7 Positives for the UK Startup Scene from the Autumn Budget

Yesterday the Chancellor unveiled his budget plan for the UK.

The main headline was that we can expect slow growth (around 2%) for the next few years. And that Brexit seemed to be the principal cause of this. A gloomy budget indeed.

But, as ever, even in the murkiest river a nugget of gold can be found. With a little sifting, I’ve found some positive news for us spirited folk on the startup scene.

The sifting was very boring. I’ve tried to set out my findings as clearly as possible. So, you can enjoy the gold without getting your feet wet! You’re welcome.

The Treasury conducted a survey called ‘Patient Capital Review’ which set out to consider how to support innovative firms in getting funding and achieving scale. The conclusions drawn are positive and will be a boon for early-stage companies over the next 10 years.

These conclusions resulted in an ‘Action Plan’ in the budget which aims to unlock £20bn over the next 10 years to support growth in innovative firms.

The main points are as follows:

1. Tax Breaks (EIS & VCT)

– EIS allowance for people investing in ‘knowledge-intensive companies’ will double from £1m to £2m each year.
– ‘Knowledge-intensive companies’ can receive twice as much EIS & VCT investment each year. That’s a move from £5m to £10m.

(Check out a previous post for more info on the benefits of EIS.)
SEIS & EIS budget
Result: An estimated extra £7bn of investment.

2. Government-backed Co-investment Fund

– A £2.5bn Investment Fund incubated in the British Business Bank will be established to co-invest with the private sector.
Result: An estimated extra £7.5bn of investment.

3. Backing Fund of Funds

– The British Business Bank will invest in a series of private sector fund of funds.
Result: An estimated £4bn of investment will be unlocked.

4. Backing Fund Managers

– The British Business Bank will continue to back new and existing fund managers through its existing Enterprise Capital Fund.
Result: An estimated extra £1.5bn of investment.

5. Backing overseas investment into UK

– The Department of International Trade will support overseas venture capital into the UK.
Result: An estimated extra £1bn of investment.

6. Support for Regional Investment

– The British Business Bank will establish new investment programmes to support business angel groups outside of London. This will complement existing programmes like the Northern Powerhouse Investment Fund and the Midlands Engine Investment Fund.
– £21m is budgeted to expand Tech City UK’s reach across more regions.
Result: Unlocking of investment potential outside of the London hub.

tech city uk budget (1)

7. Other

– British Business Bank to investigate supporting Women Entrepreneurs getting access to equity investment
– £2.3bn increase in R&D spending
– £1m Games Fund to support video game development
– Helping Pension Funds invest in innovative firms
– Qualification for Entrepreneurs’ Relief will no longer de-incentivize accepting external investment

I hope all that makes sense.

It’s pleasing to see that, in difficult times, the government recognises the importance of supporting the innovation sector as a key driver of our economy.

If you want more detail on this Action Plan in the budget, I’ll be at the UKBAA National Investment Summit on 28th November. Keith Morgan CEO of British Business Bank will be leading the discussion on the Chancellor’s proposals.

You can get tickets here

Hope to see you there!

Free Access to Europe’s Biggest Business Show with Angel Investment Network

Angel Investment Network are proud to announce our latest partnership with the Business Show. As part of this, we are offering complimentary tickets to their London event on 16th & 17th November 2017. For more information and to claim your tickets please see the article below by Shane Ransom, Senior Marketing Manager at PRYSM Media Group:

Overview

After 19 years of running, PRYSM Group are proud to announce the 38th edition of The Business Show will be kicking off on the 16 & 17 November at London’s Olympia.

To anybody who has attended the show, it will come as no surprise that it has firmly established itself as Europe’s largest event dedicated to helping startups and SMEs successfully evolve or expand their businesses.

Due to the show’s sterling reputation within the B2B events community, 25,000 tenacious entrepreneurs and business owners will flock to The Business Show. All on a mission to source the latest services, solutions and strategies to take their business to the next level.

