Angel community, strategic review
Situation
An angel community faced several challenges in maintaining its momentum:
Declining Investor Base and Investment Levels: A significant decrease in the number of active investors and the overall investment volume was observed.
Limited Deal Flow: A lack of high-quality deal flow and a difficulty in sourcing promising startups hindered investment opportunities.
To overcome these issues, we were tasked with conducting a comprehensive strategic review.
Approach
We conducted a comprehensive analysis of both internal and external factors to develop a strategic plan for future growth.
External Analysis
Market Research: Assessed market trends, angels’ demographics and experience, ecosystem and government initiatives, and the competitive landscape of angel associations.
Investor Interviews: Gathered insights from investors to understand their preferences and needs.
Technology and Sectoral Analysis: Explored emerging technologies and sectors and their investment potential.
Internal Review
Stakeholder Interviews: Gathered feedback from team members and external stakeholders to identify areas for improvement.
Community and Event Analysis: Built and analysed the contact database and evaluated the effectiveness of past events.
Portfolio Performance: Assessed the performance of the investment portfolio, including returns, sectorial and KPI trends, exits and other notable achievements.
Business Review: Reviewed the existing business model and operations.
SWOT Analysis
We conducted a SWOT analysis to pull together insights from both external and internal sources and highlighted the following:
Strengths: Robust screening committee, brand reputation, and historical portfolio performance.
Weaknesses: Outdated IT infrastructure, unclear value proposition, and lack of dedicated resources.
Opportunities: Collaborations with accelerators and incubators, growing importance of technology-focused investments, and emerging trends in the investment landscape.
Threats: Increasing competition, investor fatigue, and economic uncertainty.
Strategy Formulation
Value Proposition: Redefined the value proposition for investors and startups.
Investment Thesis: Developed an investment thesis focused on innovative sectors like AI, Fintech, and Healthtech.
Deal Sourcing: Created a deal sourcing plan, including partnerships with accelerators and private banks.
Investor Outreach: Developed an investor outreach and engagement plan, including VIP initiatives, direct mailing, and PR campaigns.
Deal Support: Recommended post-investment support and deal syndication services to facilitate due diligence and deal making.
Event Format: Recommended to tailor pitch events and offer exclusive memberships to angel investors.
Marketing: Developed a marketing and communications plan, including social media, newsletters, website content, and participation in awards and conferences.
Digital: Identified requirements for digital solutions like productivity tools, online surveys, and a CRM system.
Business Model: Redefined the operating model, process map, and resource requirements.
Results
By conducting this in-depth analysis and strategic review, we provided valuable insights into the UK angel investment market, enabling the angel group to make informed decisions and develop effective measures to sustain its activities and to support their investors and startup applicants.
The angel community adopted the strategy and started to implement these initiatives aiming to:
Increase the number of active investors: Attract new investors and re-engage existing ones.
Enhance deal flow quality: Identify and present high-quality investment opportunities.
Increase the volume of investments: Facilitate more deals and increase the total investment amount.
Improve investor satisfaction: Provide exceptional value and support to investors.
Strengthen the brand: Position the angel community as a leading angel network in the UK.