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.

Founder Market Fit & what it means for early stage planning

In his second guest post for Angel Investment Network, Dan Simmons, CEO of Propelia, explains ‘How understanding the shift from Product Market Fit to Founder Market Fit in the pre-seed space can now help influence your early stage thinking and planning’:

Understanding The Shift 

There is a recognisable shift starting to happen in the early stage space. A shift that is important to be aware of and understand whether you are a founder or investor. A shift away from Product Market Fit and towards Founder Market Fit around and for pre-seed investment. This shift essentially means the way certain angel investors are starting to evaluate early stage founders is beginning to change. Change away from the traditional lenses that model and evaluate Product Market Fit towards a new phase where different tools, frameworks and assessment criteria are at play.

We can see this shift clearly by comparing and contrasting the two diagrams below:

We can see from the Product Market Fit diagram, that as you move forward, it essentially at each stage relies on and is informed by tools and lenses like OKRs, YOY, NPS, KPIs, CAC and CLV to chart founder progression and development. A progression that many founders when trying to structure and project the progress of their start up onto find very difficult to navigate. A difficulty that often then causes them to come up with and put forward assumptions and future projections that are essentially best guesses – just to align with Product Market Fit based questioning and be attractive to and try and close their potential investment.

However we can see that by shifting the focus towards Founder Market Fit, the nature of the early stage journey distinctly and meaningfully changes. 

Here we can see that different criteria are being used to assess value and progress of the founder, that utilise much more human language and exploratory values when compared to the tools and lenses of Product Market Fit. This is critical as to why this shift is increasingly attractive to and in the interest of early stage pre-seed founders.

Why This Shift Is Occurring Now?

For a long time the tools of Product Market Fit have been the only way to really evaluate an early stage founder and their future start up journey. This often creates an asymmetry and many ensuing systemic problems in the ongoing dynamics between founder and investor. Both parties when evaluating an early stage funding deal, are of course looking to gain comfort that the road ahead is valuable and worth pursuing together. The tools around Product Market Fit have been an attempt to create that comfort and generate that degree of future certainty.

A certainty that was always speculative at best. Ask any founder who has been asked over and over again to create and then endlessly tweak a 3 year spreadsheet of projections and you will be met with the frustrations and self-evident limitations of this methodology and approach in the pre-seed space.

However will market conditions now very much being set to ‘Uncertain’ post-COVID, it is clear that any founder predicting more than 6 months out is simply putting ‘their finger in the air’ and practising some sort of start up fortune telling with no real basis in the reality of events unfolding on the ground. For the first time, both investors and founders can agree that a change is needed to adapt to this underlying uncertainty – particularly around evaluating those first 6 months in the early stage space. This is all important in creating the conditions for the shift from Product Market Fit to Founder Market Fit.

Who Are Some Of The Key Stakeholders Helping Make This Shift Happen?

This shift is being fuelled by various key stakeholders in the early stage space that are sensing the market timing and opportunity to fuel and propel it forward. These range from early stage funds that are realising that updating towards Founder Market Fit is both valuable, viable and attractive as their pre-seed market positioning. Indeed by adopting this approach it could immediately make them more ‘founder friendly’ and differentiate them from their rival funding firms who are still focused on the tools of Product Market Fit and therefore lack this new perspective. Forward Partners and The Fund are good examples of this or early stage firms talking this language. 

However there are also additional stakeholders that are worth noting and exploring further. Here’s a few of them worth exploring.

 The legal parties that specialise in the early stage space. Companies like SeedLegals offering Agile Funding solutions that enable founders to take on smaller tranches of funding in a much more fluid and ongoing manner than if they were completing a larger round – see here:

The increasing awareness around Founder wellbeing and how applying the lens and pressure of Product Market Fit too early can have adverse effects on mental health. Many founders report the same symptoms and sleepless nights having to prove the projections they previously plucked from the ‘spreadsheet ether’ last quarter at their next investor meeting. See founder peer support groups like Foundrs who are there to ‘help one another break new ground without breaking ourselves’ and Courier’s excellent Founder wellbeing report.