World-renowned Speakers & Business People

Renowned for acquiring a calibre of attendee unmatched by any rival show; over the years the exhibition has attracted industry legends looking to discover the latest business innovations to stay ahead of their fierce competitors. This list includes James Caan, Lord Alan Sugar, Peter Jones, Touker Suleyman and many more.

business dragons

The Business Show continues to be at the forefront of all other business exhibitions, from Apprentice winners to a plethora of dragons from Dragons’ Den, from the head of B2B marketing for Google UK to even the chairman of Crystal Palace F.C, our show consistently attracts the industry’s most relevant speakers and – as you can see – November’s speaker lineup is no exception.

See full keynote line-up here

Learn how to Grow your Business

With 350 visionary exhibitors showcasing the latest products, systems and services transforming the business world, our show allows more SMEs and startups to connect with more sought-after suppliers than ever before.

Every one of our 250 seminars features up-to-date content, based on current UK business trends. We have attracted a vast array of world-class speakers working within the health and fitness industry – a sector that has grown in popularity over the years – including; Peter Roberts, the founder of the largest gym operator, PureGym; and founder of LA Muscle Parham Donyai.

Our phenomenal lineup of speakers also consists of success stories that would inspire any ambitious business owner. Levi Roots will be here to provide you with the insights into how he became one of the most iconic and charismatic figures in business world. James Gold, co-founder of Skinnydip, will discuss how his creation of the phone case accessory helped him develop one of the most successful privately-owned companies of this generation. Ben Towers, who has been named by Richard Branson as “one of the UK’s most exciting entrepreneurs” will share his journey to becoming a multi-award winning business owner by the age of 19.

Business Show_Olympia_Main

Your Free Ticket

Your ticket grants you access to more than just the seminars and suppliers. November’s instalment of The Business Show will play host to an endless array of features including the Google Digital Garage; which offers free digital skills training to people looking to grow their business, their career or their confidence online. If you register for a free ticket, you can even book a one-to-one mentoring slot with the world’s most influential business via our website, but you need to make sure you book in advance!

Over the two days visitors will also have access to 15 masterclasses; whether you’re looking to expand your knowledge of branding, digital marketing, e-commerce, trading or franchising, we have got you covered. You will gain all the information and guidance you need to achieve the business growth you desire.

To ensure you make the most out of your visit we have split the show into six different zones; the Startup Zone; the Marketplace; the Finance Zone; the Digital Zone; Going Global Live; and for the very first time, the Legal & HR Zone. These zones have been carefully crafted to provide expertise across all sectors of the business world.

To top it all off, the show offers visitors unrivalled networking opportunities; our Speed Networking Feature located in the SME Zone allows you to make 40 new contacts in just 40 minutes! It is the quickest and most efficient way for you to add potential suppliers, clients and partners to your contact list, but seats to this free feature are first come, first serve so make sure you get there early to secure your seat!

business show tickets

If you’re looking to start, grow or expand your business then you must register for a ticket to The Business Show, and you will have an opportunity to experience an exhibition like no other. Attending this event could define the future of your business, so what have you got to lose? Register for your free ticket now!

Click here to register for your complimentary tickets

Thanks to Shane Ransom and the team for writing this post.

Hope to see you there!

Sceptic to Champion: Air Ticket Arena on Angel Investment Network

Fundraising on Angel Investment Network – A User Story:

Kresimir Budinski first reached out to me through LinkedIn. He is the founder of Air Ticket Arena – the first fully-automated platform allowing passengers to bid for unsold seats on scheduled flights; and helping airlines to recuperate some of the £120 billion in lost sales each year through unsold seats.

He recently closed a £350,000 of seed fundraising through Angel Investment Network.

Kresimir, or ‘The Bishop’, as he is affectionately known by his team, complimented me on my article about SEIS & EIS Tax relief. He had apparently used it as an explainer throughout his fundraising. Both for investors he had found through Angel Investment Network and other channels.

I thanked him and wished him luck with the fundraising. And we left it at that.

Messages like this are relatively frequent (depending on the quality of my article!). So I didn’t think any more of it.

