Colin Boey is a global investor and syndicate leader, renowned for his strategic insights and successful ventures in the B2B SaaS sector. With a keen eye for innovation and growth, Colin’s discusses the importance of founder-investor alignment and common fundraising misconceptions. He has also shares his views on the ongoing benefits of SEIS/EIS for the UK’s startup landscape and why he’s not chasing AI ‘for the sake of it’.
Why did you become an angel investor?
I’ve always been fascinated by tech. Before becoming an angel investor, I focused on investing in publicly listed tech companies. During my time as an investment banker, I advised on fundraises for high-growth private companies, which introduced me to the world of early-stage venture and angel investing. It felt like a light bulb moment.
In 2020, I left investment banking to become a full-time angel investor and syndicate lead. The syndicate is diverse, including bankers, financiers, startup operators, exited founders, and small family offices. Anyone who enjoys the intellectual stimulation of evaluating deals is welcome to join. I’m especially keen to support those just starting their angel journey, with only one ask: active engagement. There’s no obligation to invest.
Which sectors or new investment opportunities are you most excited about right now?
My main investment thesis is that software automating manual workflows creates significant productivity and efficiency gains. Startups solving major workflow pains tend to yield strong return – provided they can acquire customers easily and affordably.
While AI is the hottest trend right now, I’m not chasing AI for the sake of it. With today’s advancements, every founder should consider how AI can enhance their offerings, but calling yourself an “AI company” just to jump on the bandwagon is transparent and unwise. Investors will see through it.
What are the key foundations to building a strong relationship between investors and founders?
Integrity and mutual trust are essential. Founders need to be transparent about their business, challenges, and vision. Investors, in turn, should act as reliable partners – respecting confidentiality and providing support even during tough times.
Both sides must align on the startup’s goals, values, and long-term objectives. Clear communication during initial discussions about growth strategies, exit plans, and milestones helps avoid future conflicts.Regular investor updates and honest discussions about progress, challenges, and opportunities are crucial. Founders should proactively share bad news to foster trust instead of hiding issues. Don’t be afraid to ask for help.
Finally, founders lead the business and make operational decisions, while investors provide guidance and strategic input. It’s important for investors to respect these boundaries.
What common misconceptions do you encounter among founders about the fundraising process, and how can they better prepare themselves to address these?
The most common misconception is underestimating how long it takes to close a round, especially in tough fundraising environments. I understand founders would rather focus on building products and acquiring customers, but their top priority must be ensuring the company doesn’t run out of cash.
Start investor discussions early. Consider hiring an investor relations associate or working with a fractional corporate development officer like me. Preparation and foresight make all the difference.
What are the most important factors that lead you to back startups today and has this changed over the years?
I look for founders with unique insights into solving significant global problems. Ideally, they’ve achieved some traction, with multiple customers validating the product’s value proposition, and a clear and sensible plan to acquire many more. I also expect founders to articulate why now is the right time to tackle this problem.
Valuation is equally important. It needs to reflect the risks we, as investors, are assuming at this stage.
How do you measure the impact of an investment beyond just financial return, and does social responsibility play a role in your investment strategy?
While I could argue that my investment thesis – focusing on automation and productivity – has a net positive societal impact, I won’t pretend my motives are altruistic. My primary goal is to generate positive financial returns.
That said, I’m mindful of the demographic spread of my investments. I’m proud that 46% of our investments have been in underrepresented founders, with an additional 31% in teams that include female founders. In total, 77% of our investments have gone to diverse founder teams.
As market trends and economic situations evolve, what approaches are you employing to mitigate risks while identifying promising startups?
Adapting to market conditions is crucial. For example, in today’s challenging environment, with the war in Ukraine and interest rate hikes denting global investor confidence, I remain vigilant for promising startups.
History shows that great companies – like Uber, Airbnb, Slack, and GitHub – emerged during the 2008–09 financial crisis. However, I’ve raised the quality bar when assessing startups to account for heightened risks in the current market.
What is the next wave of innovation we are seeing in B2B SAAS and are there any particular companies worth watching out for?
The current wave of AI-powered automation and personalization is still in its early days, with much more to come. The natural progression will be truly agentic AI, capable of autonomously handling complex, multi-step processes across business functions. This would further reduce human intervention and free up resources.
Let’s discover exciting companies together – connect with me on LinkedIn to join my distribution list.
If you could offer just one piece of advice to a young startup, what would it be?
The journey is a long struggle. Make sure you’re deeply passionate about the problem you’re solving, and surround yourself with a strong support network of early employees and investors.
What could the new Government do to best support the UK’s startup ecosystem?
I’m fortunate to have a global network of investors sourcing opportunities worldwide, so I’m less impacted by any single government. That said, the SEIS and EIS schemes have been incredibly beneficial for the UK startup ecosystem. I hope they remain in place.
