Angel Investment Network Blog

Almost three-quarters of investors wouldn’t back a company with a problematic workplace culture.  And 66 per cent of potential recruits wouldn’t accept a job with a company known for having a bad culture.  In a recent report (May 2022) by software developer, Culture Shift, these startling statistics reveal that attitudes have significantly shifted – people are simply unwilling to put up with negative or toxic cultures.

This means that when growing your business creating a positive working culture is higher up the priority list for a founder and organisational leaders of small or large enterprises, than it has ever been.  With a natural expectation from investors for a business to be resilient in challenging economic circumstances and still grow, then this culture has to be carefully created and maintained. read more

Birmingham-based smart-EV and energy storage startup WAU (We Are Universal) has raised £650,000 in a pre-seed funding round with Angel Investment Network, the world’s largest online angel investment platform.

WAU, launched in 2018, is a fast-growing smart-EV vehicle platform transforming urban mobility. The product offering includes: WAU Bikes, a smart, long range electric bike with a powerful onboard computer, the 2 wheel version of the smart electric car; and soon unveiling the WAU Powerwall, enabling the bike’s power cells to be linked together to serve as power storage for solar homes and power plants among other uses. Finally WAU vision, its data gathering capability for an autonomous EV future, rolling out to all current and future riders of WAU across the world.  read more

The SEIS & EIS venture capital schemes are two of the four schemes managed by HMRC that enable UK early stage businesses that are potentially high risk to raise money from angel investors, crowdfunding platforms and venture capital trusts.

They offer investors attractive capital gains tax breaks that significantly hedge the risk of their investments. For any business looking to raise pre-seed to series A funding in the UK, offering SEIS & EIS relief to investors is almost a prerequisite for a successful raise. However, it is not always straightforward to navigate. read more

What is the magic formula that turns investor interest into action? In the last of our fundraising top tips blog series, we consider ‘the million dollar question’ of why investors back early stage businesses.

We have identified the top reasons based on the accumulated wisdom of startups who have successfully raised via AIN over the past two years, based on dozens of interviews. So exactly what are the top factors that will encourage an investor to become part of your cap table? 

1. The strength of the founding team

This came out as the number one reason startups received backing. After all, at this early stage, often pre-revenue, traction may be  limited. Investors are taking a gamble that any early stage company will go onto a significant exit and ensure a significant return. They need to have faith in the founding team to deliver. The old adage that ‘people buy people’ is proved out here. read more

For our latest Behind The Raise interview we speak to StJohn Deakins, the founder of ‘Zero Data’ leader CitizenMe. He talks to AIN about his mission to improve the internet by enabling people to control their own data, developing your ‘why’ as a startup and his fundraising insights having raised in the UK, USA and Asia.

Tell us about CitizenMe and how you came up with the idea?

My last startup helped over 100 million people get online with their smartphones. After selling it, I had the ‘beach time’ to dig deep into the economics of the internet. It quickly became clear that data will become the new currency of our digital world. However, because everyday people can’t participate in the value of their own data, there are billions of dollars of value left untapped. This personal value from personal data can mean many things. read more

Our latest fundraising blog series features the accumulated wisdom of startups who have successfully raised via AIN over the past two years. Last time we looked at the top fundraising pitfalls. This week we look at the top tips for raising successfully.

All of the founders interviewed have raised successfully through AIN and several on multiple occasions. They have kindly given up their time to share their top tips and advice, helping to improve the startup ecosystem for the benefit of all. Their advice really is worth its weight in gold. read more

In our latest blog post Graham Davies founder and CEO of Addition gives us the low down on R&D tax credits and what the recent changes in the budget mean for startups.

Innovation is at the heart of entrepreneurship – whether it’s finding a new solution to an age-old problem, or creating something no one else has thought of yet. Research and Development plays a vital role in economic growth – which is why the UK government has committed to investing 2.4% of GDP in R&D by 2027. read more

A strong quality that marks out successful startup founders is a ‘fail fast mentality’. Integral to the fail fast philosophy is cutting losses when testing reveals something isn’t working and trying something else.

However in fundraising this can be a very costly process, with raising investment being carried out in parallel with running a nascent business. Making mistakes with potential investors or going down rabbit holes with time wasters can take you further away from your other job of building a game-changing startup. That’s why we wanted to bring to bear some of the accumulated wisdom of startups who have successfully raised via AIN over the past two years. read more

Ben Hallett is the CEO and co-founder of fast growing EdTech company Vygo, built to ensure no student is left behind. In the latest Behind The Raise interview he talks to AIN about creating equality in education, scaling fast and pivoting, the reasons for rising investor interest in EdTech and how to avoid wasting time when fundraising.

