Gillian Fleming on the Power of Angel Investment
“Mint Ventures launched in 2022, and in that time, we’ve grown to 61 members from across the UK bringing much needed new sources of capital into the ecosystem. As a women-based membership, our focus is to provide education and support to encourage more women to invest in early stage companies and have a say in shaping the future of the economy.
“There is a misconception that women led means women only, but we do invest in male founders who have built a diverse team with female representation at senior management and board level. Quite apart from promoting equality in the workplace, evidence shows that this helps to develop more sustainable companies, with gender diverse teams 25% more likely to have above-average profitability.
“Surprisingly then, only 14% of investors in the UK are women, and only 2 to 3 pence on every £1 of equity investment goes to all-female teams.
“These are important statistics. Angel investment is an important component of the Scottish business ecosystem and fewer women in the space means sectors where women are more likely to set up businesses that may not be classified as science and technology are less likely to receive funding.
“As well as providing a critical source of funding for early-stage companies, angel investors can also offer knowledge and expertise to support companies as they grow. Furthermore, the tax benefits and due diligence help to derisk the opportunities and angel investing can aid companies to leverage grant funding.
“I was particularly encouraged to see so many women represented in the Perth and Kinross Regional Edge final held in February this year. Scottish Edge has been the lifeblood of funding in Scotland since its inception, with inclusivity at the heart of what it does.
“As well as providing winners with significant cash injections, it provides a very tangible endorsement for potential investors who know the intense process and scrutiny that companies go through to secure that win.
“To see to see it rolled out at regional level was fantastic; particularly as they chose to work with local providers such as GrowBiz in Perth and Kinross. We need to see more in the way of collaborative working if we are to help smaller businesses access the funds required for real growth.
“The Angel’s Share initiative from Perth and Kinross Council is another great example of how working together can strengthen the wider economy. By offering a showcase for local businesses, and placing them in front of serious, national investors, this exemplar model for investment encourages a growth mindset from an early stage.
“Typically, a funding journey will start with family and friends, may be suitable for crowd funding and then, usually because there is not enough income to secure a loan, founders may look towards angel investment.
“If we could speed this process up, encouraging businesses to access angel investment earlier, then companies could grow quicker and more sustainably, without the need for less appealing strategies such as salary sacrifice. Throughout my career I have spoken to many people who wish they’d realised earlier how much support could be made available through an investment route.
“There is a common misconception amongst founders that they will lose control of their ‘baby’, however, angel investment is based on fair and reasonable terms for all parties which should ensure you are aligned with the right investors and advisors and that they all have the same goals.
“This is especially true for women, who tend to have a different attitude to risk than their male counterparts and make more socioeconomic-based decisions. While this brings many strategic benefits to a growing company, we also see more female-founded businesses bootstrapping for many years. Salary sacrifice is commonplace, and income generation is the only ongoing investment.
“The same is true on the other side of the fence. We need more women to become angel investors in order to ensure we are more broadly represented in the business ecosystem. Only 14% of UK investors are women, and yet we are 50% of the consumer base.
“We need to encourage our female entrepreneurs, to think audaciously and ambitiously, and to take their seat at the table.”
About Mint Ventures
Launched in 2022, Mint Ventures is a women-led angel investment group focused on making angel investment more accessible to women from a wide range of business backgrounds through a CPD accredited educational route into angel investing.
Mint is purpose led and aims to invest in products and services that meet the needs and interests of women with a social, ethical or environmental purpose.