In recent years this shift has been enabled by the application of R&D and Innovation Grants to the early stage space by forward thinking companies such as GrantTree and Data Fox. These companies have been able to reclaim capital spent and invested in innovative new products, services, processes, software or systems and are often willing to be engaged on a no-win, no-fee, no-risk basis. This has provided an alternative route to financing and capital in the early stage and is particularly well orientated to outputs of Founder Market Fit.

A final stakeholder that has emerged in recent years that helps value this shift differently are firms like Coller IP and Valuation Consulting who are managing to put the softer and intangible assets – like brand, business models, know-how and sweat equity – on the early stage balance  so that they can be factored into larger rounds. This starts to assign an actual value to the dynamics of Founder Market Fit that were previously considered to have a marginal worth at best when compared to the more tangible metrics and measures of Product Market Fit.

How This Shift Might Affect Early Stage Funding?

If you are currently engaged in an early stage funding round or indeed considering one, it might be useful to pause and think about the difference in approaches between Product Market Fit and Founder Market Fit. Whilst this shift is visible and happening it is still quite new, even to sophisticated investors who regularly fund founders and their pre-seed start ups. 

You should both as founders and investors feel like you have the permission from the outset to discuss and delineate which approach is being taken. They are both very different with different paths with different evaluative criteria and measured outcomes. Critically once you are down one path and everyone is aligned to that approach, it is notoriously hard to reverse out of. 

However factored in up front an awareness of the choice around this shift could help fuel a different type of initial conversation between founder and investor that helps from the outset frame and articulate future aims, expectations and values. It could even form part of an early whiteboarding or brainstorming session between founder (and their team) and potential investors.

Just by being aware of the shift and bringing it into the conversation is at the very least a sophisticated early basis for discussion.

How Do You Assess Where You Are On This Shift?

Finally a quick diagram to assess where you are at in relation to this shift. It is suggested that if you are in the pre-seed space then Founder Market Fit may well be the more suitable approach. This may also be the case if you are still in the Seed funding stage.

However it is likely that if you are in the Series A or above that you are further down the line in the territory and terrain of Product Market Fit and its evaluative tools and approach are still more suited to you.

The good news for everyone, is that by being aware of where you are in relationship to this shift, then all conversations and their related lenses, tools and frameworks, can start to hopefully become more ‘fit for purpose’ and ultimately as a result, more valuable for all parties and stakeholders involved.

Dan Simmons – Propelia Founder // dan@propelia.com 

Propelia is the UK accelerator navigating the use of Pilot Rounds in the pre-seed space in our post-COVID times. A Pilot Round is designed to rapidly connect early stage founders with aligned investors, to enable them to leverage SEIS capital to fuel, test and iterate uncertain market assumptions and prove Founder Market Fit over the next 6 months. Once completed, this enables them to then evaluate and ideally increase the value of  the greenlighting of a subsequent larger round to fund the further launch of their product and operations. All diagrams in this article remain the Copyright of Propelia Limited

7 software due diligence considerations

By Roger Planes, CEO Silicon Rhino

Investing in tech startups can be daunting, especially if you don’t have a tech background. Investing in new ideas, market opportunities and teams can be exciting, and should remain the most important deciding factors when considering an investment. Here are a few points to focus on from a software due diligence perspective.

Documentation

Documentation is hardly at the top of the priority list of many early stage companies. While the tech team may know all the ins and outs of the project by memory, it will be much harder to onboard new developers or take over the tech if the need arises.  Projects and quirks in the systems should be well documented.

At the very least, any startup should have a set of documentation to allow someone else to pick up the project if the key people became incapacitated.

Roadmap

Early stage startups usually fall into the trap of prioritising features due to customer feedback or potential deals in the pipeline. Ask for a 12 month roadmap to understand how the product will evolve going forward. 

Having a roadmap in place will serve as a general direction, but understand tech startups operate in an agile environment so feature prioritization may change to best achieve market fit.

