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.

The 5 hardest startup lessons I’ve had to learn

One of my highlights of this busy past week was chatting with the Public Service Launchpad cohort of entrepreneurs & intrapreneurs in London and sharing with them a few of the hard lessons I learned as we were building Learning Pool.  Even though I probably scared the life out of everyone with my stories a few people have asked me to blog this session so here we go.  I’ve organised my thoughts into my 5 key learns – I’m sure other entrepreneurs out there will have more of their own to add.

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Lucy Knight’s amazing sketchnote of my talk.

Relentless execution is required to the exclusion of all else.  The odds are stacked against you in a startup.  70% will fail and won’t make it to the end of the first 18 months.  You have to move your project forward every day.  This means no distractions or other side projects.  No social life and the bare minimum in terms of spending time with your family.  I can remember my mum saying to me that she saw less of me in those first 2 years at Learning Pool when I was 20 miles down the road than she did when I was previously working in London 500 miles away.  If you’re only prepared to work 60 hours a week in your startup you might as well forget it as you’re wasting your time and everyone else’s.  You have to deal with exhaustion and sometimes the sheer boredom of it as you spend a lot of time doing stuff you don’t enjoy.  You have to use every minute productively.  Make all your phone calls when you’re hanging around.  Use time on planes to write blogs and website content.  If you go away on holiday, expect to work every day – even if you have a co-founder and team.  There’s no off button.  You’ll work 364 days in those first few years (everyone’s entitled to take Christmas Day off!).  You’ll also constantly iterate and pivot based on customer feedback, make endless decisions (often with insufficient info), do your damnedest to hit deadlines, overdeliver and do rework for customers without being paid for it (suck it up) and you’ll always be selling and doing a load of other stuff you’ve never had to do and are probably uncomfortable with.  It’s quite common to hear startup entrepreneurs talk about all the stuff they’ve gradually shed to make more time in their working week and in extreme circumstances that will include sleep.  I was discussing this with Mark O’Neill of Government Digital Service this morning & we concluded that kickstarting an early stage startup is like throwing cats against a wall and hoping some of them will manage to scrabble up to the top – not that Mark or I would ever do such a thing.  Also the knowledge that others out there might have cats with sucker pads instead of paws…

Financing – should you take investment or bootstrap.  Sometimes this decision is dictated by your product.  You can’t launch a new drug or build a semiconductor company without investment.  If you take investment, expect to be bitterly disappointed by the early doors valuations you receive and brace yourself for the late night calls and crazy demands of your investors.  They’ll all spin you that line about owning a smaller slice of a bigger pie.  If you bootstrap, be prepared for the pressures that will bring.  Complete focus on getting to revenue, constant running of your numbers, daily cashflow forecasts, making the awkward phone calls when you can’t pay your suppliers.  Having to borrow from the bank and then compartmentalising that worry.  Being really honest with yourself or yourselves about where you are against your business plan.

3.     Learning properly how to sell and all the boring stuff you have to do in order to sell successfully – scanning for tenders, writing responses, following up for feedback when you don’t win them, iterating your pitch, implementing and using a CRM (I know at least one startup entrepreneur who used to fire people for not keeping the CRM up to date), getting ISO accredited, building a brand, having a proper sales deck and collateral, constantly refreshing your website content.  The discomfort of making yourself pitch if you’re not a natural salesperson and (if you’re sensible) learning to sell in pairs.  Making smart decisions about what to chase with your limited time and resource.

My friends Martin Howitt and Lucy Knight from Devon County Council

My friends Martin Howitt and Lucy Knight from Devon County Council

        Dealing with your own people.  You can’t afford anyone experienced so you recruit for potential.  That then requires a lot of time (that you don’t really have) as the team doesn’t know much and therefore they run everything past you.  Not many people can write coherently so you’ll spend a lot of your time re-doing what others have done – usually after they’ve gone home or gone off on holiday.  I found a lot of time is spent trying to second guess the mistakes your team are going to make in some sort of order of priority.  In reality, not that much bad stuff happens.  It’s the excruciating moment when you see an email that’s gone out or overhear someone talking nonsense on the phone.  It’s useful to teach your team early doors how to make their own decisions.  If you don’t do that it will add to your own already massive decision burden.  Letting people go when they don’t work out.  This gets a bit easier over time and the interval between joining and leaving certainly shrinks dramatically.  Disappointment when people you’ve been good to let you down.  That doesn’t get any easier.  The realisation that you’ve become a worse person inside yourself over the years.

5.      Working out the people mix, building the culture you want and creating a cohesive team.  After all it’s your opportunity to create the sort of business you’ve always wanted to work in yourself.  Sticking to your values and not compromising on them.  It’s easy to own the moral high ground when you’re a PAYE person; you soon discover where your values limits lie when your house is on the line.  The stuff you find out about yourself that you may not necessarily like.  Burying that ego that’s been growing during your years in education and when you were climbing the career ladder.  As Jim Collins says in Good to Great, looking in the mirror when things go wrong & through the window when things go right (to see who else was involved in getting that good result).  The sheer amount of time you will spend with your co-founder(s) and team in those early years.

Gloria and Katrina from the Diverse Leaders Network, part of the PS Launchpad

Gloria and Katrina from the Diverse Leaders Network, part of the PS Launchpad

So – I hear you all ask – this sounds bloody awful so why bother?  That’s easy & I have 5 reasons why it’s worth it:

1.       The Prize – financial and other.

2.       The huge satisfaction you get from building something from scratch that you’re proud of.

3.       The highs are amazing.  When you make a big sale or you land a sale where you started out as the underdog.  When you win a big award.  I still remember how I felt the night the call came in telling us we were the Intertrade Ireland regional Seedcorn competition winners.

4.       Putting yourself out there as a startup entrepreneur means you meet some great people and have some incredible experience.

5. Nothing can touch being your own boss and taking control of your own destiny – no matter how terrifying that can be from time to time.

I h  I hope this rather long blog has been useful to someone out there and I’m dedicating it to all the people who helped us when we needed help – you know who you are.  If you have any comments or questions feel free to add them in via the comments section below and I’ll do my best to answer them.  Good luck to all the PS Launchpad projects by the way.  I’m waiting for you guys to connect with me via the usual channels!