Green shoots of recovery post-Covid

Olivia Sibony contributed an article for the latest issue of CEO Today magazine on some research from the AIN platform that points to the continued interest investors have in sustainable startups. Contributing a double page spread Olivia discussed analysis carries out by AIN. Comparing the four month post-COVID period (Jan-April) with the four months before (Sep-Dec).

The research found ‘Renewables’ is now the 11th most popular keyword for searches, up from 14th pre-COVID, which was in itself a rise of 34 places year on year. Additionally ‘Greentech’ is now the 13th most popular keyword, up from 47th in 2018, a staggering increase.

Overall ‘Tech’ remained the overall most popular search term and the fastest riser is ‘Medtech’ up 10 places to 25th most popular category. With the world reeling from its biggest health crisis in a century, it’s no wonder this category is strongly on the radar for investors.

In the piece Olivia writes: “Innovative companies are fusing sustainable business ideas with deep tech to come up with tailored solutions to real world challenges. These are peaking the interest and passions of increasingly impact motivated angel investors. This is a trend that is accelerating, rather than slowing down post COVID. Global markets are also reflecting this, with ESG funds consistently outperforming traditional ones since COVID emerged.

Another interesting trend on the platform relates to searches for ‘agriculture’. This jumped four places to become the 4th most searched for search term in the post COVID period. Olivia continues: “Real fears around food security have been thrust into the spotlight during this crisis and companies helping to secure our food supply will become pivotal players. Investors are seeing the opportunity for huge innovation with ag-tech and smarter food production so we can use technology to be more sustainable for the land.”

She highlighted Hummingbird Technologies, an Artificial Intelligence business who previously raised on AIN. It provides advanced crop analytics to its customers by using satellite and drone data and proprietary machine learning algorithms. They allow customers to increase their yields, optimise chemical inputs, farm more sustainably and make earlier, more informed decisions.

Read the full article in the latest issue of CEO Today magazine

YouTube karaoke channel Sing King raises £550,000 via Angel Investment Network

The world’s leading online Karaoke channel, Sing King, recently raised £550,000 via Angel Investment Network (AIN). Sing King offers high quality karaoke content via its YouTube channel and has over 90 million views per month. The seed-funding raise took just seven weeks on the platform, with the original £400k target notably achieved within 4 days. The money raised is being used for launching standalone apps across IOS & Android as well as a web platform.

Founded in 2014 by Chris Michael, it is the only karaoke channel YouTube allows to operate due to licensing restrictions normally in place. The channel is run by a team of six full time staff from London. The business is approaching 7.5 million subscribers and has more than 2,300 songs, with dozens more added weekly.

Discussing the raise, Xavier Ballester, Director of AIN’s broking division said: “Sing King’s revenues are starting to be very impressive. They hit 7 million subscribers as we were working on the raise. The numbers speak for themselves and there was plenty of interest from our investor database, who saw the huge potential for the business.”

According to Jordan Gross, Sing King CEO: “Music has the power to transform lives and the beauty of karaoke is that it transcends age, language and culture. We have an opportunity to deliver world-class karaoke on a bigger scale. With our round complete thanks to Angel Investment Network, we will make karaoke more accessible than ever before. This includes mobile, TV and web – transforming moments of time into moments of joy, wherever and whenever.”

News of the raise generated a lot of media interest, including EU Startups, MusicAlly, Techround and Bdaily.

Four questions for female founders launching a business

Our Head of Growth and entrepreneur Ching-Yun Huang was invited onto a Female Founders’ panel at the Curtain Hotel last week in advance of International Women’s Day. Here she shares some key learnings.

It was a pleasure to be invited on to a panel with other female entrepreneurs at the Curtain Hotel recently to share our experiences of starting a business. It was a lively debate and discussion as we all had different experiences that we could bring to light. There were four key questions that came up from the audience, that I wanted to address.

1. Are you taken as seriously being a woman?
Does being a woman impact what you want to be able to achieve as an entrepreneur? The view that some expressed was that you are at a disadvantage because you might not be taken as seriously, with a lack of investors willing to back you. Although it is true there are less female founders, my personal view is that we could be in danger of creating a barrier that might be more psychological. I think if you have a good business case your gender shouldn’t matter and you should have the confidence to articulate your vision. However everybody’s experiences are different. 

