How accelerator programmes can help angel investors to identify opportunities
For those fortunate enough to be working in the health and wellbeing sector, innovation is everywhere. From digital and AI technologies to devices and physical products, start-ups are helping to tackle some of the biggest challenges in society.
It is unsurprising that at this early stage, most companies are seeking some form of funding or investment to help them progress along the commercialisation journey and grow. Angel investors are a key source of funding, but in this crowded and noisy landscape it can be difficult for angel investors to differentiate between high potential businesses and ‘just another idea’ as they lack the research resources of large venture capital firms.
Ahead of the UKBAA Early Stage Investment Summit later this month, I thought it would be useful to highlight some of the ways that accelerators can help angel investors to better navigate the opportunities that the health and wellbeing sector offers.
Screening: sorting opportunities from ideas
Applications for our Advanced Wellbeing Accelerator are extremely competitive. Companies go through a rigorous application and screening process for our programme that enables us to conduct a level of due diligence to ensure that we allocate our resources to those applicants most likely to benefit from our tailored support. In practice, this means that those who are successful in gaining a place have demonstrated significant potential and have a plan for how they intend to grow their business.
Culture: teams in action
Being part of an established accelerator provides companies with a huge number of opportunities – from training and expertise to pilots and follow on funding. What they do with these opportunities reveals much to investors about company culture and strategy that can help them make better informed decisions about which teams to back.
Part of the support we provide involves connecting companies with mentors and advisors, several of whom are from the investment community. While this is undoubtedly beneficial for the companies, there is also a benefit to the mentors who are able to work with companies over weeks and months, giving them a meaningful insight into a potential opportunity.
Data and efficacy: proof of concept
Some promising early stage healthtech businesses lack sufficient efficacy data, which is a point of concern for all investors in this space. Our accelerator is unique in being R&D focused – we help businesses to develop, prototype, test and evaluate technologies and build that early data by providing up to £25,000 of dedicated R&D support. Generating this evidence through the accelerator can de-risk the business from an investment point of view and provide an early indicator of success.
Acceleration: a source of non-dilutive support
At the AWRC, we are passionate about health and wellbeing and want to see innovations reach the market. Our current programme is non-dilutive and tailored to each business, which means we accelerate the development of our cohort businesses in a way that doesn’t crowd out future investment – we have no equity stake, and our support is free. This creates significant value for businesses on our programme.
If you’re an angel investor and interested in finding out more about how you can engage with the AWRC and our Advanced Wellbeing Accelerator, please get in touch with the team via email: wellbeingaccelerator@shu.ac.uk
Ryan Sylvester is the AWRC Advanced Wellbeing Accelerator Manager