2 jenny women in angel investing
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2 jenny women in angel investing 2 jenny women in angel investing Presentation Transcript

  • 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
  • Thank You and Help UKBAABeat the 1:20 Ratio!