2. What sort of support networks should you create?
What sort of support network should you put together to ensure you get the backing you need? One view is that in order to get a better support network, you should only have a women focused network. It is true that any entrepreneur needs to build a good support network. I would argue as a budding entrepreneur you should look to the groups and people that are going to best support you as your key priority. This shouldn’t be just down to gender, but who will take you to that next level. Be ruthless in this.

3. When do you need investment?
When it comes to funding and investment, the audience was split between two groups. People who felt ready to scale their business, and a bigger group who want stability to start their business. I think any entrepreneur should think long and hard about what they need the finance for. For me personally I am looking at bootstrapping my business as far as I can without trying to get outside influence. However there is an extent to which women are perhaps more risk-averse, which is a barrier to having more women entrepreneurs. It’s hard to make the transition into a more uncertain world.

4. Do you need a background in tech to launch a tech business? 
Lots of people in the room expressed an interest in starting a tech business. A popular question was whether you needed to have studied tech. I studied literature and had nothing to do with tech. However I do think having a working knowledge is important, so i picked up computer languages and some other skills. For my business, I found a co-founder who is a developer. A complementary skill set is a winning combination in starting a business.

Ching’s is developing a dating app called The Moment  

Tech leads but stunning rise in interest for sustainable businesses, finds Angel Investment Network report

Angel Investment Network has revealed its latest ‘State of the Angel Investment Nation’ findings. It is based on the data of our UK registered businesses looking for funding and the keyword searches of investors.

Investor keyword searches
‘Technology’ was the top search term used in 2019, based on investor keyword searches. This was followed by ‘property’ with ‘mobile’ the third most popular. ‘Robotics’ climbed six places year on year to now be the fourth most requested search term. Meanwhile ‘electronics’ is up by nine places on the list to number six.

With climate change centre stage in Davos last week, there also has been a stunning rise in interest for sustainable businesses. Searches for ‘Renewables’ have rocketed by 34 places to be the 14th most searched for term. Meanwhile ‘greentech’, unheard of even a couple of years ago, is now the 19th most popular keyword, up from 47th last year. Environmental leapt 56 places up the rankings to be the 25th most searched for term.

Pitch ideas
For entrepreneurs, property is the most popular sector for pitch ideas. Entertainment and leisure is the second, followed by technology. Overall there were 10% more pitches over the past 12 months from startups looking to attract investors.

According to AIN co-founder Mike Lebus: “Startups are the lifeblood of the UK economy and despite a turbulent year politically, there has been no slowdown in activity. Investor interest remains focused on technology and the cutting edge applications that are possible through it, including mobile and robotics. However property, one of mankind’s oldest profit generators, continues to drive the interest of investors and is now our top sector for pitches.”

He continued: “The growth in interest in impact related terms is remarkable and we are witnessing a seachange in investor attitudes as it has so quickly shot to the top of the news and business agenda. It is the reason we launched our spin off SeedTribe to help support entrepreneurs who put sustainability at the heart of their business model.” 

The report also reveals some discrepancy between startup ideas and investor interest. While fashion and beauty remains the fourth most popular category for pitch ideas, it is just 17th on the list for investors. ‘Inventions’ as a search term fell by seven places from seventh to fifteenth most searched term. Meanwhile ‘Gadgets’ also fell by 15 places to number 32 as investors instead look for more tech and software based ideas.

Entrepreneurial hotspots
AIN has also revealed the UK’s top entrepreneurial hot spots. London remains responsible for 37% of all pitch ideas, although its market share was slightly down. The South East is second in the list with the North West number three, up 10% year on year. There has also been impressive growth in other parts of the country. There was 25% growth in pitch ideas in the West Midlands, with East Anglia up 26%.

The Top 10 Sectors for Pitches:

  • Property
  • Entertainment & leisure
  • Technology
  • Fashion & Beauty
  • Food & Beverage
  • Software
  • Hospitality, Restaurants & Bars
  • Retail
  • Business Services
  • Education & Training

The Top Keywords for Investors:

  • Technology
  • Property
  • Mobile
  • Robotics
  • Software
  • Electronics
  • Computers
  • Products
  • Residential property
  • Finance

The entrepreneur hotspot list is as follows (based on number of pitches from each region):

  1. London
  2. South East
  3. North West
  4. South West
  5. West Midlands
  6. East Midlands
  7. Scotland
  8. East Anglia
  9. Yorkshire and Humber
  10. North East
  11. Wales
  12. Northern Ireland



PinPoint raises £1m with support from Angel Investment Network to fund early cancer detection

HealthTech startup PinPoint Data Science has successfully raised over £1m, supported by Angel Investment Network (AIN).

