StartUpBuzz



At AIN, we celebrate connecting investors to back the great businesses of tomorrow, whatever they do. With this in mind, our latest round up includes a new form of property marketplace, a platform using AI to reinterpret education and a company making new types of soup!

Soupologie

Soupologie

Whilst you may think there isn’t much to differentiate soup, Soupologie would beg to differ. Soupologie makes award winning soups and ready meals that are driving a number of innovations including: the world’s first ‘5 a day soup’ and ‘first free from the 14 main allergens soup’. 

Capitalising on the plant based movement, the company has achieved strong growth and has even released two cookbooks. With an exit focused management team and strong revenue growth, the company is on a fantastic path.

Key Facts

– On track for £3.2m revenue in Y/E May 22

– Products sold at Waitrose, Tesco, Ocado and leading supermarkets 

– Over 21k+ followers on social media  

“Soupologie have steadily built a strong business core around an innovative product range. Alongside executing the fundamentals of the business brilliantly, they amplify the brand exceptionally well through wide reaching media campaigns and an enviable following. The combination is powerful and we knew it was something that our network would be keen to see” Sam Louis. 

Find out more about Soupologie here.

Vesta

Vesta

Vesta is a marketplace for buying and selling rental property, and has sold over £50 million of property since it’s launch in 2018. 

It’s the leading marketplace of it’s kind covering buy-to-let, student accommodation, and portfolio properties for example. The properties often come with a tenant in place – if you buy a property with a tenant in place, the tenant is happy as they don’t need to find somewhere else to live, and the buyer is happy as they have an immediate rental income. 

Key Facts

– The rental market is expected to be £1.7 billion by 2025 

– Vesta has a growing pipeline currently worth £100 million.

– Revenue currently > £20k a month

“This is a space that has been of interest to me for some time and Vesta clearly sets out what the investment options and how much I can hope to generate from the moment I buy the property” Xavier Ballester.

Find out more about Vesta here.

Habitat Learn 

Habitat Learn

Habitat Learn is an ecosystem of products designed to remove the barriers of learning. With the ethos that ‘when online learning works better for all students; all students work better.’

Habitat Learns comprises a suite of products easily integrating into existing education technology. This includes: 

– Video conferencing software, designed specifically for education, as well as providing high quality live stream content, there is AI captioning and translation, and digital watermarks to safeguard IP. 

– Advanced analytics including everything from live recording, invoicing and student attendance records

– An option to get notetakers to take notes remotely. 

Key Facts: 

– Projecting £3m revenue in 2021, (£600k: 2020)

-185 customers (universities and colleges) including Harvard, Yale and Cornell

– Experienced team founding multiple successful startups 

“With lockdown Edtech has seen a real surge but I also looked back to my uni days where I spent most lectures frantically scribbling and missing half of what was said… Oh to have had Habitat Learn!” Xavier Ballester. 

Find out more about Habitat Learn here.

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 Alpaca Coffee

In this week’s #SixtySecondStartUp we catch up with Alpaca Coffee who are making ‘better coffee for you and the planet’:

  1. What does Alpaca Coffee do?

Alpaca Coffee looks to bring better coffee for you and the planet. We are working towards being UK’s first fully sustainable coffee brand by promoting sustainability at every touchpoint:

Ethically-Sourced Specialty Coffee: Traceable sources to support family businesses that adhere to international standards on sustainability, better pricing, and quality

Zero Waste Roasting: Roasted via circular technology with biofuel instead of fossil fuel 

100% Plastic Free & Compostable: 100% plastic-free, from our labels and our bags, all the way to our shipping boxes and compostable tape.

Offsetting Our Carbon Footprint: For every 10 bags of coffee sold, Alpaca Coffee will plant one tree in the Amazon Rainforest.

  1. Why did you set up Alpaca Coffee?

I fell in love with specialty coffee during a trip to South America, but soon became aware of the negative environmental impact of the coffee industry. Due to this, we decided early on to become the new industry standard and to put sustainability at the core of what we do, making quality and sustainable coffee accessible for everyone. 

  1. How did you get your first customer? 

We validated our idea with a Kickstarter campaign. The featured by Kickstarter and our >200% oversubscription jump started our initial customer base and we are fortunate that a lot of the customers from then have stayed with us since then. Despite the fact that we have grown since then, I will never forget the moment my best friends tried our coffee and their amazed look. 

