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What makes a good entrepreneurial investment?

On behalf of E2Exchange, we asked two entrepreneurs and active investors what they look for before parting with their coveted cash.

Kingsley Duffy, director at Hostelwood Group, said: "One of the key things is the people that run the business and are passionate about it.

"The second thing would be the competitive environment - have these guys found a nice that's defensible, where they can operate effectively. And thirdly; how easy it is to execute the whole plan, because some businesses are simple and others are complicated. In my opinion, the simpler the better."

Simon Turner, co-founder of Markit Systems, said: "Having made 10 individual investments over the last five or six years, what we have found is that people are probably the biggest driver. The business has clearly got to have a USP - something that differentiates itself from the crowd - but I really am a great believer in investing in people."