Research by Angels Den, the UK’s largest business angel network, found that three fifths had sought some form of traditional funding, such as a bank loan, and failed.

Participants were asked how they had managed to fund their ventures, with 58 per cent revealing they mainly used a combination of personal savings and help from family and friends, and just 19 per cent securing a bank loan.

The most common reasons that founders said they were turned down for funding were unrealistic projections and growth plans (32 per cent), lack of personal experience (28 per cent) and existing personal debt (21 per cent).

Bill Morrow, Co-Founder and Director at Angels Den commented on the findings: “Unfortunately, it is all too often the case these days that promising start-ups with an excellent service or product to promote fall at the last hurdle, whilst trying to secure traditional investment.”