Angel Investment Network Blog

In our latest Behind The Raise interview we interview Nick Torday, co-founder of Bower Collective, a sustainable consumer technology business dedicated to combatting the global plastic waste crisis. Bower Collective aims to create a more sustainable world by eliminating plastic waste through the delivery of a wide range of award-winning natural household products in BowerPack™, their unique reusable packaging system. Nick discusses their mission-driven approach, the growth they have seen and scale of the investment opportunity, how they have coped with global supply chain challenges and his top tips for raising investment.

Tell us about Bower Collective and how you came up with the idea?

I used to run a tech business that specialised in working with social and environmental impact organisations, like the UN, Greenpeace, WWF, etc – some years ago we did a major campaign on marine plastic waste which ignited my passion in this problem space. 

I then got together with my old friend Marcus, who had recently sold his successful bio-packaging business to a FTSE 100 company and was looking for his next challenge. We both share a passion for purpose-led business and put our heads together to come up with a transformational and scalable business that would directly address the plastic waste crisis. 

That’s how Bower Collective came to life in late 2019, with a clear mission to eliminate plastic waste and create a more sustainable world. Bower is a sustainable consumer technology business that delivers a wide range of award-winning natural household products in BowerPack™, our unique reusable packaging system.

What is the problem you are looking to solve?

The plastic waste crisis is one of the defining environmental challenges of our time. Globally 1 million tonnes a day of plastic waste are generated and the $1 trillion dollar consumer goods industry plays a major part in this and also in global carbon emissions.

We believe there is a better way to provide consumers with everyday products, which is why we are at the forefront of the reuse and refill revolution. Our unique BowerPack™ system is a market leading innovation that has already saved over 44,000kgs of plastic from landfill, incineration and the natural environment. 

With over 95,000 customers and a YOY growth rate of 234%, we’ve had a fantastic first couple of years in proving that we are delivering an outstanding service and solution to the problem we aimed to address.

What initially attracted investors to your company?

Most of our investors were attracted by our central promise – driving sustainable innovation in the consumer goods category. This is a market which is worth over £155bn in the UK and Europe alone, so the potential for scale and impact at scale is considerable. Also our core model is defensible, it would be very hard for the big CPG businesses to retrofit reusable packaging systems into their huge and complex supply systems. 

The Bower proposition and experience has always resonated strongly with our lead investors and all our angels too, nearly all of whom are also happy customers! 

Finally, as founders we had credible track records within the sustainable business space having between us scaled and exited impact businesses prior to launching Bower. We also have very complementary skills across technology, product and leadership.

What are you looking to do with the investment this time?

This funding round is for two investment areas specifically:

1) to support our expansion into retail and hire in specialist sales / account management leads 2) to double down on our investment into automation of our BowerPack reuse and refill system.

Why did you raise via Angel Investment Network?

We were introduced to AIN through our original pre-seed investors at Founders Factory. We’ve always believed in a strategic mix of capital between corporate venture, VC and private angel investment. We had a great experience with AIN in a previous round, so have come back to work with them again this time out!

How have you coped with the volatility of global supply chains over the last couple of years?

It’s certainly had its challenges, not least when we launched in January 2020 and then covid lockdown hit us barely 2 months later. Two things happened – first, our sales demand exploded, second, our access to product and componentry became a nightmare! Little known fact that 80% of the world’s dispenser pumps are manufactured in Northern Italy which was the first region in Europe to lock down, so getting the parts we needed was really tough.

However, we have been relatively well protected as we have a deliberately localised and low carbon supply chain, with over 85% of our products manufactured here in the UK, so Brexit and other international freight challenges have had little impact on us thankfully.

What is your top tip for anyone raising investment for the first time?

My top tip is to have complete clarity of message and proposition and to stick to your strategy when speaking with investors. It can be very tempting to keep tweaking and adjusting your thinking and message based on feedback – if you stay true to your vision it will be much more effective. Remember that you will get rejection, that is part of the process, but you have to stick to your core mission and vision principles to win through.

What additional factors do impact-led startups need to be aware of when fund raising?

There are two areas to consider. One – you have to ensure you are speaking with the right investors, if they are vaguely interested in ESG as a box-ticking exercise, is their passion for your purpose really there? Two, credibility – we are a fully certified B Corp and Certified Carbon Neutral – it is a lot of hard work to achieve and maintain these certifications, you need to be transparent and effective at communicating your impact.

If you’re looking for an angel investor to help fund your business, then the Angel Investment Network can help. Sign up to pitch your business to investors all over the world 

Fusion technology holds the key to unlocking a clean energy revolution by replicating the energy generation process of stars right here on Earth. With the world’s continuing reliance on carbon-creating fossil fuels, the urgent need for sustainable alternatives has never been greater. This is where fusion steps in, offering both an investor opportunity and the potential for game-changing startups to address critical energy transition needs. 

In our latest Sector Focus article Dr Melanie Windridge, world renowned physicist, CEO and founder of Fusion Energy Insights gives us the low down…

What is fusion technology?

In a nutshell, fusion technology aims to replicate the energy generation process of stars here on Earth for clean energy production. 

Creating a controlled fusion reaction involves generating extreme conditions similar to those in stars, such as temperatures of hundreds of millions of degrees. This can be achieved using methods like lasers or high magnetic fields. The technology encompasses various complex systems, including machines like Tokamak (a magnetic machine) or laser fusion devices. Additionally, there are supporting technologies like gyrotrons, neutral beam injectors, and cryogenic gases that are crucial for building a fusion power plant.

What are the reasons for the rising interest in fusion technology?

The increasing interest in fusion technology can be attributed to several key factors. Firstly, the field of fusion science has matured over the years, with significant progress in understanding the physics and different approaches to fusion. While challenges remain, the knowledge base is substantial.

Secondly, advancements in enabling technologies have emerged, presenting new possibilities for fusion. Innovations such as high-temperature superconductors, improved lasers, high-performance computing, and advanced manufacturing have positively influenced fusion research and development. These technologies enhance the efficiency, cost-effectiveness, and feasibility of fusion power plants.

Thirdly, the pressing concerns of climate change and energy security have propelled the drive towards clean energy solutions like fusion. Governments now prioritize sustainable alternatives to combat climate change and ensure a stable energy supply. This shift in focus has generated a stronger mandate for exploring fusion technology. We have this vision of a better future and that drives, I think, the vast majority of people who are working in fusion.

Additionally, the fourth factor contributing to the rising interest in fusion technology is increased private investment. The involvement of private companies and investors brings additional resources, expertise, and motivation to advance fusion research and move closer to commercialization.

Collectively, the convergence of mature science, enabling technologies, environmental imperatives, and private investment has fostered a heightened enthusiasm and momentum in the field of fusion technology. Its time has come.

What challenges does fusion technology need to overcome and what barriers still exist?

The transition from fusion science to commercial implementation poses significant challenges. Key obstacles include demonstrating the science of fusion reactions in various approaches and engineering practical power plants. Material selection is crucial due to extreme temperatures and high magnetic fields, while managing the damaging effects of high-energy neutrons. 

The creation of tritium, a vital fusion fuel, within the machine itself requires further research. Overcoming these challenges necessitates advancements in material science, tritium breeding, and engineering. While private companies aim for electricity generation by the early 2030s, addressing these barriers is essential for the viability, safety, and economic feasibility of fusion power plants.

In the current economic climate, investors are increasingly seeking proven returns on investment, presenting additional challenges. When it comes to fusion technology, it is crucial to adopt a long-term perspective. Although fusion is undoubtedly the future, there is a shorter-term investment challenge compared to a year ago—ironically due to an energy crisis caused by Russia’s invasion of Ukraine, which further underlines the need for a clean sustainable energy source like fusion.

What is the investor opportunity?

