2019
ANNUAL REPORT
northinvest.co.uk
2
The growing team of 7 also facilitated 186 introductions
to investors and over £2m of investment. With an angel
network of over 120 investors from across the UK,
NorthInvest completed 9 deals in 2019, 3 of which were
closed in the final quarter, and each having positive
economic impact in the region.
As well as providing 338 free coaching sessions to
entrepreneurs, NorthInvest also developed the investor
readiness offer in the region by partnering with global
tax accountancy, RSM UK, to launch the Tech Mentors:
Yorkshire scheme. This free 12-month mentoring scheme
connects experienced business people with ambitious
entrepreneurs in Yorkshire to provide a platform to help
entrepreneurs grow their businesses.
My founding belief for NorthInvest was to create an
organisation which could drive grass roots growth
through investment and I’m proud to say the hard work
of our talented and expanding team is allowing us to
bring together and maintain a cohesive community of
active investors along with a strong pipeline of credible
founders and startups to enable this.
2019 has seen us broadening our co-investment activities following
great success with co-fund deployment, particularly through the
award of the Innovate UK fund as part of the Northern Angel Hub and
Regional Angel Investment Accelerator programme. The award of this
fund has been an important milestone in the evolution of NorthInvest
and our funding process and we look forward to increasing our
capacity in this area in 2020.”
Professor Adam Beaumont, Founder of NorthInvest
NorthInvest are already enjoying a flying start to 2020,
with the closure of 1 investment deal and the submission
of 4 applications to Innovate UK as part of the Regional
Angel Investor Accelerator Programme. NorthInvest aim
to build on this successful start to the year and continue
the positive growth trajectory of 2019 by growing the
organisation’s impact by a further 50% in 2020.
2019 was a transformative
year for NorthInvest, who
continued to evolve the tech
landscape in the North by
supporting over 250 early
stage tech and digital startups
on their funding journeys.
3
female
entrepreneurs
13%
increase
in angels
+26%
126
angels
businesses have
received support
deals
completed
10
250
entrepreneur
coaching sessions
raised for Northern based
start-ups since 2018
338
£3m
investor
introductions
186
START-UPS PER REGION
START-UPS PER SECTOR
Sheffield
City Region
15
Other
25
Hull & Humber
City Region
8
Cheshire &
Warrington
8
Leeds
City Region
95
Cyber
EdTech
Other
MedTech
Tech for Good
Media
Fintech
5
24
133
57
13
33
18
Liverpool
City Region
7
York, East Riding &
North Yorkshire
18
Tees Valley
6
Greater
Manchester
50
North East
51
HOW WE DO IT
OUR PROCESS
MATCHES
ORGANISES EVENTS
COACHES
ALIGNS INVESTMENT
4
To begin with, we help
startups to refine their
proposition, messaging
and investor approach by
providing free advice to
entrepreneurs on business
plans, pitch documents, and
growth strategy.
We then present startups
to our angel network, early
stage funding communities
and support investment
engagements.
Once an investment
is registered with the
NorthInvest platform, the
investment history can be
tracked from first round
upwards, making follow-on
investment simpler and
more agile.
Throughout the year we
host events for investors
to connect with one
another and interact with
entrepreneurs in a variety
of creative formats. This
strategic networking
enables important
relationships to be formed
within the community.
We set ambitious goals in 2019 to double our
impact by helping 200 entrepreneurs, facilitating
10 investment deals, and raising £1m for Northern-
based startups.
We’re delighted to say that we exceeded each of these goals and
are eager to continue to scale our work this year by doubling our
impact yet again. In 2020, we’re excited to continue to leverage
our valuable relationship relationships with corporate partners
and funding networks to provide investment support to early
stage tech startups and help the tech sector in the North reach
its potential. We also look forward to continuing our mission
to address both the regional and gender investment gaps by
actively engaging with female investors across the North of
England. We aim to expand the segment of female investors in
our investor network to 16% and facilitate the flow of equity
investment to female-backed tech businesses in the region.”
Helen Oldham, Founding Board Director
5
EVENTS
In 2019, NorthInvest hosted and supported 54 events across
the region - from Pitch Events in Leeds and Newcastle, to
Investor Dinners, workshops and large-scale sector-specific
events to engage the startup community across the region.
