Success Story: Atlantic Healthcare closes $24 million financing

Some good news came in over the weekend in a press release from Atlantic Healthcare. It’s encouraging to see our Pharmaceutical companies flourishing alongside their arguably more trendy tech counterparts.

We raised circa £350,000 for Atlantic Healthcare as part of their seed round. It’s taken a few years, but that’s nearly always the way with pharmaceuticals; and now they’ve just closed a $24 million round with funds coming from the founders of Salix Pharmaceuticals, Inc.; Fullbrook Thorpe Investments LLP (the family investment arm of Andy Leaver, founder of Clinigen Group plc); and LDC (the private equity division of Lloyds Banking Group plc); alongside their existing investors.

This round will allow them to complete the pivotal Phase 3 of their product development and will make alicaforsen market-ready for the treatment of IBD pouchitis which currently has no approved treatments.

Proposal Tip of the Week

So far in this series we’ve discussed 2 of my 3 recommended first steps for starting your pitch in a way that makes investors instantly grasp the value of your idea.

Third up is the natural corollary of the problem, that is, the solution.

Tip #3 “How do you scratch that itch?”


Once you’ve made the effort, as set out in Proposal Tip #2, to give a cogent explanation of the problem, and the investors have started to relate to the pain point, then you hit them with your solution.

How you do this will depend hugely on what your solution is, but the key point is to make it super clear. No one will understand your solution as well as you do – so don’t expect them to. Set out your explanation in as simple as possible terms as if explaining to a total novice.

Entrepreneurs often make the mistake of being too technical at this stage under the mistaken belief that if they sound like a genius then the prospective investor will fall head over heels and want to invest.

Wrong.

If someone doesn’t understand your idea quickly they’ll look elsewhere for an idea they can understand and relate to quickly.

You’ve been warned for this week…

Proposal Tip of the Week

Some very exciting news in this morning about one of the companies we raised money for last year. BIG news! Unfortunately, I’m not allowed to disclose anything yet, so will have to announce when permitted in a later post…so watch this space.

Anyway, I’m sure you’ve all been on tenterhooks waiting for the second in my series of 52 quick proposal tips. The wait is over…

Tip #2 “What Itch do you Scratch?”

Last week’s tip recommended grabbing investors’ attention by starting your pitch/proposal with your company’s most impressive achievement or traction metric to date. But what next?

You’ve hit them first with some proof and validation, but now you need to make the explanation of your concept as concise as possible. Remember, you no doubt understand your business extremely well, but you cannot expect prospective investors to have the same level of understanding. So what’s the best way to articulate your concept clearly?

Generally, we encourage entrepreneurs submitting a proposal on Angel Investment Network to start with the problem. What real world problem do you solve? What itch do you scratch? What pain do you alleviate?

If I were the Founder of Uber when starting out, my proposal would start by setting out the problems that people who want a taxi face e.g. long waits, high fares, needing to have cash etc…

If you do this well, you will get investors nodding along as they begin to see the value of your concept as they relate it to their own lives.
That’s all for now. I’ll cover the next step next week…

Success Story: Reward Gateway acquires Yomp

Yomp • Engaging People • Rewarding Wellness from Yomp on Vimeo.

Yesterday Techcrunch posted an article announcing that Reward Gateway had acquired gamified health startup Yomp for an undisclosed figure. Techcrunch mention the £200k seed round that Yomp filled last year, but neglect to mention that £150k of that came through Angel Investment Network (the whole SEIS allowance) !

But that’s of little importance. Our investors are over the moon at such a rapid ROI. As you would be. The figure hasn’t been disclosed yet, but our £150k went in at a valuation of £1 million; and we’d expect someone of the calibre of Reward Gateway to be able to acquire for £3-5million. By that reckoning, our investors are getting a 3-5x multiple return in just over a year.

Read the full article on Techcrunch here

Proposal Tip of the Week

For no other reason than today is the first day of a new leap year cycle, I’ve decided to add a new feature to this blog. Each week I’m going to write a short post offering easy-to-implement advice on writing a fundraising proposal to investors. There will be a slight steer to benefit those entering proposals on , but I promise that the advice will be easily applied wherever you’re submitting a proposal.

I read hundreds of proposals a day. Literally hundreds of the things in the form of: pitch decks, executive summaries, investment site templates, incubator/accelerator templates, you name it. There’s always more to learn, but by now I’ve got a pretty good idea of what investors love and what they loathe when it comes to fundraising proposals.

So here’s Tip #1 “Never leave the best till last”

Put your most impressive information FIRST.

Investors like the rest of the world read from beginning to end. Well, not quite, often they never reach the end because they get bored. If this happens and you’ve left your most impressive piece of traction till the end, they’ll never know how great your company is. If you want to end on a positive note, simply repeat the positive note with which you started your proposal!

Grab their attention from the start. If you’re using or planning on using Angel Investment Network’s proposal form to showcase your business to prospective investors, this is why they recommend including attention-grabbing details in the ‘Short Summary’ section.

Take it to heart, learn it, stick it to your fridge, apply it…

Fundraising Event Report: Last year’s successes encourage this year’s investors

Last Tuesday we held our first fundraising event of the year at the Olswang offices in Holborn. Treated to a complimentary feast of canapés and drinks on the top floor, investors enjoyed pitches from 7 of the hottest UK startups.