Fusion technology presents a significant investor opportunity due to the ongoing reliance on fossil fuels in the global energy mix. Despite efforts to achieve net-zero targets, a substantial amount of fossil fuel is projected to remain in the energy mix by 2050. This “hard to decarbonize” segment includes industries like cement and steel production, shipping, aviation, desalination, and other processes requiring large amounts of heat. 

Fusion technology offers potential solutions by generating both electricity and heat, making it applicable to these challenging sectors. Furthermore, fusion’s ability to produce hydrogen, synthetic fuels, provide district heating, and propulsion further expands its potential applications. As a long-term solution, fusion has the capacity to eliminate fossil fuels altogether and contribute to maintaining a sustainable zero-carbon future. The scale of this opportunity is enormous, representing trillions of dollars and addressing critical energy transition needs.

Which companies are doing interesting things in this space?

In the UK, the main fusion companies are First Light Fusion and Tokamak Energy, both based in Oxfordshire. 

First Light Fusion is working on an inertial fusion approach similar to laser fusion, but instead of using lasers to trigger the fusion reactions (via implosion of a tiny fuel pellet) they use a one-sided projectile impact. This simplifies the power plant design. Much of the company’s intellectual property is in the design of the target, which takes the one-sided impact shock and bends it to compress the fuel from all sides while also amplifying the compression. 

Tokamak Energy is working on a spherical tokamak concept with high temperature superconducting magnets. The tokamak design is one of the most mature fusion concepts—a ring-doughnut shaped chamber surrounded by strong magnets that trap the hot fusion fuel away from the walls. The “spherical” tokamak is a squashed-up variation that is more efficient, and high temperature superconductors make higher magnetic fields than other materials, which make a more effective trap for the fuel and enables smaller designs of power plant.

Aside from fusion developers, there are also supply chain and enabling technology companies. 

Kyoto Fusioneering is a spin-out from Kyoto University in Japan that is developing various high performance technologies required for a commercial fusion power plant. It sees itself as an enabler for the fusion industry and, as well as international contracts and collaborations, is forging relationships with Japan’s industrial organizations as part of its supply chain and aiming to contribute towards the evolution of a new high-tech fusion industry.

Then there’s my company, Fusion Energy Insights. We help people keep up to date with developments in the growing fusion industry so that they can see opportunities emerging for their business. With all the news and developments happening in fusion (scientific, financial and political), and the information available from disparate sources, we do the work of curating it all for busy professionals, providing updates and insights. We provide a free newsletter and blogs to all; extended updates and deep-dive Q&A events for members; and Fusion Advisory Services to investors looking for specialist information. 

About the author
Dr Melanie Windridge is a specialist in fusion energy who helps people see the value, opportunities and excitement of fusion. Melanie is the founder and CEO of Fusion Energy Insights, which keeps people up to date with developments in the growing fusion industry. She has a PhD in plasma physics (fusion energy) from Imperial College London, where she remains an Academic Visitor, and she sits on the Advisory Boards of the UK Fusion Cluster and US non-profit Energy for the Common Good. Melanie was previously UK Director of the Fusion Industry Association. In 2022 she was elected a Fellow of the Clean Growth Leadership Network. Melanie is the author of Aurora: In Search of the Northern Lights and Star Chambers: the race for fusion power, as well as writing for Forbes online.  

www.melaniewindridge.co.uk

Arrears, an innovative startup specialising in AI-driven global payments and finance operations, has been named as AIN’s Startup of the Month. The pioneering debt collection platform developed by Arrears leverages advanced AI technology to streamline and enhance the debt collection process for SMEs across the USA.

It was selected from close to 150,000 startups currently raising on the platform with AIN’s expert panel of judges praising the business for ‘effectively utilising innovation to solve a real-world problem.’ 

It is also witnessing substantial interest from investors. Arrears’ solution tackles the pervasive issue of late payments, which amounts to trillions of dollars in the United States alone. The startup addresses this challenge by offering a cloud-based solution that grants SMEs access to enterprise-grade software and seamless integration with OpenAI’s GPT-4 technology.

Startup of the Month is an initiative from AIN to champion and celebrate businesses on the platform with great potential and to help raise their profile. In showcasing these startups, AIN’s aim is to highlight the qualities of investable businesses to inspire and educate others. The team at AIN were impressed with Arrears’ utilisation of innovation, product-market fit, and potential for scalability.

According to Arrears founder and CEO Trent McKendrick: “We are delighted to be recognised by Angel Investment Network. Our platform enables efficient debt collection at scale, eliminating the need for a labor-intensive workforce or complex integration. In a short period, we have witnessed significant investor interest in our mission to drive positive change in the debt collection industry. Initially managing just over $20 million of accounts receivable on our platform, we have seen this number double in the past two weeks alone. We’re actively engaging with more investors to highlight the growing demand of our business and our revolutionary platform.”

Check out their pitch here

If you’re looking for an angel investor to help fund your business, then the Angel Investment Network can help. Sign up to pitch your business to investors all over the world 

In a more competitive funding landscape, angel investors are critically evaluating startups with a more ruthless lens than ever. It is crucial that founders don’t get their fundraise off to a false start by having something that is a fundamental red flag for a potential investor. Understanding and addressing these common concerns can significantly boost a startup’s chances of securing funding.

We spoke to angel investors and experts on our network to get their take. From a lack of passion and commitment to inadequate industry knowledge, we delve into the key indicators that may raise doubts in the minds of angel investors.

1. Lack of passion and commitment

Angel investors want to see founders who are deeply passionate about their business idea and are committed to making it a success. If a founder appears disinterested, lacks conviction, or demonstrates a lack of dedication, it can raise concerns.

According to Xavier Ballester, Director at Angel Investment Network’s Startup and Property Divisions: “Investors want founders that are passionate and committed to their startup. This comes through so clearly from the investors I speak to and is more critical than ever in today’s tougher funding landscape. Investors want to see that the founders they back are willing to work hard, make sacrifices, and persist through challenges.” 

2. Inadequate industry knowledge

Investors expect founders to possess a deep understanding of their target industry and market. If a founder demonstrates a lack of knowledge about key industry trends, competitors, or customer needs, it may raise doubts about their ability to navigate and succeed in the market.

According to experienced investor Noel Duigan: “The lack of experience of the founders, or their team is the main red flag for me. Often you are investing in the founders rather than the company. If the founders don’t have any skin in the game, that’s pause for consideration.”

3. Not having your finances in order

Founders asking for too much money can be a red flag for investors. Similarly overly optimistic or unrealistic financial projections can also set alarm bells ringing. If the numbers don’t align with industry benchmarks or seem too inflated without a clear justification, it may indicate a lack of understanding or a willingness to mislead. 

 According to Ballester: “It it really important to be realistic about valuations, particularly in the present climate. Many businesses are now needing to re-evaluate their plans and potential funding pathways. What was 8x last year may now only be 5x. It is vital valuations are rooted in fact, not fantasy. You will be far more likely to gain the interest of prospective investors with this approach.”

According to angel investor and acclaimed author David Pattison: “Some pre investment red flags for me include: When the opening conversation is just about how much and when? Also if a team that is rewarding itself too well on other people’s money.”

4. Lack of traction

Investors look for evidence that the startup’s product or service has market demand and validation. If a founder cannot demonstrate any customer traction, industry interest, positive feedback, or a well-thought-out go-to-market strategy, it may raise concerns about the startup’s potential for success.

Duigan says: “Lack of traction in their space will often mean stalled growth and is a red flag.  Have a look at their runway and burn rate, you don’t want it short and wide. That could spell either bad margins or high overheads.”

5. Poor communication skills

Effective communication and active listening are essential qualities for startup founders. If a founder struggles to articulate their ideas clearly both in person and through vital communication tools like the all important pitch deck, this is a big red flag. Similarly if they fail to actively listen to feedback or input from others, or exhibit poor interpersonal skills, it may hinder their ability to build relationships with investors and stakeholders.