The PinPoint Test uses AI/Machine Learning to rapidly ‘rule out’ cancer from a simple blood sample. It may be used for all cancer types. AIN was the only external organisation PinPoint accepted investment from in a round that lasted just six weeks.

The investment will be used for implementation trials starting mid-2020. It will also include R&D on improved versions of the product, an expanded full time team, regulatory compliance, the purchase of new equipment and the development of new products. Leeds-based PinPoint was formed in 2018 and now has a team of nine working full time. 

According to the CEO Giles Tully: “These funds will help our ambition of enabling doctors to make better, smarter and more efficient decisions. In 2018, over two million patients who presented with vague symptoms were sent for testing to check for cancer. 92.6% of those patients did not have cancer and yet still had to undergo invasive diagnosis at a huge cost to the NHS and great concern for the patients. PinPoint has already achieved nearly 25% rule out. Last year this would have given over 500,000 patients peace of mind in a few days and saved the NHS over £150m. Our technology will save lives, improve patient experience and significantly reduce costs.”

According to Sam Louis, Head of Consultancy at AIN, who led the fundraise: “This is one of the most exciting businesses we have worked with in recent years. Like all the best startups they have developed a solution to a very real problem. In this case it’s a problem that’s very close to home for a great number of people. We were delighted we were the only organisation they worked with to raise the funds. It was really encouraging the investors we sourced were aligned with their vision.”

PinPoint is one of the companies featured on the new SeedTribe website. SeedTribe, powered by AIN, is an online community connecting profit-with-purpose startups with expertise and investment.

SeedTribe relaunches as ‘UK impact hub’ – powering profit-with-purpose driven businesses

Ethical investment platform SeedTribe has relaunched as a new UK-focused impact hub. The platform connects startups with individuals, corporates and governments interested in helping profit-with-purpose businesses. SeedTribe’s new remit includes mentoring, networking and recruitment, as well as investment.

SeedTribe uses the UN Sustainable Development Goals (“SDGs”)  as its impact framework with all businesses on the platform at Stage 1, raising up to £1M and driving revenue. Businesses that appear on the platform are heavily vetted so only the most inspiring are selected. Businesses are featured free of charge, but have the option to buy “add-ons”. These include helping with their fundraise, advertising a job to the network or showcasing an event. 

New content

New content includes spotlight interviews with founders, advice and guidance for startups who need support. There are also events, opportunities and a free match-up service enabling individuals to connect with businesses. Following extensive research and discussions with the network SeedTribe has identified five key areas of focus. These are:

1.     Mentors/Advisors
2.     Corporates giving financial or in-kind support in line with their values and fields of expertise
3.     Recruitment opportunities
4.     Interesting events they can attend
5.     Investment or other types of funding

Businesses winning investment and support

Businesses on the SeedTribe platform winning investment and support include: Teysha Technologies, a natural polycarbonate platform creating fully biodegradable substitutes for plastics and PinPoint who use data science to detect the early signs of cancer.

The site is powered by Angel Investment Network – the world’s largest online angel investment platform, with a global network of more than 1 million entrepreneurs and 200,000 investors.

Olivia Sibony is the CEO of SeedTribe and she was recently named one of the UK’s Top 10 Women Entrepreneurs for her work on SeedTribe.

She said: “Our entire ethos is using business as a force for good, meaning profit and purpose need to be interlinked. Over the past 18 months I have been approached by so many people who believe in our mission and want to help in ways beyond simply funding.” 

She continued: “Our community is dedicated to finding solutions to the world’s most intractable problems, helping impact-driven entrepreneurs  meet the people and institutions who can teach, support and fund their ventures. We believe in the power of collaboration and together we can empower business to be used as a force for good and transform our world.

Olivia is urging anyone keen to help SeedTribe’s mission to reach out. Please visit seedtribe.com for more information.

The Northern Ireland startup scene deserves more attention

Sam Louis from Angel Investment Network
AIN’s Sam Louis

AIN’s Sam Louis talks through why Northern Ireland’s thriving startup scene deserves more attention.