But I was to hear a lot more from Kresimir and the story behind his fundraising. A few months later, pleased with his progress (now overfunding), he shared his fundraising experiences with me in full. It struck such a chord that I had to share the story.

It’s a tale of how courage through scepticism can bring great opportunity. And it’s a useful case study for anyone considering looking for investors on the Angel Investment Network platform, and more importantly, for anyone fundraising in general.

So, in the charismatic words of their Head of Marketing Grgomir ‘George’ Garić, the story of Air Ticket Arena’s fundraising journey from intense initial scepticism to success….

Air ticket arena fundraising

Part 1: Fundraising Scepticism

I had always considered investors a type of mythical creature, living somewhere in a distant fantasy land, creasing themselves with derisive laughter at most investment proposals. By investors, I mean real investors who can offer advice as well as capital. Not just people who masquerade as investors because they have a bit of cash.

Of course, I had heard about the likes of Facebook, Uber, Airbnb, and hundreds of other projects backed by investors – but I had never met anyone who would actually boost my bank account.

Except for my wife, of course.

In my life before Air Ticket Arena, I had met many who claimed to be investors. But few of them understood the symbiosis required between entrepreneur and investor to make a partnership mutually motivating. The interaction between idea and capital needs to be good for both the idea and the capital. The idea needs to grow and so does the value of the capital.

Too many investors wanted to buy into projects at way below the value of the idea and all the preceding hard work. They refused to realise that this was not optimal for the business and therefore not optimal for their investment.

Given these early experiences with “investors”, my approach to any kind of investor was always going to be like visiting an 18th-century dentist. Suspicious in the extreme.

Part 2: Misplaced Hope

So, when I started working on Air Ticket Arena and Kresimir, suggested fundraising our seed round through Angel Investment Network. I thought it was the beginning of the end.

I sincerely believed that Angel Investment Network, despite their 13-year history and impressive track record, was just another portal where anyone – even my mother – could masquerade as an investor.

So why did we go with them?

Sometime in 2009, a seemingly beautiful thing happened. Kickstarter kickstarted. This was the first time I had heard about crowdfunding.

The theory seemed inspired to me. This was a real innovation in the investment scene which promised a more efficient process for both investors and entrepreneurs. And promised to harness the power of the crowd with all the social proof that can bring.

Then equity crowdfunding platforms like Crowdcube and Seedrs emerged. Icing on the cake. Or so I thought.
Fundraising through crowdfunding

I had heard complaints about these platforms from founders who had tried them. But I dismissed them as over-fussy.

When Kresimir asked me to prepare a crowdfunding campaign on Crowdcube for Air Ticket Arena, it was a joyous occasion and I dove into the work with relish.

We prepared almost everything for the campaign and then one week before the launch, Crowdcube refused us. Their reason? We didn’t have a high street bank account. Right.

Not to be deterred, we immediately approached Seedrs hoping to re-purpose the material we had put so much effort into for the Crowdcube campaign. After a 15-minute call, they claimed that our valuation was too high to run.

My high hopes were thoroughly misplaced and I found myself floundering in a sense of gloom about the prospects of fundraising. Not simply for myself, but also for other regular people who do not have access to investors through their personal network.

It was in this state of despondency that Kresimir insisted we chance our hand on Angel Investment Network. You can imagine my reaction.

I already considered this platform inferior to the likes of Crowdcube and Seedrs who had just thoroughly disappointed me.

Thus, it was without much hope and intense reluctance that I agreed to create a pitch on Angel Investment network…

Part 3: Faith Rewarded

fundraising

Six months later, we have raised £350,000 and filled our seed round. The strength of the discussions means that we are now overfunding as I write this.

At this point, while we enjoy the security of fundraising mission accomplished and while the experience is still fresh in our minds, I thought it might be helpful to share some key findings from our campaign on Angel Investment Network.

– Are the investors active and real?

Most of the investors we spoke to were active and engaged in the investment community and had the capital to invest. Even those investors who did not ultimately invest provided useful feedback for us with which we were able to improve our pitch and even our business. The platform also monitors the activity of investor users. Anyone suspicious is removed pending investigation.