According to Marla Shapiro, CEO of HERmesa – a UK based angel syndicate: “Investors want a super clear, concise story that gets us excited to ask more questions and set up the first call.  As one of our members says, “pitch decks are meant to be commercials, not novels!”   

According to Addy Windsor-Clive, investment manager at Regenerate Ventures: “A pitchdeck that isn’t in a suitable format asking the typical questions a VC would ask is a red flag for me.”

Ultimately people buy people and Shapiro puts it succinctly:  “We really try to invest in nice people.  We are putting our own money into the business and we are going to be with these founders for the next 3, 5, 7 years.  Life is too short to invest in jerks!”

While these red flags can raise concerns, it’s important to stress that they are not necessarily deal-breakers. Founders can address these issues and improve their chances of securing investment by being transparent, receptive to feedback, and continuously learning and improving.

The reality is many won’t learn. But by recognising and proactively addressing any red flags, startup founders can ensure they can have a head start in attracting angel investors. Putting rocket fuel into their fundraising strategy and turning entrepreneurial dreams into reality.

Join the world’s largest angel investment network, where global angel investors meet the great businesses of tomorrow.

“Never give up” was the message businessman and former jewellery magnate Gerald Ratner delivered at the launch of the Scale Up Awards by Business Leader magazine. AIN were in attendance to watch the launch of the awards with several prominent speakers discussing the challenges and opportunities faced by scaling businesses.

Ratner is the former chief executive officer of the British jewellery company Ratners, who famously demonstrated the power of negative PR when he notoriously made a speech jokingly denigrating two of the company’s products at an Institute of Directors conference. 

He detailed his Icarus-like fall from the glittering heights of business leadership that saw the company’s value plummeting by around £500 million after his blunder. He then described the obstacles he faced in launching a new fitness chain and how perseverance saw him through as he went on to sell the business for £3.9m in 2001. Following that he launched an online jewellery business, after he was turned down by 15 banks for funding, before a 16th agreed. He used the example to highlight the need for startups to persevere no matter the odds.

Irene Graham, CEO and a board director of the ScaleUp Institute also spoke at the event. She highlighted the real need for the UK to invest in more scale ups, pointing out that the UK is third in the world for startups but 13th for scale ups. She told the audience “You are the future, we need to get behind you”.

Founder of Business Leader Andrew Scott highlighted that there had been a record number of entries for the awards so far. 

The Scale-Up Awards are open to UK based entrepreneurs and trading businesses, celebrating business achievement and growth.  There are still time to enter.

When it comes to investing in startups, investors are not only evaluating the potential of the business idea but also the qualities of the founders behind it. Startups can have an innovative product, a large market opportunity, and a sound business plan, but without the right team behind it, success can be elusive. This is even more the case in 2023 with investment more difficult to secure.

Based on several interviews with prominent angel investors, we explore the key traits that investors look for in startup founders. From passion and grit to adaptability and communication skills, we delve into the qualities that can make a startup founder stand out and increase their chances of securing investment.

Continue reading “Five winning traits investors look for in successful founding teams”

The life of a startup is exciting but also tough and this past year has seen a combination of challenges. Many tech firms’ valuations have been radically reduced and we have a more difficult funding climate with investors having more strenuous criteria in the startups they back.

Many founders are needing to change plans quickly, look at longer runways and make really difficult decisions on staffing. All the while working harder than ever to raise funds. This can create real pressure and have a negative impact on mental health.

So how can startups support their mental health during challenging times? We spoke to a leading psychologist working with startups and several successful founders in our network to get their top tips and advice. 

Continue reading “How founders can support their mental health during challenging times”

In June 2022, MASTER Plant Holdings (“Master Plant” or the “Company”), an emerging force in the European cannabis industry, raised £500,000 in a seed funding round with Angel Investment Network (AIN), the world’s largest online angel investment platform.

Following this investment, Master Plant will aim to licence and redevelop a pharmaceutical distribution facility in Guernsey designed to develop high quality medical cannabis, unique strains and wider products for European distribution.

The European cannabis market is rapidly growing with Germany leading the way. Currently, the market exists via medical channels with limited psychoactive THC quantities (Cannabis Light). In fact, 89% of cannabis use cases involve this product for medicinal and therapeutic purposes. The European market is predicted to reach €13bn by 2027 according to Market Data Forecasts. In comparison, the United States market was estimated at approximately $65bn in sales in 2021, of which $21bn were from legal sources creating $4bn in tax.

After the first £500k round of funding, Master Plant is intent on remaining ahead of the curve. The Company is in the process gaining their cannabis licence for research, development and manufacturing of 300+ strains and formulations on the Island of Guernsey. Already, the company has consolidated decades of research and development into its proprietary cannabis genetics bank. This research will provide diversity in major and minor cannabinoids, as well as other beneficial molecules that will contribute to a vast assortment of future products. The licensed facility is set to distribute high quality medical cannabis, launch unique strains and products and develop deep tech enabled growth.

AIN’s funding will also enable the expansion of Master Plant’s senior team with seasoned experts joining from the North American cannabis industry. The commercial operations of Master Plant and Mee CBD, with groundbreaking water-soluble formulas, will also see wider development. 

According to Master Plant CEO, Oliver Osgood: “We are delighted that angel investors have backed Master Plant’s vision as we continue to break new ground in the cannabis industry.  As we look forward to the future, we are confident our cannabis licence and market proposition is unique. Combined with our proven track record and global cannabis credentials we are ambitious to become a key player in European cannabis.”Master Plant will aim to launch their next round of Series A funding in 2023. The £2m Series A funding will go towards retrofitting the Guernsey facility and developing commercial operations. Sign up for further updates here.

A pioneering Australian payment platform for hospitality called Payo has been named as AIN’s Startup of the Month. The platform was singled out from close to 150,000 startups currently raising on the AIN platform for having ‘a winning formula’ as an investable proposition. The business was given the accolade after a judging process involving AIN’s expert panel, combined with a high number of connections from investors.

Payo is a payments and software solution for small and medium restaurants. It solves the problem in hospitality of venues needing to use 4-6 different payment systems with an all-in-one solution enabling venues to make payments more simply and cheaply. The Payo founders came up with the idea following more than 10,000 conversations with venue owners and operators over the past decade in various roles. 

Startup of the Month is a new initiative from AIN to champion and celebrate businesses on the platform with great potential and to help raise their profile. In showcasing these startups, AIN’s aim is to highlight the qualities of investable businesses to inspire and educate others. The team at AIN were impressed with Payo’s innovation, clear evidence of traction and experienced founding team.

The Payo team are looking for funding to complete the front and back end development of the platform, as well as supporting sales efforts to further growth. The startup has more than 1,000 venues signed up so far. 

According to Mike Lebus, co-founder of Angel Investment Network: “AIN is the world’s largest online angel investment platform and Startup of the Month is about showcasing businesses that have a winning formula to gain investor interest. Payo demonstrates that in spades, with a solution to a real world problem for many smaller hospitality businesses, genuine traction and an experienced founding team. We hope other startups seeking funding can learn from what they have achieved and we wish Payo well on the rest of their fundraising journey.”

According to co-founder and CEO of Payo, Taf Chiwanza: “I’m extremely grateful to AIN for this recognition. It is testament to our hard work and the problems we are solving in the hospitality industry. A lot of the problems we are solving are certainly not just an Australian problem. This is a global challenge and we look forward to scaling this and helping restaurants save time and money.”

Check out Payo’s pitch here and watch Taf Chiwanza’s Sixty Second StartUp interview.

If you’re looking for an angel investor to help fund your business, then the Angel Investment Network can help. Sign up to pitch your business to investors all over the world  

In our latest Guest Post, Justin Eames, Head of Innovation at digital product development studio fish in a bottle discusses how startups can create an ideation process to boost innovation.

Many studies show that startups who adopt an ideation process are more likely to succeed than those who don’t.

