angel investment

3 days in Dubai – jumping in at my new startup’s deep end!

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Day 1 on the stand, Leeann Monk-Ozgul, Mary McKenna, Jennifer Neff, Dr Ola Aldafrawy of Dubai Health Authority, Alastair Hamilton CEO Invest NI, Swathi Sri Invest NI

I announced a week ago today that I’ve begun the New Year with a bang by formally joining Northern Irish tech for good startup, Elemental Software.  I say “formally” because I’ve been the company’s mentor for the last 10 months via Northern Ireland’s excellent Propel programme.  For anyone else who’s old enough to remember the 1970s it’s been a bit like that old Remington ad with the smooth as silk American entrepreneur Victor Kiam… Joking aside I can thoroughly recommend working in a company as the best possible way to conduct due diligence prior to investment and would be interested to hear from any other angels who’ve done the same.

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The three of us at one of the parties – oops – I mean networking events

Elemental’s co-founders are Leeann Monk-Ozgul & Jennifer Neff & believe it or not they met through their mutual love of diagrams…which in my book is as good a way as any to identify a business partner. Both women have a strong track record in designing and managing community programmes and both have worked for many years in the tricky interface that exists between the private, public and third sectors. Even better, Jennifer and Leeann are both from Derry and it makes me very happy to continue supporting economic growth in the North West of Ireland by backing another local company that is without doubt destined for huge global success.  Indeed, the golden thread that links the three of us is no other than Sir Ken Robinson – yes – he of “schools kill creativity” TED fame.  Jennifer, Leeann and I were all at Sir Ken’s March 2011 talk in Derry but we didn’t know each other at the time.

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Sir Ken Robinson in Derry with his mug on a mug

They saw me taking photos and wondered who I was and they loved his talk so much that they eventually based their company name on Sir Ken’s book “The Element: How Finding Your Passion Changes Everything” – far more sensible than what I did as a result of meeting him which was put his face on a mug (or should I say a cult collectible!).

Elemental provides an early to market digital solution that eases and addresses an escalating set of health related social challenges. Social prescribing is described as a way of linking patients in primary care with sources of support within the community. It’s as simple as that and it gives, for example, GPs a non-medical referral option that will run alongside existing treatments to improve a patient’s health and well-being.

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Jennifer, Leeann & I with Ambassador Pat Hennessy, Irish Ambassador to UAE

This past week Jennifer, Leeann & I have been exhibiting at Arab Health in the World Trade Centre in Dubai.  Thank you to all those people who opened their black books for me and made introductions before our trip out there.  It was my first time visiting the Middle East on business and there was an awful lot to take in in a very short space of time.  Dubai itself is easily accessible from Ireland with 30 direct flights a week from Dublin and only a 4 hour time difference.  The city has the feel of a pioneer town and I can see why so many Irish and British people (young and old) are out there seeking their fortunes.

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Jennifer and Leeann presenting to Nicola Blackwood MP at our stand

Arab Health in itself was an experience and a half.  Vast doesn’t come close with 40 country pavilions and 20,000 visitors a day.  We were lucky in so many ways.  We’d been selected to participate in the Invest Northern Ireland stand and as one of our co-founders, Jennifer Neff, has already been working with potential UAE clients for a couple of years she was able to line up days and days worth of useful meetings in advance.  We weren’t so lucky on the accommodation front.  Booking.com let us down badly by cancelling our booking on the day of our arrival in Dubai and it was incredibly difficult to find somewhere to stay at such short notice.  However, in the spirit of making lemonade from lemons we embraced the opportunity to stay for a few days in a more authentic part of the old town and see some sights we’d have otherwise missed.

Elemental is about to roll out the first social prescribing programme in the United Arab Emirates region, connecting key stakeholders in diabetes prevention and supporting patients most at risk to make better lifestyle choices, enhancing their quality of life and reducing demand on health services.

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Three of us with Dr Mohammad

Being at Arab Health was an amazing chance for me as an investor and part time resource to meet some of our contacts face to face and to hear from them first hand how they love the simplicity of our platform and how they intend to use it.

We were also lucky to be selected as one of the UK companies that MP and Minister for Public Health and Innovation, Nicola Blackwood, requested to meet with when she was at Arab Health earlier this week. It was wonderful to have the opportunity to explain how our social prescribing platform will help improve people’s lives to someone who feels as passionately about social justice as Nicola does.