James Badgett, Founder of Angel Investment Network, opened the proceedings by calling to mind some of the notable successes from companies who pitched through us in 2015 as well as the general growth of our site.

Here’s an overview of what he said:

Our Website in 2015 – The Numbers
– Reached 450,000 registered entrepreneurs
– Reached 100,000 registered investors
– Averaged 1380 new proposal submitted each week by entrepreneurs
– Over 2 million proposal views
– 75,000+ connections made between investors and entrepreneurs looking for funding

Companies that Pitched in 2015 – Where are they now?

SuperAwesome, a child-safe marketing platform, completed a funding round with us at a valuation of $3million and subsequently completed a $7million raise at a valuation of $25million. They are now raising at a valuation of $70-100million. That’s a potential return for our investors of 20-30 times in a little over a year!

What3Words, an extraordinary piece of software that’s changing the world’s address system and for whom we filled the seed round, recently received $2million from Intel Capital. They also won the Innovation Grand Prix at the Cannes Lions International Festival of Creativity.

Acquisitions:
As covered in a previous blog post, Uncover were acquired by Velocity resulting in strong, quick returns for our investors.

Draper & Dash, a high-end business intelligence company with an absurdly impressive track record, and PASSNFLY, an innovative airport check-in application, are both under offers for acquisition.

After this introduction, it was fascinating to observe the investors sit forward in their seats and treat the latest cohort of entrepreneurs pitching to their undivided attention!

The future is certainly looking rosy for both investors and entrepreneurs…

How Funding Works – Infographic Timeline

For many entrepreneurs, no matter what stage they are at in their fundraising journey, it can be difficult to see the wood for the trees and hold a sense of the bigger picture in mind. This helpful infographic, courtesy of Funders and Founders, gives a clear picture of the funding process from Day 1 to IPO.

To read the full article which gives a detailed analysis of all the stages follow this link

How to write a pitch deck for your startup investors


This week I wanted to share a resource with you that we normally only give to our customers on Angel Investment Network

It’s a short e-book that sets out in as simple as possible terms what should be included in the pitch deck that you send or present to prospective investors. An important point to be noted here is that ‘what should be included’ is, more often than not, ALL that should be included. In your pitch deck you’re trying to engage and persuade – to blow minds not to numb them. So the details you give should be the ‘minimum effective dose’ to get investors thinking and wanting to find out more.

The purpose of our site is to connect entrepreneurs and investors, so you might say that teaching people about pitching falls beyond our remit; but you’d be wrong.

1. We like to make sure our entrepreneurs are as well prepared as possible for the result of any connections made through our site (or elsewhere), so that down the line they can write to tell us how successful they’ve become.

2. We see so many bad pitch decks and so many good’uns (literally thousands a week!) that we know what gets investors giddy…

It’s yours if you want it!

Download from here

How a good first impression can make you more money and your users happier


This week I wanted to share with you a great little article about user onboarding. While it’s primarily useful for web-based companies, there’s an important lesson in there for anyone who cares about driving success.

In brief, the article demonstrates that the most effective way to increase user retention, is to focus on onboarding – that first day or week in which a user is experiencing your product for the first time. By focussing on this ‘handshake’ moment not only will you retain a higher percentage of users/customers in that first day/week, but there will be a knock-on effect from this in the subsequent days/weeks; with the result that your churn will be significantly reduced across the entire user lifecycle and your revenues will have increased accordingly and significantly. Even though you only made changes at the start of the lifecyle.

Imagine two scenarios in which you are entering a hotel…

In the first, you go through the swivel doors into a silent and dimly-lit atrium across which you can just make out a receptionist slumped behind the desk. You lug your bags over to the desk gasping audibly from the effort. The receptionist does not even look up etc…You get the picture.

In the second, you go through the swivel doors into a dazzling atrium buzzing with fellow guests cheerfully chatting away whilst relaxing in comfy chairs as handsome waiters and waitresses serve them Prosecco and canapes; and have their luggage taken up to their rooms.

Obviously the second scenario is intended to create a ‘WOW’ factor. This ‘WOW’ factor is important because it creates a perspective in the mind of the customer which will set the tone for how they perceive the whole experience. In other words, the happiness created at the start will mean that the customer is more likely to use more of the various facilities and services, tip more and return in future.

So whatever business you’re in, remember you never get a second chance at a first impression; and the first impression is most important one you can make.

Here’s the full article by the Founder of Appcues: Why User Onboarding is the Most Important Part of the Customer Journey

2015 Startup Review: Founders’ Opinions collected by First Round VC

First Round Venture Capital: State of Startups 2015
Happy New Year everyone! I hope that 2016 brings you all sorts of success and happiness.

As we intrepidly sally forth into the New Year, I thought it would be worth glancing back at the state of startups in 2015 in the hope that a bit of retrospective nous will help us go more boldly into 2016.

San Francisco-based VC firm, First Round, which specialises in providing funding for seed stage tech companies (including Uber, Square and Warby Parker) is my resource for this one. In their concise 2015 review they collect the opinions from hundreds of startup founders with the aim of understanding what it meant to be a member of the community in 2015.

Their insightful review shows what founders think on a variety of questions including:

Will it get easier to raise funds in 2016?
Who is the most admired leader in the startup space?
What’s a startup founder’s biggest fear? And why it’s a mistake…

Here’s the link: State of Startups 2015

Enjoy!