If coming up with great ideas is key to the success of your startup, then considering how you can manage and improve that can give you the competitive edge.

This is particularly true for digital startups, where the complexities of software development makes getting from ‘great idea’ to ‘great product’ especially challenging.

In this short article I want to encourage anyone leading a startup, whether they consider they are inventing something new or not, to build an ideation process into the fabric of their business.

To get that off the ground you don’t need to make a big investment in time or money, or adopt complex processes. The benefits of a structured approach to innovation can come from just a small number of easy to implement steps.

The typical picture of a digital startup has a visionary founder – the entrepreneur – at the helm, driving the direction of a product while a team around them are tasked with delivering it.

The visionary founder usually works at the highest level of the concept while the team around them are responsible for making decisions about technology, design, customers, marketing and finance.

For the product to succeed, each of those areas must align and have input into the ideas that drive the business. Doing that without a process can be very challenging.

For startups, success requires them to identify where the needs of their users, the requirements of their business and the possibilities of design and technology meet. Once they find that point they are on their way to finding success. This is where an ideation process comes into play.

84% of executives say that innovation is important to their growth strategy, according to a study by McKinsey. Given that statistic, it’s surprising that so few identify it as an activity that someone within their business should own.
So all businesses should consider assigning someone to the role of Head of Innovation. Even the most resource-poor startup can do that as this doesn’t have to be their only role, or a major time drain. All that’s required is that there is someone with the authority and responsibility to ensure that the process of generating ideas is managed, in the same way that any other mission critical aspect of a business are managed.

Setting this up need not be a daunting task, there are tried and tested ideation processes from which to draw on and plenty of case studies demonstrating their success. For a long time, organisations that rely on ideas for their success have recognised that ideation, when untamed, is a chaotic and time consuming activity with hit-and-miss results.

As far back as 1942, Alex Osborn (the O of famous advertising agency BBDO) proposed techniques and strategies for generating creative ideas. His book, “How to Think Up”, argues that creativity is not an innate talent but a skill that can be developed through methods and practice. More recently, IDEO (famous for inventing the first computer mouse for Apple) coined the term “Design Thinking”, applying it to their set of ideation methods.

By using lead generation for law firms to reach potential clients, they can establish themselves as experts in their field and build their brand. This can help them to attract more potential clients, generate more leads, and ultimately, convert more of those leads into paying clients.

Any ideation process for digital products will do well to draw on those “Design Thinking” methods including empathising with users to understand their needs and experiences, formally defining the problem, ideating and prototyping possible solutions, as well as testing and iterating on those solutions based on user feedback.  This approach has proven to be highly effective and there are many case studies to support that.

For instance, Airbnb used design thinking to completely redesign its website and user experience, turning them from a failing business to a thriving business. An ideation process for digital products should segway comfortably into project management methodologies like Agile Scrum, joining up the complete digital product development process from vision to ideation and through to production and iterative delivery. It’s certainly never too late to build an ideation process into any business, but there is no doubt that doing so from the earliest stage brings huge advantages.

My advice is to keep your ideation process simple and appropriate for the outcomes you need. As your business grows you’ll find you naturally add stages and people to the ideation process. As your business grows, you can start viewing it as a part of a wider innovation function of your business.
—
Justin Eames is Head of Innovation at digital product development studio fish in a bottle. He’s the creator of The Ideation Framework, an open methodology that’s designed to improve innovation within startups and small teams.

At AIN we believe that promoting female entrepreneurship is central to economic growth and meaningful innovation.

This IWD we wanted to celebrate female entrepreneurs and at the same time, acknowledge the need to boost both the number of female startups and also female investors to ensure we can truly democratise angel investment.

According to research from Pitchbook female-founded companies in Europe have received just 1.3% of VC funding since 2017.

Having more diversity across the whole startup ecosystem would help. Research by Beauhurst and the UKBAA found just 14% of female angel investors are women, but having more women investors could help to shift the dynamic.

AIN Head Of Impact and exited founder of GrubClub Olivia Sibony launched our Female Founders page to provide our audience with access to companies led by one or more female founder on the UK Angel Investment Network.

This is the first step in our journey to bring together a community interested in funding and supporting women-led businesses. Check out some of the innovative startups currently looking for funding.

According to Sibony: “Women represent 51% of the population. By far the largest under-served population in the world. In an increasingly uncertain world, we cannot succeed if we carry on with the status quo. A key to change, is to bringing new voices in to the narrative. Women have such a powerful voice that can help balance the perspective and help bring about fresh thinking.”

Over the past year we have been thrilled to support exciting businesses with female led founding teams including Period care and sexual health brand Here We Flo who raised £1.7m in an angel funding round, supported by AIN.

Here We Flo’s mission is ‘shamelessly natural care for life’s messiest moments’. The brand intends to challenge, shame and disrupt the period, bladder and sexual wellness markets with organic and vegan products. Here We Flo was created by university friends Susan Allen and Tara Chandra. (pictured at the top of the article.)

We also saw another incredible business, Birmingham-based smart-EV and energy storage startup WAU (We Are Universal) raising £650,000 in a pre-seed funding round. Crystal Drury (pictured above), co-founded the business alongside Linas Pozerskis. 

When asked about the importance of gender balance in founding teams they said “Diversity allows you to see the same situation from multiple powerful angles.”

Meanwhile sisters Katie and Amanda McCourt are co-founders of sustainable underwear disrupter Pantee. They raised successfully on the AIN platform last year, with investors buying into their creation of the world’s first underwear brand made from deadstock t-shirts. The duo are currently raising again. Check out their pitch.

We hope these successful startups can help inspire other women to launch their own businesses and potentially go on the become angel investors themselves.

According to Head of Marketing at AIN, Marisa Scullion: “We understand platforms such as ours need to help push the dial and make funding and supporting women-led business accessible and achievable. There are now many fantastic fundraising platforms made for women, led by women, inspired by women which is motivating. Women have a huge role to play in the growth of the tech industry and we want to help bring together our community interested in funding and supporting women-led businesses. It will benefit the whole startup ecosytem”

If you’re looking for an angel investor to help fund your business, then the Angel Investment Network can help. Sign up to pitch your business to investors all over the world  

Becoming an angel investor can be a hugely rewarding way of using your experience and capital to support innovative startups and potentially earn a return on your investment.

As this involves deploying your own personal capital this is of course, not something you want to tackle lightly. We’ve spoken to a series of experienced angel investors and investment experts to give you the low down. Here are their top tips for anyone considering the high octane game of backing early stage startups.

1) Educate yourself

Before going down this path, it is really worth taking the time and effort to learn about the startup ecosystem. Also learn about the different types of investments available, and crucially the characteristics of successful startups. This can include doing online research, reading books, attending conferences, and talking to other investors. It also means really understanding the minutiae of the various Government schemes to support investment like EIS and SEIS and their global equivalents. Particularly given there will be significant changes in April. 

Great online resources include UK Trade body UKBAA ,  Seed Legals, US trade body the Angel Capital Association and the variety of international trade associations for angel investors as well as relevant websites such as Angel News. Of course not forgetting Angel Investment Network!

As well as the online route, there are a variety of books and ebooks on the topic. Experienced broker and director at AIV Capital and AIN Ed Stephens recommends ‘How to Invest in Technology Startups-Timeless Advice from an Angel Investor’ by experienced investor and entrepreneur Jason Calacanis.

There are also hundreds of global podcasts covering the world of angel investing in more detail with in depth interviews with founders and investors. Well regarded ones include Riding Unicorns, EU StartUps, Pitchdeck, StartUp Microdose, Desi VC.

2) Define your investment strategy

Once you have educated yourself, it is crucial to then think about the types of startups you want to invest in, the amount of money you’re willing to invest, and how involved you want to be in the company’s operations. It is crucial to consider whether what you want to bring is a sector expertise that would lead your investment strategy or whether you will become more broad based.