– How can I tell if an investor is really interested?

It will be straightforward to identify investors who are seriously interested. They will have read your pitch in detail and will ask the most pertinent questions so will stand out from the others.
It is also very important to do your own due diligence of any investor contact – you can be sure they’ll be doing it on you. So, don’t be afraid to ask people to identify themselves if their profile is not clear.

– How can I keep prospective investors interested?

When you are happy that a prospective investor’s interest is genuine, engage in dialogue with them in a clear manner. Your job is to clarify what you have written in your deck. Keep focused on it. Try to also give the impression of progress and momentum – update investors you’ve not heard back from as well as ones you actively talking to.

– What should I say about valuation?

Avoid any talk about valuations after a one-minute talk or a first email response. Send an investment package and give them up to a week to investigate the opportunity. An excellent counter-question is to ask them how much they want to earn? None of them gave us an exact answer.
When you do come to declare your valuation make sure that your reasons for it are clear and grounded in the reality of the space in which you are operating.

– What sort of investors should I aim for?

Expect that your investors will more likely be from a similar industry to your project. If it is a project from the travel industry, then more than likely the investors will come from the travel industry. These investors will certainly be most helpful to you. However, there are many investors who are interested in investing in an area but are not necessarily experts e.g. Bankers interested in AI. So be prepared for this too.

– Do I need to have all the legal stuff prepared?

Make a clear legal pathway for investors who make you an offer of investment. Your investment contracts need to prepared and ready to send. An offer is never really finalised until all the forms are signed and the money is in your account, so you don’t want to have any delay in sending over the necessary documents when an investor declares an offer.

– How much effort is required?

Prepare to invest time and some money to ensure your pitch is as good as possible and that it gets the exposure it needs to raise the capital you need.

To be successful your pitch needs to be excellent and you need to market it well. We wrote 50+ articles explaining our concept from a variety of angles which we shared across social media channels. Angel Investment Network were very willing to re-share these posts which helped to create a buzz.

What I want people to understand from our story is that anyone with a good idea can raise money from angel investors. It requires dedication and hard work, but so does running a successful business!

At this point, on behalf of the whole team at Angel Investment Network, I’d like to thank Kresimir, George and the guys at Air Ticket Arena for taking the time to share this. All the best with the business!

Want to know more about Air Ticket Arena?

Check out their explainer video below:

Want to share your experience on Angel Investment Network and get featured as part of this user story series?

Please contact me on oliver@angelinvestmentnetwork.co.uk or on Twitter

Startup World Cup & Summit Tickets

The world-renowned Startup World Cup and Summit takes place this October (17th) in the Palace Lucerna in Prague. The event’s thousands of visitors will be treated to a fulfilling schedule of networking opportunities as well as talks and workshops from industry experts.

Startup companies

Startups who register will compete in the Startup World Cup competition with $1,000,000 USD as the prize! In addition, they will receive the ultimate conference experience: with scheduled investor meetings, opportunities to meet customers, and the chance to learn from successful, experienced speakers and mentors.

Investors

Investors can keep abreast of the latest developments in the tech world all the while getting direct, early access to the latest investment opportunities from startups at the forefront of innovation.

Students and other visitors

All other visitors can gain inspiration from the talent and expertise on display, and perhaps walk away with invitations to apply for jobs!

startup World Cup and summit inspiration

So whether you’re a startup looking for knowledge, mentorship, and/or funding; or someone who simply wants to get insight into the startup scene; or an investor looking for the next great opportunity, you are sure to find a rich, rewarding experience at this year’s SWCS.

It is for this reason, that Angel Investment Network is delighted to announce that we are partnering with SWCS. You can pick up a discounted ticket here if you are quick (we have a limited number only!).

Discount codes for Standard and VIP tickets:

Standard: Angelinvestment25
VIP: Angelinvestment25VIP

For full details, check out their website: https://www.swcsummit.com/

We hope to see you there!

