Angel Investment Network Blog - News About Startups, Entrepreneurs & Angel Investors

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Pioneering Angel Investment: A Conversation with AIN co-founders James Badgett and Mike Lebus

Twenty years ago two childhood friends, with a shared passion for entrepreneurship, embarked on a journey to revolutionise the startup funding landscape. Recognising the challenges faced by founders in securing angel investment, they created a platform that would bridge the gap between entrepreneurs and investors. Angel Investment Network was born, offering a streamlined solution for fundraising and connecting entrepreneurs with a global network of angel investors.

Now with 40 networks spanning 90 countries it is the world’s largest online angel investment platform. We speak to the co-founders Mike Lebus and James Badgett to get the inside story. read more

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Startup Essentials: Financial Modelling & Cashflow Strategies

‘The single largest factor in the failure of small businesses – up to 80% of all cases – is poor cashflow management.’ Peter Denton from Lothbury Business Management gives us the lowdown on how a robust financial model offers invaluable insights into a startups’s health, future prospects, and potential pitfalls. Crucial ingredients in winning over potential investors.

Why is Financial Modelling important?

Financial modelling is a critical part of understanding the health of a business, projecting what the company can expect to achieve over a future period. It also offers validation to investors around fundraising and investment. As part of normal operating practice, it should be a key tool that feeds into the strategic decision-making, planning and risk management processes. It will assist a business in identifying peaks and troughs in cashflow prior to them occurring. read more

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August intentions: How to get investment ready for the autumn

The summer months often signal a slowdown in the startup world, with many investors jetting off on vacation. However, this lull presents a unique opportunity for ambitious founders to get investment ready and position their businesses for a successful autumn fundraising campaign.

We spoke to AIN’s expert brokerage team, who have collectively raised more than £120 million for startups, to uncover what founders should be doing while investors soak up the sun.

As the old adage goes, “failing to prepare is preparing to fail.” This couldn’t be truer when it comes to securing investment. While investors may be less accessible during the summer months, it’s crucial to use this time wisely to refine your pitch and strengthen your business proposition. Here is a list of the essential tasks to prioritise in August. read more

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Startup essentials: Why you need a robust shareholder and founder agreement

In our latest Startup essentials article, we discuss the importance of having a robust shareholder and founder agreement in place. With founder fall outs all too common, Helen Goldberg, COO at our partner Legal Edge gives you the lowdown on what needs to be covered in this essential agreement.

You’re busy building and growing a business, so shareholder and founder agreements are often deprioritised, forgotten or overlooked while you’re deep in product development or GTM strategy. While you may opt for a verbal agreement and trust in long-term commitment, it is essential to have formal agreements in place when working with co-founders and investors. read more

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Naked Rivals Secures $3 Million in Capital, supported by Angel Investment Network

Australian beverage brand, Naked Rivals has announced a successful capital raise of A$3 million within 3 months of launching its first 100% lemon and lime juice cubes product range across 1,600 supermarkets in Australia.

This remarkable deal, one of the largest of its kind in Australia this year for a startup, was sourced from a single ultra-high-net-worth family through the Australian Investment Network (AIN). AIN is part of the Angel Investment Network, the world’s largest online angel investment community. read more

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Startup Essentials: Understanding Your Buyer Persona: A Startup’s Secret Weapon in the Digital Age

AIN recently collaborated with our partner HubSpot for Startups to deliver a webinar focusing on Understanding Your Buyer Persona. As part of our Startup Essentials series, we give you the lowdown.

In today’s fiercely competitive business landscape, startups face a constant struggle: cutting through the noise and reaching the right customers. In this world buyer personas are a powerful tool. But what exactly are they, and why are they so crucial for a startup’s success?

Buyer Personas: Demystifying Your Ideal Customer read more

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The Motivations of Angel Investors: Insights and Advice for Startups

Understanding what drives angel investors is essential for any startup seeking funding. It’s not just about showcasing your business’s strengths; it’s about stepping into the investor’s shoes. After all, angel investors are more than just financial backers; they bring invaluable expertise, mentorship, and network connections.

This article takes a deep dive into the motivations of prominent investors. What are their priorities? What do you need to know to secure their support?
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Dragon Slayer: how to get funded faster with less time-wasting and pain

A recent Angel Investment Network webinar heard from investment experts Dan Kirby from Founders Are Mental and Tom Moore from Tucker Capital on how to get funded faster with less time-wasting and pain.