Resourcing

The convention of a tech startup needs to have a tech team is being challenged. So long as there’s access to reliable resources to build the product, a product can easily go to market whether the team is in-house or not. What matters is how well the company is able to explain the relationship and access of the resource and how these resources are prioritised.


Leveraging third party systems

Early stage startups should focus in building and iterating the core of their product first and foremost. When resources are not widely available the team needs to prioritise what should be built by the company itself versus what third party tools can be integrated into the system. Payment processors like Stripe or Braintree are one the best examples for a product that takes payments but isn’t part of the core offering. Make sure the team is focused sharp in the product USP and integrate other tools to help speed up development.

Customer Data

Another advantage of using third party software is delegating the regulatory requirements and storage of sensitive customer data like credit card and payments. While you shouldn’t expect developers to be experts in data security, the team should be aware of the current laws, their obligations and have plans to improve security in the product roadmap if it’s not as robust as it could be.

Architecture

There are infinite ways to architect a technical product, and all of them have their pros and cons depending on budget, resources available and product availability. 

The most important pitfall to look for is the opportunity for a single point of failure. An example of this would be having your whole test stack plus storage in a single server or virtual machine. In case of failure or unavailability (it happens) this would mean the company and their customers wouldn’t access any data while the incident lasts. Distributing the technical stack between different services or microservices will lessen the risk in case of disaster.

Disaster Recovery

Technology can sometimes be unpredictable, so every tech team should have at least a disaster recovery plan in case there are problems with the hosting of the platform or some external services. Asking about backup location and periodicity, how long would it take to relaunch the tech stack in case of failure will give you an understanding about how much the team is thinking about disaster recovery.

This is by no means meant to be an exhaustive list but should highlight the common areas you should have a high level view over for potential additions to your portfolio (and potentially reviewing these points on your existing investments). All these areas can be relatively easily overcome in the early stages of a company. If these questions throw up something unexpected that gives concern, please speak to a trusted advisor. 

Next Steps

If you would like to receive further tips from Silicon Rhino about how to implement Technical Due Diligence, sign up here.

How to close your funding round before the end of 2020

We’re very excited to announce the first edition in our series of guest articles from our partners SeedLegals. SeedLegals automates the legals to help companies close funding rounds faster, and hire, manage and allocate equity to their team.

CCO Adam Blair explains legal considerations to help you close your fundraise before 2020 is out:

And just like that, it’s almost the end of 2020! We hope you’ve had a successful year up until this point, considering the year it’s been…

At SeedLegals, many founders we speak to are now thinking about how to scale their business in 2021, and beyond. And what’s the best way to scale? Securing funds so your business can grow. 

With the end of the year fast approaching, you’ll want to be getting everything sorted before the Christmas break, so here’s what you need to know… 

Seasonality in UK fundraising

At SeedLegals, we’ve observed three main spikes in the fundraising calendar:

  1. The first, perhaps unsurprisingly, is the end of the tax year (April 5th), and particularly for SEIS and EIS rounds. The reason for this is investors are keen to get deals closed to ensure that they receive maximum tax relief in the current tax year.
  1. The following is the run-up to the summer holiday season. Traditionally (at least prior to Covid-19), many investors use August to pack up and take some time off. If a deal isn’t done by the end of July it won’t be closed until September (or even later), hence the pre-holiday rush. 
  1. And lastly, the run up to Christmas. This can be a frantic time of year for both investors and founders, with lots of fundraising activity and investment. There’s nothing quite like getting a deal closed and all the paperwork done before the festive break! 

This is great news for founders, particularly this year as a result of the pandemic. Deal volumes were lower than usual earlier in the year, and we are now seeing a significant uptick in activity from investors to make up for this. 

SEIS/EIS

Over 30,000 UK companies have now received investment over £20 billion since the introduction of the EIS Scheme in 1993 (HMRC). In the 18/19 tax year alone, funding via the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) totalled over £1.8bn. 

