Entrepreneurs going through business angel networks are being forced to dramatically reduce their valuations in order to secure investment.

Due to the current economic climate the valuations offered by business angel networks for stakes in new businesses has decreased.

The angels also have a wider range of opportunties to choose from, with the number of pitches being heard increasing 31% in the last month.

This rise has been caused by the credit crunch, as more entrepreneurs and SMEs are approaching angel networks for funding due to the increasing difficultly of securing overdrafts and loans from banks.

"If entrepreneurs are realistic about their valuations, there are angels that will support them," said Struan McDougall, general manager of an investment group.