Alpaca Coffee

  1. We knew we were onto something when? 

Kickstarter was a start, but when we were featured by the UK Government as part of the SMB Climate Hub, among other publications such as Goodfind and Wherefrom, we knew we were onto something. 

  1. Our business model: 

B2C with a focus on e-commerce. We are rapidly expanding into the retail and B2B space so hit us up for a chat 😉

  1. Our most effective marketing channel has been: 

We are currently organic-heavy with our marketing, and so far has offseted >1,300,000 grams of carbon with >3000 bags of coffee sold. Social media has brought in great ROI, from word-of-mouth through user-generated content to collaborations with brands with similar philosophies. The team is working hard to further our presence by strengthening our branding and unboxing experiences. Stay tuned for our launch in December 🔥.

  1. What we look for when recruiting:

We look for people who share our values in sustainability and understand our mission. Being a challenger brand, we want to recruit fearless, passionate people. Diverse backgrounds, perspectives, talents, and ideas are important to us and we are driven forward by this diversity.

Coffee?

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

Saying yes to too many things. I’ve learnt that it’s important to approach any part of our business with a clear goal and understanding of the return on investment. We now approach anything we do together as a team with a clear understanding of how it fits with our mission and vision, and how it drives the business forward.

  1. We think that there’s growth in this sector because:

We are part of the “fourth wave of coffee”. As one of the most consumed drinks in the world, the quality of coffee as well as its impact on the environment and society, has become increasingly important to people around the world. As a specialty coffee company with sustainability at its core, we hope to become the new industry standard and push for better coffee for you and the planet. 

  1. We worked with AIN because:

AIN democratises angel investment and offers an unprecedented access to a supporting ecosystem and community of entrepreneurs and investors. This helps level the playing field and empowers entrepreneurs like us to grow. 

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 IBS Coach

Liamhl Asmall shares the story of IBS Coach, a digital dietary treatment for the 800 million people affected by IBS.

  1. What does your company do?

We help the 1 in 7 people who suffer from Irritable Bowel Syndrome to get instant and effective digital treatment from the phone in their pocket. It may come as a surprise, but IBS is one of the most common digestive conditions on the planet. It’s not life threatening and is still taboo (which is most likely why it’s been so overlooked for so many years), but it severely impacts relationships, work, travel, and ultimately, quality of life.

In one study patients with IBS were willing to give up 15.1 years of their remaining lives to achieve perfect health. People are desperately seeking a cure.

  1. Why did you set up this company?

Healthcare for IBS is inefficient and unaffordable. It is incredible that patients have to wait a reported 1 year to see a specialist on the NHS, or pay up to £320 for private treatment. We set out to solve this problem that our friends and family had faced. Our mission is simple: to make effective digital treatment accessible, affordable, and scalable for this 800 million person IBS healthcare market.

The IBS Coach App
  1. How did you get your first customer? 

When developing a medical product you’ve got a long road to walk before you can sell to customers. Our journey went from achieving medical compliance to setting up a closed beta testing group for people with IBS, to launching in the app stores. The overwhelming positive feedback gave us confidence that patients would buy our product. We launched commercially in October this year and had our first sale almost immediately. It’s a good feeling to know we’re helping people manage their IBS.

  1. We knew we were onto something when? 

We interviewed 30 people with IBS at the start of our journey and just listening to their stories and frustrations showed us there was a clear need for an affordable, simplified treatment for IBS. Very early on we shared a post on Facebook and had almost 200 sign ups in the first 24 hours. These were early points of validation and were supported by lots of desk research.

  1. Our business model: 

IBS is a lifelong condition that needs ongoing symptom management. Because of the ongoing nature of IBS, we aim to support patients throughout their life. The business model is a recurring revenue subscription and we are currently testing our acquisition channels and pricing. One of our goals is to establish a marketing flywheel with our next SEIS fundraise. 

  1. Our most effective marketing channel has been: 

Organic sales in the iOS app store. We’re now putting marketing spend behind Apple Search Ads and Google Ads which are ‘high intent’ channels. We’ve run multiple Facebook campaigns to test landing pages and messaging, and we’ll be exploring ways we can partner with brands.