According to Matthew Louis from the AIN brokerage team: “According to investors I speak with, I would say most investors are involved in 6-8 projects. However those more involved in specific industries tend to be 2 or 3. With F+B it tends to be broader. With software there will be more of a specific criteria.” 

Having a broader base for your investments rather than a focused expertise can provide more opportunities for areas of passion, which can be a great motive. However it is imperative to not let this cloud any judgement in your cool headed investment strategy.

According to experienced investor Noel Duigan: “I think you really need to be paying attention to both the head and gut, I don’t tend to invest with my heart, at all. I will always look at the business case first to see the potential. If that checks the box and my gut is off then I pause and try to work out what the problem is. If I can’t find it, but still keep that feeling that something isn’t right, I don’t usually invest.”

3) Network

Building relationships with other investors, entrepreneurs, and industry experts is crucial for any investor in learning about new investment opportunities, conducting due diligence, and getting insights into the startup ecosystem. Angel Investment Network was set up as an online platform to shrink the globe and connect investors with the exciting businesses of tomorrow and others in the startup ecosystem. There are a variety of online and offline forums for meeting people in person.

Roxane Sanguinetti is an experienced investor who works with Alma Angels and is co-head of the London chapter of Women in ETF’s. She advises: “Ask loads of questions and ask for help from experienced angels – what do they look at? What questions do they ask during due diligence? From my experience, angel investing is a collaborative environment. I am yet to meet an angel who hasn’t been open to discussing their journey or their investments. As a first step, joining a community or a syndicate can be of great help for those who feel they need an organised structure. You get to ask your questions in a safe space and see dealflow more easily.”

4) Do your due diligence

Once you are at the point of backing a startup, doing due diligence on any startups is essential. Evidence suggests that investors who spend longer on DD get higher returns. Indeed UKBAA research has shown that at least 20 hours due diligence has a positive impact on the likelihood of a multiple investment return. 

AIN has produced a series of check lists on how to do your due diligence. The key areas of focus should include the team and management, business, market, technology (if applicable), finance, tax and legal. Red flags should be front of mind at all stages. The more experienced you become the quicker you can spot them.

For Noel Duigan the founding teams’ experience or lack of it is key: “Often you are investing in the founders rather than the company. If the founders don’t have any skin in the game, that’s pause for consideration. Lack of traction in their space will often mean stalled growth and is a red flag.”

Meanwhile according to investor Addy Windsor-Clive: “Red flags include a pitch deck that isn’t in a suitable format, failing to cover the typical questions a VC would ask. Also not knowing their market size or having a product fit.”

5) Think how you can add value

Finally (and to slightly mangle a famous quote by JFK) an investor should ‘think not what a startup can do for you, but what you can do for the startup.’ As someone with experience in either building a business or some deep sector knowledge you can offer your invaluable knowledge to a startup building the next game-changing business. 

Xavier Ballester, Director at Angel Investment Network’s Startup and Property Divisions has worked with hundreds of angel investors over the past 17 years. He says: “Over the years I have seen the different ways angel investors can bring more than money. This includes: Industry contacts, Industry know-how, business skills (many have been CFOs, CMOs), help with strategy and potentially other investors.”

Meanwhile according to Stephens: “Adding value as an advisor/angel is always complex – there have been many examples of angels adding considerable value. For example, someone I worked with helped an FMCG business, as he already had a company that runs one of the UK’s largest warehousing facilities for Ebay. So he helped with supply chain and logistics leveraging his existing assets. More broadly, investors should and normally do always make intros, roll up sleeves and much like charity trustees pitch in where their skillset permits.”

To summarise, if  you are thinking about becoming an investor ensure you first educate yourself with the wide variety of online and offline resources. Next define your investment strategy based on your skillset andnetwork with others (in particular experienced angels). Once you are ready to invest, do your due diligence and really think about how you can add value. 

Good luck!

Join the world’s largest angel investment network, where global angel investors meet the great businesses of tomorrow.

In January 2023, AIN hosted a webinar with Anna Gordon from HubSpot on how startups can use a CRM to manage your fundraising process and investor relationships. If you missed it, here are the top takeaways.

Top takeaways

1. View the investor fundraising process as a sales proces
   One common mistake that startups often make is not treating the investor fundraising process as a sales process that needs to be managed.

2. Deal pipelines aren’t just for sales
   Deal Pipelines aren’t just for sales. Indeed you can use a pipeline to track your fundraising process. You can also use a sales dialer software that can provide sales teams with valuable customer data, which can be used to generate more sales and better serve customers.

3. Leverage a CRM to facilitate your outreach
   You can leverage a CRM to facilitate your outreach to investors by using tools such as templates and sequences.

4. Quality investors early
   Similar to sales, you should quality investors early on with Sales Methodologies such as BANT. The questions you need to ask are: Does the investor have budget? Do they have authority to make the decision and are they willing to spend time with you?
   
   
5. Use CRM tools to establish regular email updates with your existing investors.
   Finally, in addition to helping you communicate with your prospective investors, remember to use CRM tools to establish regular email updates with your existing investors. To check and clean up your email list, you can use an email validation by Zerobounce.

Register to watch the recording here

HubSpot is the All-in-One CRM that Scales as Your Startup Grows. If you are a member of Angel Investment Network, you can apply for a discount of 30%- 90% off HubSpot. Learn more and apply here.

Extra resources

Connect your email to HubSpot

Import your data into the HubSpot CRM (can be used to import your investor lists)

Create a deal pipeline in HubSpot

Create and send templates

Burnout is a common issue that affects millions of people around the world. No more so than for entrepreneurs placing everything on the line to launch their businesses. 

This article explores burnout causes and potential solutions from exercise and breathing exercises, to innovative potential solutions like water soluble CBD.

Whether working from home, in an office, or any other work environment, the pressure to perform can quickly lead to exhaustion, cynicism, and a lack of motivation. It’s a vicious cycle that can be hard to escape, but it’s not impossible.

With the right tools and strategies, you can learn how to manage your workload, reduce stress such as by using cbd, and maintain your mental and physical health.  Whether you’re an entrepreneur, motivated team member, or a student, this article is for you. So, let’s get started!

What is burnout?

Think of burnout as a slow burn, like a candle that has been lit for too long and is starting to lose its light. It creeps up on you, taking over your thoughts and energy until you feel completely overwhelmed and exhausted.

It’s a feeling of disillusionment and disconnection that can make even the simplest tasks feel like a burden.

It’s important to understand that burnout is not just a state of mind. It’s a natural and complex phenomenon that can seriously affect your mental and physical health.

But the good news is that it’s also preventable. By taking care of yourself, setting boundaries, and learning how to manage your workload, you can avoid burnout and live a more fulfilling and balanced life.

So, if you feel that slow burn, don’t ignore it. Take action and put out the flame before it consumes you.

Identifying burnout symptoms

Before qualifying how to recover from burnout, it’s essential to understand its symptoms.

Common signs of burnout include:

• Difficulty concentrating
• Confusion
• Irritability
• Apathy
• Unproductive
• Inability to focus

On a physical level, burnout can manifest as

• Fatigue
• Headaches
• Other kinds of physical discomfort

It can be challenging to recognise the signs of burnout, as they can be subtle and easily overlooked. It’s essential to be aware of the warning signs and take action to prevent burnout before it becomes a severe issue.

How to recover from burnout

Recovering from burnout requires taking care of both your physical and emotional wellbeing. If you’re tired from work, it’s important to take some time off to recharge and refocus.

As an entrepreneur you can promote wellbeing as a policy that supports work-life balance and provides resources for stress management.  Ultimately, you will be more productive with a healthy mind and body.

As individuals, simple wellbeing tips can be used to prevent burnout. Remember, taking care of yourself is not selfish; it’s essential for your long-term health and wellbeing, both on and off the job.