Around the edges of the conference we networked with our Irish business community friends and colleagues, attending a number of events including that hosted by His Excellency Ambassador Pat Hennessy, Irish Ambassador to UAE (and at which Irish Minister for Employment and Small Business Pat Breen TD and Dr Mohammad Abdulqader Al Redha of Dubai Health Authority spoke so well).

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With Minister Pat Breen TD at the Enterprise Ireland networking event

Dr Mohammad is an alumni of the Royal College of Surgeons Ireland and having spent 8 years in Dublin is truly an honorary Irishman.  It was great to also squeeze in an early morning healthcare focused business breakfast with the Dubai Irish Business Network, to manage to see our good friend Eithne Treanor a number of times over the course of a few days and to meet our friend Barry Lee Cummings who works with his Northern Irish counterpart Wayne Denner on a worthy mission to help young people better manage their online reputations and combat cyberbullying.

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With Irish powerhouse Eithne Treanor at the Dubai IBN breakfast – if you only knew one person in Dubai but it was Eithne you’d be ok!

They say a week is a long time in politics but I can confirm it’s also a long time in a busy startup.  For anyone out there who’s seeking their own angel and wondering why I picked Elemental from all the hundreds of approaches I get these are the reasons I’d have given you if you’d asked me last Friday – awesome female founding team, growing social prescribing market, powerful product that’s also simple to use and understand and the fact that it’s tech for good.  A week later I would add – co-founders that are both great on their feet, deep customer and sector knowledge and a level of commitment and hard work I’ve never seen in another startup.  Keep your fingers crossed for us and watch our progress.  Life in a startup is never easy – even when everyone’s on message, working their butts off and the planets all seem to be aligned. Comments welcome as always.

Interested in learning more about the benefits of social prescribing? Read Dr Marcello Bertotti’s expert opinion piece here

Elemental participated during 2016 in the Propel programme funded by Invest Northern Ireland and driven by the magnificent Diane Roberts. Any startups wishing to join a current and excellent accelerator in Belfast should consider Diane’s new venture, Start Planet NI

Interested in having a conversation with Elemental Software, contact us via Jennifer at jennifer@elementalsoftware.co

Three is definitely a charm – my early stage angel investments

Today’s blog is a sister piece to last month’s “Angel Investment from this Rookie’s Perspective”. Last time around I wrote about what I was looking for in early stage startup companies when I was deciding which ones to angel invest in. This time I’m going to talk about what I liked most of all about the three startups I ended up selecting and investing in.

Before I begin, let’s recap on what my motivations are for angel investing in the first place. All angels will no doubt have different motivations. I am excited by the idea of putting something back in terms of helping some new early stage startups get moving. I wanted to use some of what I’ve learned starting and scaling my own businesses in the past to help a small number of other people get through their early growth stages less painfully than it was for me. After some thought in summer 2014 following my successful exit from Learning Pool, I reached the conclusion that I didn’t want to start another new business of my own and I knew I definitely didn’t want to work for someone else as a bog standard gun for hire (much as I enjoyed my 4 month sojourn in 2014 working with the vInspired Task Squad team – they’re doing really well – check them out) but I did want to carry on working.

This made the quest easier for me as I then knew that I was looking for companies where I could add value with some hands-on involvement and I also knew then that it was important for me to pay more attention to the founder/founding team as I was going to be working with them for the medium term. Let’s face it, in a startup the team or founder is far more important than the idea – ideas are ten a penny and most startups do pivot or at least swivel a little.

One surprising thing – I haven’t invested as part of any formal angel syndicate or group. I really thought I would but it hasn’t happened that way. That topic alone is probably worthy of another blog.

So what and who did I choose? All three startups are cloud based online platforms (a no brainer for me now that I come to think about it!), two of the three founders are female (this makes me very happy), all three founders share a number of important qualities and despite their differences they’re remarkably similar, two are companies based in England & one is in South Wales (disappointed that I didn’t find anything in Northern Ireland or Scotland this time around), all are involved with changing the way people do things – communicate, learn, organise. All three really care about their team culture as they grow and whilst they’re all focused on generating revenue and making profit, they all know that there’s more to life than making money. Finally, all three have a capacity to really scale quickly and without adding huge resource into the team.

First on my list is RunAClub headed up by fab founder and CEO Sally Higham. RunAClub has everything you could possibly need to run any sort of club or group, all simple to use, neatly packaged and stored in the cloud. Beautiful. Our customers so far are national sports organisations, local authorities, charities, community groups and individual clubs/groups. What do I like most about RunAClub? It’s such a useful product, everyone we speak to loves it and it’s so clearly scaleable. I love most things that truly save people time whilst remaining affordable and easy to use. As an investor, I like that RunAClub is scaling fast in its chosen core market but I also like that there are numerous other verticals for us to move into. An unexpected but very welcome bonus along the way has been that a really old friend has co-invested with me and this gives me a chance to work with him again.

