Making It with Julian Seydoux

Julian Seydoux is a rare breed in Europe, an entrepreneur who has set up a company, scaled it, exited it, and is now investing and advising the next generation of start ups. As Julian has experience of Angel Investment Network, both raising funds and investing, we decided to pick his brains.

What impresses about his story is the belief that having completed his market research with intense focus and determination, he could take on the ultra competitive Chinese market, launching Vai Milno, a chain of gelato stores, and enter an industry that he had no prior experience of. 

He explained how he arrived in China with ‘two bags and nothing else’. That sense of determination clicked with investors, but also tying in the traction and a word that keeps coming back in our conversation ‘momentum’.

‘We explained the story of all the achievements we had made until then, which in hindsight was extraordinary fast. We signed several partnership agreement, persuaded the chef to join us from Italy. So investors when they saw this, could see that something was moving fast, something was happening.’

Switching to being an entrepreneur, seemed a natural next step for Julian after his job in M&A, working in emerging markets, he learned where there were exciting opportunities. In the city he had honed the skills necessary to evaluate quickly whether there was a business opportunity. 

Julian was finishing a part time degree at London Business School ‘One of my classmates approached me and said why don’t we set up a company? I think China would be a great place to start a business. And I thought if I’m working 18 hours a day, I might as well do it for myself!’

As Julian’s gelato business gained traction in the Chinese market, opportunities to exit began to appear. ‘‘I had a prior opportunity to exit, but we didn’t take it, I thought this is working, let’s just continue what we’re doing and focus. But at some stage life happens. You just need to decide whether to move on.’

Julian then thinks logically about how you determine when is the right time for a founder to move to on from his business. Splitting entrepreneurs between those who have the skills and desires to start a business, and those suited to growing it.

‘For the founders you need to decide what kind of founder you are – are you more interested in the startup craze at the beginning, or are you a later stage managerial founder who can get the processes right?’

In fact Julian has seen later stage VCs frequently appoint new CEOs, bringing new people to the board and key hires into the company, ensuring that they have the right skillset to grow the company. In Julian ’s words: ‘At one stage you have to think could someone else do better. One of the challenges for founders is acknowledging there’s a limitation of what they can do. 

And all these considerations came to mind when I decided it was right for me to leave the company and exit.’ 

In terms of getting your company so that it’s in a position to exit, researching who are the potential buyers early on pays dividends . ‘Something that I was keen to do early on was two way partnerships with people who could potentially be acquirers.’

How do you ensure that you get the deal you want? ‘Just remember – at the end of the day, don’t be afraid to negotiate, everything is negotiable!’

Julian is sanguine about his success on selling his business, he describes the emotions he endured as ‘part of me sadness and part of me relief I had gone through the process, and other parts of me were thinking about what to do next. I have seen some very sad people who have exited with plenty of cash, they are just struggling afterwards’. 

Now an Investor, Julian is often shocked by how bullish founders are before remembering that he too was like that. He feels that he can quickly get a sense of if there is a fit – he looks at spaces where there are potential and where his skills can add value, and  when talking to founders quickly gets a sense as to whether the team can execute. 

His parting advice for founders ‘if someone offers you money, take it!’ he says, before laughing. 

Keen to hear more?

If you would like to see what other companies are up to on Angel Investment Network, or are interested in raising funding yourself, you can find your local network here.

#SixtySecondStartup with Halal Fresh

Saima Duhare is the founder of Halal Fresh, the UK’s first halal non subscription meal kit service predominantly catering for the Muslim community.

  1. What does your company do?

Halal Fresh is a meal kit service providing freshly preportioned ingredients, with an easy to follow recipe card to cook great tasting meals. Making dinner times stress free and enabling our customers to be adventurous in the kitchen, as well as supporting their healthy lifestyles.  

  1. Why did you set up this company? 

 My vision was to bring back the joy of cooking by offering every Muslim household the opportunity to cook homemade fresh meals from around the world, making dinner tables exciting to sit at. 

I grew up in a household where food was the catalyst of bringing people together, my Grandma, Mum and Aunty are amazing cooks and would cook foods from around the world and we would always have family and friends over. I felt we were losing the importance of having a home cooked meal which gives an opportunity to spend quality time with family and friends over a great meal.  

