just drop us a line at help@obuinvest.com
Will Obu still exist?
Absolutely. And our mission remains the same. We’re here to grow the number of women angel investors in the UK, and get more investment into brilliant women-founded businesses. We’re needed now more than ever, and we’re working hard to find new, impactful ways of supporting women who want to invest and be invested in.
What if I’ve still got questions?
We’ll always do our best to help and point you in the right direction. Just email us at help@obuinvest.com and we’ll get back to you as quickly as we can.