QIB Q3 People-powered investment Pitch Deck Teardown

Overview of the QIB Q3 Briefing

The QIB Q3 Quarterly Investment Briefing deck is a collaborative ecosystem document dated September 12th, 2019. Unlike a standard startup pitch deck, this 50-slide presentation (of which 17 are analyzed here) serves as a state-of-the-union for the West of England's investment landscape. It is supported by major professional services firms including Smith & Williamson, TLT, and KPMG, alongside the Engine Shed hub. The primary objective appears to be the education of local investors and the promotion of regional deal flow by highlighting the strengths and gaps in the Bristol and Bath startup scenes.

Introduction and Regional Context (Slides 1-3)

Slide 1 establishes the event as the Q3 Quarterly Investment Briefing with the theme 'People powered investment.' It lists the corporate sponsors and the venue/hub, Engine Shed. Slide 2 provides a geographic map of the focus area, covering South Gloucestershire Council, Bristol City Council, North Somerset Council, and Bath & North East Somerset Council. This defines the 'West of England' scope for all subsequent data.

Slide 3 features a news clipping from British Business Investments (a subsidiary of the British Business Bank) regarding a £10m commitment to Dow Schofield Watts Angels. This slide serves as a proof of institutional interest in regional angel programs, setting a positive tone for the briefing by showing that national capital is being directed toward regional networks.

The Philosophy of 'People-Powered Investment' (Slide 4)

Slide 4 defines the core theme. It poses questions about who makes investment happen and how regional culture can facilitate it. Crucially, it identifies three major pain points for the region: a 'distinct lack of local lead investors,' the tendency for people to 'invest in people like them' (suggesting a lack of diversity), and the fact that 85% of local investors' capital flows out to the 'golden triangle' (London, Oxford, Cambridge). This slide sets the stage for why the briefing exists: to keep local capital within the local ecosystem.

Angel and Syndicate Trends (Slides 5-6)

These slides focus on the mechanics of early-stage investing. Slide 5 notes that over 75% of investments by angels under 35 are made through syndicates. Slide 6 compares regional syndicate behavior, showing that 82% of angels outside London and the South East participate in syndicates, compared to 74% within those regions. This data suggests that for regional startups, the 'syndicate' is the primary vehicle for capital, likely due to the need to pool resources in less capital-dense environments.

Company Spotlight: Gapsquare (Slides 7-9)

The deck uses Gapsquare as a case study for a successful regional business. Slide 7 introduces the company as a self-funded SaaS firm established in 2015 focused on pay fairness. Slide 8 provides rare financial transparency, showing quarterly revenues for 2018 peaking in Q3 at over £60,000. The 'Progress by year' chart shows a steep growth curve, moving from under £100,000 in 2017 to approximately £800,000 in 2019. Slide 9 offers advice for the audience, suggesting that investors should 'set the same questions for everyone' to ensure fairness, while entrepreneurs should learn to answer 'prevention questions in a promotion way.'

SETsquared and Diversity Metrics (Slides 10-12)

Slide 10 introduces the SETsquared Partnership, a university business incubator involving Bath, Bristol, Exeter, Southampton, and Surrey. Slide 11 emphasizes that 'Traction' is the primary needle-mover for deals, followed by other funding and 'Zeitgeist / (FOMA).' Slide 12 presents a significant win for ecosystem diversity: the percentage of closed funding rounds involving female founders (FF) jumped from 18% in 2018 to 45% in 2019. This metric directly addresses the 'people invest in people like them' concern raised earlier in the deck.

Macro Data by Beauhurst (Slides 13-15)

The deck shifts to hard market data provided by Beauhurst. Slide 13 defines 'Growth' through eight triggers, including equity investment, accelerator attendance, and academic spinouts. Slide 14 shows the historical deal volume for the West of England. Total investment since 2011 is cited as £1.31bn across 859 deals. The bar chart shows a steady climb in deal numbers, peaking at 137 deals in both 2017 and 2018, with 92 deals recorded for the partial year of 2019. Slide 15 breaks down deals by sector, with 'Business and Professional Services' leading at 30.7%, followed by 'Technology/IP-based businesses' at 18.8% and 'Industrials' at 18.2%.

The 'Ask': Startups Raising Capital (Slide 16)

Slide 16 is the most actionable slide for investors. It lists ten companies currently raising between £250k and £500k. The list includes Altuity Solutions, Miappi, MiHeart, TableTiger, Webuildbots, Glean.ly, iExport, Bedfolk, GoodSixty, and Lambda Stretch. Each entry includes a logo, a one-sentence value proposition, and the target raise amount. This slide transforms the deck from a theoretical report into a practical deal-flow tool. The footer contains a legal disclaimer noting that Engine Shed is an 'honest broker' and not a regulated investment advisor.

Conclusion and Next Steps (Slide 17)

The final slide, Slide 17 , provides a call to action. It directs attendees to pick up one-page summaries, check a specific URL for investment information, and sign up for the newsletter. It reinforces the collaborative nature of the event by re-displaying the logos of the sponsoring professional services firms.

What Works in This Deck

Regional Specificity: By focusing strictly on the West of England, the deck provides a level of granular data (Slide 14 and 15) that is often lost in national UK investment reports. · Transparency: Including a real-world financial growth chart for a local company like Gapsquare (Slide 8) adds credibility and provides a benchmark for other founders in the room. · Actionable Deal Flow: Slide 16 is a masterclass in efficiency, presenting ten investment opportunities on a single page without clutter, making it easy for investors to identify companies of interest. · Diversity Tracking: Explicitly measuring and reporting on female founder funding (Slide 12) shows a commitment to the 'equitable access' goal stated on Slide 4.

What Is Missing

Specific Exit Data: While the deck tracks deal flow and total investment, it lacks data on regional exits (M&A or IPOs), which is a critical component for investors calculating potential returns. · Valuation Trends: The Beauhurst slides provide total capital raised but do not discuss average valuations or dilution trends within the region. · Investor Profiles: While the deck mentions a lack of local lead investors, it does not list the active VCs or angel groups currently operating in the region to help founders bridge that gap.

Lessons for Founders and Ecosystem Builders

Use Data to Tell the Ecosystem Story: If you are building a regional hub, use third-party data (like Beauhurst) to prove the momentum of your area. It validates the 'why now' for investors. · Standardize the 'Ask': Slide 16 shows that you don't need 10 slides to pitch. A logo, a sentence, and a number are enough to spark an initial conversation. · Address Cultural Barriers Head-On: By identifying the 'Golden Triangle' drain and the 'invest in people like them' bias, the organizers create a shared mission for the audience to improve the local culture.