RunAClub team last month in Sally's kitchen in Wiltshire - you don't have to be blonde but it helps!

RunAClub team last month in Sally’s kitchen in Wiltshire – you don’t have to be blonde but it helps!

I first saw Sally pitch at a Clearly So Big Venture Challenge event last summer. During her presentation she said – “what I really need in order to maximise RunAClub’s opportunity is another me” and that resonated strongly with me because I’ve been in that position so many times myself – so when she’d finished pitching I went straight over & introduced myself.

The RunAClub team is the liveliest and most can-do bunch of people that I’ve met in a long time. Their enthusiasm is infectious and I’m genuinely looking forward to spending time with them, growing a successful and valuable business.

My next is Captive Health. I love that I’ve known the founder Andrew Cockayne for years. He used to be one of my Learning Pool customers many moons ago and I’m so pleased that he’s become an entrepreneur himself and also that I can continue to work with him. Captive Health is the most mature of my 3 investee companies and in truth is more of a scaleup than a startup.  The company provides the health sector with a platform that allows richer interactions with and between their staff and their patients. Staff can access information and network within their teams when they’re on the move (only 40% of people working in a hospital have access to a desktop). Patients can use Captive Health to provide feedback and information about their choices and preferences. Hospitals love the products and we already have five as customers with many more in our pipeline.

At the recent PEN Awards in Birmingham with Andrew Cockayne & Leena Shaw of Captive Health & one of our progressive customers, Jo Wood of Ipswich Hospital

At the recent PEN Awards in Birmingham with Andrew Cockayne & Leena Shaw of Captive Health & one of our progressive customers, Jo Wood of Ipswich Hospital – I’m working on their footwear!

I heard Simon Stevens, Chief Executive of NHS England, speak at last month’s e-Health Week 2015 Summit. His opening gambit was “No industry has ever re-invented itself on the scale that the NHS needs to over the next 5 years without smart use of technology”. Captive Health’s product set offers the NHS some affordable tools with which to get ahead in dealing with their huge challenge and I’m pleased to be part of that mix.

Last but not least is Caerphilly based Noddlepod. Noddlepod is like a Slack for your learning communities. It’s a social learning platform that allows you to easily share your files and search for resources with the same degree of immediacy and familiarity. I met founder Ollie Gardener at a tech event in Buckingham Palace hosted by Her Majesty the Queen. Ollie was wearing Norwegian national dress. You can guess the rest. We’re very grateful to Neil Cocker of Cardiff Start & Matt Johnston of Digital Circle for allowing us to meet!

Noddlepod is my earliest stage investment of the three but it’s grown out of a number of years of considered reflection by the founding team on where learning is going next and Ollie has corralled some very experienced and well know global learning experts onto her Board including our Chairman Charles Jennings and fellow non exec Nigel Paine. Edtech continues to create frenzied excitement in the investor space and we’re encouraged (!) by the recent $1.5bn sale of Lynda to LinkedIn. Great that LinkedIn now has access to all that content but I wonder if they’ve thought about how to deploy it coherently to their millions of users?

With Ollie this month - outside my London Southbank "office" - having tea & more tea

With Ollie this month – outside my London Southbank “office” – having tea & more tea

Until LinkedIn or similar comes a-knocking, we’re focused on bringing Noddlepod to corporate universities and business schools worldwide. I love most that as a Norwegian, Ollie thinks way outside of the four walls of the UK in her growth plans and that she has a number of overseas investors and a pipeline already full of European opportunities.

So that’s my three. Exciting times. I’m certain I’ll prove all those people who advised me against making early stage angel investments wrong. As always I’m interested in hearing your questions, comments, observations. Check us out. Startups always need a helping hand and you all know it makes sense to work with small, growing businesses jammed full of bright, ambitious people with great tech – it helps our local economies and it keeps you sane.

Angel investment from this rookie’s perspective

Beautiful carved wooden angel - photo by Wolfgang Moroder

Beautiful carved wooden angel – photo by Wolfgang Moroder

“I saw the angel in the marble and carved until I set him free” – Michelangelo

Last month I made my first angel investment. I know many of my blog readers are entrepreneurs and startups and some of you are or will be seeking angel investment, so I thought it might be useful/interesting for me to jot down (from a poacher turned gamekeeper type of perspective) for you a few of the choices I’ve made along my own personal investment journey and why – in case it helps you.

