The Angel CoFund was established in 2011 by a consortium of business angel groups and received a £50 million grant from the Regional Growth Fund. The fund was set up in order to increase the quantity and quality of angel investing in England
It invests into small and medium-sized enterprises with high growth potential throughout the UK, alongside syndicates of business angels. By July 2013 the fund had made 32 investments, making it the UK's most active angel investment fund by number of deals.
The fund was initially supported by Capital for Enterprise Limited (CfEL) a private limited company wholly owned by the Department for Business, Innovation and Skills. On 1 October 2013, CfEL became part of the British Business Bank, which took over the management of CfEL's funds, including the Angel CoFund. Following the establishment of the bank, Minister of State for Business and Enterprise, Michael Fallon, announced an additional £50m for the fund.