The Upside of Angel Investing — Kanika Goela
For a decade Kanika Goela worked in private equity, investment banking and financial services around the world, but it wasn’t until she moved to London that she made her first angel investment, after a friend introduced her to Angel Academe. Now, her week is split between ‘investing, advising high-growth start-ups or becoming a better investor’. She talks to Jodie O’Keeffe about the upside of angel investing.
I thought I’d see a lot more grey hair in the room.
The impression of a typical angel investor is a tech billionaire or business magnate saying, ‘I’ve been on the board of ten companies, this is how things should be done’. Then I went to an Angel Academe pitch event and realised it’s not only for the super-rich, it’s accomplished individuals from various fields. The atmosphere is congenial and collaborative.
You don’t need all the answers, or even the questions.
Despite having invested in multi-million dollar private and public equity deals in my previous roles, I found a real advantage in approaching angel investing through a network. For early-stage businesses with a short history, limited visibility on competition and lack of available research, it is difficult to do all the due diligence on your own. A network of credible co-investors can bring different skill sets to the table, like subject matter expertise and industry contacts, which are extremely valuable. And they asked questions I hadn’t thought of.
Being part of the group makes you more effective.
I like doing transactions where due diligence is a structured process — typically where the deal champion allocates everyone responsibilities in different areas based on their skill sets and then it all flows in together. It forces you to be more thorough, the group is relying on you, and makes the process more efficient and effective. Being part of a consortium could also improve your bargaining power in relation to investment terms, and helps in post-investment monitoring.
The curation of deals is really valuable.
I didn’t become a member right away, but I soon realised the value of the syndicate. I’ve been on platforms where you get inundated with pitches, which are time-consuming to sift through. Having someone filter through hundreds of applications and select a few high-quality ones to pitch at the live event is beneficial.
The whole ecosystem needs more diversity.
Having worked in the finance industry, often I was the only woman in the room. I’ve been in meetings where they’d think you were there to serve coffee. So I really appreciate the female focus of Angel Academe, both on the entrepreneur and investor side.
You have to invest in your own education.
Unfortunately financial advisors don’t tell you about angel investing. You have to ask them specifically about the EIS tax benefits. I attended all the Angel Academe workshops — they do an investor workshop, a legal workshop and a tax workshop. These help make angel investing more approachable. Ultimately it requires a self-starter attitude, common sense and analytical ability.
I love the energy of entrepreneurs.
It really takes your heart and soul and blood, sweat and tears. It’s great to be in contact with such people and help them achieve their vision through investment and/or advice.
The journey is fascinating.
This is serious investing with the goal of achieving a healthy financial return, but there are so many other benefits. I’m fascinated to learn about new businesses and disruptive technologies. And it gives me an opportunity to participate in something that could be the future. Along the way, I’ve expanded my professional network, learnt a lot and had fun.
Angel Academe members are self-certified High Net Worth Individuals, according to FSMA regulation. They come from a wide range of backgrounds and include senior professionals, entrepreneurs, self-employed business people, those building portfolio careers or even enjoying a career break. The recommended minimum investment is £10,000 and, while it takes time to build an investment portfolio, budget for 2–4 investments per year with extra capital set aside for follow-on rounds.