Given the rise of fast food and the ease of it, coupled with  the busy lives we lead, I felt this aspect of our life  was slowly disintegrating. So Halal Fresh was born to make people’s life easier and offer varied, healthy delicious meals they cook from scratch at home, in addition to being mindful of our carbon footprint since everything is proportioned so there is no food waste and all of our packaging is recyclable 

  1. How did you get your first customer? 

We had no budget for marketing and when we launched we pretty much prayed we get customers, lucky for us people were googling  for a halal meal kit service, thus, my first customer was a Dr who kindly posted our service on  Instagram, result of that we approached various influencers from different professions,  and and from that we organically built and grew ourselves this is going back in April 2019 and still we haven’t spent any money on marketing apart from a offering a recipe box in exchange for a shout out, plus our lovely customers a promote us

  1. We knew we were onto something when? 

We were approached by a journalist from the Independent and at the time we had no clue which publication she was from until I delivered the box and we were included as being one of the best recipe boxes in July 2020.

  1. Our business model:

    We are an online non subscription business model, which people enjoy because they can use the service without feeling tied in, and that works for us and them.

    We’re currently only serving the London region, however, we are looking to expand nationally. We are growing slowly but surely and organically.  And the interest we receive daily in bringing it to other parts of the UK is promising and exciting. We are learning as we develop, progressing and improving our offering and service.
  1. Our most effective marketing channel has been: 

Instagram and  word of mouth from our customers and being in several reputable british and British Asian papers has helped us and put us on the map as a 5* Halal Recipe Box.

  1. What we look for when recruiting: 

We are a very small team, and the team we have are very passionate about food and the industry. We look for people who are creative and open to learn as much as we are, and contribute to what we are trying to achieve, to make people’s lives easier, and can work on their own initiative.

My graphic designer for instance has had very little experience but her work excited me. I tend to go with my gut feeling, of course they need to have the skill but not necessarily the experience.  

  1. The biggest mistake that I’ve made is:

    Having no experience in opening a business I have made lots of mistakes, but  one of them for instance, when we had our soft launch I spent £6,000 to test the model on 40 people, in hindsight I could have tested the model on 20 people and tested it for much less.

    I created the MVP as if though it were a fledgling business, with 9 recipes, 2 chefs, all the packaging and pre portioned ingredients from suppliers, which I could have easily pre portioned myself and less recipes and 1 chef.
  1. We think that there’s growth in this sector because:

    The halal sector is booming – in 2019 it was valued at  £31bn, considering there are only 4.1 million Muslims in the UK, that staggering. It’s very exciting times for the food industry despite the current climate. We are becoming more mindful about what we put into our bodies and becoming conscious consumers.

  2. Is there anything your business is doing to help in your community or with the wider crisis?

    We are heavily involved with our local food bank which was set up by a friend of mine, and have volunteered, distributed food as well donated food. This is something we are also passionate about, which is giving back and helping those that are vulnerable in our community, so much so we are working on embedding this into our business model.

Keen to hear more?

If you would like to see what other companies are up to on Angel Investment Network, or are interested in raising funding yourself, you can find your local network here.

Surging investor interest in agriculture, fintech and medical startups, finds AIN annual report

Angel Investment Network (AIN) has revealed its latest ‘State of the Angel Investment Nation’ findings. It is based on the data of more than 125,000 UK registered businesses looking for funding and 35,000 UK investors over the course of 2020.

Technology remained the top category of interest for angel investors looking to back businesses in 2020. Meanwhile, finance closed the gap, climbing five places to become the second most popular category for searches. In the year of the pandemic, medical & science climbed two places with a surge in investors backing entrepreneurs focused on improving health outcomes. We also witnessed a huge growth in interest in agriculture which saw a rise of 63% in searches and climbed seven places to become the eighth most searched term.

For entrepreneurs, property is the most popular sector for pitch ideas. Entertainment and leisure is the second, followed by fashion and beauty. This highlights something of a mismatch between the sectors in need of funding and the sectors investors are interested in backing.

AIN has also revealed the UK’s top entrepreneurial hot spots. London’s share of all pitch ideas has fallen slightly, although it remains responsible for 36% of all pitch ideas. The South East is second in the list with the North West number three. Growth in both Wales and Scotland outperformed the rest of the UK seeing a rise in the number of pitches as the startup culture continues to flourish across the UK.
 