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

One of the early mistakes was focusing too heavily on the product (we have a great product, and as a medical product we perhaps needed to spend a lot of time here!). However, if I were to start over I’d spend slightly less time on product and more time testing sales channels. It’s a fine balance as founders have to wear many hats. The risk is that founders focus on the jobs they like, or feel most ‘comfortable doing’. It’s good to be aware of our bias towards tasks.

  1. We think that there’s growth in this sector because:

IBS is a lifelong condition and the latest reports suggest the rates of IBS have actually increased during Covid. Couple the above with the mass adoption of digital healthcare, the large unserved market, and the scalability of our effective digital program and we have the right trends for our company to grow. 

  1. We worked with AIN because:

AIN has a reputation as one of the best platforms to share our ambitious plans with engaged angel investors; We hope to make many new connections and raise our current SEIS round.

If you are interested in learning more about IBS Coach, please get in touch via the Angel Investment Network platform.

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.

#BehindTheRaise with Euclideon Holographics

Derek Van Tonder shares the story of Euclideon Holographics and the key learnings from taking it through multiple rounds of funding, including the importance of benchmarking your company for investors and building meaningful relationships:

Tell us about what got you into start ups: 

Euclideon Holographics was founded because we tried out traditional Virtual Reality helmets and we really didn’t like them – we hated the cord, the screens in front of our eyes were awful because we couldn’t see anything, and most importantly, they gave us motion sickness. So we decided to solve that problem by removing the screens in front of your eyes and moving them onto the walls around you to solve all these problems with VR, and Euclideon Holographics was born.

Why did you decide to raise investment?

Our products have been very successful and many customers even purchased them before they were properly finished (in beta) – we are using this success to prove to investors that their funds can make a good profit when we use investment money to set up warehouses and showrooms around the world. 95% of our customers have seen our holograms in person before committing to purchase, so it makes sense to put showrooms closer to our customers, and that requires investment capital. We are also using fundraising as a way to network with new partners. Many of our investors end up working with us in the business, for example by becoming a representative for our products in a far-flung region of the world that we normally would not easily be able to access. Since they are shareholders, they are passionate about our company and it works very well.

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

Be careful of scammers, using a service like Angel Investment Network greatly reduces the number of shady people you will have to deal with. Make sure that you understand your market very very well – investors don’t just want to know how much you could sell if only 1% of the market bought your products – they need better and more realistic estimates than that. Ideally, you should have proved that people want to buy your product/service before raising investment. Investors may love everything about your company and technology but could be scared away by the risk factor – you have to be absolutely transparent about risk with investors. If you have debts, disclose those. If you are at all cagey about disclosing financials, many investors will see this as a big red flag. The gold standard is to have an independent, 3rd party accountant sign off on a copy of your balance sheets before you raise capital. Every serious investor will ask for this, and rightly so. Investors also like you to be very clear about what’s in it for them – you should not give “pie in the sky” and overly optimistic projections and forecasts. Instead, try to find companies similar in size and scope to your own and use them as a benchmark for comparison purposes. For example, we use the company Tritium, they are literally in the same street as our HQ, with a similar number of employees, and they are also an Aussie technology manufacturer with their own factory. Because they are very similar we can show them to investors and talk about their great success story.

What attracted investors to your company?

Shareholders of Euclideon Holographics are interested in a long-term pre-IPO Intellectual Property play, they are investing with us because we have a lot of unique IP and patents, we have proven that customers want to buy our products, and we are offering new Hologram products not seen before that solve a lot of the problems with Virtual Reality. And we also support popular 3D simulation engines like Unreal and Unity. Manufacturing our products in Australia is also seen as a big advantage to our customers, particularly with regards to our military clients, Australia is seen as a “safe” and friendly country by military buyers. Australia is viewed favourably as a hi-tech and very stable Western democracy so that also helps us.

My biggest fundraising mistake was…

At first, only emailing investors and not touching base with them in other ways. You should reach out to them on LinkedIn, send text messages, phone them, everything possible – otherwise you will never know whether your important email got stuck in their spam/junk filter. The absolute gold standard is to have a Zoom call with every investor. Investors like to invest in people. You need to meet them somehow, ideally in person if you can.

Why did you choose to use Angel Investment Network?

