Jenny ToothChief Executive OfficerBeating the 1:20 Ratio -Women into Angel Investing24thMay 2012
Introduction• Trade Body launched in July 2012 , representing the angel andearly stage investment community in the UK- reflecting the rangeand diversity of Angel investing• Represent the angel community’s interests to Government-ensure policy environment supports growth of angel investing• Raise awareness and Promote the Asset Class - Key strategy toBring more women into angel investing!• Improve data on angel investing - deals; exits; returns - newResearch Project underway for 2013 with Deloitte• Promote standards and good practice – access to body ofexperience and knowledge on angel investing ( web-site ;training)• Creating a connected path of finance from start-up to growth
My Background• Ran my own Business for 15 years helping SMEs Access Finance-Brussels and London.• Encountered Angel Investing in 2000 and worked with LondonBusiness Angels• Started working with trade body ( when British Business AngelsAssociation)I n 2004, managed by GLE• Spun out a new company from GLE in 2009 - co founded AngelCapital Group incorporating London Business Angels• Took on role of CEO of UK Business Angels Association, newindependent company in July 2012 ( no longer Director of LBA)• Started Investing in 2006, mainly technology, incl. health care• Some failures! now have 6 live investments………..
UK Angel Market• Angel Investing =Most significant source of finance forgrowth potential early stage businesses• Approx. £850m to £1bn invested each year byBusiness Angels• Only £300m in VC each to small businesses at earlystage ( only £40m to start-ups (BVCA 2011)• Angel Investing = 3x VC funding for early stage• BUT, only 5% of “known” angel investors are women!• HOW DO WE BEAT THIS 1:20 RATIO?
Angel Finance Trends• Average Angel Deal : £10k to £500k first round- but recentdeals of £1.5m +• Most deals are now syndicated – lead angel with a group ofangels pooling skills and finance• Angels prepared to do follow-on funding• Angels invest along side VCs and Banks - and Crowdfunders• Angels are prepared to wait- Patient Capital• 5 to 8 years to Exit- and longer• Nesta – BBAA research showed potential for IRR of 22% , but58% of Angel deals fail! (Siding with the Angels May 2009)
How to Attract More Women Investors?• Awareness and education on how to do find good deals and structuredeals -understanding the investment process• “Golden Seeds”- The US Movement increased women investing up to16% through a concerted programme• Golden Seeds identified that Women need more structuredknowledge and learning than their male counterparts• Working in Groups and syndicates- sharing deals, sharing knowledgeand due diligence; pooling skills and finance• Opportunities to convene and share experience- peer to peerlearning• Inspirational women investors as leaders and ambassadors• Experienced women as Mentors• Encouraging Women to be Lead Angels
Promoting Awareness of Tax BreaksToo Risky?•Promote awareness among women of the fantastic tax breaksavailable to mitigate risks investing in early stage businesses :• EIS (30%) investing up to £1m and CGT relief•SEIS (50%) investing up to £100k- invest your capital gain from2012-13=100% write off or 50% gain for 20013-14• Loss relief if all goes wrong (20-50%)!• New £100m Angel Co-fund, offering £100k to £1m alongsideangel syndicateswww.angelcofund.co.uk
Where do Women Invest?• Tendency to assume women invest in softer/fluffy stuff!• But many women with experience and back ground interested intechnology, including health care, clean tech, digital technologies• eg Sherry Coutu - one of the most prolific Technology investors in the UK –was a successful technology entrepreneur and invests in big data!:“I became an angel shortly after floating a company I founded and havingchildren. As an angel investor and mom, I love working with greatentrepreneurs to solve problems that matter. I also love making the sort ofreturns you will have read about in the ‘siding with angels’ report by theBBAA. My angel portfolio has outperformed the stockmarket by a mile! “–Sherry Coutu, CBE.
Attracting more Women investors• Do Women need to invest in other women?- can provide insightinto challenge for women entrepreneurs• Is there a case for all women network and groups?• Golden Seeds movement uses women as leaders, but womeninvesting alongside male angels• Most important is to bring women together to share commoninterests- share intelligence and knowledge• Potential for a number of women syndicates to develop withcommon sectoral interests to share deals – “Women incleantech”; “Women in bio tech” etc.• Angel Academe = Opportunity to bring Technology deals towomen interested in Tech and Digital media
What the Trade Body is doing• UK Business Angels Association – mobilising activities topromote women investing in 2013-14• Identifying Women Investors to be Ambassadors• Promoting activities and initiatives being taken to supportwomen investors eg Angel Academe; Astia• Working with US “Golden Seeds” to learn from their experience• Setting up new part of the UKBAA web-site for specific advice towomen investors (meanwhile see “Be an Angel” site withdownloadable fact sheets, and tools.• www.ukbusinessangelsassociation.org.uk• Help the UKBAA Research on Angel deals in 2012-13: InvestorSurvey: http://bit.ly/ukangelsurvey
Be nominated for a UKBAA Award:Best Female Investment of the Year!For female-led businesses that have received angelbacking and/or backing by women investorsNational Awards Event,London Film Museum 2ndJulywww.ukbusinessangelsassociation.org.uk/awards2013and3rdJuly, National Investment Summit, at Deloitte