One of the key take outs was that investors aren’t just looking for a promising product or service – they’re looking for the right leader. Your “unfair advantage” is that unique combination of skills, experience, or background that makes you the perfect person to spearhead your startup’s mission. read more

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Angel Investing for Everyone: Mike Lebus on Creating an Angel Investment Paradise in the UK

Our co-founder Mike Lebus was recently interviewed for an article in Digital Frontier discussing how the UK could become an angel investment paradise by lowering barriers to investment and also supporting more diversity in angel investment.

Lowering the Barriers

Mike Lebus, co-founder and director of Angel Investment Network, argued that the current system unfairly excludes many potential investors. Lebus proposes a non-means-based approach that focuses on education and informed decision-making.

“Anyone can sign up to a crypto trading site or a stock trading website without being either [a sophisticated investor or HNWI]. Anyone can take out an insurance policy without being either,” Lebus commented. “As long as you’re explained what you’re signing up to and the risks of what you’re signing up to, that’s generally accepted to be OK, except in the startup world where they pose these barriers to people. And really, it’s very frustrating.” read more

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Navigating a changed landscape: Investor insights for startup success

The past couple of years have seen a significant shift in the fundraising landscape, with startups navigating a new investor mindset amidst increasingly tough economic circumstances. We conducted a recent survey among investors within our network to gather investor insights on what they seek and, importantly, what they do not, to enhance startup success.

Encouragingly a majority are planning to invest more this year than last highlighting the opportunity for startups. In terms of the present climate, investors are seeking well-capitalised startups with a strong track record. Advice for startups in fundraising includes reducing valuations (49%), planning for longer fundraising periods (44%), and raising smaller rounds (38%). read more

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Navigating the Startup Funding Maze in 2024

Today AIN launches the first results from our 2024 Founder survey. In this article we deep dive into the results from our UK survey and what the takeouts are for startups seeking funding in a new climate.

To mark our 20th anniversary we launched a founder survey so we could hear from the founders across the network and take the temperature of startups in 2024. We wanted to gain a deeper understanding about your fundraising challenges, your successes and life as a startup founder. Today we are releasing the first set of findings from our UK founders. read more

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The Power of Networks and Collaboration in Scaling Diverse Businesses

In our latest guest post we here from Ace Entrepreneurs founder Nadine Campbell on the power of networks in supporting diverse businesses to scale.

The entrepreneurial landscape in the UK is becoming more diverse each year, with an increasing number of founders from underrepresented backgrounds stepping into the spotlight. In fact, over 810,000 new businesses were registered in 2023, and according to the Rose Review, the number of female-led businesses has grown by 18% in the past year alone.

However, the journey for many of these founders remains fraught with challenges, particularly when it comes to accessing the funding and networks necessary to scale. read more

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Why on earth can’t I raise investment?

In our latest guest post we hear from Phil McSweeney, angel investor and acclaimed author of AngelThink, the founder’s guide to how angels think. With a wealth of experience in the startup world, he pulls no punches as he tackles the age-old question of why so many founders struggle to secure investment.

The brutal reality of the startup world is that most founders can’t raise investment. Why is this? Here’s the simplest answer I can give you – investors would rather invest in something or someone else. I know, I’m an angel. Our problem – we have too much choice and, if you don’t want me to sugar-coat it, you haven’t made the cut. read more

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Behind The Raise with Naked Rivals

In the return of our Behind The Raise series, we interview Andrew Gordon, the co-founder of a brand new disruptor in the health, sustainability and beverage space: Naked Rivals. The Australian brand announced a successful capital raise of A$3 million with AIN, 3 months after launching its first 100% lemon and lime juice cubes product range across 1,600 supermarkets in Australia.

In the article Andrew discusses how his wife and business partner Kate’s pregnancy was the inspiration behind the brand, the problem they’re solving for busy consumers, and the secrets to their successful fundraising through angel investors. You’ll also discover their top tips for navigating the fundraising landscape and their approach to persuading retailers to stock their unique product. read more

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How to Raise Investment in 2024: the key takeaways

A shifting fundraising landscape, evolving investor criteria, and common founder pitfalls were some of the key themes explored during a recent fundraising panel discussion focusing on how to raise investment effectively.