AIN has consistently delivered quality investors to us over the years as we have expanded our operations. We now have an excellent shareholder list and many of our shareholders are actively involved in helping us distribute our products and find new opportunities and clients all over the world.

What has the funding enabled?

We use our funding for expansion and to fund R&D on new products. For example, our first foray onto AIN netted us $700,000 (AUD) of investment, which we subsequently used to refine and commercialise our Hologram Table product, which is now our 2nd most popular bestseller.

Keen to hear more?

Listen to Derek in the extra video for #BehindTheRaise:

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.

Tips from the top: Raising investment

In our recent survey of startups in the UK and USA raising investment was raised as the number one challenge they faced, emerging from the pandemic. In the first of our new series of expert advice articles, David Pattison, experienced angel investor and leading media agency PHD founder, gives his top tips for those raising investment for the first time.

I have spent a lot of time chairing/advising young businesses and founders on how to approach fundraising. I always advice my clients to get involved with CNAPP security, as it is one of the most trending and useful security tactics.

It has always struck me that, at the very point when young businesses and their founders are looking for funding, you are at your most inexperienced and vulnerable. You are often in a negotiation dealing with very experienced deal makers. This negotiation is often pivotal to the future of your business. One bad clause signed up to in an early negotiation can magnify in size as time and fundraising rounds go on.

What can you do to try and even up the negotiation?

Before you start remember these three things:Investors only care about one thing and that is their money. In the case of Venture Capital and Private Equity that is how they are measured. They have clients who fund their funds and financial success is how they are judged and how they can then raise more funds. They want you to make money for them.

Raising money is hard. Right now there is a lot of money in the investment market, but you have to have a good business and a really strong offering to raise money. Young businesses seem to be lulled into believing there is a money tree at the bottom of the garden that just needs a shake. There really isn’t.

Raising money is really distracting. It takes focus away from the business and most companies suffer a slight drop in performance through this process. Just at the point where it’s not wanted. Share the load around and take advice from trusted sources.

Once you have got your head around that, what else can you do before and during the process?

Here are five of the many things you should do:

1. BE THE BEST BUSINESS YOU CAN BE

It sounds obvious I know, but investors are looking harder and deeper into prospective investments. You will need to present yourselves as the best business you can be. Showing that you understand all aspects of your company and your markets.

You need to be a well balanced and appropriately experienced team with a shared view of the future. Have a proof of concept (does it work?), ideally some revenue (is someone prepared to buy it?) and will they buy it more than once. A good understanding of the competitive set. If appropriate some IP protections. Most importantly that you are in control of the finances of the business and have good quality finance resource.

If some of these points describe your business, then you are well prepared for the questions the prospective investor will expect you to answer.

2. do not get close to running out of money

Never leave it too late to raise funds. Investors will sense if you are running out of money and will try and delay the completion so that they can ‘chip’ the deal just before closure.

Leave yourself plenty of time. Never underestimate how long it takes to raise money, allow 6-9 months if you are looking for serious money. Try to give yourselves options. Taking money from the least worst option is never good.

3. RUN YOUR BUSINESS AS IF YOU ARE ALWAYS ABOUT TO ENTER DUE DILIGENCE

Prepare, prepare, prepare. It sounds obvious but make sure you know your business and your market better than anyone. Do not take fundraising lightly. In the digital age it is easy to set up a data room that has all the company data in one place. Have good governance in place. Get the financials and the legals in order. Remember that DD is not a one-way street when you are raising funds then check out the potential investors.

4. be clear on what you want to achieve

This works in two ways. Firstly, be clear amongst the team on what you want for the business moving forward. Are you all aligned on the future strategy and exit points? Mixed messages to investors don’t travel well.

Secondly, when the time comes to raise the money be very clear to the investors what the money is for and what success looks like. Not many investors want to fund cash shortfalls and saving the business, and if they do it usually comes at a massive cost to you. They are called investors for a reason.

5. beware of deal fatigue

When you are in the fundraising process be aware of deal fatigue. Investors, and particularly the institutional investors rely on you running out of steam. If your chosen investor is a significant shareholder, they will be a big part of your business life. You don’t have to love them but make sure you respect them and their motives.

Very often management get to a stage in the process where they just want it done. They agree to a deal without looking at every last detail. This is where investors can add the hidden clauses that bite you in the future. Stay attentive and on the way through make sure you share out the workload amongst the team.

