In the evolving landscape of angel investing, Jenny Tooth OBE stands out as a powerful advocate for diversity and inclusion. As the Vice President of Diversity for Business Angels Europe and Executive Chair of the UK Business Angels Association, Jenny has been at the forefront of promoting gender diversity and supporting innovative entrepreneurs across Europe.
A journey of two decades
Jenny’s journey as a business angel began nearly 20 years ago. “I’ve been a Business Angel now for nearly two decades,” she shares. “I started investing in great entrepreneurs because I found the innovation opportunities around Europe incredibly exciting.” Her passion for nurturing startups is evident in her extensive experience and dedication to building a supportive ecosystem for business angels, especially women.
Key factors in evaluating startups and qualities in founders
Jenny Tooth emphasises the importance of the team behind the startup, noting that “it’s all about the people.” She looks for passion, ambition, skills, and the capacity to grow a great business. Additionally, market opportunity is crucial, including thorough market research and the ability to scale the business.
When evaluating startup founders, Jenny prioritises strong leadership, effective teamwork, and having the right networks and contacts. She believes these qualities are essential for driving a startup towards success.
Gender and angel investing
Reflecting on her early days, Jenny recalls, “When I began investing, there were hardly any women in the ecosystem. Women entrepreneurs were pitching to all-male teams.” This gender imbalance has been a longstanding issue. Research shows that only about 14-15% of the angel market comprises women investors. “This doesn’t reflect the investment power and potential of women across Europe,” she asserts.
To address this, Jenny has been actively promoting awareness among women about the opportunities in angel investing. “We’ve been encouraging women to form syndicates and become proactive investors,” she says. Her work at Business Angels Europe aims to create a supportive ecosystem for women investors.
Strategies for equal opportunities
Jenny highlights several strategies to promote gender equality in angel investing. “Awareness campaigns and education are crucial,” she states. “Women want to understand how angel investing works and gain the necessary skills before they start investing.” By mobilising women into syndicates and providing education, Jenny believes that more women will be empowered to become investors and leaders.
In the UK, Jenny has spearheaded the “Women Backing Women” campaign for the past three years. “We know that women tend to invest 30-60% of their portfolio in other women,” she explains. The campaign focuses on building awareness, providing education, and mobilising women into syndicates. “It’s not just about women, though. We encourage men to adopt a gender lens when investing,” she adds.
Advice for aspiring women angels
For women interested in becoming business angels, Jenny offers practical advice. “Join a group or syndicate, attend an education programme designed for women, and think about your own spare finance,” she recommends. “You don’t have to be rich to be an angel. Just ensure no more than 10% of your total assets are in angel investing. And always invest alongside others, it’s a great team sport and an opportunity to build connections.“
Jenny Tooth’s insights and initiatives are paving the way for a more inclusive and diverse angel investing ecosystem. Her work continues to inspire and empower women to take their place in the world of business angels.
ESIL’s role in building the next generation of business angels
Angel investing is evolving, and Europe can be at the forefront of this change. A Next Gen Business Angel is part of a more diverse, inclusive, and dynamic investment ecosystem. Next Gen Business Angels bring fresh perspectives, unique expertise, and untapped potential to drive innovation. Initiatives like ESIL are crucial in this transformation.
ESIL promotes gender diversity, provides mentorship, and creates pathways for more women to enter the investment landscape. By involving women, the ecosystem benefits from a wider range of insights, decision-making approaches, and industry expertise, all of which are crucial for driving innovation and sustainable growth. Since 2017, ESIL, backed by the European Innovation Council and SME Executive Agency (EISMEA), has been supporting dynamic and inclusive angel investment communities across Europe. Their efforts make it easier for aspiring women angels to become part of this exciting community, ultimately helping to build the next generation of business angels.