Prioritising self care

To protect yourself against burnout, you must commit to making time for self-care. This doesn’t necessarily mean expensive spa trips or activities outside the home – it can be as simple as having a regular bath or doing pilates for 10 minutes at home.

What is important is that you make time to do something for yourself each day, even for a few minutes. This will allow you to relax uninterrupted and focus on your self-care.

Creating a daily routine

Creating a daily routine helps provide structure and encourages self-discipline. As much as possible, try to be consistent with meal times, bedtimes, and leisure activities so you’re not constantly questioning what you should be doing next. A routine also helps reduce stress by giving your mind a sense of structure and familiarity.

Breathing Exercises

Your breath is one of your greatest tools in keeping calm. Breathing exercises are a simple and effective way to reduce stress, improve mental clarity, and promote relaxation. By controlling your breathing, you can improve your heart function, reduce anxiety and calm the mind. Breathing exercises can be performed anywhere and at any time, making them a convenient and accessible tool for managing stress and promoting relaxation.

There are several different breathing techniques to choose from, each with its own unique benefits, so you can find the one that works best for you. Whether you’re new to breathing exercises or have been practicing for years, incorporating them into your daily routine can help you feel more relaxed and rejuvenated.

Eating and sleeping well

Adequate sleep and nutritious meals are two of the most important ingredients in avoiding burnout. To ensure you’re getting enough rest, try sleeping at the same time every night and sticking to a consistent schedule.

Eating nutritious meals will help fuel your body with the energy it needs throughout the day. Additionally, try incorporating small workouts into your daily routine – even 15-20 minutes of light exercise can help keep your body energised.

Exercising regularly

Exercising regularly can be an effective way to strengthen your body and mind while avoiding burnout. Physical activity reduces stress hormones while stimulating endorphins that make you feel good.

Regular exercise will also help you get better quality sleep in the evenings while supporting your body’s overall health. As a bonus, physical activity can also help clear your thoughts, making staying focused on the task at hand easier.

Supplements such as CBD Drops

CBD has become a popular alternative for those looking for new methods to manage burnout. It’s not just a trend either – as the CBD market has exploded globally, with the UK market said to be worth more than vitamin C.

As an entrepreneur, you are looking for anyway to boost performance and so CBD is an obvious choice to test as a bio-hacking tool.  Water Soluble CBD drops are one of most effective forms, due to being fast acting and highly absorbable.  

Of course, everyone is different, and results may vary, but there are those that swear by it, CBD might be a game changer.

Setting boundaries

It’s important to set clear boundaries with employers, colleagues, and family members to protect yourself from burnout. This may require saying no more often or delegating tasks to free up some time for yourself.

If you’re feeling overwhelmed with responsibilities, take a step back and re-evaluate how you can manage those duties more efficiently to make some extra time for something more enjoyable – like reading or taking a walk.

Connecting with Friends and Family

Socialising is an essential part of self-care that is often ignored in our busy lives. Make time to socialise with friends or family members regularly.

Whether that be regular phone calls home or having supportive conversations with colleagues at work, staying connected can help you stay mentally engaged while creating a sense of community support.

Seeking professional help

If all other methods fail, don’t hesitate to seek professional advice from a doctor or therapist who can help guide you through any issues that may be causing burnout in your life.

Burnout is a serious problem that you should not take lightly. With simple lifestyle changes to prioritise self-care, relaxation, exercise, and socialising – as well as seeking professional help when necessary – one can effectively avoid burnout while recharging their energy.

Final say

Burnout is a growing concern in today’s fast-paced society, but taking care of oneself and utilising alternative methods such as CBD, exercise and seeking help can greatly aid in managing its symptoms.

By Oliver Osgood, co-founder of Master Plant

For our latest Behind The Raise interview we speak to Moses Rashid, founder of online marketplace for Limited edition Sneakers & Streetwear, The Edit LDN. He reveals how he had his lightbulb moment at a sneaker festival, his huge focus on service and the impressive partnerships and celebrity backers that have helped propel the business forward.

He also reveals his top tips for anyone raising investment for the first time and why he initially thought a call from Harrods wanting to partner with The Edit LDN after just 18 month of operating was a prank…

Tell us about The Edit LDN?

At The Edit LDN, our mission is simple. Making the inaccessible, accessible. Helping our diverse, fashion-hungry community across the globe access the best in limited edition fashion and sneakers from the biggest brands in high-fashion.

How did you come up with the idea?

I’m a sneaker head at heart and would spend my days at sneaker festivals buying shoes. One day I was at a sneaker festival buying a pair of shoes that were £600/700. I asked a simple question, do you have a plastic bag? And the guy selling them said no. It blew my mind that I was paying for a premium product but I wasn’t getting a premium service. That was the lightbulb moment. How can we create the most premium sneaker platform globally?

How are you different?

Smashing the restrictions of traditional online shopping, our product specialists work hard to maintain a market-leading, unparalleled range of sneakers and streetwear unique to The Edit LDN. So customers will never be short of exciting new pieces to discover.

In a market which traditionally takes 2-6 weeks for delivery, our service level was about delivering this in 1-5 working days. A few months ago we become the first global reseller to achieve same day service. We are also all about creating a Personal Shopping service. Offering a tailored styling experience, and access to a product sourcing service, where we take on the hunt for the perfect piece on behalf of our customers.

What initially attracted investors to your company?

If you think of our business like a FarFetch premium retail environment powered by tech. For us it’s all about creating real value for our customers. Our mission statement was about becoming the most disruptive, innovative sneaker streetwear platform globally. I’m pleased to say we’ve achieved that.

We were the first to accept crypto. We were the first to achieve same day service in a market that normally takes 2-6 weeks. We were the first to donate sustainably. For every single sale on our platform we take 1 kilo of plastic out of the ocean. Investors have bought into our vision and record of delivery so far. We also have a number of sports celebrities who have invested, such as New York Giants captain, Xavier McKinney, basketball legend PJ Tucker and Premier League football star Jesse Lingard.

What has the funding enabled and your top priority going forward?

Part one of our funding was about personnel and putting the right people in the right places. Part two was about testing the technology. Making sure it was user friendly, both for the reseller and the consumer.

Part three was marketing and there are two parts to that. Paid performance/ affiliate to support customer acquisition. But also the brand piece as well. How can we continue to create PR moments and elevate our brand? You’ll see we have just signed a 2 year Global Partnership with Chicago Bulls.

Part four was warehousing, so making sure we could deliver everything in-house. That was really important from a cultural and environmental point of view. Making sure we can really accelerate the business.

 And then the fifth strand was about building the pre-loved market place to tackle a $60BN industry, and make a long lasting sustainable impact.

Why did you raise via Angel Investment Network?

I was introduced to AIN via my brother and  out of the angel networks we’ve worked with, it’s delivered the best results. It’s been the most fruitful.

What are your top tips for anyone raising investment for the first time?

It’s really important to get out there, be flexible, have lots of conversations, but know that only a few are going to convert. Make sure you are chasing down those conversations where something might come through. The same approach you would have with any sales process really.

When you are pitching, having real clarity on your USP. What’s your vision/ mission, really where is the business going? Of course understanding that investors are going to want to know what is their return on investment.

You are the first business of your kind to be welcomed into the legendary Harrods, London. What was your approach to getting a such a prestige listing just two years after launching?

We were actually approached by Harrods after just 18 months of trading, on the back of great media coverage we had secured in Forbes and GQ. At first I thought it was someone playing a joke, but then there was realisation that Harrods were really serious and could see the power of our marketplace and that we could really deliver for their high end customers.

We started off with one small section on men’s which has now expanded to three floors. It’s testament to our positioning, but also how well we’ve been received by their customers.

We are also thrilled as part of our global expansion to be Galeries Lafayette (Doha) and Harvey Nichols (Riyadh) and as reported in Esquire we partnered with the legendary Chicago Bulls in a multi-year partnership. They spotted the great synergies with their sports fans and sneaker heads.