Women in Tech: Success & the Future…

We recently learned that Pivigo is one of 15 of the UK’s fastest growing tech companies founded by women selected to visit Silicon Valley.

The trip is part of an initiative to build ties with the US tech scene. The other firms heading to Silicon Valley include:

All are showing an annual growth rate of at least 118%.

Pivigo is a data science marketplace founded by the remarkable Dr Kim Nilsson. Their mission is to connect “…data scientists and businesses across the world…to revolutionise the way we work, live and stay healthy.”

Dr Kim left her role as an astronomer on the Hubble Space Telescope to complete an MBA and pursue a career in business. The move was a good one.

Since she founded Pivigo in 2013 the company has:

  • Raised nearly £1m in funding (£300k through our investors on Angel Investment Network!)
  • Become the world’s largest community of data scientists.
  • Completed over 80 data science projects to date. (Clients include KPMG, Barclays, British Gas, M&S and Royal Mail.)
  • Started Europe’s largest data science training programme S2DS (Science to Data Science). The programme supports career transitions of PhDs and MScs into data science roles.

pivigo data science women

Kim’s transition from academia to top founder is part of what makes her story so impressive and why, no doubt, she was a good choice to meet with executives from Apple, Google, Instagram and LinkedIn. Sherry Coutu CBE, the founder of Silicon Valley Comes to the UK, and the London Mayor’s office made the selection.

This link building through the UK’s most talented female founders comes at a time of high interest in the role of women in the growth of the European and UK tech sectors. Figures reported by LinkedIn and Founders4Schools show that:

  • Female-led companies have helped add £3bn to the economy over the past year.
  • The number of female-led companies with turnover of £250m+ grew by 14% in the same period.

But what about women business angels?

Despite the flourishing community of female founders and executives, only a small number are using their business acumen to invest in small businesses.

As a result, the UKBAA in partnership with Angel Academe, a network of female business angels, is conducting new research. They want to understand the barriers perceived by women about angel investing. The survey is being hosted and analysed by the the CASS Business School in London.

This research is also part of a their new Europe-wide project called “Women Business Angels for Europe’s Entrepreneurs”. The project will enable them to review the situation in Europe as well as the UK.

UKBAA logo women
The results will give important insight into how, as a community, we can engage more women in angel investing. Off the back of the research, the UKBAA plans to develop a programme with the goal of doubling the number of female angel investors in the UK over the next two years.

If you’re female and involved in startups, please do your bit for this iniative and fill out the 10 minute survey here.

Thanks!

What’s the outlook for mobile app startups and investors in 2017?

“There’s an app for that”, or some variant of the phrase, is now one of the most common responses to anyone raising a complaint or bemoaning a problem, however small.

Rise and fall of man

The extreme sense of entitlement coupled with the profound idleness that characterises our age has created a market for apps which manage or assist with our dry-cleaning, our sex life, our tampon subscription, our polyphasic sleep-mapping, our pets’ bowel movements…I wouldn’t be surprised if somewhere in the murky depths of the App Store there’s an app for communing with the dead – or perhaps I’ve just been watching too much Black Mirror.

The last decade has seen the rapid and unstoppable emergence of the mobile application. And it’s not just quick-on-the-uptake millennials who are enamoured with this new way of being, by now nearly everyone is a smartphone-toting app addict.

But is this set to last? And what’s the outlook for mobile app entrepreneurs and investors?

The general consensus from anecdotal reports is that mobile app companies are finding it more difficult to raise finance. This requires some unpacking. Thanks to a report from our friends at Beauhurst, who track the funds raised by thousands of seed, venture and growth-stage companies, we can see that the amount invested in mobile apps in the UK reached its highest ever level of just over £560m in 2016 (that’s up from £67m in 2011 and circa £275m in 2015).

Mobile app deal numbers and amount invested 2011-2016
Mobile app deal numbers and amount invested 2011-2016

So what’s the problem? Clearly, there are enormous (and increasing) amounts of capital still being ploughed into the app industry by investors. But hold on, there’s a nuance to this.

