Lead investors at two of Wales’ newest business angel syndicates are keen to show the benefits joining with other investors can provide.
Although both experienced and successful, with years of running their own businesses behind them, Simon Bell, founder of fintech and insurtech angel group Rebel syndicate, and Bob Clark, founder of food sector syndicate Itch, are relative newcomers to the world of syndicate investing.
With the support of Angels Invest Wales, which aims to support Wales’ angel investors with match-fund investment and can also pair up businesses with potential investors, the two have enjoyed the experience of exploring new territory. And they want to emphasise the benefits that can come from joining with other investors to make targeted investments in promising businesses.
Syndicates offer significant benefits to entrepreneurs and investors alike, creating a valuable partnership which can foster innovation and growth. They allow groups of specialised investors to pool their knowledge, experience, and capital to uplift businesses – particularly start-ups and early-stage ventures.
Bob sold his business, Clarks UK, to Hains Celestial and in October last year co-founded Itch to take advantage of the possibilities for expansion for businesses in the food and drink sector in Wales.
He said:
“Welsh food and drink is showing encouraging signs with strong value and profit growth. The Welsh Government has given proactive support to the sector over the last few years and helped to underpin some great emerging brands which are mainly trading in Wales and have great growth potential, along with others expanding well in the export market.
“There’s especially strong growth potential in companies producing healthier and allergen-free foods as people are becoming increasingly aware about the food we eat and its effect on our body.”
Bob added: “Angel investment isn’t just about the cash – it’s about all the expertise and contacts that come from having been in business yourself; you’ve gone through a lot and probably have the scars to prove it, and hopefully you can help others miss some of the pitfalls you might have encountered.
“Being a sole investor can feel quite isolating, so joining a syndicate provides a more sociable element to what you’re doing. It puts you together with other people that understand the market and industry, allowing you to help any business you’ve invested in to grow and scale more effectively.”
“We’ve got four member partners at the moment and we may well expand beyond that in future, but right now we want to focus on where the members we have can put their capital to good use.”
Simon Bell, who in 2018 sold LOGiQ3 Group to RGA formed syndicate Rebel after an Angels Invest Wales pitch event in late 2022, where he met a number of like-minded investors with a broadly similar background to his own.
He said:
“We met at an Angels Invest Wales event before Christmas that year, and we got together via a WhatsApp group to discuss logistics. We’ve got a good mix of newer and serial investors, including a few members who bring expertise from disciplines like legal and finance, so they don’t necessarily have direct entrepreneurial experience but can provide some very useful insights and advice.
“Getting that sort of mix and chemistry is very important – some members are more analytical and want to go through numbers, while others are more inclined to go with their gut if they feel they’ve got the right team at the right time, or the right product or solution.”
He added:
“I’ve been investing since 2018, and in the Welsh ecosystem, that means I’m something of a veteran – which was a surprise as I’d assumed there would be many more experienced angels to learn from. One of the aims of starting the syndicate is to pool experience and best practices as well as to, selfishly, get something of a social and fun element out of it.”
Carol Hall, Investment Manager at Angels Invest Wales, said:
“It’s exciting to see the number of syndicates in Wales growing. Sector-specific groups like those set up by Bob and Simon give seasoned experts the chance to work together and share their insights. This level of sense-checking amongst a group of industry leaders is invaluable.
“By using their collective knowledge, they can gain greater confidence in the investments they make. In turn, it also means the company has real firepower behind them – which is essential knowing that most start-ups fail in the first three years. This level of concentrated expertise significantly increases their chances of survival in those early challenging years.
“Syndication is hugely beneficial for new Angels Invest Wales members as well, as they can avoid the ‘go it alone’ approach and work alongside smart investors from day one.
“Angels Invest Wales is here to support and invest alongside syndicates like Itch and Rebel so that more businesses in Wales can access funding. We’re delighted to see these two new groups join the business angel investment community.
“The future of angel investing leans strongly towards the syndication model as it allows investors to build a portfolio and invest small amounts over time. So, if you’ve achieved business success, have some free time, and like Bob and Simon have the itch to support the talented entrepreneurs we have in Wales please do get in touch, we’d be delighted to discuss our approach.”
Whether you’re looking to join a community of like-minded investors, or you’re a business thinking about how investment could grow your operations, visit: Angels Invest Wales
