Businesses seeking funding would rather do deals with investors who bring knowledge and experience than those who offer the most money, according to new research.

Figures from investment network Angels Den show that two-thirds of firms prioritise wisdom and insight over pure financial clout.

Just 12 per cent said investment was purely a financial consideration, compared with just over three-quarters who described the ideal combination as “financial investment with mentoring and business advice”.

Angels Den co-founder Bill Morrow said: “Finding an experienced business person is willing to both give you the money and help you spend it is the difference between a spectacular company and an average one.

“From the investors side your chances of seeing a return on your investment sky-rocket if you get involved. Offering mentoring is the real difference between investing on paper and investing whole-heartedly. There needs to be avenues there for all types of investors and businesses seeking investment.”

More than half of respondents said there was not enough mentoring opportunities on offer, while a quarter said they had been turned away after approaching an investor of advice.