Tell us about Vygo and how you came up with the idea?
While studying at university, myself and my co-founder witnessed too many of our peers struggling, falling through the cracks and ultimately falling short of their potential. With further research we discovered that the problem was global with 30-50% of students dropping out of higher education and most students struggling with severe or debilitating stress. We discovered that one of the core challenges is helping students connect with the support they need when they need it and we couldn’t see anyone else meaningfully solving this. This set us out on a mission to ensure that every learner has equal access to the support they need, when they need it, so that they can reach their full potential. read more

In our latest guest post David Pattison, experienced angel investor, business leader and author, considers the thorny question of investor due diligence. Is it a threat or or an opportunity? Or a bit of both?

If you are trying to raise money, there will be a requirement for the company (and often the management) to go through a Due Diligence (DD) process. This is where the prospective investors will take a deeper look you and your business.

If the investors are individuals or angels then the DD can be quite light touch, usually involving an interrogation of the business plan, some conversations with the team and maybe some customers or current investors. If they are funds or institutions, then they will take an almost forensic look and ask you to provide a mountain of information. read more

There has been a significant rise in the numbers of angel investors looking to back startups across the globe. Technology is the most popular sector and food and beverage seeing the fastest year on year growth. These are some of the key findings from Angel Investment Network’s annual analysis of the global state of angel investment funding based on data from their platform. 

AIN has 40 networks extending to over 90 different countries; and now with more than 1.75 million users it is the largest angel investment community in the world. The results are a real barometer of global startup investment activity in 2022. read more

Antony Yousefian is the co-founder of innovative agtech businesses Bx Technologies. In the latest Behind The Raise interview he talks to AIN about transforming farming, his lightbulb moment courtesy of cannabis growers, a near death epiphany, and a clever approach for refining your pitch for investors.

Tell us about Bx Technologies and how you came up with the idea?

Bx Technologies helps farmers switch to climate friendly practices by measuring the climate-impact of produce, and putting that information on food. We do this via our software technology that quantifies farmers’ positive impact on improving their soil. We then sell that as a service. This enables farmers to differentiate their crops from others.

My co-founder Ben Bardsley is a 5th generation farmer and my background is in asset management where I was involved in the initial waves of cleantech. So we really understood the challenges in this space. Both on the ground and the economics behind it.  read more

In this article, founder and CEO of Addition Finance Graham Davies explains how automation can help small businesses create scalable processes and promote growth.

The average startup is working with extremely limited resources and manpower in its early days. As cash is king, it’s easy to focus all your time and effort on delivering your product. This is natural and understandable. However, it’s also why founders are hitting burnout at record levels as they try to stay afloat while under pressure from wearing multiple hats. Attempting to manage everything, alone and all at once, isn’t only dangerous – it’s also ineffective. read more

When it comes to launching a brand-new startup business many entrepreneurs miscalculate how expensive it is to launch, and what sorts of things that they will need to spend money on to make their business successful.

We explore some of the main start-up costs that efficient small businesses owners may need to consider when they set up a new business. Not all these business startup costs apply to absolutely every business, but they might apply to certain types of business.

Also, many of these costs will apply to all businesses, so it is a good idea to familiarize yourself with some of the common expenses and business costs that entrepreneurs should have planned and covered for in their business plan, and for employees forms, the use of a w9 creator can be the best choice. read more

Funding will help accelerate global borderless education support in higher education

Fast growing EdTech startup Vygo has raised £1.5m in a pre-seed funding round supported by Angel Investment Network, the world’s largest online angel investment platform. Vygo is a Saas platform reinventing the conventionalsocial support ecosystem in higher education.

Offering personalised support services beyond the physical campus, the business already works with a third of Australian Universities and is rapidly growing in the UK. The raise will help it expand in the UK and Europe and fuel its ambition to build borderless social education for every student. read more

Olivia Sibony, AIN’s Head of Impact, looks at the rise in interest in green and clean tech startups and why we have seen a ‘perfect storm’ of conditions for their growth.

Over the past few years we have seen the perfect storm of conditions that have rocketed investor interest in green and clean tech startups. Looking at the patterns of investor keyword searches on the AIN global platform we have seen impressive growth for green business terms, including ‘renewables’, ‘greentech’  and ‘environmental’.

In the last three years these business ideas have gone from niche to mainstream with investors hungry for standout solutions for our manifold environmental challenges. The COP 26 conference further committed Governments to carbon reduction targets. As was acknowledged in Glasgow, it is private enterprise and nascent businesses that will provide many of the solutions. 

Factors such as the recent surge in gas prices have made us more aware of the need to find alternative and renewable energy sources, alongside smart ways to reduce energy consumption.  read more