One final piece of advice. Everyone I speak to who is involved in fundraising says the same thing, ‘get the best lawyer you can afford’. Don’t be afraid to upgrade as you go through the investment stages. A good lawyer should be seen as an investment and not a cost. They will also do a lot of the legwork on the legal documents for you and keep you focussed and avoid a lot of the pitfalls.

As I said right at the start of this, fundraising is not easy, and you should take all the constructive help you can find. I have been involved in a lot of fundraising.

If this blog has been of any help, then you might be interested in reading my book: The Money Train: 10 Things young businesses need to know about investors. It’s a guide to preparing for the investment process from seed capital to Series A, with lots of real-world examples. Whatever route you take to raise funds I wish you good luck and success.

David Pattison has had a long and illustrious career in the advertising industry and as an angel investor. He co-founded PHD in 1990 and more recently he has been involved in a number of startups in a range of industries including, marketing, publishing, construction, motorsport, AdTech, MarTech, FinTech, production and broadcasting. He was recently announced chairman of Conversational media platform Octaive.

#StartUpBuzz


Each month our team selects some of the companies raising on Angel Investment Network that really stand out, as part of our #StartUpBuzz feature.

This month’s picks includes: Smart Container Co – real time tracking for beer kegs, Bx Technologies, a platform facilitating carbon offsetting by connecting corporates with farms, and ARQ, an investment platform for personalised wealth management using AI.

Smart Container Co

Enabling Transparency and a net-zero draught beer supply chain.

Smart Container Co turns traditional kegs into ‘smart’ containers, so that breweries, distributors and pubs can monitor the state of the beer inside, by combining a small waterproof IOT device connected to each keg (a KEGTRACKER), with their BEVEREDGE software.

It means that relevant parties can track the location, volume, temperature and motion for the liquid inside, reducing the risk of wasted stock, helping obtain more accurate shipping information, and gaining granular information about which product is being consumed where and when.

– UK patent pending 
– Chairman with 30 years experience including SAB Miller
– Piloting technology with Brewdog.

Sam Louis, Head of Consultancy, Angel Investment Network shared why he is most impressed by Smart Container Co:

“We’ve known the Smart Container team for a while now and have been incredibly impressed with their progress. What we like is that they have a product that integrates smoothly into an exceptionally large existing market, giving significant opportunity for fast scale.

Since we first spoke with them, they’ve built strong relationships with some of the largest brewers and keg owners in the world, all of which have approached them cold. The timing is also very good – the pandemic has meant pubs and bars have become increasingly open to technology, something that was previously a hurdle, and many breweries have seen strong profits from retail sales.

All in all, it sets the company in a very strong position going forward and we’re excited to see where they go next”.

Find about more about Smart Container Co here.

Bx Technologies  

Helping farms prove carbon emissions and offsetting – connecting farm to corporates.

Farmers are incentivised to maximise crop yields, but are rarely accountable for their carbon footprint. However, there is enormous interest in carbon offsetting from corporates to help them meet their ESG goals. 

Bx Technologies is the first two sided marketplace that connects corporations with farms and agriculture, reversing climate change through carbon offsetting and economic service investment. 

Bx Technologies use a farm management SAAS system with a trading platform powered by blockchain to create a carbon credit investing platform, allowing farmers to see both their carbon position and the profitability of their orchard. At the same time, Bx offers Ecosystem Service Investments for corporates, securing a long term supply of carbon offset tokens. 

– 1st SAAS client signed – paying $200k per year. 
– Expected to hit profitability by March ‘22
– Pipeline of over 12k hectares established 

In terms of what excites him about Bx, Sam Louis explains:

“We were drawn to Bx Technologies for a number of reasons, the first of which was the boldness of their mission – remove 500m tons of carbon from the atmosphere per year. They’re operating in an exceptionally important and exciting vertical, with the opportunity to make an incredible impact on the planet as well creating massive growth potential.

They’ve tied these lofty aims to a strong underlying business model, with profitability within sight, and they aren’t expecting any altruism to make their business work. They’ve aligned the incentives of all their stakeholders, making it genuinely robust model. All in all, it’s the type of business we love – exciting, impactful and pragmatic.”

Find out more about  BxTechnologies here

ARQ 

A wealth management app using AI personalised insights and comparisons. 