If you’re looking for an angel investor to help fund your business, then the Angel Investment Network can help. Sign up to pitch your business to investors all over the world  

The new year offers everyone a great opportunity to reset and renew. For startups seeking investment this could be the perfect time to evaluate your approach and see if it needs tweaking.

After all, we are in a very different climate in 2023 and investors are being far more careful with the deployment of their capital. To boost your chances of a successful raise, ensure your strategy is tailored for now, not last year.

So what key resolutions should startups focus on in 2023? 

1) Revisit your elevator pitch

The life of any startup is varied, stressful and relentless, wearing so many hats and juggling so many balls. All the while, trying not to let any drop or run out of cash. However in this maelstrom of activity it remains crucial to not lose sight of the eureka moment that led you to quit the day job and come up with the idea in the first place. The start of the new year offers a great chance to refresh your core pitch for investment as clearly and articulately as you can. 

According to AIN co-founder Mike Lebus: “One of the key mistakes entrepreneurs make is not explaining the concept clearly enough. Entrepreneurs are often too close to their own business, so don’t give enough information for a stranger to understand exactly what their business does.”

Why not start with a blank piece of paper and make sure you can get the pitch down to a paragraph? A clear articulation of a real world problem, how your startup solves it and what it actually does. You need to be able to story tell. 

Having the right credentials, the perfect team and a beautiful pitch deck means nothing if you can’t explain to a stranger, simply and convincingly, why your company needs to exist. Test it out on more critical friends and contacts who you trust to give some honest feedback. Is it as straightforward as it could be?

2) Critically review your pitchdeck/ pitch materials

The new year could also be the perfect time to review your pitch materials and pitch deck. According to Lebus: “A common thread running through unsuccessful pitch decks is startups not focussing on their core product/service. Some business plans say “we plan to do this. and this, and this, and this…”, which can become very confusing for potential investors. Feel free to mention your long-term product pipeline towards the end of your pitch, but the main initial focus should be on your current/initial offering to keep things as clear as possible.” 

Another reason many pitch decks fall down in Lebus’ view is the failure to differentiate what they do from the competition and how they’re going to gain market share.

Use this time at the start of the year to review your pitch deck and ensure there is a clear narrative, focus on the core product and how it stands out from competitors. Investors will want to see that your nascent business is learning to walk before it can run and that the promise of a decent future return is tangible. 

3) Consider a lower valuation in the current climate

In the current climate many businesses are needing to alter their plans and potential funding pathways. Early 2022’s valuations already seem like a different era with layoffs in the tech industry and an uncertain medium term economic outlook. What was 8x early last year may now only be 5x. 

According to Alexander Caparros, analyst from the AIN brokerage team: “We are seeing a lot of pushback from investors, less willing to back companies whose valuations are based on the uncertain promise of future revenues. It is vital that valuations are rooted in fact and not fantasy. Proof of concept is now a must have. You will be far more likely to gain the interest of prospective investors with a more realistic approach.”

It could be time to consider whether you might change your strategy and raise a smaller amount at a lower valuation. You will still be giving away a similar amount of equity but are more likely to get the investment.

4) Traction, traction, traction

With investors less willing to bet on unproved models, fabled traction is more important than ever, particularly in a more restrained climate for investment. Xavier Ballester is an experienced broker who has worked with AIN for 15 years and works closely with investors across the globe.

He says: “Evidence of traction is always critical for startups seeking funding, but in 2023 it is king. With investors less willing to bet on unproven concepts, it is crucial startups can demonstrate the viability of their proposition through evidence of success. All the more hard won in recessionary territory. If you can show there is appetite for your proposition now, this will show a clear pathway to future profitability and investor returns.”

Take the time to revisit your traction points and make sure they really stand out and are relevant. 

5) Re-appraise your communication strategy with investors 

 January is a great month to connect with investors with a fresh update on your business. If you are reaching out cold, think how succinct you can be while covering off some vital points.

According to Matthew Louis from the AIN brokerage team: “Investors are busy people and likely to be inundated with pitches and proposals. Make sure yours gets to the point quickly with the information they need. Think top level information about the company and what you do, the problem you are solving for, why it is different, the traction, team, how much you are raising, the valuation and what you are planning to do with the investment.”

For investors already on your database is this the time to give that perfect ‘nudge’ on what has been going on with the startup. Perhaps it is a new product launch? New staff hires, new clients or traction point such as a revenue milestone. Perhaps something has happened in the news that provides a reminder of the need for your business. Something with context and relevance will ensure this isn’t just spam and likely to get your startup noticed. 

The new year is a good time to plan a content pipeline for your investors and outreach strategy for new potential investors.

Following these five resolutions could help you supercharge your fundraising in 2023. Perhaps there are others you would add to this list. The key things is making sure they are realistic and that you can stick to them. Happy new year from the AIN team and good luck!  

Join the world’s largest angel investment network, where global angel investors meet the great businesses of tomorrow.

Businesses are missing out on huge commercial opportunities due to a lack of gender diversity in early stage business investment. This is the message from experienced investor Roxane Sanguinetti in our latest Meet the Investor interview. Tackling the gender funding gap was her motivation in joining Alma Angels, which backs female and/ or minority founders. It is now 350 angels strong. As well being an investor with Alma Angels she is co head of the London chapter of Women in ETF’s.

In a wide ranging interview she discusses how to create a more level playing field, why it matters, the sectors that she is drawn toward investing and the common qualities of founding teams she has backed. Why dedication is what you need…

What led you to angel investing?

A few years back I was advising start-up founders on their fundraising decks and financial models, as I had realised it could be helpful to those who do not have a finance background. I kept coming across some very interesting business models and I started thinking “oh I wish I could invest in that one!” but I lacked confidence. I started with a few investments via crowdfunding in businesses I had met or supported, but I wanted to get more involved.

I went looking for an angel community, or mentors who could guide me. One thing I knew for sure, I wanted to focus on female and/or minority founders. And that is exactly what I found with Alma Angels. December 10^th 2019, I attended the first meet-up where we exchanged ideas on how to support female founders. Now 3 years later, we are a community of 350 angels who have collectively invested a few millions, and I’ve had the opportunity to learn alongside some incredible people.

You back businesses (co-)founded by women. What drives you to do this?

I want to see more wealth in the hands of women, be it on the fundraising side or the investing side. And these go hand in hand.

We have all seen the horrendous stats – only about 1% of VC funding goes to all-female teams. There is a fundraising access gap for female-led businesses, and I have pledged to bridge that gap by investing and introducing the founders to my network. I also spend a lot of my time educating on angel investing. Women are more likely to back women, but less than 15% of angel investors in the UK and Europe are women. And this isn’t about charity, research shows that investments in female-founded start-ups perform better than in all-male teams. Ultimately, we want to create a virtuous cycle: successful exits to bring more wealth to reinvest.

I want to do everything that’s in my power to better the ecosystem and level the playing field.

From a business perspective, what are the benefits of ensuring we have more gender diversity in the start up ecosystem?

There is now a lot of research and data on the financial benefits of diverse leadership teams. Businesses are potentially missing out on opportunities and revenues from half of the market when products and services are not adapted. One sector I know well is WealthTech: Over the last few years, we’ve seen an explosion of businesses such as roboadvisers and trading apps. What all these apps have in common is that women are rarely involved in building and testing, and it now shows in the user base. 70 to 90% male. Which is an opportunity for female-led businesses to come in and make a killing.

To build long-lasting inclusive technology AND businesses, we need diverse teams involved in the whole process – from ideation to development, testing and distribution. And by diverse, I mean gender-wise, racially but also cognitively.

And if I can expand the question to the investing landscape: diverse investment teams will back a more diverse portfolio of founders, which is beneficial in terms of returns but also means that they are more likely to support builders of inclusive technology. 