The SEIS/EIS schemes allow investors to claim tax relief on the money they are investing into your company. Investors are able to claim Income Tax relief at 50% for SEIS investments, up to £100,000 each tax year, and 30% for EIS (max £1m). 

It’s worth noting that SEIS/EIS allowance can be claimed for both this tax year OR the prior tax year (known as carry-back). If, for example, your investor invested £50,000 SEIS/EIS in this tax year (2020-21 tax year), they can claim income tax relief against their tax payable for this tax year OR they can carry back to the previous tax year (2019-20).

SEIS/EIS Advance Assurance 

As a founder, the first step when fundraising is typically to apply for SEIS/EIS Advance Assurance. Many investors will only consider investing in a company that’s received SEIS/EIS Advance Assurance, as this gives them confirmation that they will receive tax relief on any potential investment. 

To get approval for your company, you’ll need to line up one or two initial investors to add to your application to demonstrate interest, and then you can apply. 

If you’d like to find out more about SEIS/EIS, you can read more here.

The importance of the Term Sheet

Once you have investors interested and committed to investing in your business – you’ll need to send them a summary of investment terms – called a Term Sheet. 

Term Sheets are where a large amount of negotiation can happen as they include details on the valuation, but also things like vesting schedules, reporting requirements and even founder salaries. 

What we often see at SeedLegals is once a founder has the first signature on the Term Sheet, it’s generally easier to get subsequent investors on board and close the round. 

SeedLegals data shows that on average companies close their funding round approximately 30 days after unlocking their term sheet. 

Advanced Subscription Agreement

An Advanced Subscription Agreement can be issued to new investors at any time and allows investors to subscribe for shares in an upcoming funding round, in exchange for giving you money now. 

In these cases, no valuation is set. Instead, your investors will receive their shares (generally at a discount) when you close your next funding round. 

An Advanced Subscription Agreement is a carefully worded, easy to understand document which complies with SEIS and EIS legislation – read all about it here.

Instant Investment

Instant Investment allows you to close a small (or smaller) funding round, raising only what you need or just the investment you’re able to get right now, and then top that up anytime, within limits agreed in the initial funding round.

Let’s say you want to raise £500K but you only have £300K of investors lined up. Rather than spending weeks or months finding the remaining £200K, you can close the round now, but set the deal terms to allow you to top up another £200K anytime within the next 12 months (for example), at the same or higher valuation, with no further investor consents needed.

This enables you to close the commitments that you have now, with the flexibility to continue raising in the new year, or maybe even during the next peak in the fundraising calendar…

So, there are a number of strategies that can be used to allow you to take in investment before the end of the year. Which are you going to choose?

About SeedLegals

We’re the operating system for your company, and we’ve already transformed the way more than 15,000 UK and French startups run their businesses.

Want to find out more? Head to SeedLegals or book a call with one of the SeedLegals experts, who will be happy to walk you through the best option for you.

Looking back to help you launch forward


Propelia is a UK accelerator that has worked with early stage founders since 2012, developing the concept of ‘Pilot Rounds’ in the pre-seed space. A Pilot Round that essentially identifies and connects founders with aligned investors, to enable them to quickly leverage SEIS capital to fuel, test and iterate strategic market assumptions over the next 6 months.

It’s a shift towards ‘Founder Market Fit’ which is seeing new tools, frameworks and approaches currently being developed, to enable greater deal flow alignment and fluidity in the early stage space – where ideally everyone wins. 

Dan Simmons, Propelia CEO, shares his view of taking a different perspective for early stage fundraising:

Why understanding a founder’s journey through the 3 lenses of Projection > Planning and Proof can help you better evaluate the uncertain market problem now available to navigate and disrupt.

There are very few data points to help successfully plot the course forward if you are a founder or investor trying to launch into an uncertain market sector – particularly in these post-Covid times. This is why start up evaluation often revolves around incorporating and using future facing concepts and lenses like OKRs and NPS.