According to AIN co-founder Mike Lebus: “It has been an extraordinary year with so many lives and businesses impacted by the virus. However in the face of unprecedented challenges, we have witnessed the resilience and adaptability of UK startups working to bring solutions to the problems of our time. From innovations in finance, technology bringing people together during social distancing to the wonders of medicine and science. It’s no surprise these are the businesses gaining interest and investment from our investors.”

“We are also seeing the nascent development of ag-tech and brilliant technological solutions tackling the very real challenges we face of feeding the population and maximising efficiencies and yields. The challenges of climate change are undimmed and this is a sector that is at the forefront of that battle.”

He continued: “While London has been dominant in the past we are now seeing the comparative growth of other nations and regions in the UK as our embedded startup culture takes further root. We can look forward to a continuing resurgence across the country as we emerge from this difficult period.”

Top 10 Sectors for Pitches:

1.   Property
2.   Entertainment & Leisure
3.   Fashion & Beauty
4.   Technology
5.   Food & Beverage
6.   Software
7.   Retail
8.   Hospitality, Restaurants & Bars
9.   Finance
10.  Business Services

Top 10 Sectors for Investors:

1.   Technology
2.   Finance
3.   Software
4.   Medical & Sciences
5.   Property
6.   Food & Beverage
7.   Energy & Natural Resources
8.   Agriculture
9.   Entertainment & Leisure
10.  Retail

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.  Wales
11.  North East
12.  Northern Ireland

To connect with angel investors looking to back your business visit https://www.angelinvestmentnetwork.co.uk/

Behind The Raise with Pharma Sentinel

We first met Rav Roberts, CEO of Pharma Sentinel, at one of the virtual events that we hosted. He recently successfully closed his investment round, and we are pleased to hear the learnings he has to share:

Tell us about Pharma Sentinel: 

Pharmasentinel.com is a UK Consumer & Business healthtech helping each person to lead a safer life, by leveraging AI to provide trusted, timely & personalised medicines and medical conditions news, alerts and medicines data intelligence.

 PharmaSentinel launched its consumer app ‘medsii’ (Medicines information for Me) in October 2020 on the App Store & Playstore and already has over 15,000 app downloads in 150 countries. 

Medsii provides information on side effects, drug safety alerts & recalls, and clinical trial opportunities for participation, in an engaging, patient-centric Twitter-style interface.

Why did you decide to raise investment? 

2 reasons

1) To accelerate our launch into the USA, our key market. 

2) To accelerate the launch of our Business SaaS data product.

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

Persist

It took us months of pitching to get our first investor, then bit by bit, the floodgates opened. 

Secondly, use Twitter to link with very experienced USA VCs, e.g. Brad Feld, Jason Calacanis, Elizabeth Yin, who will give you tons of *free* advice AND *free* training on pitching, negotiating with VCs etc.).

What attracted investors to your company?

 1) Very experienced founding team (we all met in Business School 16 years ago). 

2) Healthtech very topical, even before Covid-19, with more people living longer & taking personal responsibility to manage their health to live quality lifestyles. 

3) Great business model, with globally scalable consumer & business products. 

My biggest fundraising mistake was…

Initially not being succinct during pitches. (Second mistake was not using an ethernet cable to pitch).

Why did you choose to use Angel Investment Network? 

I got a couple of tips from friends, then tried it and, (to my surprise), angel investors started to contact me and actually invest!

Predictions for impact investing in 2021

AIN’s Head of Impact and CEO of SeedTribe, Olivia Sibony peers into her crystal ball for 2021 to see what it has in store for the impact investment space.

With the huge focus on the pandemic over the past year – many might have thought impact investing was on the back burner. Luckily this didn’t prove to be the case. In the teeth of the first lockdown on the Angel Investment Network platform we saw renewables become the 11th most popular keyword for searches, a rise of 34 places compared to 2018. We also saw terms like Greentech rocket up the rankings for investors looking to invest. So looking ahead, what can we expect? Here are three predictions.