Hosted by our partner, the share scheme and equity management platform, Vestd; the panel discussion featured the contributions from leading experts in the startup investment space. This included Dama Sathianathan, partner at one of Europe’s leading early stage tech for good VC, Bethnal Green Ventures, Xavier Ballester, Director of Brokerage at Angel Investment Network and Ifty Nasir, founder and CEO at Vestd. Here’s a deeper dive into the takeaways. read more

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Mike Lebus writes for EU Startups on Winning over Angel Investors in a New Landscape

Our co-founder, Mike Lebus, was recently featured in an article in EU Startups, a leading publication for the European startup ecosystem. The article considers the significant shift in the angel investor landscape for 2024, offering valuable insights for startups seeking funding. Lebus referenced a recent survey AIN conducted of investors across our network.

Key Takeaways for Founders

Focus on Fundamentals and Impact: Lebus emphasised the move away from inflated valuations based on potential. Investors now prioritise strong fundamentals and a clear path to profitability. Additionally, he highlighted the growing importance of showcasing your venture’s positive social or environmental impact.
Craft a Compelling Narrative: As Lebus highlights, simply having a good idea is no longer enough. Craft a compelling narrative that showcases not just your product or service, but also the positive impact it will create.
Avoid Common Pitfalls: Overvaluation and inadequate market research are major red flags for today’s cautious investors. Be realistic about your valuation and focus on demonstrating your true potential for growth. Conduct thorough market research to showcase a deep understanding of your target market and industry trends.
Build Strong Relationships: Regular communication with potential investors is key to building trust and fostering a long-term partnership.

The full article on EU Startups provides a comprehensive analysis of these trends, along with additional insights and investor wishlist traits. We recommend checking it out for a deeper dive into navigating the new landscape of angel investment. read more

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Startup essentials: How to structure your cap table

Over the next few months, with the assistance of our expert partners, we will explore the essential factors that all startups seeking funding need to consider. This will include organising your finances, conducting due diligence, and implementing growth hacking strategies.

First up, Guy Kaufman, Startup Lead at Vestd. He gives us the lowdown on understanding cap tables, a visual representation of your company’s ownership that becomes more crucial and complicated as your startup grows.

New businesses pop up every day, many with their eyes on the prize of a lucrative exit. Even in uncertain economic times, we’ve seen companies like Loom, Uber, and Airbnb rise to the top. read more

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Global Investor Survey: Positive impact driving decisions while over valuations most common startup mistake

A new survey conducted among global investors by Angel Investment Network has shed light on the preferences, motivations, and advice from angel investors.

It reveals angel investors are more motivated by positive impact than ever before while financial fundamentals are crucial, with over valuations revealed as the biggest startup mistake.

Angel Investment Network surveyed investors across our global network to take the temperature of investors in 2024. The key findings include:

Investment patterns

A majority of investors had invested in 10 or fewer businesses, with 28% investing in under 5 and 30% investing in 6-10. Positive impact emerged as a crucial factor influencing investment decisions, with 72% of respondents expressing some degree of agreement with its importance. For many, investing isn’t just about financial gain; it’s about catalysing change and leaving a lasting imprint on the world. read more

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How To Avoid The Dark Side Of Success – 5 key take outs

In a recent webinar we had a great hour discussing “How To Avoid The Dark Side Of Success” with Dan Kirby, exited Tech founder and the founder of Founders Are Mental (FAM), a coaching community for entrepreneurs. The course helps entrepreneurs define and follow through on the good habits they know they need to do in just a few hours a month.

Here are the top 5 tips:

1) Reality bites

There is a big difference between the entrepreneurial life you are sold (ie independence and freedom) and the life you end up having (never switching off, tied to the business. read more

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AIN urges UK Government to reverse forthcoming changes to definition of High Net Worth (HNW) individuals for investment eligibility

Together with hundreds of other angel investors, founders, and tech industry leaders, AIN has signed an open letter to the Chancellor, presenting a case for reversing the forthcoming changes to the definition of High Net Worth (HNW) individuals for investment eligibility.

At Angel Investment Network, we are committed to democratising the startup ecosystem, connecting the world to enable investors to back the great businesses of tomorrow.

In order to ensure those connections can flow freely, it is imperative to reduce barriers for startups to raise funding and for investors to access deals and invest. read more

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