Breaking down misconceptions about angel investing is key to encouraging more women to become investors and to supporting more female-led businesses in securing funding.
That the message from investors who are part of Women Angels of Wales (WAW), Wales’ first female-focused angel investing group. The syndicate backs companies with a woman in a senior or influential role, co-investing alongside the Development Bank of Wales and other networks. Members contribute not only capital but also experience, sector knowledge and business connections.
Speaking on The Women Angels of Wales Investment Series podcast Rachel Ashley, a lead investor with WAW, said one of the biggest barriers is the perception that angel investing is only for the very wealthy.
“I was under the impression you needed a few hundred thousand pounds to invest in each deal,” she said.
“It’s very refreshing to realise that’s not the case – if you join an angel group, you don’t have to invest at that sort of level.”
She added that another common myth is that investors must have a background in corporate finance or venture capital.
“Because you’re a member of an angel group, you benefit from the broad experience of the members. You don’t need to have all the answers yourself,” she said.
Jill Jones, WAW director and lead investor, said angel investing has traditionally been male-dominated, with male investors backing male-led teams.
“Female perspectives have been missing from growing businesses, and female founders have been missing out on that support,” she said.
Jill added that WAW’s portfolio approach allows members to invest smaller amounts across multiple businesses, helping to manage risk and encourage those new to investing.
Nicola Rylett-Jones, also a director of WAW, said it is equally important to challenge assumptions among founders. Many, she said, believe they must “tick every box” before approaching investors.
“It’s far better to start the conversation before you think you’re ready than to delay and risk missing your moment,” she said.
WAW regularly works with founders before they reach the pitching stage, offering feedback to strengthen their position.
For businesses, syndicate members say the value of angel investment extends far beyond funding.
Carol Hall, Co-Investment Network Manager at the Development Bank of Wales, echoed that, saying the right investor relationships can make a significant difference during the early stages of growth.
“This is a long journey you’re going on, and there will undoubtedly be challenges ahead. Having a good investor base to support you is critical,” she said.
“Women Angels of Wales are passionate about supporting women-led businesses.”
Carol added that the syndicate model makes investing a “team sport” – enabling members to share deal flow, due diligence and post-investment support, while founders benefit from the collective expertise of the group.
Rachel said the relationship between investors and founders is often long term – “longer than a typical marriage” – and based on trust. She cited WAW’s investment in North Wales-based Polytag as an example. The company’s Ecotrace programme uses invisible UV tags on packaging to track recycling data, giving brands new insights into how much of their packaging is being recycled.
Since WAW invested, Polytag’s revenue has grown by 600% in six months, and the company has expanded into Spain, France and India.
Beyond capital, Rachel said WAW has helped Polytag through board-level support, PR and recognition, including winning Best Woman-Led Investment in an Innovative Company at the UK Business Angels Association Awards.
For WAW, demystifying angel investing is central to attracting more members and more businesses. Rachel said most people joining the group qualify as sophisticated investors within six months, simply by being part of an angel network. The group also offers training in partnership with the UK Business Angels Association, alongside mentoring and peer learning.
Nicola said that for founders, being open to coaching, understanding the numbers, and having a clear and authentic story are among the most important factors in securing investment.
“Our members are looking for founders they believe in – people who are passionate, prepared and open to building a relationship. We’re not just writing a cheque; we’re becoming partners in the business,” she said.
Listen to The Women Angels of Wales Investment Series podcast here.
