Angel group, tech startup screening and coaching
Situation
A renowned UK angel group diligently screen over 100 investment opportunities annually and present the most promising ones to its members and investors at periodic pitch events.
We help this angel community evaluate technology startups and coach founders in sectors such as Artificial Intelligence, cyber security, blockchain, fintech, healthtech, IoT, biotech, SaaS, ecommerce, marketplace, and social platforms.
Approach
Following an initial round of screening, we conduct a comprehensive assessment of each startup in the short list, covering the following key areas:
Team: Evaluate the experience and background of the founding team and board members, assessing their complementarity and recruitment plans.
Problem: Review the problem the product solves and its impact on the target market.
Market and Competition: Define and size the target market, assess competition, identify barriers to entry, and define the product's competitive advantage.
Product and Technology: Evaluate the product prototype or demo, assess the technology's potential for patenting, and analyze product-market fit and use cases.
Business Model and Sales: Review the value proposition, business model, monetization strategy, and scalability. Refine the go-to-market strategy and prioritize market entries. Assess traction, customer acquisition, and sales pipeline.
Plan: Identify strategic priorities, set key performance indicators (KPIs), and create a comprehensive business plan.
Finance: Analyse cash burn rate, key performance indicators, and financial projections. Assess funding requirements, identify value drivers, and develop a valuation.
Funding: Evaluate current ownership, funding commitments, and SEIS/EIS status. Refine the pitch deck and prepare for negotiations with potential investors.
Results
By thoroughly assessing the above areas, we provide actionable insights and recommendations to assist angels in their due diligence and to help startups optimise their business strategies and secure funding.
Over twelve years, our members have invested over £9m in 57 companies, many of which have achieved either further investment rounds or realised an exit and delivered strong returns.
During this time, we have had the privilege of witnessing the emergence of new technologies, as well as the transformational journey of startups and the evolution of the entrepreneurship and angel investment ecosystem.