INVESTOR DINNERS
Angel Investor Dinners connect active investors at the heart
of our community to form relationships with fellow angels,
discuss shared ambitions and opportunities, and dive into
investment-related topics with peers.
PITCH EVENTS
Our pitch events in Leeds and Newcastle invite investors
to hear a live pitch from up to six startups in an informal
environment where they can ask questions, give feedback,
and discuss propositions directly with entrepreneurs.
SUMMIT & CONFERENCE EVENTS
NorthInvest build a diverse and much-needed sector
conversation by partnering with specialist organisations to
host quarterly public events to bring together a wide range
of sector community members, including investors and
entrepreneurs, to discuss technical, financial and regional
strategy approaches across our five investment areas.
Successful partner events this year include a Cyber Security
Summit in February with the University of Leeds, and Tech for
Good Conference with Bruntwood in June.
ANGELS OF THE NORTH:
FEMALE FOUNDERS & INVESTORS
NorthInvest actively support and champion diversity in the
tech startup ecosystem and have been committed to an
inclusive approach to investing. We offer bi-monthly events
for under-represented female tech founders and investors to
share advice and expertise, as well as nurture relationships
within this expanding segment of the financial world. These
events have culminated in supporting the annual Women
Angels of the North investment forum with the UK Business
Angels Association (UKBAA).
6
WHO WE WORK WITH
In 2019, NorthInvest partnered with Arup, an independent
and employee-owned firm of designers, engineers,
architects, planners and technical specialists - working
across every aspect of the built environment to combine
the company’s world-leading expertise with NorthInvest’s
established network within the startup community.
The flourishing partnership saw both organisations work
together to coordinate a series of three ‘Tech Talk’ events
over the course of the year. These events, facilitated by
NorthInvest, enhanced opportunities for internal teams at
Arup to collaborate with ambitious local entrepreneurs,
exchange knowledge around emerging technologies, and
discover new models of commercialisation to drive digital
innovation.
The first of these Tech Talks took place in April 2019 at Arup’s
Rose Wharf Office. Along with the Arup team, attendees
heard from up-and-coming startups in the region on
emerging technologies and the built environment. In July
and October, Arup and NorthInvest returned again to bring
together some of the brightest minds in the region to discuss
the subjects of using AI to solve real-world problems: such
as real-time traffic management, end-to-end IOT device
encryption, as well as sustainable ‘clean’ technologies.
Over the course of the events, attendees discovered how
emerging technologies are reinvigorating industries, and
how they could significantly improve services for clients.
Speakers for the Tech Talks series include: Mark Davies, CEO
of IOETEC; Keith McCabe, CEO of Simplifai; and Alex Craven,
CEO of The Data City and a member of the Digital Working
Group for Leeds Enterprise Partnership (LEP); David Williams,
CEO of Requench; Jon Fenton, CEO of FeTu, and James
Fairchild of Alpha Power.
The strategic partnership also makes valuable support
accessible for entrepreneurs and early stage startups across
the Leeds City Region, and we hope to develop this support
by co-hosting a Pitch & Match initiative with Arup in 2020.
The Pitch & Match programme aims to establish
relationships with young and innovative companies
associated with NorthInvest,who are working to create
a better built environment by developing technologies
addressing environmental and sustainability challenges.
NorthInvest will assist Arup in finding such companies
whose work resonates with the firm, and who can identify
a particular challenge or opportunity for mentorship which
Arup might support.
NorthInvest are dedicated to forming strategic partnerships
with corporate partners who share our ambitions to
support Northern-based tech, and digital startups, as well
as catalysing the development of emerging technologies.
With smart cities, IOT devices and big data rapidly
becoming key element to the built environment,
and consequently transforming how the industry
plans and designs, collaboration is key to helping
Leeds City Region take its place on the world
stage of sustainable development.
7
General Practitioner turned Entrepreneur
and Investor; David has worked in the
medical and legal sectors since 2000. After
exiting from iSaaS Technology in 2013,
David became CEO of Nephos Solutions - a
Leeds-based cloud-based professional
case management applications, developing
bespoke software applications for the
administration of personal injury cases.
