Diversity, equity and inclusion all part of Angel Association’s focus for the future
Michelle Cole, Executive Director of the Angel Association NZ, hopes to encourage more investors to see the wide range of opportunities out there – particularly when it comes to those that are often on the ‘fringe’ of founderdom.
“We want to be able to show early stage investors, and the ecosystem, that there are a broader range of companies, led by a more diverse population base, to invest in.
“However, there is still a real push and pull happening that is not only affecting the number of women ready to pitch, but those with the funds to do so,” explains Cole.
“Thirty-three percent of our angel members are women who want more women to invest in. We also have more Māori angels wanting to join, wanting Māori founders to invest in,” she says.
“Ideally, it’s about investors moving out of their comfort zone to one where they have a passion or affiliation with a particular founder – and the great news is, there is a growing number of women and Māori founders who are showcasing incredible businesses.”
Angel Delivery
One example of this is Rebecca Cass from Angel Delivery. This gourmet food and gift business – which was bootstrapped from Cass’s home kitchen where, while working as a nurse, she prepared meals and then delivered them to families when they went home from hospital – is now a successful direct to consumer enterprise, run solely by women.
And while the road to where her company is today has been about consciously building slow-and-steady to profit, it hasn’t been without its share of pivots through tough market conditions and an early stage ‘bump’ that could have derailed Angel Delivery before it even got off the ground.
“When I first started out, I was very naive, and fresh out of a different industry. I came across a Wellington business incubator program which looked fantastic. I decided to apply and spent weeks carefully crafting my first business plan, for a direct to consumer food delivery service,” Cass explains.
“Despite my heartfelt effort, the application didn’t make it past the first round. Being told in a one sentence rejection letter that my idea wasn’t good enough severely dented my confidence. However, instead of giving up I decided to take my time and prove the concept out on my own terms.
“Now, as a mature business woman, I can really see how the panel and investors could have helped me by being more considered in their approach with those entrepreneurs just starting out.
“Fifteen plus years later, as a seasoned business woman, I realise how invaluable constructive and supportive feedback from the panel and investors could have been for budding entrepreneurs like myself.”
Earshots
As far as challenges go, James Bell-Booth, founder of earphones company Earshots, found that being a consumer-facing hardware business was where the biggest difficulties lay, especially in the New Zealand market.
“To a degree, I understood why. It makes us ‘scary’ for some investor types because there aren’t many big consumer businesses that come from here. There are two or three that have been able to scale into big international markets. So, when you go to pitch or get involved with different investment communities, you definitely feel that hesitation.”
However, having quit his job three weeks before Covid hit and with a baby on the way, all the motivation was there for Bell-Booth to ensure he made his own way, no matter what.
“I’m pretty aggressive about what I want to achieve, how fast I want to do it and what capital is required to get to that place,” he says.
Banqer
Financial education platform Banqer is a company many would consider a pretty traditional tech-startup. With a portion of the business offering SaaS solutions, it’s the kind that investors are always on the lookout for. But with a wāhine Māori co-founder, and for-purpose at its core, their route to investment and capital-raising certainly hasn’t been conventional.
“We started around ten years ago but with a different origin story and purpose, so our journey wasn’t always straightforward. We’re impact driven, but that doesn’t mean we aren’t commercially-minded. We certainly have the ambition to make money,” says Simon Brown, Banqer’s Co-CEO.
“It was key to have the right conversations with the right people, to achieve what we wanted to. Impact needed to be a genuine desire of any investors and we were able to intentionally take on investors who shared this understanding as well – Tauhara North and Ngai Tahu.”
Māori heritage influences
Māori heritage has also influenced the company stories of both Angel Delivery and Earshots. But the founders, who are also siblings, have had slightly different experiences when it comes to how it has guided building their day-to-day operations.
“Years ago, before I started Angel Delivery our whānau visited our marae, Omaka. I vividly remember sitting in the wharenui, and learning about my whakapapa. I felt a profound strength come over me. ‘I come from great people, I’ve got the spirit and strength to do great things and give this crazy business idea a crack!’, that was a pivotal moment in my life and I honour it to this day,” explains Cass.
“I feel a tremendous sense of responsibility to honour my culture because of this experience and while Angel Delivery has grown to embody its own spirit, it is deeply rooted in Manaakitanga which is at the core of everything we do.
“There is a deeper connection with Angel Delivery, and when you look at what our customers say, and why they keep coming back to us, it’s because we honour Manaakitanga, and help facilitate it in a very authentic way, for them too.”
For Bell-Booth, he’s still on a journey of self-discovery, with the Māori ancestry of his whānau coming into his life a little bit later.
“It is something I am still learning about, but what has really stood out to me is what great traders the Māori were, as well as their innovation in warfare. So I think back to my ancestors and want to represent those values of being a great trader, innovator and warrior – as all of those things apply in business,” he says.
“Those stories inspire me and I want to reclaim that, while hopefully being an example for others one day – particularly young Māori – that you don’t have to have a lot of resources to get started.”
Brown notes that inclusion was a vital part of building Banqer.
“Being a Māori business is inherently in the DNA of our business, meaning that it’s difficult to isolate or fragment the ways we operate, which are reflective of being a Māori business. But when we were developing our products, it was about ensuring they would be relevant for everyone, including te ao Māori,” says Brown.
“We have translated our primary school platform to te reo Māori, and our decision to do this was driven by our values, and reflects our longer term view of success.”
Diversity, Equality and Inclusion matter
Michelle Cole says another way in which the more ‘niche’ startups often differ from the traditional is that there is less focus on delivering quick value and fast exits for shareholders, with a more intentional purpose in driving impact.
“Investors need to be mindful of diversity and not just the guy you can have a beer with. And, for those startups ‘outside of the norm’, consider how you can build relationships ahead of raising capital,” says Brown.
“Get clear on your narrative and don’t just take investors’ money – take them on a journey. It makes raising funds a lot easier if they have that buy-in for where you are and where you are going.”
For Bell-Booth, one of the things he always hoped for when talking to an investor is that the question they are asking themselves is ‘How can I help this be successful?’, not ‘What is wrong with this?’
“What businesses need to succeed is to concentrate on how to make it work. It’s not ‘Don’t drop the ball’, but a focus on ‘Catch every ball’. Then be honest with yourself and ask ‘Why do I want to invest?’ Look outside of your network to find those opportunities that contribute to an exciting ecosystem.”
Cass also wants to encourage investors to take the blinkers off and broaden their horizons, as they might be surprised at what they find.
“It might be a place where they can not only be helpful but also enjoy the journey and make profit on the side.”
Story by Erin Harrison