 ARQ is an investment platform that creates a personalised wealth management experience using AI and deep science. 

The intelligent tools rank your investments performance using huge quantities of data and gives insights that can be used to improve your portfolio. ARQ are making tools that are only available to the super rich to more mainstream investors. 

– A team with over 100+ years experience in financial services 

– ARQ are offering white label services for wealth managers 

– In house tech team behind leading fintech apps.

Xavier Ballester, Director of Angel Investment Network’s Brokerage Division shares why he is particularly impressed with ARQ.

“What I love about Arq is that I have this very issue: an Excel sheet with my various investments that doesn’t really give much insight after I have made my initial decision to invest. The beauty of this platform is that I can see my net worth and how my money is working for me and I imagine it will be a huge hit with financial advisors too.” 

Find out more about ARQ here.

Keen to discover other startups?

If you would like to see what other companies are up to on Angel Investment Network you can find them through your local network here.

Behind the Raise with Wealthyhood

Alex Christodoulakis is co-founder of Wealthyhood, the app ‘to turn you into your own wealth manager’.

Alex shares his story about Wealthyhood, how he raised investment, and his advice for entrepreneurs:

Tell us about Wealthyhood and how you came up with the idea

A few years ago, together with Kostas, co-founder of Wealthyhood, we wondered how we could invest our money on a monthly basis. We were busy professionals at the time and couldn’t devote much time to research or execute any sophisticated investment strategies, and of course not in the position to actively trade the markets.

So, we spent time trying to identify what was out there to solve this problem. However, we soon realised we weren’t alone in that. The problem was everywhere around us. There was a typical question among our friends, family and colleagues: “How can I invest my money? I don’t have the time or the knowledge to trade…”.

But how will they do that? 

Trading apps are usually too complex for beginner investors. They offer no guidance on how to get started or tools to create a long-term portfolio. They incentivise you to actively trade, by constantly notifying you for random price movements. Everyday investors get caught up on their emotions and end up gambling instead of investing. This was not the experience we were looking for.

So, we decided to build Wealthyhood to bridge the gap. Instead of just giving friendly advice to our friends, we decided to build a product that would guide long-term investors to build their wealth over time, by intelligently investing their money the way they want, with fewer fees.

It’s not only how our interactive guidance helps users to invest the right way, but also how we help them develop the right wealth-building mindset. You don’t have to be a millionaire nor an expert to have a successful and pleasant investing journey.

And this is how Wealthyhood was founded to become the first DIY wealth-building app for long-term investors.

Why did you decide to raise investment?

Unfortunately, Fintech is a very capital-intensive industry, even before you decide to spend aggressively on growth and marketing.

The initial costs have to do with securing regulatory approval and FCA compliance, even before you get started. And this is why we initially decided to raise some external money, alongside covering some operational costs and our plans to grow the team.

Apart from that, raising money from angel investors is a great way to validate your value proposition and showcase their belief in the vision of the company and the ability of the team to execute!

A successful angel raise doesn’t just get you money, but also access to the network and connections of your investors, so it’s a two-way process. The right investors can significantly accelerate our progress.

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

It’s always easier to approach angel investors, than early-stage VC funds. Start from your own network, pitch them your company and vision and then expand to your second degree connections, angel networks and of course the Angel Investment Network.

If you can’t persuade angel investors to invest in your company, then you should reconsider your pitch.

Always have a story to share; why you’re building this product, what’s the problem and why you’re the perfect team to  succeed!

Any signs of initial traction are a great validation that you’re heading to the right direction.

What attracted investors to your company?

I think it was a combination of different things. Probably the most important is the problem we solve. Our angel investors immediately acknowledged the gap between trading apps and robo advisors and the need for a DIY wealth building app for long-term investors.

Our vision to create the wealth-building app not for the top-1%, but for the 99% fully resonated with them.

At the same time, our investors had faith in the team behind Wealthyhood and us as co-founders. The first angel investors were people from our close network with strong  belief in our capabilities as a team. Then, friends of friends and finally professional angel investors, who got to know us better and believe in our determination and skills to execute.

Apart from that, we had already built some momentum, showcasing that we were heading in the right direction. We had more than 3,000 users signed up to our waiting list, over 10,000 followers in our LinkedIn and Instagram pages and had developed a community of 50 Wealthyhood Ambassadors across Europe.