When it comes to reporting on Northern Ireland’s business climate the focus has, for better or worse, been on Brexit. With discussions about how to resolve the border conundrum continuing, there’s been little talk of much else. However, one exciting aspect has definitely been under reported – the growth of the Northern Irish startup scene. It is worth examining.

I judged the Digital DNA upStart awards in Belfast earlier this year and was overwhelmed by the breadth and depth of exciting companies developing in Northern Ireland. Across all sorts of sectors, there’s really something underway in the Emerald Isle.

Breadth of opportunities

Encouragingly, our data agrees. This year we created AIN’s first ‘State of the Angel Investment Nation’ report. Built on insights from the 100,000 businesses that came through our platform in 2018, it produced a detailed picture of the angel investment landscape. Within this, the report revealed that Northern Ireland had the second fastest growth across the UK. In raw terms in new entrepreneurs it was up 67% on the year before.

This is a great sign of things to come, as confidence builds within the country that top startups can be started and scaled on home soil. N. Ireland’s highest performing sectors were software and property. Cyber security businesses are particularly well represented within the software category. However, we are seeing a really encouraging breadth of opportunities – from health food companies and CBD ventures to dog grooming startups. Northern Irish entrepreneurs are setting up across all industries.

Increasing investment from overseas

Looking to the other side of the table, we’ve always had a strong core of investors coming out of Northern Ireland, many of them from a property background. What’s been interesting though is to watch their attention shift inwards as their home market grows. With increasing investment from overseas, this is something we hope will continue, with NI investors going in alongside international firms to fuel the local ecosystem.

As the world evolves, digital talent and capabilities will play an ever-increasing role in the international standings of the world’s nations. Key areas like Cyber Security, AI and Machine Learning are already a valuable commodity in dictating not only economic growth, but also geopolitical opportunities. As the Northern Irish start up scene continues to develop, especially in these highly technical areas, it has the potential to make a serious contribution to the UK’s already strong representation at the highest levels of the digital world. Whatever the outcome of Brexit, Northern Ireland’s start up scene looks set to grow. Let’s hear more about it.

Video: How to go from Idea to Investment

We’ve been helping startups raise money around the world since 2004. Over 900,000 entrepreneurs have used our site. And the question we get asked most is ‘How can I get my idea to investment?‘.

After all this time in the industry, you’d think we’d be well-placed to answer it. And we are. But it’s still not an easy question and the answer depends on the business in question.

We’ve been holding events and workshops to help entrepreneurs navigate this difficult first hurdle. Back in March we did a big one with global digital skills educator, General Assembly. And we filmed the whole event so we could share the wisdom with as many people as possible…

The film is quite long and you may want to watch specific sections at a time, so here’s a breakdown:

0:0017:06 Entrepreneur & Investor Olivia Sibony describes her experiences from the Grub Club idea to finding investors

17:0735:25 Ed Stephens, Head of Investor Relations at AIN & Host of The Startup Microdose Podcast, gives practical advice on optimising your processes for finding investment

35:26-END Ed Stephens interviews an expert panel of entrepreneurs on their experiences: Anthony Rose (Seedlegals, BBC iPlayer), Elizabeth Swanton (Feedr) and Wil Harris (Entale, Condé Nast)

idea to investment

Enjoy!

If you have any questions, please reach out to hello@angelinvestmentnetwork.co.uk

My 5 Tips for Raising Angel Investment

Back in 2013, I took a step that would change the trajectory of my career forever. After seven years at Goldman Sachs, I left for a new adventure. I was confident in my skill set, but terrified that I was abandoning the safety net of the corporate career path.

Fast forward six years, and how glad I am that I took that decision. I launched a foodtech startup called GrubClub, which I ran for five challenging but satisfying years, before EatWith acquired us in 2017.

olivia sibony grub club how to raise startup investment
A celebratory Grub Club evening

One of the things I learned on that journey was how hard and how important it is to raise funding. That’s partly why I joined Angel Investment Network last year. I had raised money through them for GrubClub and really bought into their mission to democratise angel investment.

So, here are my five key tips for getting investment:

1. Investors invest in teams

Many of the most successful businesses are at their core very simple ideas. Google allows people to search for stuff on the internet. Ford builds cars. But neither Google nor Ford were the first in their category.

Their success is commensurate to their ability to execute changes.

