Angels Den, the UK-based angel investment network, and Pre-X Capital Management, the fund management and broking service, have launched a new fund which will invest in companies with high growth potential going through the Angels Den process.

The Best of Angels Den Fund will help the firms grow, by ensuring that they are appropriately backed, and manage them through to the point when another company buys them or they are growing sufficiently fast to consider a listing on the stock market.

The fund gives investors the chance to enjoy the same exposure to companies that wealthier investors follow, but without devoting large amounts of time and money, the joint venture said in a press statement.

Angels Den received some media attention for its “SpeedFunding” events, which resembles the concept of speed dating in its matching of investors and companies. The firm has an investor base of over 3,000 business "angels", with links to thousands more via syndicates, it said.

At these "SpeedFunding" events, investment-ready entrepreneurs are able to pitch to investors on a one-to-one basis.  On average, 90 per cent of entrepreneurs gain interest from at least one angel, according to the firm.

“This fund allows the investor to enjoy the same exposure to companies that wealthier investors follow, but without devoting large amounts of time and money, and doing it in a tax efficient fashion,” said Bill Morrow, founder of Angels Den.

“We’re determined to professionalise the process of investing and managing an investment in start-up companies where the returns can be spectacular,” he added.

Pre-X Capital Management, the specialised enterprise investment scheme manager, makes investments in growing companies that are 12-18 months away from listing their shares on a stock exchange.

The closing date for investments in the Angels Den EIS Fund 2010 is 4 April 2010.