A rise in interest in impact-focused startups


In 2021 we can expect more investors to back impact-focused startups. We have witnessed a new regime take office in the White House rejoining the Paris climate agreement, committed to net zero emissions. Part of a rapidly growing movement worldwide. More consumers are voting with their wallets in demanding brands’ values are in line with their own. Additionally more investors are wanting to see the ethical credentials of businesses they are considering backing. This is particularly the case with passion-driven angels. This virtuous circle means we will in turn help to inspire a new generation of entrepreneurs focused on the solutions to mankinds’ most pressing problems. We are also seeing the huge financial rewards for companies focused on ESG goals. Elon Musk becoming the richest man in the world was a watershed moment in this regard. It can be extremely profitable to embed purpose into your business model.

The establishment of more metrics for the measurement of ESG

Impact-driven investors are looking for more established measurement of environmental and social performance to give them more understanding of where and why to invest. We saw a real landmark moment at the end of the year with the big four accounting firms agreeing a reporting framework last year for ESG standards. We will see this more widely used and taken up in 2021. At SeedTribe we use the UN Sustainability Goals (SDGs) as the basis for our framework for the companies we back and for how entrepreneurs can benchmark their progress. The SDGs are the closest we have to a standard for ESG ratings. The 17 SDGs and their 169 associated targets are by no means perfect, but they are the best blueprint available to achieve a more sustainable future. They have been agreed by all countries.

What I am seeing on the ground is more demand for startups considering the full impact or end to end life cycle of a product or service. For example it is not enough to merely produce solar panels if they are not produced in a way that is in itself carbon-efficient or end up unrecyclable. Better still of course, is seeing start-ups embrace a truly Circular Economy. We need to ideally create close-loop cycles without any waste at all. A start up like Aeropowder is a great example of that. They have created the world’s first sustainable thermal packaging made from feathers – Pluumo. The poultry industry is drowning in feathers (3.1m tonnes per year in the EU alone) and has limited disposal options. Powered by feathers, Pluumo can keep food deliveries chilled while replacing expanded polystyrene. They are gaining huge interest from investors. 

Increasing cross-border collaboration


One silver lining from covid is the increasing level of cross-border collaboration using technology tools. In 2021 with most travel on hold for the foreseeable future, we are likely to see the further rolling out of systems enabling start ups to collaborate and share best practice and insights. For example, WeFarm is the world’s largest farmer-to-farmer digital network. They enable farmers worldwide to SMS any farm related question to a network of other farmers who can help, enabling farmers in Colombia to learn from farmers in the Congo. These sorts of initiatives can improve efficiency, best practice and help reduce CO2 emissions. This is being led by startups but will trickle up to larger firms with enormous data pools being harnessed to create actionable insights to reduce CO2 emissions. 

As we look to the future we can be confident in the vision of startup entrepreneurs and enlightened investors to help drive the change we want to see in the world in 2021.  

Sixty Second Startups – FastWater Dispenser

We caught up with Wayne Edward Clarke, Founder of Fast Water Dispensers, who explains how he is revolutionising water dispensers in the Philippines.

What does your company do?

We manufacture a revolutionary new kind of water dispenser for refillable blue 5 gallon water bottles.

Fast Water Dispensers Product Demo

Why did you set up this company?


I come from Calgary, Canada, where the tap water is top quality drinking water. When I moved to the Philippines I wasn’t used to using refillable water bottles for drinking water, as everyone does here. The long amount of time it took to draw a coffeepot full of water from a standard water dispenser to make coffee every morning became more frustrating until it was intolerable.

I searched the stores and online retailers for a faster water dispenser, and found that there were none available.

It took a few days of research, design, and fabrication to produce the item that I now consider to be my proof-of-concept prototype, and I used it successfully for months. I realized that there must be millions of other people who are as frustrated with their water dispensers as I had been, and I recognized that this was an opportunity that was too good to let slip away.

The key to our success will be:


-A product design that’s a disruptive improvement over all the existing competitors
-A tough, quality, environmentally friendly product that should last a lifetime for a price that’s competitive with cheap plastic Chinese dispensers
-The very low cost of labor in the Philippines
-0% taxes for 6 years and zero import/export fees in the Philippines Special Economic Zones
-Utilizing the training techniques of elite athletic teams to achieve world-class employee performance -A manufacturing process that achieves an unbeatable investment-to-production ratio by utilizing very ingenious jigs and simple machines but no complex or expensive machines.

