GENIUS IS EVENLY DISTRIBUTED, OPPORTUNITY IS NOT

Baked into our approach

The numbers above are not the result of any positive discrimination. These numbers stem from believing that ‘genius is evenly distributed, opportunity is not’ (quote often attributed to Mitch Kapor who created Lotus 1-2-3) and from recognising that we have all have bias – conscious or sub-conscious.

So we deliberately baked five ingredients into our approach to attracting and distilling deal flow.

• 1. REMOVING BARRIERS

  Most investors do relatively little to proactively attract deal flow, and often rely on networks and introductions. Warm introductions are 13 times more likely to reach investment committee and be funded than cold submissions (source: UK VC & Female Founders report, British Business Bank, Diversity VC & BVCA, February 2019). This inadvertently perpetuates funding of people from similar backgrounds to many investors – white, middle class, middle aged & London based. We have a unique source of deal flow, the Start-Up Series competition. It is super easy to enter (then very hard to win), it removes barriers and is promoted nationwide.

• 2. BEING TRANSPARENT

  Our competition usually runs each month, and the distillation process for the six weeks following. The six-stage process is clear and transparent to the entrepreneurs and the criteria used is published as part of the feedback given to those that are unsuccessful. Then we are creating more visibility of our data. It’s harder to be biased if others have the information to hold you to account.

• 3. DITCHING THE PITCH

  We don’t ask anyone to ‘pitch’ at any point in our competition. Too much emphasis in early stage investing is put on the ability to pitch an idea, where confidence and bravado (often the privilege of those who have been fortunate to go to the better schools) can disproportionately outweigh insight, analysis and thoughtfulness. We still value the ability to succinctly put across a market insight and idea (the first part of our competition only asks for a 2-page summary or a 2-minute video), but this doesn’t have to be face to face where personality can overcome commercial nous.

• 4. VALUING FRESS INSIGHT

  Our investment criteria place a heavy emphasis on the attractiveness of the market and the strength of the market need. We value market insight very strongly – if you have inspirational & differentiated insight there is more chance you will have created a differentiated proposition. Location, ethnicity and gender are likely to have a role to play in the strength of empathy with real consumers and the ability to see problems that need solving or opportunities to be exploited. Often people based in London can have an abnormal view on real life for the families or high streets across the UK. Ethnic populations and behaviours make up huge and fast-growing markets. There is some science that shows women are generally more empathetic to the world around them and therefore create stronger insight.

• 5. THINKING AHEAD

  When we look at the economics of how a business grows, there is some attraction in being based outside of London and the South East. The market for talent is less competitive and better value, and property costs are cheaper.