Women in Tech: Success & the Future…

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

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

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

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

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

Since she founded Pivigo in 2013 the company has:

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

pivigo data science women

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

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

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

But what about women business angels?

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

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

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

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

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

Thanks!

Is Growth the Best Measure of Startup Success?

Startup Growth & Traction
Growth gets a lot of attention in the startup world. A lot of attention. If you Google “startup growth“, you’ll find a plethora of articles, blog posts and tools all suggesting that growth is the most important measure of your startup.

Paul Graham, the founder of Y Combinator, asserts that “The only essential thing is growth“.

In some sense, this attention is well-deserved. But it is often misunderstood and taken out of context.

Growth is, of course, important. Growth is a telling measure of your product/service’s popularity; and, as such, strong growth metrics are invaluable when you’re trying to raise money from investors.

But growth can, and often does, flatter to deceive. And this is something both entrepreneurs and investors should be wary of.

Entrepreneurs need to be careful because “…many founders hurt their companies by focusing on growth too soon“. This is what Sam Altman, the founder of Loopt and President of Y Combinator, wrote in a recent article on the topic of growth.

His reasoning is simple: if you focus too much on early growth and not on actually building a product people love, then at some stage you will encounter the leaky bucket problem where the customers you worked hard to onboard, leave in droves ne’er to return!

But, if you focus on building a great product then you will have better customer retention and, as a result, growth should become increasingly easy as word-of-mouth spreads.

Consider the example of AirBnB who worked and iterated for years before they got the product just right; and then it spread like wildfire because people loved it.

Equally, investors need to be careful because there are often more telling metrics indicating the potential for success of a particular company. An app, for example, may have achieved 100,000 downloads in its first week, but if 95,000 of those users had stopped using the app by the second week, then the impressive early growth suddenly appears deceptive.

So there we have it. Growth should always be important, but it is also important that entrepreneurs and investors espouse a more nuanced attitude to it than believing it to be the ultimate measure of potential and success.

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!