What sectors particularly interest you for investment?

I am naturally drawn to FinTech and WealthTech due to my background. I understand the pain points and I feel that I can be more helpful to the founders. However, now when I look back at my investments, they are all from various sectors (I added Sexual Health, Recruitment, Impact…) but they all have in common that they are making the world a better place for women and minorities! And as new sectors emerge, my curiosity gets tickled. I have recently been looking more into web3 businesses.

What are the successful traits and tactics of founding teams you have backed?

I think my founders all have in common an insane sense of dedication. They are so incredibly passionate about their cause and are the most hardworking people I have ever seen. They have all brought in impressive results with limited financial backing. A successful founder can also be one who realises their own limitations and know when it is time to sell or to step away from the business, even when it does not maximise their profit, but it ensures their team and the business can carry on.

Female investors are twice as likely to invest in women than male investors. What advice would you give to those interested in getting into investment for the first time and getting active?

Ask loads of questions and ask for help from experienced angels – what do they look at? What questions do they ask during due diligence? From my experience, angel investing is a collaborative environment. I am yet to meet an angel who hasn’t been open to discussing their journey or their investments. Angel investing is a game no one plays on their own, as we are there to support the founders through their early fundraising journey so we coinvest, we help each other out, we connect with later stage investors. As a first step, joining a community or a syndicate can be of great help for those who feel they need an organised structure. You get to ask your questions in a safe space and see dealflow more easily. By the way, Alma Angels is 70% women.

Does the current national and global context, and the outlook of an increasingly uncertain world change your investment thesis?

I wouldn’t say that it changes my investment thesis. Female-founded businesses generally have had to build with very limited funding which tends to make them much more resilient, much more cost/ cash-burn conscious. BCG released a report stating that female founders generate twice as much revenues per dollar invested than male counterparts. 

What has changed however is the way I look at the business models. I might focus my due diligence questions on some risks that seem more prevailing due to current market conditions.

Join the world’s largest angel investment network, where global angel investors meet the great businesses of tomorrow.

For our latest Meet the Investor Interview we chat with Addy Windsor-Clive, an investment manager at Regenerate Ventures. Regenerate Ventures is an EIS VC fund focusing on Early stage AgTech investments. She discusses her motivation in supporting startups tackling the ‘broken’ agri-food supply chain, her desire to see a more diverse set of founders within agriculture and the trends transforming the ag-tech sector.

What led you to investing in start-ups?

I started my career in Venture Capital and that’s where my love for it began and helping startups reach their true potential.

You back businesses that drive systemic change in the food system. What drives you to do this?

The agrifood supply chain is broken and all the pressure is being put on farmers so we are trying to alleviate that issue as well as producing food without ruining soil health to ensure it for future generations.

What is the gender and ethnic make-up of the founder population you look at? Does this impact how you invest in businesses and the way they work?

We are seeing more and more female led companies but we would like to see a much more diverse set of founders within agriculture.

What interesting trends are you seeing in the Agtech sector?

Precision agriculture to improve efficiency of crop prediction and yield and decarbonisation of the agricultural sector.

How are these trends changing the system?

Helping reduce chemical and fertiliser inputs that are helping to improve soil health but also to reduce GHG

What would you like to see more of, to accelerate the change in this field?

I would like to see more around soil testing and also data aggregation in the sector.

What are the key red flags when you are dealing with start-ups that you are potentially going to back?

A pitchdeck that isn’t in a suitable format asking the typical questions a VC would ask. Not knowing their market size or having a product fit.

What has made the biggest difference among your successful investments – traits and tactics of the founding team that have made the biggest difference?

 In the AgriTech sector all the founders are very mission led and pivot easily as a result of feedback from industry experts. Also founders that are not afraid to give away equity.

What advice would you give to entrepreneurs going through the fundraising process?

Have a bank of FAQs ready to go, ask friends and families or an investor that you know to help work them out. Allow yourself enough time.

Does the current national and global context, and the outlook of an increasingly uncertain world change your investment thesis? If so, how?

If anything it only verifies it more. The global food security and food safety issue is only becoming more pressing and investing in this sector as this stage is absolutely key to the future of the planet.

As both an investor in start-ups and a founder currently fundraising for your own fund, what is your top tip for anyone looking to fundraise for the first time?

Good pitch deck, all FAQs ready to go. Find out what the investor is looking for and tailor your pitch to that.

Join the world’s largest angel investment network, where global angel investors meet the great businesses of tomorrow.

‘Founders need to be passionate, driven, and fully committed in the longevity and future of their company.’ These are the words of experienced investor Noel Duigan describing what he expects from entrepreneurs pitching their business ideas. As someone who has personally invested in 12 businesses in the past year his advice is worth its weight in gold.

We are delighted Noel has given his time for our latest Meet The Investor interview. He discusses the reasons he invests, his typical ticket size, the red flags he looks out for, how founders should update investors and top tips for anyone raising for the first time.

What has led you to angel investing?

Independence mainly. I looked at it as a strategic step to gain financial independence and build a successful family office. Prior experience has helped me overcome a level of confidence required to interact with founders and CEO’s and not be afraid to ask the ‘stupid’ questions when I don’t know or understand something.   

What do you invest in and at what stage? Any reason why you go for those investments?

I mainly lean towards tech and fintech due to the scalability. However I have also ventured into renewable energy. I prefer to get in at the seed round, but have also invested in Series A and B, as well as pre-seed. I think it’s being sensible with your portfolio and spreading the risk. Seed is attractive due to the low valuations and high potential for return, but with greater risks. So I hedge these with larger investments into Series A and B rounds, smaller returns and ‘usually’ a safer bet. But not always!

Do you invest with the head, the heart or the gut?

I think you really need to be paying attention to both the head and gut, I don’t tend to invest with my heart, at all. I will always look at the business case first to see the potential. If that checks the box and my gut is off then I pause and try to work out what the problem is. If I can’t find it, but still keep that feeling that something isn’t right, I don’t usually invest.

How often do you tend to invest per year and do you have a typical ticket size?

A few times a year, however the last year was quite busy with 12 investments. The sweet spot for me is £100k. However, I have a few at £200k and some at £50k. It really depends on the round, valuation and exit opportunities.

What are the key red flags when you are dealing with start-ups that you are potentially going to back?  

Lack of experience of the founders, or their team is the main one. Often you are investing in the founders rather than the company. If the founders don’t have any skin in the game, that’s pause for consideration. Lack of traction in their space will often mean stalled growth and is a red flag.  Have a look at their runway and burn rate, you don’t want it short and wide. That could spell either bad margins or high overheads.

How do you view your relationship with your investees? What is a good relationship?

At pre-seed/seed the company is smaller so the relationships tend to be more personal. You can offer networking support and help with growth. Whereas the later rounds you really are just a name on the cap table. Regardless of when you invested, a good relationship means consistent updates. 

There is a challenge for founders to find a sweet spot between the management of their workload, and the stress it entails, alongside the expectations of their investors.

How often do you think founders should be updating their investors of their progress and by what method? 

At a minimum a quarterly update should be emailed to investors covering progress (or lack of), metrics and financials.

What is your top tip for anyone raising investment for the first time? What gets you on board?

You need to be vested. A product or service driven from need, not greed will always win over investors. The market is over-saturated with people making a dash for cash off recycled ideas. Founders need to be passionate, driven, and fully committed in the longevity and future of their company. Hand sanitiser during a pandemic doesn’t cut it.

If you could offer an early investor one piece of business advice, what would it be?

Research. Research the company you want to invest in. Research the founders. Research their pitch deck, research also includes fact checking. Research their product, download their app, try it out, read the reviews. When you are not researching a company then start researching for self-education.  As we used to say: “Time spent on reconnaissance is seldom wasted”.

Join the world’s largest angel investment network, where global angel investors meet the great businesses of tomorrow.