Last, but not least, a few months ago we won 1st place on FinQuest Accelerator and are currently participating in the VISA Innovators Program, which for angel investors shows strong progress.

My biggest fundraising mistake was…

My biggest fundraising mistake was that we began by approaching early-stage VC funds, instead of angel investors.

This was wrong; it cost us time and money, but we soon realised it and switched our focus to angels, who were a much better fit for our stage and needs!

However, it helped us challenge our value proposition, improve our deck and positioning and make it more robust.

Why did you choose to use the Angel Investment Network?

Angel Investment Network was an amazing way to connect with the right investors for our company. It’s very time-efficient for founders and probably the best portal to share your story from a fundraising perspective.

It was first suggested by our advisors and we soon realised they were right to insist. 

Our number 1 focus for Wealthyhood for the year ahead is:

To build the investing experience we envision and make it publicly available through a web platform, iOS and Android apps. We’ve already launched a beta version of the product and are onboarding the first users from our waiting list.

Over the coming months we want to onboard the whole waiting list and give instant access to new users in the UK and EU!

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 fundraising yourself, you can find your local network here.

SixtySecondStartUp with HyperionDev

We caught up with Riaz Moola, CEO and CoFounder at HyperionDev. HyperionDev are aiming to close the global tech skills gap by enabling education as an accessible alternative to more traditional university degrees. Doing this through specialised mentored coding bootcamps, offered online and on-site at its Johannesburg and Cape Town campuses.


What does your company do?

At HyperionDev we teach people to code. Not give lessons. Teach.  Intense, immersive courses that get completed in 3 – 12 months (course dependent) with a unique human led mentorship that is built upon our unique codebase. A meld of automation and human touch that scales and works. 

At our core, HyperionDev teaches people the essential skills they need to find fulfilling, rewarding careers in tech. However, we do way more than just teach: over the course of 3 to 12 months, we immerse our students in a high-pace dedicated coding environment that takes them from total beginner to a job-ready industry professional.

Our meld of automation and human mentoring gives us the power to give each student in-depth and personal attention, but in a way that we can scale to students in over 40 countries. 

Why did you set up this company?

We didn’t go looking for a problem to solve, we found a problem that really needed solving. At university in Africa, a group of friends and myself were shocked at the extremely high dropout rates that affected not just our classes, but classes across the country.

We decided to do something about it: we started a mentorship program to help students to master the fundamentals of coding. We added mentor after mentor, until our network spanned dozens of universities across two continents. 

Later on, I realised the difficulties people faced with learning the skills that could get them rewarding, fulfilling careers – and so HyperionDev expanded to teaching people even outside of university.. 

How did you get your first customer? 

A government-run research group that carries out AI research actually approached us, saying that we were the largest trainer of the Python programming language in their region, and asked us to train for them.

We initially thought we’d have to raise money to do the training, and were surprised when they offered to pay us. In the end we charged 10 times less than we should have for the service!

We knew we were onto something when? 

We just didn’t have people stop signing up for our courses every day, and didn’t have a month where we didn’t make revenue from our online courses. At the start you think it a temporary, short-term demand, but when you see the continual interest, it feels like you’ve unlocked something completely new.

Our business model: 

There are essentially two, B2C online immersive courses that are cost effective, and accessible from anywhere in the world that we  built to scale. The courses, while cost-effective for students, are profitable to us as we grow. We reached profitability in Q1 2020.

Our Code Review base is a B2B SAAS product under the CoGrammar brand, used by tech companies and even other leading software schools internationally 

Our most effective marketing channel has been: 

Our alumni network – we still see word of mouth driving a huge number of new students. The network effects from this group has been critical to our growth.

What we look for when recruiting:

A-players. People who can work in an intense environment and are driven by our mission to create people who can take up the vacuum in the global tech skills gap.

The biggest mistake that I’ve made is:

Not realising that we could build a really good profitable business , as well as create awesome social impact, sooner.  You don’t need to be a non-profit to truly help people.

We think that there’s growth in this sector because:

Nature abhors a vacuum! Every startup is facing the same problem, where to get talent. The group of startups is growing, the talent pool isn’t keeping up. Know what that is? We call it opportunity. And with that opportunity we solve real global socio-economic problems and make a difference in people’s lives. It is one of the best problems worth solving that we know about.

We worked with AIN because:

Networking is perhaps the most important part of any future-facing business or campaign. It’s what got us started as a grassroots organisation of coding mentors, and it’s what grew us into the continental tech education leader we are today.

You can only get closer to the success you envision if you surround yourself with the right people, with the same vision and goals: and the AIN networks are one of those alignments. 

 How are you coping with lockdown? What is your strategy?

We have moved to a remote first way of working, from a previous policy of a remote friendly. And the positive response had been fantastic. Execution and productivity are actually up.

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

South Africa’s biggest problem is unemployment. The numbers are staggering. We are actively supporting communities directly with scholarships, education and the resultant access to the global shortage of coders in the market. The knock on effect is heartwarming to say the least.  

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.

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.

#BehindtheRaise with WeCoffee

We spoke to Ben Carew, Co-Founder at We Coffee, about how to complete a successful fundraise, and also equally important, what not to do.

WeCoffee aims to provide flexible and affordable workspace for post Covid working, along with curated events.

Benjamin Carew, Co-Founder of WeCoffee

Tell us about WeCoffee:

WeCoffee was created to make working from anywhere something anyone could enjoy. 

By curating  a distributed network of free and unique workspaces and a community you can cowork with online and in real life, we believe we are well on the way to achieving this. 

Why did you decide to raise investment?

We decided to raise investment so that we could bring our unique and exciting model for coworking to the whole world. Something that mine and my business partner’s lifetime savings wouldn’t quite allow, at least at the speed with which we want to do it. 

People often ask why the speed and scale matters and for us we see a window of opportunity, while the world’s ways of working are changing, to allow a better social norm. 

We believe for too long the standards have been set by employers with outdated policies, or more recently landlords hijacking the term coworking only to supply fixed office space as a service. 

We want to make sure that the future of work will give power and choice back to the worker, ensuring a happier and more productive worklife. 

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

I’m going to be cheeky here and give a few:

  • Angel investors are people not ATMs, understand them and make them feel confident and safe with you by treating them how you would like to be
  • Be firm on your timeline, if you don’t have one set one 
  • Don’t be shy to check they actually want to invest, not just introduce you
  • Treat it as near to a full time job as you can. Maybe 50% off the time, as yes you need to run a business. 
  • As soon as you have a yes, add them to the term sheet. Its less scary to follow someone else
  • If VCs keep being really nice but don’t invest your probably too early. Save yourself the time and build more traction and try and do an Angel round or friends and family
  • Be flexible in what your raising, if you get half can you make a business or the next step? If double what would you do? 
  • Don’t be scared to say no. We met one total **** who was incredibly aggressive, wanted to force a board member who was an ex-founder removed from the company by their shareholders for negligence, thought WeWork’s IPO would go through and that only 8 banks failed in the 2008 crisis. We were very happy to not molly his coddle 
  • Lastly join WeCoffee as there are lots of us on or who have been on this journey. We are more than happy to help one another avod the ****, find the right investors and generally navigate the startup world. 

What attracted investors to your company?

You would probably have to ask them, but I think a big part of it was the total and utter passion that is born out of us as a team. We clearly know and love what we do, so if you believe in the idea that we won’t all work in an office 5 days a week, there is no better horse to back. 

My biggest fundraising mistake was…

It took me some time to realise that I needed to run it like any other business activity, as a structured process. I spent months pitching at intermittent events and meetings waiting for my angel to land in lap not realising what I was doing was practising.

I was at the wrong events, with no real investors; and worse meetings with the wrong people who were more interested in introductions than investing. 

Once I sat down, opened the round in SeedLegals, got all my deliverables in place, built a sales funnel and set a firm date to close the round then I was well on the way. 

Why did you choose to use Angel Investment Network?

I used AIN as it came across to meet my target investors (angels), as it had a wealth of investors that I could filter for by sector. Insanely helpful! 

If it wasn’t for you Angel Investment Network we wouldn’t have raised as much as we did.

Keen to hear more?

Try out one of WeCoffee’s online networking events to meet ‘creatives, marketing gurus, product creators, free thinkers, entrepreneurstech geeks, doers and dreamers’.

Sign up here for a 100% discount, i.e free entry.