In truth for both parties this often feels like a ‘finger in the air’ exercise at best. A planning and strategic framework which can just about be used long enough in order to create and gain enough comfort to cross the line, move forward and often then quickly adjust as events invariably change on the ground.

Perhaps instead of looking forwards we need to to more frequently start looking backwards. Back into a better understanding and appreciation of the founder’s journey. Not just how they got from A > B > to their current pitch deck, but towards the consistent patterns of behaviour, exploration and also mistakes that have informed how they have arrived at a point where they wish to try and tackle an uncertain market problem and navigate with the associated risks.

Propelia has taken this approach with its founders since 2012. By doing so we have consistently found that when you truly look at a founder who has a nuanced and ongoing journey into their market sector, you commonly can discern similar signs, patterns and behaviours. These often enable both founder and investor to better assess whether the timing is now right to venture further and essentially invest in each other. 

Here’s some tools and tips that over the years we’ve found useful to hopefully better help you with a different kind of looking backwards evaluation:

TIP 1: PROJECTION

Too often when we talk about founders we refer to how they are disrupting the present. Almost every pitch deck in the last 5-10 years has featured commentary, speculation and projection on how their start up will disrupt their sector – often within the next 2-3 years.

However a new key element post-Covid has recently been added to and baked into the mix. That of the uncertain future. Seemingly the only thing that’s now certain is that this new feature of uncertainty will bear relevance and have to be factored in going forward.

Image © Propelia Ltd 2020

This can lead to a form of paralysis between founder and investors as they try and understand, incorporate and navigate this new terrain into their evaluation. 

It’s here where introducing a new horizon around the concept of the ‘Almost Now’ can prove to be very useful in breaking this deadlock. The Almost Now becomes like a whitespace of a horizon that can be projected onto and forecasted into that is suspended between the Disrupted Present and the Uncertainty Future. It is essentially saying this is the horizon around which we can now collectively meaningfully explore and evaluate, with the understanding that it will be inflected and affected constantly by changes in market conditions.

Interestingly it is founders whose journey opens up a unique path into this horizon of the Almost Now who find themselves most comfortable working and operating in this liminal space. For investors this is an immediate piece of feedback that if a founder can behave in this way addressing the Almost Now, then they are likely to be more adept and agile to work with when going forward.

TIP 2: PLANNING

Building on the above, any founder that has a journey that justifies them launching into a disrupted market sector should start to demonstrate and embody an understanding around a new framework that places the navigation of uncertainty as the key new function that informs future planning and strategy.

Like with PROJECTION above, founders with a deeper journey and understanding will be more comfortable baking in these two new functions into their plans and pitches. Equally founders without this journey will find this very uncomfortable and may demonstrate signs that they wish to only look forward via more traditional planning and strategy lenses and insights.

This new framework is emerging and impacting across all businesses and represents a real competitive opportunity for those start ups that are ready and agile enough to organise and execute in this way.

TIP 3:  PROOF

Finally, there are a couple very simple questions that as a founder you should be ready for and as an investor you can ask instead of things that would represent a traditional elevator pitch. Questions that quickly provide and demonstrate some PROOF that the founder’s journey might currently have relevancy, currency and influence over their market sector. 

These questions are:

Question 1  

Who could you now send a text to that is recognised as having authority over the market sector you’re looking to launch into that would i) immediately consider your question and ii) likely respond to you with their insight and input within the next 24 hours?

Question 2

Which email conversation in your inbox represents an ongoing dialogue with someone of influence that if it comes to fruition, could add immediate acceleration to your planning and strategy?


The 3 x tips above are just some initial ways to try and reveal insight into a founder that might be far easier to glean and assess by looking backwards, as opposed to consistently when approaching a new founder treating them as if they are essentially a blank slate and asking about future projections that both parties know are guesstimates at best. 

Just by being aware that there is this often underexplored terrain in the founder’s journey, that can start to be evaluated by simple lenses like the ones above. might mean that in these uncertain times, we can start better identifying, supporting and backing founders that are genuinely ready to cross the threshold in the unknown of the next stage of their venture.

