Kelly Clifford is an experienced CFO turned angel investor, who reveals the crucial financial insights startups often overlook. He discusses the incredible potential of ‘Tech for Good’, why transparency is key to successful startup-investor relationships and the single most impactful action founders can take to improve their financial health
Why did you become an angel investor?
Most entrepreneurs are exceptional at building products and solving problems, but they often struggle with the financial side—whether it’s unit economics, pricing strategy, or financial forecasting. As an experienced CFO, I bring a unique combination of financial numeracy, empathy, and entrepreneurial experience to help them navigate these challenges.
Having been in the trenches myself, I understand both the excitement and the pressure, and I want to support founders in building sustainable, high-impact businesses.
Which sectors or new investment opportunities are you most excited about right now?
I’m particularly excited about Tech for Good – technology that’s not just commercially viable but also creates meaningful, positive change. Digital solutions that enhance accessibility, sustainability, and well-being have incredible potential.
Whether it’s AI for healthcare, fintech for financial inclusion, or platforms that democratise education, I see massive opportunities in tech that aligns profit with purpose.
What are the key foundations to building a strong relationship between investors and founders?
Honesty, integrity, and communication are critical foundations to a strong relationship, consistently and over time. Founders need to be transparent about opportunities and challenges, while investors must provide constructive feedback and not just capital. A strong relationship is built when both parties see each other as partners in long-term success rather than just a transaction.
What common misconceptions do you encounter among founders about the fundraising process, and how can they better prepare themselves?
Many founders underestimate the level of preparation required. Due diligence isn’t just a box-ticking exercise; investors want to see a well-thought-out business model, clear unit economics, and a compelling reason for their valuation.
Another misconception is that raising money is a sign of success—it’s not. It’s a means to an end, and the focus should be on building a great business, not just securing funding.
To be better prepared, founders should ensure they have full and complete key company documents, including:
• A solid business plan with financial projections
• A data room with financial statements, legal documents, and IP ownership details
• A clear and justifiable valuation model
• A pitch deck that tells a compelling, investor-ready story
Thorough preparation not only builds credibility but also speeds up the fundraising process, increasing the likelihood of securing investment.
What are the most important factors that lead you to back startups today, and has this changed over the years?
For me, it has always been about the team and the addressable market. A great team can pivot and navigate challenges, and a sizable market means there’s room for growth.
Over the years, I’ve refined my approach to be more discerning—I say no far more than I say yes. I screen hundreds of opportunities but invest in very few. That said, curiosity remains my driving force; I love backing people solving real problems with scalable solutions.
Can you share a specific experience where an unexpected challenge influenced your investment decision, and what lessons did you learn?
I once considered investing in a startup with a fantastic product and early traction, but during due diligence, it became clear that the founder wasn’t receptive to feedback. While vision and conviction are critical, an inability to take constructive input is a red flag. The lesson? A great idea isn’t enough—resilience, adaptability, and coachability matter just as much.
As market trends and economic situations evolve, what approaches are you employing to mitigate risks while identifying promising startups?
Risk mitigation starts with backing the right people. That is founders who are resourceful, data-driven, and adaptable. I also focus on startups with capital-efficient models rather than ones purely dependent on continuous fundraising. Diversification across sectors and geographies helps, but ultimately, I bet on businesses that solve real problems rather than those riding hype cycles.
As an angel investor with a focus on Tech for Good, what are some key non-financial indicators that signal strong potential for both financial success and positive social impact?
- Founder’s Mission-Driven Mindset: Are they genuinely committed to impact, or is it a marketing play?
- Customer Love & Adoption: Are users actively engaging and benefiting from the product?
- Scalability Without Compromising Impact: Can they grow while staying true to their purpose?
- Sustainable Business Model: Impact without a path to profitability isn’t sustainable.
For founders facing the current economic climate, what’s the single most impactful action they can take today to improve financial health and attract investors, even if they’re pre-revenue or early-stage?
Get to profitability or at least a clear path to it, sooner rather than later. Even if you’re pre-revenue, demonstrate a capital-efficient model, strong unit economics, and a deep understanding of how you’ll reach breakeven. Investors today favour resilience over rapid, unsustainable growth. Be ruthless about costs, validate pricing early, and prove there’s a market willing to pay for your solution.
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