That’s why the team in charge of navigating this journey is so important. And that’s why investors invest in teams. So, keep that at the forefront of your mind both when building out the early team (obviously), but also when creating a story for your pitch.

Have you got an A team?

2. Remember that investors are not the same as customers

(This point is related to #3 below but is important enough to mention on its own.) Entrepreneurs often fail to communicate successfully with investors because they explain the benefits of their product/service as if describing them to a potential customer.

This is easy to do because during product and strategy meetings their focus has no doubt been on crafting the proposition to customers.

While your investors may also be customers, your proposition to them should not be the same. You will lose their interest if you talk to them as if they were customers. So, craft a story and a proposition specific to them…

3. Tell investors a compelling story

I hear a lot of people give advice like ‘tell a story in your pitch’. But they often fail to explain how to do that meaningfully. So, how do you tell a compelling story to prospective investors?

The most basic story that all investors want to hear is how they are going to make money. There may be other factors like the desire to make a positive impact on the world. But ultimately, an investor wants to make a return.

I heard a founder sum up this idea nicely on The Startup Microdose Podcast – he said, “Show investors what winning looks like.”

So, build the story of your pitch by putting dollar signs in the eyes of investors and by explaining to them how you are well-placed to execute on this grand vision.

Is your investor story compelling?

4. Create momentum

Investors are busy people. You will not always be top of their priority list. So, don’t be disheartened if they don’t get back to your message straight away.

But also, don’t be shy of sending them reminder messages.

The trick to doing this and engaging them is to try to include some impressive update that you’ve achieved since your previous message to them e.g. ‘Ex-CEO of Unilever has just agree to join the board’ or ‘1,500 new users sign ups in the last week’.

This creates the impression of progress and always helps to prove the competence of you and your team.

5. Don’t waste time

We live in a digital world. A world full of tools to boost your productivity and streamline your processes. Use them! There are some great ones for raising investment. My favourites are: Seedlegals – for digitally creating and signing all your legal documents; MixMax – for seeing if people have read your email and how many times and when; and, of course, Angel Investment Network – for meeting investors you could never otherwise hope to meet.

What do you think?

These tips are both from my own experiences. Do you agree/disagree or need more explanation? (Let me know in the comments!)

Author BIO

Olivia Sibony is an award-winning entrepreneur and ethical investment champion. She left a career at Goldman Sachs to launch foodtech startup, GrubClub, which she sold to Eatwith in 2017. She then joined Angel Investment Network (having previously raised money through them) to launch and grow SeedTribe, a spinoff platform focused on impact entrepreneurship.

She is also a Board member of UCL’s Fast Forward 2030, which aims to inspire the next generation of entrepreneurs to launch businesses that address the UN’s Sustainable Development Goals (SDGs). 

High-End London Baker Orée Raises £425,000 Funding in Angel Investment Round

London-based bakery, Orée, has raised £425,000 through Angel Investment Network (AIN) the UK’s largest online platform connecting angel investors with startup businesses.

The French-style, high-end bakery started trading in March 2016 and currently has two shops at 275/277 Fulham Road and 147 Kensington High Street. The concept is bringing ‘a taste of the boulangeries and patisseries of rural France to London’. The funding will finance the opening of the next shop based in Covent Garden with a further location in London Bridge set for later in the year. The ambition is for more than a dozen shops across London and an international expansion.

The raise is one of the largest for a food business in AIN’s 14-year history. The highest to date was the £600k raise for Rosa’s Thai Cafe which raised £500k through AIN in 2014 and has since delivered returns to investors via a private equity buyout.

The combination of Orée’s high-quality product offering and high-end, high footfall locations across London, gives it a strong position within the food retail industry and made it an attractive proposition for AIN’s network of investors. Orée bridges the £8bn bakery market and the £6bn café and coffee shop market, both experiencing annual growth of 2.5% and 5.7% respectively. According to data from AIN, food and beverage was the second most popular category among angel investors in the UK for 2018, losing out only to software.

Xavier Ballester, Director at Angel Investment Network who brokered the deal, said: “Orée was of strong interest to our investors with its offering of a premium, authentic French Patisserie to a market that is increasingly captivated by continental cuisine. It satisfies several consumer trends that have characterised the UK casual dining market in the past couple of years, including ‘premiumisation’ and a concern for provenance.