ANGELS & FUNDING

MANCHESTER TECH TRUST ANGELS


Manchester Tech Trust Angels is a new angel network which has been established by Manchester Tech Trust to address a requirement for early stage funding for technology businesses in Greater Manchester (GM) and the North West.

When Manchester Tech Trust was set up as a charity in 2015, we recognised that despite the rapid development of the tech sector in GM, it was still difficult for start-ups to access funding from knowledgeable tech investors. This lack of visible ‘smart money’ contrasts with the fact that GM has many successful technology entrepreneurs and investors, however, historically, many of their investments have been made privately.

For their part, angel investors were telling us that they were looking for a better way to combine with other like-minded investors who they trust, under an effective umbrella organisation which managed deal-flow and maintained their privacy.

Our aim, therefore, is for Manchester Tech Trust Angels to be an accessible source of angel investment for GM providing both funding and expertise to its portfolio companies, as well as a profitable vehicle for angels to invest through.


ABOUT US


Manchester Tech Trust Angels are a group of high net worth (HNW) investors who are successful entrepreneurs with proven experience in the technology sector across a range of vertical markets. They are active investors who, as well as investing financially, wish to bring their expertise and networks to the companies they invest in.

In September 2018, the network made its first investment of £350,000 in Biorelate, a biomedical AI company, see http://bit.ly/Biorelate_Investment, and in March 2019, our second investment in Hiring Hub, a recruitment agency marketplace, see http://bit.ly/Hiring_Hub_Funding.


ENTREPRENEURS


Manchester Tech Trust Angels are keen to receive investment proposals from companies who have clear view of their business proposition and why this is an attractive prospect for investors.

Entrepreneurs and management teams who are interested in being introduced to Manchester Tech Trust Angels should send a concise overview of their business to funding@manchestertechtrust.com.

This should include:

  • an outline of the company’s products/services and any intellectual property (IP)
  • why these are superior to those provided by competitors
  • your marketing strategy demonstrating what traction has been achieved
  • your commercial model – how the business makes money/creates value
  • how much investment is required and at what valuation
  • details of your team and its experience
  • funding raised to date

You can include links to a business plan or any other documents if you wish.


INVESTMENT CRITERIA


Understandably, the group’s investment criteria will develop over time as it grows and considers more investment opportunities. From our experience so far, companies meeting the following criteria will fare best:

  • Founding team with commercial ability
  • Scalable, in high growth sector
  • UK based, preferably in the NW
  • Board representation for lead/nominated angel
  • Large addressable market
  • Technology based, ideally with unique and defensible IP
  • Sensible valuation

While we appreciate that some of these may be subjective to an extent, in summary we are looking for good quality tech businesses in appealing sectors. At the moment we are looking at investment opportunities from around £200k to £500k and are happy to work with other funders in larger deals.

There are currently no formal fees for companies seeking investment from Manchester Tech Trust Angels, although companies who are successful in raising funding are requested to provide a charitable donation to Manchester Tech Trust to assist with its costs in administering the angel network.


ANGELS


Manchester Tech Trust Angels is keen to grow its membership and angels or prospective angels wishing to find out more should contact angels@manchestertechtrust.com.

Prospective members will be HNW individuals most likely from either a technology or digital business background, or with experience of applying technology in another sector, e.g. retail, healthcare.

As the network’s target funding range is £200 – 500k per investment (excluding subsequent rounds), we are seeking to attract angels who are able to invest from £30 – 50k (or more) per round, with capacity and appetite to invest two or three times a year.

Angels all invest as individuals and each investment must be managed by a lead angel who is chosen by the angels investing in that round. Angels are encouraged to participate actively with investee companies from time to time when their schedules permit, and they are able to contribute particular expertise to an investment.

Our intention is to develop an angel network in which members work closely with each other, sharing opportunities and expertise to ensure each opportunity is evaluated thoroughly and provided the necessary support to succeed.


MEMBERSHIP


The strength of any network is the ability of its members to work together and bring their joint experience to bear on investment opportunities. Trust is a key factor and is something which can only be developed over time through the experience of working with others. We also hope our members will find the engagement and investment process generally pleasant and rewarding and that they will look forward to meeting their network colleagues and addressing investment opportunities and challenges together.

Membership is by invitation only, although members are, of course, welcome to propose new members. All prospective members will be approved by the existing membership.


HOW TO GET IN TOUCH


Manchester Tech Trust Angel meetings are co-ordinated and managed by Peter Lusty at Manchester Tech Trust, who is also responsible (with support from Trustees and members) for the initial evaluation of opportunities.

Entrepreneurs who believe they meet the investment criteria above should contact us at funding@manchestertechtrust.com. Investment and fund managers interested in working with MTTA can also contact us at this address.

Angels or potential angels who would like to find out more should contact us at angels@manchestertechtrust.com.

 


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