The crucial change which gives credence to the consensus is that the stage of the app companies raising money has changed. In 2013, 70% of app companies who raised money were seed stage, but by 2016 that number had dropped to 62% with more investors opting for the more proven venture and growth-stage companies.

So from this, we can see that for early stage app companies the prospect of raising finance has indeed become marginally harder. However, the amounts being invested into the sector are still growing at an impressive rate so for apps good enough to compete, there’s still a world of opportunity.

With thanks to Beauhurst for permission to use their data. You can read their article here

Business Funding Show Event – Canary Wharf 23rd February

Angel Investment Network will once again be joining a host of other companies from the startup investment space at the latest Business Funding Show on 23rd February near Canary Wharf tube station.

PICTURE with Logos

Attendees will be given the opportunity to:

– Meet famous entrepreneurs like Mark Wright (BBC Apprentice Winner)
– Learn from Angel Investors such as Mike Greene (C4 Secret Millionaire)
– Meet a range of leading financial institutions
– Get free 1-2-1 with Top Investors & VCs
– Attend talks from industry experts

Wondering what it’s all about? Check out what it was like last year in the video below:
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If I were an SME today and I’d just started a business or I was growing a business in my early days, I’d be here at the Show, because I want to learn more and more about all the different forms of funding available, meet potential funders every year, meet with fellow entrepreneurs and learn from them, learn from the speakers, who are very experienced.Lord Bilimoria of Cobra Beer

Picture Richard

My mission is to help entrepreneurs to set-up and grow their business. So, the Business Funding Show is a perfect event for this, as it’s all about helping entrepreneurs to learn how to get money and grow fast.Richard Reed of Innocent Drinks

Our very own Xavier Ballester will also be giving a workshop on raising money through angel investors!

You can get tickets here.

Latest Success Story: Repairly get their investment fix

Repairly is one of the latest company’s to come off Angel Investment Network’s funding line. The company is now gunning to fix the technology repair industry having closed a £265,000 seed round.

Repairly is disrupting the billion-dollar technology repair services industry by offering collection and delivery on broken tech. Their mission is to make it ridiculously simple to get your phone, tablet or laptop repaired.

Repairly 3

The introduction of Repairly means that people no longer have to go to the expensive Apple Store or inconvenient corner shops – customers don’t even have to leave their desk. Repairly collect, repair and return within an average of 2 hours and 6 minutes.

Fraser Williams, co-founder and CEO at Repairly, says: “Over 32,000 phones get broken everyday in the UK alone. People don’t know where to turn when this happens. Repairly turns people’s negative experience into a positive one, and if you can find delight in a phone repair, you can find it anywhere.”

Richard Edwards, the other co-founder, says: “We ensure busy people with broken technology are back up and running as soon as possible…We saw how much technology had advanced but the support for that technology was lagging behind. People were waiting for up to 2 weeks without their phone. That seems crazy in today’s technology-reliant society.”

The business was started in 2015 after Fraser Williams dropped out of University. Richard Edwards was an early team member of the online cleaning marketplace, Hassle.com, which was acquired by Rocket Internet in July 2015.

Repairly is a graduate of the UK accelerator programme Virgin Media Techstars. The seed investment came from well-reputed investors including someone whose previous company, AddLive, was acquired by Snapchat, Richard Fearn, Daniel Murray (CEO, Grabble), Richard Pleeth (Ex-Google).

Richard Fearn comments: “Repairly’s business is growing quickly into a large market, with strong unit economics and great customer reviews.”

Exciting news for Repairly; and everyone prone to breaking their smartphone!

FinTech Connect Event in London

FinTech Connect Live
FinTech Connect Live

We recently partnered with FinTech Connect, a company that was launched with the vision of building a platform and community for the global FinTech industry.

As part of this partnership, there are discounted tickets available to their next event in London (6th & 7th December 2016) for our readership. If you’re interested in the FinTech industry and think this might be of interest then check out the event brochure here.

If you want to attend use the code FTCL1627 to get a 25% discount on your ticket. Just head over to https://register.iqpc.com/SRSPricing.aspx?eventid=1002786