As an active member of the NorthInvest
angel community, both as an investor
and mentor to early-stage entrepreneurs,
David has contributed to 7 funding rounds
through NorthInvest, alongside fellow
angel investors and business partners at
Nephos Solutions.
Startups supported by Nephos include
GoBubble, Dyman Advanced Materials,
Renephra, Dales Land Net, Deeno-Saur and
Calbot - a B2B meeting scheduler platform
that recently won a ‘One to Watch’ award
for Top Tech Yorkshire 2019.
As part of Leeds Digital Festival 2019,
Nephos Solutions also co-hosted the
Nephos 100k Startup Challenge with
NorthInvest. The competition saw 5 short-
listed entrepreneurs pitch in front of a live
audience, and judging panel, to compete
for £100,000 worth of liquid capital
and sales, marketing and development
support. Winners EdTech social enterprise,
Lift Lessons, relocated from London to
Leeds following the offer of this support.
GoBubble is a pioneering EdTech start-up,
which offers children a safe social media
experience, founded by award-winning
e-safety pioneer Henry Platten.
In 2019, GoBubble raised more than
£300,000 from a variety of private investors
across the UK, including several angel
investors who are part of the NorthInvest
community. These were Rich Hannam,
Chris Jones and Dr David Pearce - who
invested alongside business partners Peter
Laithwaite, Eric Peele, and Juan Santana
Medina.
Following a successful beta, GoBubble
currently has users across 24 countries,
and in 26 US states.
The GoBubble global community offers
children, educators, and families the
opportunity to create and communicate in
a safe digital space; with market-leading
AI moderation securing the platform, and
ensuring that any potentially harmful
content is prevented from being shared.
The funds raised by this investment
round will go towards accelerating the
startups already rapid organic growth, and
developing the platform to enhance the
functionality, adaptability and continued
expansion.
ANGEL INVESTOR PROFILE
DR DAVID PEARCE
START-UP CASE STUDY
GOBUBBLE
£300,000
total investment in 2019
GoBubble has users in
24 countries
8
Chris Jones is an experienced Angel
Investor, and Board-level advisor, holding
directorships in multiple tech ventures,
with a specialist interest in Cyber Security.
Chis is currently CEO of ethical property
investment company, Hive Property Group,
as well as an active investor as part of
the Northern Angel Hub across both the
NorthInvest and Innovation SuperNetwork
angel groups.
Chris uses his experience as a company
director with a strong technical
background in aerospace, aviation, and
engineering to act as a business mentor
to assist startups in becoming investment
ready.
As a consultant at government-level,and
in the FTSE-100 corporate sectors, Chris
is also a sought-out international speaker
in Cyber Security and co-author of the
latest International standard for Business
resiliency and disaster recovery.
Most recently, Chris invested alongside
NorthInvest angels, Dr David Pearce and
Rich Hannam, in child-friendly social
media platform GoBubble;attracted to the
startup by its mindful approach to online
security, and holistic approach to social
media consumption.
bikeZaar is an online marketplace that brings together
independent bike-shop owners from across the world,and
helps them compete with large online retailers through
technology. In 2019, the e-commerce disruptor raised a
six-figure investment round with the help of NorthInvest
– with part of the funding contributed by NorthInvest
angel investors, and world-renowned Olympic triathletes,
Alistair Brownlee MBE and Jonny Brownlee, who were
advised by Gordons LLP.
The online marketplace, founded by cycling enthusiast
Kevin Griffiths, aims to support traditional bike specialists
by utilising technology, and savvy logistics, to integrate
brick and mortar stores with the online community.
The platform allows customers to compare products
from independent stores across the UK, regardless of
their geography, and purchase online with the order
conveniently delivered to their door.
ANGEL INVESTOR PROFILE
CHRIS JONES
START-UP CASE STUDY
BIKEZAAR
This approach effectively combines the benefits of
online-only retailers, such as Amazon, with the unique
selling point of a specialist high street store.