To set the scene I’ll start with why I’m doing a small number of early stage angel investments in the first place and what my criteria have been. My main objective was to eventually select a handful (my final number is three) of early stage startups where I liked the idea but more importantly liked the founder or startup team. My motivation is to use some of what I’ve learned starting and scaling my own businesses in the past to help a small number of other people get through their early growth stages less painfully than it was for me. If I make any money along the way, I’ll celebrate that as a bonus. Making money is not my primary objective – which is lucky because many of the wise heads I know have gleefully warned me (a few of them several times over) that it’s impossible to make money by investing in early stage startups.

A couple of other bits of info make up the full picture. Although I’m a member of a couple of formal angel networks, I haven’t invested through them or as a part of any of their syndicates. So far anyway.

Finally, the startups had to be somewhere on the spectrum of my own areas of interest so that I can add value. This inevitably means software, X as a service or platform, community, scaleable, public sector, always something to do with people and how they can save time or money by collaborating, learning from each other or working together.

I’ve been talking to startups for years. It’s a natural part of what all entrepreneurs do. For me the night out that will always trump all others is one where I can watch other startup entrepreneurs pitching. I just love that initial rush of thoughts about another person’s ideas – working out the angles on the business models and the commercials…seeing if I can spot some opportunities that they’ve overlooked. As an aside, I love it even more if it’s something I’ve considered doing myself in the past but haven’t been able to work out the commercials or the logistics and then someone else manages to do that (for example, Northern Irish startup Send My Bag).

As a seasoned and successfully exited entrepreneur, people seek me out anyway for all sorts of reasons. Because of this it was fairly easy for me to start about a year or so ago to assemble a long list of 20 or so potential investee companies and kick off an initial conversation with the founders as a way to start my selection process.

This is what I was considering:

• Do I like the product or product idea and am I convinced it can scale?
• Would I buy it myself for my own (theoretical) organisation to use?
• Is the founder credible, articulate, stable and sensible but with a dollop of sparkle?
• Do I like them enough?
• Can I see myself working with them over the next 3-5 years?
• Are they resilient enough to keep things moving forward when times get tough and do they have the grit to sack bad hires quickly and stand up and fight for themselves and their company when they need to?
• Are they well-informed about their competitors and the way the market is moving?
• Can the founder front the business; are they likeable and convincing without being arrogant and smartass?
• Is their company valuation reasonable and realistic?
• Do they have a good overall grasp of what their next 2 years looks like in terms of back of the envelope targets, resource requirements, funding, effort needed, team, etc?
• Is the founder generally on top of their workload and easily able to articulate key messages and information?
• Are their targets and forecasts reasonable or complete pie in the sky?
• Can I clearly see how I can add value to both the founder and the company?

It took me a while to put the above list together as I’ve never written it down before. In case you’re wondering – yes – it is more or less in order of importance to me. I did say this blog was going to be about my own personal investment journey…

Only companies that passed the first 2 questions made it onto my long list of 20 companies in the first place and then between June and December last year I whittled those original 20 down to 3. I guess where it gets interesting is how I did that. I’m afraid it isn’t scientific for anyone who’s expecting a checklist and a spreadsheet.

A few fell at the valuation hurdle. If all you have is an idea and you don’t have any product built or any customers, your company in my eyes is not worth £1m. Simple as.

A few others fell by the wayside because of the founder. The trick here is to keep meeting with them until you’re either convinced that they’re the real deal or until they let their guard down and expose themselves to be anxious, needy, deluded, arrogant, ego-driven, greedy, selfish, brattish, indecisive or any of the many qualities you as an investor don’t want to see in a startup CEO or leader.

Some over time I just had a bad feeling about, or something told me that the founder wasn’t 100% honest – I could just feel it wasn’t good when I scratched the surface.

Others I lost because a few months in the product was no longer holding up or it became apparent that the founder wasn’t able to move at the pace required to get to market within their window of opportunity.

A couple went because the founder had more than one focus and it became apparent that they were spread too thin and weren’t giving any of their projects the attention they deserved.  A couple more because the founder knew it all and wouldn’t listen to any advice from me or from anyone else.

And so I was left with three – which was the number I was hoping for in the first place. Two of “my” founders are female and one is male. They all share a number of important qualities and despite their differences they’re remarkably similar.

This blog is part of a short series and I’ll write about the companies themselves next time around.

If you have any questions please ask them in the comments section below and I’ll do my best to answer.