Our most effective marketing channel will be:

-Online retail sites such as Amazon, Lazada, Alibaba Express, etc.

What we look for when recruiting:

Bright, adaptable, fast learners. This applies to our office workers and to our factory workers, who will also need good hand and tool skills. At the pace we’ll be working we’ll need to rotate the assembly line teams from station to station fairly often to avoid repetitive motion injuries and employee burnout and to keep morale high, so they’ll each have to learn every task in the factory.

Once we reach sales of about 2 million FastWater Dispensers per year in it will be worth transitioning to a completely automated robotic assembly line. We’ll then use our highly trained and integrated manual manufacturing teams to build and operate the assembly line for our next ingenious product design, of which I have many, and the entire cycle should repeat about every three years.

The biggest mistake that I’ve made is:

Not researching Alibaba and the Chinese suppliers represented there sufficiently before researching my costs for equipment and materials. I’d prefer to buy from local Philippines suppliers, but there’s only a few of them and they’re hard to find and communicate with compared to the crowds of companies on Alibaba. The Chinese companies can be challenging to communicate with because of language and cultural issues, and I wish I’d learned more about that before I started. Having dealt with many of them to cost out my business plans, it’ll be a lot easier when I start purchasing.

We worked with AIN because:

AIN seemed like the method of raising financing that was most likely to get results. There seems to be a lot of fundraising services that specialize in online and high-tech businesses, and a few who cater to emerging market businesses like the guy who wants to upgrade his small pineapple farm, while AIN represents a much broader spectrum of what I think of as ‘normal businesses’, like mine.

How has coronavirus impacted your business and your fundraising plans?

-In-person networking has gone from being the most important part of any fundraising strategy to being almost impossible. I’m not sure if we’ll be able to reach our fundraising goals without it, but we’re giving it our best shot!

How are you coping with lockdown, and what is your strategy for it?

I’m doing pretty well, thanks. I already worked online from home, so my life hasn’t changed much. It would be very hard if I were single, but luckily I have a fulfilling relationship so we can keep each other company. I’m a mask and face shield guy, I take every precaution, because I’m 57 so I’m in a moderately high-risk group, and I’m not taking any chances.

Keen to hear more?

If you would like to see what other companies are up to on Angel Investment Network, or are interested in raising funding yourself, you can find your local network here.

From redundancy to start up success: aisle 3 raises £200,000 with support from AIN

The founders of ecommerce startup aisle 3 have bounced back after being made redundant at the start of the pandemic to successfully raise £200,000 for their new ecommerce venture, supported by Angel Investment Network.

aisle 3 is a new marketplace providing choice and control for shoppers across the globe, who are able to select from 600 retailers on the platform. By deploying Machine Learning and AI algorithms, they aggregate retailer offers and rich product information so shoppers are presented with all of their buying options on a single screen. It took the business three months to raise the funds after two thirds of the founding team were made redundant at the start of the first lockdown and created the new business. 

Founded in March, aisle 3 gives shoppers the complete view of all of their buying options so that they can make purchase decisions based on their personal values such as price, delivery, locality, sustainability or brand loyalty.  The team has developed their proprietary web crawler, feed processor, laravel site, serverless infrastructure and multiple product aggregation algorithms from scratch. The funds at this stage are primarily directed towards advancing the brand’s product and tech build.

The founding team of Thomas J. Vosper, James Valbuena and Justin Thomas have 30+ years of collective ecommerce experience at some of the biggest names including– Amazon, Tesco, Lastminute, VASHI. In a short space of time they have grown to serve 2,000 organic shoppers each day, 600 signed retailers, and 20 Digital Agencies with more than a million products and 3 launch categories – Trainers, Toys and Baby products rolling out over the next few weeks.

According to co-founder Thomas J. Vosper: “We’re obsessed with shoppers getting their best deal – whatever that means to them. We’ll achieve this by solving two fundamental issues in online shopping. Firstly, we want to give shoppers the complete view of all of their buying options so that they can make purchase decisions based on their values. Secondly, we’ll make it easier for shoppers to find new products whilst, in parallel, leveraging our two-sided marketplace to act as a conversion enabler to close the gap between shoppers and retailers with significant revenue upside and ability to scale.”

He continued: “Like so many others, I faced adversity in the pandemic. However being made redundant gave me the chance to realise my ambition to create my own business taking the learnings from 14 years in online retail and support of an incredible network of industry advisors and investors to create something better. We are delighted that investors on the Angel Investment Network platform bought into our vision and I hope our success will inspire others to think there is light at the end of the tunnel during tough times.”

Agile Funding can help you raise fast

We are delighted to welcome back Adam Blair, CCO at SeedLegals, for his second guest blog as part of our legal mini-series for start ups:

When funding goes Agile

In our first article we discussed some of the different fundraising methods available to you as a founder, and the impact and benefits of the SEIS / EIS schemes. See How to close your funding round before the end of 2020 if you missed it or need a reminder…

This month we delve deeper into the world of agile fundraising and share some practical advice that can help you raise money for your business before the end of the year.

Making the most of the Christmas rush…

The run up to Christmas is always one of the busiest times of the year in terms of fundraising activity and investment. This can be a great time to look for investment, as many investors are looking to move quickly and close investments before heading off on their well earned break (even if this year that will be at home…).

With less than four weeks until Christmas, there’s not long left if you’re looking to raise investment this year. But all is not lost – agile fundraising enables you to raise investment quickly and flexibly in situations just like this.

What is agile fundraising?

Over the last couple of years at SeedLegals, we’ve observed that many early stage companies are moving away from go-big-or-go-bust funding rounds every 12 to 18 months in favour of agile fundraising where they raise small amounts frequently, taking investment opportunistically (e.g. when you meet someone who wants to invest) and as needed.

We now see the savviest founders use agile fundraising to grow their businesses faster, spend less time holding up the business while they look for investment, and give away less equity than founders relying solely on the traditional go-big-or-go-bust funding rounds.

The two main agile fundraising methods are SeedFAST (Advanced Subscription Agreement) and Instant Investment.

Advanced Subscription Agreement (ASA)

An Advanced Subscription Agreement is the UK equivalent of the SAFE (commonly used in the US) and is SEIS/EIS compatible – great news for you and investors.

An ASA allows investors to give you money now, in exchange for shares in your next funding round. Your ASA investors will receive their shares, generally at a discount compared to other investors in the round, because they invested early, when you close your next funding round. 

Instant Investment

Instant Investment allows founders to close an initial funding round like normal, and then top that up anytime, within limits agreed in the initial funding round.

This enables you to raise only what you need or are able to raise right now, and get back to growing your business. Then, as you find additional investors, you can quickly and easily add them, effectively topping up your last round. At SeedLegals, we regularly see founders close a funding round and continue raising using Instant Investment for 12-18 months before doing their next round.

You can read our comprehensive agile fundraising guide here

Is agile fundraising right for me?

There are a number of scenarios where you can use agile fundraising to your advantage, whether you are going out to investors for the first time or have raised multiple rounds of funding already.

Here are a few of the most common use cases we see at SeedLegals:

  1. You’ve found your first investor…

First investor on board – now to find the rest, right? Yes and no…

While one option is to keep your round open as you search for other investors, a better way could be to use ASA to get that money in ASAP, rather than keeping those investors (and their investments!) on hold while you line up all the other investors for your round.

With an ASA you get investment there and then, which can be used to invest in growth or extend your runway, and the investor generally receives a discount on the upcoming round in return.

The fact that one investor has already committed and transferred funds will also typically be viewed positively by other investors you’re speaking to.

  1. You can’t agree on / don’t want to commit to a valuation…

Is my valuation £500k? £1m? £3m? £5m? Agreeing a valuation for an early stage business can be a minefield. Luckily, we’ve written this article about how to think about valuing your startup…

Great! So you’re good to go… But there are still lots of cases where investors and founders simply can’t agree on a valuation or may strategically not want to agree a valuation at that time.

An ASA can help both parties here, giving you up to 6 months to finalise the valuation. As a founder, this not only gives you much needed cash, but also time to grow the valuation to a point where you and your investors are both happy.

  1. You’ve got your key investor(s) on board…

When fundraising, founders will often have certain investors they really want to get on board. Perhaps they’re writing the biggest cheque, have a great network, or are able to provide unique advice and insights.

You’ve landed your dream investor(s) and have a decent chunk of your target raise committed – now what? 

This is a great time to consider closing your round and continuing to raise using Instant Investment. Negotiations around valuation and key terms are likely to be finalised or close to finalised by now, meaning that other investors are likely to be signing up to the same terms. 

This approach means you receive funds and can put them to work immediately, whilst continuing to fill and complete your round.

  1. You’re just waiting on the last investor(s) to sign…

Everybody has signed, except one or two investors… One is going on holiday for two weeks and the other is dragging their feet. What do you do?

You could wait until they get back, but this just means more time thinking about fundraising vs. growing your business. Instead, you can let these investors know that you’re going to close the round without them, but (and very importantly) they will be able to invest at the same terms once they’re back, or ready to commit.

This approach can sometimes lead to investors suddenly being available to sign and transfer funds, meaning the round closes as initially planned. Either way the round closes sooner, without losing investors, a win/win.

Summary

If fundraising is dragging on, or you just want to move faster, agile fundraising could be just what you have been waiting for…

SeedLegals

Questions about agile fundraising, or fundraising in general? You can book a call with one of the SeedLegals experts, who will be happy to help.

#Behindtheraise with Occuity

We spoke to Occuity founder and CEO Dan Daly about his revolutionary new device diagnosing chronic health conditions via a patient’s eye, building a winning team and top tips in securing funding from angel investors.

Tell us about Occuity?

Currently, the diagnosis and monitoring of many chronic health conditions is inadequate, leading to people suffering when they don’t need to or even shortening their life expectancy. 

Occuity’s mission is to improve this damaging situation through the development of cutting edge technology and production of a range of devices that will enable the non-invasive measurement of these conditions. Our devices simply shine light into the eye and detect changes and markers that indicate the person’s health. The first of the many  devices in our development pipeline which will utilise our proprietary technology, is a hand held optical non-contacting pachymeter.

What is your background?

I have always been interested optics and lasers. I started out as a physicist, specialising in micro-optics (very, very small lenses) and measurements using light. It was fascinating how you could see down to the micron level with the right system. However, as I progressed, I moved away from doing the science and became more involved in the commercial side and actually applying these technologies to the real world. It was therefore an obvious next step to combine the two and form a company that utilised the powerful potential of optical measurements.

How did the idea for the device come about?

It started by thinking about what measurements you can do with light. Then a desire to make measurements that were worthwhile, and would make a difference. This led to the interest in healthcare. Building on this, I started to think about situations where people are required to make many, regular measurements. Diabetes is  the obvious example. Clearly doing this in a way that  is pain free and non-invasive would be a major advantage.


How did you recruit the team?

We have a great team with a huge amount of medical and engineering knowledge, experience and brain power. Having worked in this sector for a number of years, many of the team have worked together in the past. Most of our newer team members have come via personal contacts and recommendations, whilst some have even joined us after hearing about our plans through our website. We’re still growing and it’s exciting to see the team develop, but as our growth increases, it’s important we utilise the right channels to make sure we’re able to recruit the best talent, whether this is directly or through specialists agencies.  

How have you overcome challenges during COVID?
We were relatively fortunate that when COVID hit, we were a still a nimble start up and  a lot of the engineering was still at the “developed in a garage” stage. This meant we were able to (literally) go back into the garage during lockdown and continue the development unabated.

We are also in the fortuitous position that as our measurements are non-contacting, they are much safer than the existing devices we are seeking to replace, as these devices must physically contact the patient or draw their blood. There is definitely a mood in the healthcare sector that the more you can do remotely, the better. The risk of spreading infections, causing accidental harm or pain is completely removed by our non-contacting devices, which is great news for both the patient and the clinician.

Why did you decide to raise investment?
Due to the length of time it takes to run clinical trials and obtain regulatory approval, medical devices are very expensive to develop and of course you can’t sell them to generate revenues until you’ve successfully completed the regulatory process. 

It was therefore necessary for us to raise funds and  we will  undertake further funding rounds before we get to market.

What are your top tips for anyone raising investment for the first time?
Firstly, don’t push the valuation too high initially. Leave some headroom for future rounds so that those coming in later have a reason to invest.

Secondly, look for investors who bring more than just cash. It can be contacts, market experience or whatever, but once they are championing your company, it adds significant value.