“It has been a pleasure to work with NorthInvest, and
Gordons LLP, on the investment in bikeZaar. NorthInvest
presented us with the opportunity, and have offered
advice at every stage of the investment process. We hope
bikeZaar will provide the much-needed synergy between
online retailing, and the local bike shop. Local bike shops
have provided us both with crucial support from the
beginning of our athletic careers, and we still feel there is
a crucial role for them to play. By allowing bike sales to be
facilitated through local bike shops, we hope more people
will be able to enjoy cycling regularly, and on properly
working and fitted bikes!”
Alistair Brownlee MBE, NorthInvest Angel
9
FUELLING THE FUTURE OF THE
NORTH: OUR SOCIAL IMPACT IN 2019
INVESTOR READINESS SUPPORT
NorthInvest are committed to driving a positive social
impact through their not-for-profit model. We actively
engage with the funding and tech startup ecosystem
across the Northern Powerhouse region to determine areas
requiring attention and support. Following appetite from
our angel investor community of experienced business
people, and feedback from local startups, we determined
that a programme of sustained business mentoring would
be a catalyst to the development of early stage startups,
and increase our capacity to help startups become
investment ready.
In September 2019, we partnered with leading audit,
tax and consulting firm RSM UK to launch Tech Mentors:
Yorkshire; a free 12-month mentoring programme for
tech and digital entrepreneurs based in Yorkshire. The
programme - developed with NorthInvest angel investor,
and a finalist for 2019’s Mentor of the Year at the NMA
awards, Gareth Healey matched 14 mentoring pairs of
experienced business leaders,and up-and-coming tech
founders, to help expedite the growth of their business.
SUPPORTING FEMALE FOUNDERS
& INVESTORS
As well as addressing the regional investment gap by
facilitating the flow of equity investment to the Northern
region, through our involvement in the Regional Angel
Investment Accelerator programme by Innovate UK, we
are also committed to addressing the gender investment
gap in the industry. In a survey of 500 women-led startups,
All Bright found that of the 75% seeking funding, 22% had
experienced difficulty in accessing funds, which left them
feeling they were not being heard.
Meanwhile, Forbes have identified that women are generally
more successful in startups. In a survey published in 2014,
they found that female-led startups yielded a 35% higher
ROI when venture-backed than male-led startups, and
generated 13% more revenue with 50% less investment.
The UKBAA stats show that only 14% of angels in the UK are
women. A female angel is 50% more likely to have backed
a female founder; demonstrating the need to increase
capacity in the investor space. We’re proud that our investor
network comprises of 13% female investors, who are active
in supporting the female founder community, and aim to
increase this percentage further in 2020.
10
INNOVATE UK REGIONAL ANGEL
INVESTMENT ACCELERATOR PROGRAMME
In 2019, NorthInvest was invited to deliver one of these
pilot programmes as part of the Northern Angel Hub -
an Angel Investor Partner formed alongside Innovation
SuperNetwork, and North East Business and Innovation
Centre (BIC), in partnership with the UK Business Angels
Association.
As the UK trade body for business angel and early stage
investing, we’re delighted to partner with NorthInvest,
Innovation SuperNetwork and the North East Business
Innovation Centre (BIC) to establish the Northern Angel
Hub, and deliver the regional AIP in the North.
This collaborative consortium offers a crucial focal point to connect
and grow the early stage investor community, and support local start-
ups by increasing access to risk capital, as well as building investor
capacity to increase the level of investment in early stage innovation
across the region, whilst attracting wider national co-investment.”
Jenny Tooth OBE, CEO at UKBAA
Following research conducted by the UK Business Angels
Association and Beauhurst - which illustrated that almost two
thirds of all early stage investment goes into companies in London,
the South East and the East of England - Innovate UK funded three
Regional Angel Investment Accelerator (RAIA) pilot programmes,
delivered by Angel Investor Partners (AIPs).
The consortium received £1m from Innovate UK to
encourage the flow of investment and expertise to
innovative early stage small and medium companies
across the North East, Yorkshire and North West regions.
Successful businesses receive a grant of up to 50% of the
costs of a specific innovation project, which can last up to
12-months, and has total project costs between £40K and
£300K. Concurrent angel investment match-funding the
total grant amount then allows businesses to meet the rest
of the costs, and grow the business beyond the project.
