I went to a Capital Angels pitch night event, and this happened
Editor Serina Bird went behind the scenes at a Capital Angels pitch night to find out what it was all about.
As an investor, I’ve been interested in investing in startups as an angel investor for a long time. But I had this sense that I wasn’t ready, that I hadn’t yet joined the big boys league. I somehow thought I had to have a multi-billion-dollar investment portfolio before I would be able to even start. Or have retired from selling a startup to a large tech firm. Would people at the event be the type to head off on private jets to Tahiti (aka that soap ad) at a whim? Would they live on caviar and eat $70,000 golden pizza with Mr Beast?
And perhaps more importantly, I worried it might be like a high-end art sale where I would walk away with a Picasso if I so much as blinked.
As I discovered when I attended Capital Angels pitch night #3, the reality was much different – and more inclusive. And I did end up investing in one of the 4 amazing startups that pitched that night, although there was no pressure on me to do so.
Angel investing 101
According to angel investor and CEO of Campus Plus, Nick McNaughton, angel investing is a form of early-stage investing. It involves people, who are often successful entrepreneurs themselves, investing their money in a newbie startup in exchange for equity.
Angel investing is different from other forms of investing in that the investor can often mentor the startup. They don’t have to play this role, but it’s a closer relationship than investing in shares through a website or paying off your mortgage.
And speaking of mortgages, McNaughton advises that ideally, an investor will already be in a comfortable financial situation – including having paid off their mortgage. ‘An Angel investor is usually a high-net-worth individual who has made money throughout their life. They have typically paid off their mortgage, have significant savings in superannuation, may own one or more investment properties and carry little or no debt. They will already have a broad and diversified investment portfolio, including domestic and international equities and other holdings,’ he wrote recently in the Moore Street Journal.
While investors at a pitch night do not have to provide financials before attending (or at any stage), angel investing is a high-risk category of investing. Investors might be lucky enough to invest in a fledgling unicorn – a startup company worth over $1 billion – multiplying their investment many times over. But they must be able to bear the losses as around 90% of startups fail (with 10% failing in the first year).
First Impressions
I arrived at Capital Angels pitch night #3 just after 5 pm after a busy day at work. I was surprised to find that the vibe was low-key, with people milling around a buffet of Turkish and other snacks and relaxing with a beverage. I grabbed something to eat and a can of Altina (a Canberra startup success) and joined a random group of people to chat. I also discovered a friend decided to attend to learn more about investing, so I had someone to hang out with.
Everyone was friendly and interested in networking, and surprisingly low-key. I found myself talking with 2 of the startup founders who were pitching that night. One of them was quite nervous yet obviously passionate about his idea. It was a small crowd, although I spotted several seasoned investors. What struck me was the intimacy of the event; you could really meet startup founders and get to know them in a way that might be difficult if it were a large pitch event.
Before too long, we were asked to sit down, and the event began.
Getting down to business
After an acknowledgment of country, McNaughton took the stage. He welcomed everyone, gave an overview of proceedings, and crucially, gave a disclaimer about angel investing. This included noting that:
Investing in early-stage businesses is risky and highly speculative;
Capital Angels had not independently reviewed the information provided by the startups who are pitching; and
Capital Angels does not offer, recommend or advise on any investment.
In other words, caveat emptor (buyer aware). Capital Angels has invited people to pitch, but whether you invest or not is your decision.
After a welcome from the Canberra Innovation Network’s Dr Craig Davis, who leads the GRIFFIN Accelerator program as well as being a startup founder and angel investor, the pitches began.
The pitches
I’m used to hearing pitches, especially at Canberra Innovation Network events. Usually, they are high-octane, 60-second or less events. What surprised me was that the pitches were a bit longer – a few minutes rather than just one. Also, the audience could ask questions – and they didn’t hold back.
As an observer, I learned more from the questions than I did from the pitches. It was an opportunity for me to hear insights from some of the best angel investors in Australia. They wanted to know things like metrics for sales and growth – past, present and future – as well as details on business plans and competitors. At times, the founders appeared flustered, but they were professional throughout.
The 4 startups invited to pitch were from the region – not just Canberra – and included an interesting mix of concepts. In order, they were:
Bolsta. This Wollongong-based startup is changing the face of fundraising in Australia. If you’ve ever had to wrap a hamper in cellophane and sell raffle tickets, you might have wondered if there is a better way. There is. Bolsta organises the prizes and creates an online presence that is easy to use and navigate. McNaughton suggested that would-be investors could do due diligence and donate to a local charity (I was on my phone checking it out immediately).
Wildlife Drones. Think conservation can’t be lucrative? Think again. Dr Debbie Saunders, CEO and Chief Remote Pilot spoke about the company she founded – Wildlife Drones. The company uses drones backed by cutting-edge technology for conservation and ecological tracking. The company has already established a solid business model in Australia and is now rolling out overseas. Dr Saunders was recently named businesswoman of the year at the 2023 Canberra Women in Business (CWB) Awards.
Noizend. With cities embracing higher urban density, noise pollution is increasing (even in Canberra). Last year, the United Nations put out a report on the impact of noise and found in Europe, 22 million people suffer from chronic noise annoyance, and it led to 12,000 premature deaths. Noizend is an early-stage Sydney-based startup seeking to address noise pollution, particularly low-frequency noise. What they are creating is analogous to noise-cancelling headsets but for venues, especially nightclubs and other night economy businesses.
My Green Butler. Sometimes, environmental awareness goes out the window when people are on holiday. Yet it doesn’t have to. My Green Butler works with the hospitality sector to find ways to reduce the environmental impact of accommodation. It is an online sustainability system that helps accommodation providers meet environmental and social compliance – cutting costs and carbon – while also ensuring guests are comfortable and happy. My Green Butler is founded by author and sustainable tourism expert Dr Christopher Warren. Clients include Daintree Wilderness Lodge and a range of luxury accommodations in Australia, England and France.
After the event
After the pitches (and more questions), there was time for mingling and munching on more snacks. Investors keen to know more sought out the startups they wished to connect with, but there was no hard sell. Investment decisions appeared to occur after the event and in private.
I spent time talking to the startup I was interested in, and after several weeks of consideration and contact, I invested. There was no pressure on me to do so at the pitch night, and it was fine to simply attend as an observer.
Sign up for the next pitch night
Want to attend the next pitch night – the final one for 2023? Well, you are in luck because it is on tomorrow night. You can sign up here:
https://events.humanitix.com/capital-angels-networking-meeting-4