What attracted investors to your company?
It was definitely a combination of factors. A large part of the attraction is the upside potential of Occuity. We have a proprietary technology, protected by nine patents, and an expert team developing products which deliver clear solutions to large and growing markets. The opportunity is tremendous.

Take the glucose monitoring market as an example. This market alone is now worth over $14bn, and that is based on people sticking needles into themselves. It’s widely predicted that the first company with a non-invasive solution will take a large share of that very valuable market.

But the attraction is also the chance to be involved in something that’s doing good and significantly improving the quality of life for hundreds of millions of people.

My biggest fundraising mistake was…
Timing. It always takes longer than you think to run a fundraising campaign and with COVID and lockdown layered on top, we should in hindsight have started earlier.

Why did you choose to use Angel Investment Network?

It is the breadth and experience of the network that adds so much value. Most networks are regional and so draw on a limited pool of angels. The AIN is global and as such we were able to raise funds internationally from people who offer distribution support in countries where we would otherwise have no links. In addition, the team are great to work with and we trusted that they could help us succeed, and they did.

What’s in-store for Google’s finest at the Xoogler Demo Day?

Jenny Collins brings her passion & experience for bringing together smart, impactful R&D teams, across Google – to optimize the European start-up eco-system, and in particular connect Xoogler (“ex-Googler”) entrepreneurs with angel & capital investment.

So what can we expect from the Xoogler Demo Day?

This is the annual opportunity for ex-Googlers who have founded their own start-up to connect with investors.

This year, we have 170+ investors lined up and we are selecting 15 of the most credible start-ups from around three times that many applications. We’ll help each of them to create a succinct & delicious elevator pitch, of 2 slides in 2 mins & 2 Q&As, to attract further discussion in the social element of the day.

I’ll be simply there to present the talent: we have keynote speakers, all the major capital & angel investors signed up and we are sponsored by Landscape, which seeks to reward great behaviours in the investment world and Remo.co as our platform.

But it’s not just about funding; it’s about creating an entrepreneurial community, in this locked-down world. It’s a space to connect like-minded people & expertise; to absorb advice, be inspired, to show off, and to express frustration; to laugh. 

Are there any common themes for the companies attending? 

Companies must have at least one former Google Employee as a founder, be committed enough to the goal to be working on it full time, to have raised initial seed at least from friends & family, right up to series A and be rallying further funds. Companies will need to have an initial MVP to showcase and be able to demonstrate customer traction. 

How does Google support Xoogler startups?

We have folks from inside & outside Google who help out; it’s entirely voluntarily – Xooglers tend to be self-reliant and like most things at Google, people help out because they are interested, not because they have to. We may look to syndicate further virtual demos to become more self reliant. 

How would you describe the characteristics of a Xoogler?

It’s a terrific blend of folks who are smart & humble enough to get through Google’s interviews, schooled in how to create globally scalable tech, and a desire & determination to now do things themselves.

What type of investors are you expecting?

We have everything from Googlers who are starting to fund early stage ex-colleagues, about 50 seasoned angel investors, right up to companies like Atomico, Sequoia, Seedcamp, etc. 

Have there been exciting successes from previous years?

It’s always fantastic when people you know do well, like Ex-Google Engineer Lewis Hemens, co-founder of dataform.co, who pitched in 2017, going on to complete Y Combinator & raise a seed round with a top European VC. The most recent exit is Irish based Pointy for $163m, and then (ironically) acquired by Google in Jan 2020.

How has Covid affected the demo day?

In response to Covid-19, XDD is now virtual, which has brought the future forward suddenly.

This makes it easier for more speculative investors to attend, but also means it’s even more requisite, because those coffee morning conversations and water cooler moments, in real life, are less frequent. Online community is increasingly important to promulgate this sector. 

Are there any practical takeaways for our entrepreneurs? 

Now is the time to get your startup sorted, to be ready to take UK/Europe out of lockdown Spring 2021. It will come quickly and there are plenty of gaps to fill that big corps are too busy scaling and often aren’t agile enough to notice.  

What was the biggest thing that you learnt personally whilst working at Google?

Always assume best intent.

Anything else?

If you are an investor interested in attending the event, or a suitable start up, you can apply here.