NorthInvest have supported 5 successful Innovate UK
grant applications through the RAIA programme, deploying
£490,000 of IUK grant funding into pioneering startups
during the first year of the two year programme.
This grant funding was then match-funded by angel
investors across the NorthInvest and Innovation
SuperNetwork investor groups; totalling almost £1m of
funds raised for regional startups.
11
2019 saw huge progress for MedTech firm
Renephra, who saw their second round
of funding- facilitated by NorthInvest and
the Innovation SuperNetwork as part of
the Regional Angel Investment Accelerator
programme - take them another step closer
to bringing their product to market. The
startup, originating from the University
of Manchester, has developed a patented
transdermal fluid removal device that
removes excess interstitial fluid through
the skin. This innovative technology
secured Renephra’s successful application
for Innovate UK grant funding, as part of
the RAIA programme.
The product looks to help alleviate the
significant ongoing medical problems
associated with fluid overload within
the human body; often suffered by
people going through treatments like
chemotherapy and with conditions like
chronic oedema, lymphoedema or heart
failure.
The device is a minimally invasive, and
more cost effective alternative to the
current solutions of diuretics, dialysis and
ultrafiltration.
“As an early investor in Renephra with
NorthInvest, it’s very exciting to be part of a
second round with the pioneering startup.
With this follow-on investment, Renephra
are another step closer on their journey to
developing novel technology for treatment
of fluid overload and chronic oedema - a
product which could have a huge clinical
impact, both on patient quality of life and
scarce health service resources.’
Sarah Jones, NorthInvest Angel
As part of the RAIA programme, Bradford-
based flood prediction startup, Dales Land
Net is among five startups in 2019 who
were awarded grant funding from Innovate
UK (IUK). Dales Land Net succeeded in
raising £30,000 through NorthInvest and
Innovation SuperNetwork’s investor
groups. This raise was then match-funded
by IUK to total £60,000.
The AgriTech startup takes ground-based
moisture readings, relayed in real-time,
using IoT networks to build informed
hydrology models to improve water
management. The technology has a wide
range of applications to protect assets,
including in agriculture, land, water, and
flood management industries. Dales Land
Net, led by CEO Neale Hall, are currently
working with Fera Science and Precision
Decisions to develop a national real-time,
soil moisture monitoring network that
can be used across the UK -influencing
decisions for irrigation and the application
of fertiliser, herbicide and pesticide, as
well as assisting with flood prediction and
abatement.
“Dales Land Net are an exciting example
of the emerging AgriTech industry in the
North of England. The Environment Agency
stated in a report covering 2015/16 that
in the UK winter flooding alone cost £1.6
billion nationally, and with the increasing
environmental impact of climate change,
Dales Land Net are offering a commercial
solution to understand the real risk of
flooding in key areas; allowing flood
management teams to take proactive
action to reduce disruption, decrease
damage to property and save lives.”
Jonathan Straight, NorthInvest Angel
START-UP CASE STUDY
RENEPHRA
START-UP CASE STUDY
DALES LAND NET
£60,000
Total 2019 investment (30k
was invested by NorthInvest
Angels, Sarah Jones and
David Pearce. Match funded
by Innovate UK as part of the
RAIA programme)
£60,000
Total 2019 investment (Match-
funded by Innovate UK as part
of the RAIA programme)
8+
investors
Current investors include:
Deepbridge Capital, Catapult
Ventures, GM&C Life Sciences
Fund, MTI Ventures, SPARK
Impact, Central Manchester
NHS Foundation Trust, The
University of Manchester,
Individual investors.
3+
investors
NorthInvest Angels include:
Sarah Jones, Dr David Pearce
and Jonathan Straight
2019 would not have been such a successful year for NorthInvest
without the help of our partners and supporters.
We would like to say a huge thank you to our partners and our
supporters for helping us continue to build communities and
accelerate growth within the North by mentoring the future
generation of tech innovators.
A big thank you to Arup for the design of our 2019 Annual Report.
Supporters
Partners
www.northinvest.co.uk
@NorthInvest
@NorthInvestUK
To find out more visit: