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



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

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

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

New content

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

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

Businesses winning investment and support

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

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

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

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

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

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

Angel Investment Network celebrates 15th anniversary

From a vision of opening up the closed world of angel investment to an expanding global network of a million users

AIN London team

From a proposal for a rabbit mashing factory in Russia to successfully funding What3Words, Angel Investment Network (AIN) co-founders Mike Lebus and James Badgett have seen it all. It has now been 15 years since our co-founders and childhood friends formed AIN, now the world’s largest online angel network. What started in the early days of the internet as two friends having a vision of an interconnected network of angel investors and startups has led to a platform now spanning 90 countries and more than a million users. Meanwhile the team is now 25 strong with team members in the UK, USA, Mexico, Spain and Nepal.

Our co-founders in earlier times…

Living and breathing the startup world since the early noughties, the team has successfully raised funds for standout companies like What3Words, Novastone and Rosa’s Thai. In the last few years the company has been developing at a breakneck pace with the launch of two spin-off brands, SeedTribe, a community for impact-focused businesses, and BrickTribe, which connects investors and lenders with property developers with proven track records. 

In the last year alone, AIN has received over 100,000 pitches from entrepreneurs across the globe, with the figure doubling over the last two years. Alongside existing markets there has been a rapid growth of startups coming from emerging markets. Meanwhile investors registering on the site have surged nearly 40% year on year, now standing at more than 200,000 registered business angels. 

Alongside the online platform, AIN also runs a successful broking division, which has seen exceptional growth in the past 12 months. AIN has been involved in several significant raises in 2019, including eco-friendly baby product business Kit & Kin, fully customisable bio-polymer plastic company Teysha, and Pin Point, a data science offering early cancer detection.

Our co-founders James Badgett and Mike Lebus today

Speaking about the anniversary James Badgett said:
“When we first set up, no one looked for investment online. Most investment came through personal connections, which not everyone has access to. We saw that good ideas weren’t getting the funding they deserved, because entrepreneurs’ access to angels outside their immediate circles was severely restricted. We imagined a platform which gave all entrepreneurs access to a national and international network of investors; and, of course, the only way to do that was online. It is remarkable to see how it has grown and we are proud of AIN’s place at the epicentre of the startup scene in the UK and now spanning the globe.”


Mike Lebus said:
“When we set up AIN, angel groups tended to be focused on a regional basis. Applying to them, following up, getting feedback, arranging meetings, etc was fairly laborious. We had the idea of creating a portal to streamline the whole process for entrepreneurs and investors. I feel immensely proud to have helped brilliant companies like Sweatcoin and What3words on their journey to huge success. However, of course there are no guarantees of funding and the startup idea needs to capture the imagination of any potential investors. Over time you do get a sense of what will work and what will sadly remain a pipe dream. We launched the broking division to apply our team’s expertise of selecting high quality dealflow and to help our investors identify the best prospects.

With AIN now having a footprint in every continent (except Antarctica where unsurprisingly there doesn’t seem to be much demand), we can’t wait to see where we’ll be 15 years from now! Happy anniversary AIN.


 

A worldview on startup stats

Angel Investment Network connects startups and investors from all over the world. But what does the current global startup climate look like? We have drawn together some statistics to give a brief global overview. 

In terms of numbers, the USA has by far the most number of startups at 46,606.  The UK comes in third place, with 4,901, just a couple of thousand behind India.

However, despite the USA having the highest number of startups, it is Uganda which has the greatest number of entrepreneurs per adult population at 28.1%. Interestingly, 5 out of the 15 countries with the highest proportion of entrepreneurs are in Africa, and Southeast Asia and South America are represented by 4 countries each.

Moving on to unicorns, meaning private companies with a value of over $1 billion, China is in the lead with 149 unicorns, compared to 146 in the USA. These two countries are vastly ahead of any other, with the UK and India coming in a distant third with 13 unicorns each.

Whilst these statistics only scratch the surface of the global startup landscape, they show that it certainly is an exciting world out there! 
All statistics and infographics are from the article Startup Failure Rate and 80+ Other Startling Statistics About Startups.

Angel Investment Network has networks around the world. Wherever you are based, if you are looking for investment find your country’s network, register and then upload your pitch.