Jenny ToothChief Executive Officer

Beating the 1:20 Ratio -Women into Angel Investing24th May 2012

Introduction

• Trade Body launched in July 2012 , representing the angel and early stage investment community in the UK- reflecting the range and 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 to Bring more women into angel investing!

• Improve data on angel investing - deals; exits; returns - new Research Project underway for 2013 with Deloitte

• Promote standards and good practice – access to body of experience 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 London

Business Angels• Started working with trade body ( when British Business Angels

Association)I n 2004, managed by GLE• Spun out a new company from GLE in 2009 - co founded Angel Capital

Group incorporating London Business Angels• Took on role of CEO of UK Business Angels Association, new

independent 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 for growth potential early stage businesses

• Approx. £850m to £1bn invested each year by Business Angels

• Only £300m in VC each to small businesses at early stage ( 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 recent

deals of £1.5m +• Most deals are now syndicated – lead angel with a group of

angels 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% , but

58% 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 structure

deals -understanding the investment process• “Golden Seeds”- The US Movement increased women investing up to

16% through a concerted programme• Golden Seeds identified that Women need more structured

knowledge and learning than their male counterparts • Working in Groups and syndicates- sharing deals, sharing knowledge

and due diligence; pooling skills and finance• Opportunities to convene and share experience- peer to peer

learning• Inspirational women investors as leaders and ambassadors• Experienced women as Mentors• Encouraging Women to be Lead Angels

Promoting Awareness of Tax Breaks

Too Risky?•Promote awareness among women of the fantastic tax breaks available 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 from 2012-13=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 alongside angel 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 in

technology, 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 having children. As an angel investor and mom, I love working with great entrepreneurs to solve problems that matter. I also love making the sort of returns you will have read about in the ‘siding with angels’ report by the BBAA. 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 insight into challenge for women entrepreneurs

• Is there a case for all women network and groups?• Golden Seeds movement uses women as leaders, but women

investing alongside male angels• Most important is to bring women together to share common

interests- share intelligence and knowledge• Potential for a number of women syndicates to develop with

common sectoral interests to share deals – “Women in cleantech”; “Women in bio tech” etc.

• Angel Academe = Opportunity to bring Technology deals to women interested in Tech and Digital media

What the Trade Body is doing

• UK Business Angels Association – mobilising activities to promote women investing in 2013-14

• Identifying Women Investors to be Ambassadors• Promoting activities and initiatives being taken to support

women 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 to

women investors (meanwhile see “Be an Angel” site with downloadable fact sheets, and tools.

• www.ukbusinessangelsassociation.org.uk• Help the UKBAA Research on Angel deals in 2012-13: Investor

Survey: http://bit.ly/ukangelsurvey

Be nominated for a UKBAA Award:Best Female Investment of the Year!

For female-led businesses that have received angel backing and/or backing by women investors

National Awards Event, London Film Museum 2nd July

www.ukbusinessangelsassociation.org.uk/awards2013

and3rd July, National Investment Summit, at Deloitte

Thank You and Help UKBAABeat the 1:20 Ratio!