Dan Simmons // Founder – Propelia – September 2020


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

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



The Angel Investment Network’s ‘Pitch and Pint’

The last year has been an important one for the Angel Investment Network – we turned 15 and welcomed new team members, growing the team significantly with a third of our London team joining towards the end of the year. 

Whilst 2019 has been a record year for the Angel Investment Network for helping start ups successfully fundraise, we certainly think there are areas that we can still improve. 

Over the years, we have built up strong expertise about what startups need to achieve to maximise their chances of success. 

  • What does an optimal team look like? What advisers should I bring to my business and how much equity should I give them?
  • When are you ready to raise a Seed round? 
  • How do you make sure you are speaking to the right investors and stop wasting time? 

But as the Angel Investment Network community has grown, we realised there was more knowledge and expertise held amongst our founders, our entrepreneurs. 

And we decided that the time was right to start making the most of that. 

So 2020 will be the year that, as well as making hundreds of thousands of connections online, we will start to connect more and people offline too. 

Join us for the inaugural Angel Investment Network, Pitch and Pint, at the Duke on the Green in Parsons Green.

Learn about how to improve your pitch. Meet the team and learn from the entrepreneurial community. 

Sign up to the Angel Investment Network’s Pitch and Pint.

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.

How to Make a Smart Angel Investment

This interview with Mike Lebus, founder and managing director of Angel Investment Network, was originally published in Sifted. You can read the full article on ‘How to Make a Smart Angel Investment’ with views from other industry leaders here.

Mike Lebus, angel investor & co-founder Angel Investment Network

Mike Lebus (UK)

Mike Lebus is co-founder Angel Investment Network, a platform catering to 205,000+ angels which has backed the likes of bed mattress startup Simba, geocoding business What3Words and kids media company SuperAwesome.

An angel investor for 6 years. 

Number of personal investments: I try to make two personal investments a year. Through the venture division of the company (me and three others), we have a stake in over a hundred companies.

Average cheque size: I normally invest £10-25k.

The biggest misconception about angel investing is… that investors should be based in startup hubs like Silicon Valley and London. Online platforms and digital networks now allow investors to find great deal flow wherever they are based.

Do… take the time to meet and get to the know the founding team. When you invest in early stage projects the idea takes second place to the team. This is because the idea will have to change and evolve to be a success; and it’s the team who are responsible for doing that!

“Investors don’t have to be based in startup hubs like Silicon Valley and London.”

Don’t… invest in only one company. No matter how good the opportunity looks, there are so many unknowns when it comes to early stage investment. It’s a much better strategy to invest smaller in more businesses.

The biggest mistake I made was… to miss out on a great opportunity because I failed to build a good relationship with the team. In the early discussions I should have focused on getting to know them, their vision and their processes; instead, I was too blinkered on the valuation and deal terms. It ended up being a waste of everyone’s time. The company went on to do very well!

My personal top tip is to… manage your expectations. If you’re obsessed with returns and timescales, you’ll end up being a burden on your portfolio companies. If you relax and trust the team to execute on their vision, then you can focus on finding meaningful ways to help them with your experience and connections.

My most recent investment was in… Sweatcoin, an app that tracks your outdoor steps and rewards you with digital currency. It’s been the fastest growing health and fitness app in history in every country it’s launched in on the App Store. I know the founder well, so knew how talented he was. I also loved the company’s innovative approach to incentivising people to become more active and get healthier.

Sweatcoin tracks & verifies your outdoor steps using your phone’s accelerometers and GPS location. Those steps get converted into our currency — Sweatcoins.

The deal I regret missing out on is… Funding Circle. We helped them with funding very early on, but I chose not to invest personally. Their IPO last year valued them at £1.5 billion!

If I could change one thing about the European angel scene it would be…More government incentives to encourage more people to invest into startups. The UK have the SEIS and EIS schemes, which have really helped stimulate early-stage investment. I think more European countries should introduce similar incentives.