Diverse Angel Syndicate Programme – Application Form preview

Application preview: This document is provided to help prospective applicants prepare ahead of the application window opening. This document is for reference only and cannot be submitted as an application. The application form and requirements may be subject to change before applications open.

Eligibility criteria 

The Diverse Angel Syndicate (DAS) programme is open to syndicates focused on diversity at three levels, diversity of the syndicate leadership team, the syndicate membership and the founding teams of their portfolio companies (including diversity within the founding team or board). DAS aims to broaden participation in angel investing among underrepresented groups, with a particular focus on increasing the representation of women and people from ethnic minority backgrounds, alongside opportunities to support syndicates focused on other forms of underrepresentation.  

DAS responds to evidenced disparities in angel investing. Women currently account for around 14% of UK angel investors, while it is estimated that around 11% are from Black and ethnic minority backgrounds. The programme is designed to widen participation in angel investing and strengthen the syndicates that can connect a broader investor base with early-stage businesses.

The programme is primarily designed to support new and emerging angel syndicates, as well as existing syndicates that are entering a new phase of development or undergoing a material change in their operating model. For an established syndicate, a new phase of development may include significant changes to its structure, leadership, membership model or approach to investment, with the aim of becoming more scalable, sustainable or inclusive.

For the purposes of this programme, emerging syndicates are typically those that have been operating for less than 12 to 18 months and have completed fewer than three investments. This is intended as a guide rather than a strict requirement, and applicants outside of this profile may still be considered where there is a strong strategic fit with the programme objectives.

Participating syndicates will have a focus on the democratisation of angel investing as an asset class. DAS also has a strong focus on supporting the development of angel investment activity outside London, this reflects persistent regional disparities in access to established syndicates, investor networks and early-stage capital. We particularly welcome applications from syndicates that are based outside London and/or demonstrate a clear focus on investment activity across other parts of the UK. Applicants will be asked to set out their existing and planned regional reach as part of their application.

Syndicates must demonstrate a clear and credible commitment to improving diversity^{Read footnote text 1}  across leadership, membership and investment activity. DAS has a primary focus on improving diversity in terms of sex and ethnicity, this reflects evidence of underrepresentation in the angel and equity investment ecosystem and the programme’s objective of addressing those disparities, while also recognising syndicates whose primary focus is on other forms of underrepresentation, including disability, religion or belief, sexual orientation and age. Eligibility will be assessed based on a combination of current operating profile and, where relevant, its forward-looking strategy.

Specifically, syndicates will be expected to demonstrate alignment with all of the criteria below. Some criteria represent minimum requirements that must be met at the point of application, while others assess the applicant's commitment and credible plans to achieve the programme's diversity objectives over the course of DAS programme. Where indicative targets are shown, applicants are not required to have achieved these at the point of application but must demonstrate a credible approach to working towards them:

A)    Minimum 30% diversity within the current syndicate leadership team; and 

B)    A credible plan to build and maintain a diverse syndicate membership, working towards a programme target of 50% or more diverse membership; and

C)    A credible strategy for supporting diverse companies (including diversity within the founding team or board), supported by investment thesis and pipeline evidence, working towards an aspirational portfolio target of 70% or more diverse investments^{Read footnote text 2}  ; and

D)    The syndicate is UK-based and primarily invests in UK businesses 

The programme is intended to support measurable progress over time: only the current leadership threshold is a minimum entry requirement, while the membership and portfolio figures are forward-looking programme targets.  

Diversity is assessed as an eligibility criterion and is not scored as a standalone assessment category. Applicants must meet the minimum leadership diversity requirement and demonstrate a credible commitment to the programme's membership and portfolio diversity expectations.

Applicants will be required to complete the Diversity tab within the “Supporting Template for Applications”. This captures diversity data relating to syndicate leadership, membership and investments into diverse companies. Applicants should provide current (“actual”) diversity data, where requested and, where exact data is not available, may provide reasonable estimates. Female and ethnic minority representation is collected separately, alongside optional information on other recognised diversity characteristics. The Overall Diversity (%) figure, which counts each individual only once, is the measure used against the relevant numerical DAS diversity requirement or target.

For early-stage or newly forming syndicates that do not yet have an established membership base or investment portfolio, target diversity figures may be provided for membership and portfolio activity. All applicants are expected to have a sufficiently established leadership team to provide actual leadership diversity data. Targets must be realistic and supported by a credible operating model, recruitment strategy and investment approach, as evidenced throughout the application.

Portfolio diversity targets are forward-looking expectations aligned to programme objectives and will be monitored on a best endeavours basis, recognising that investment outcomes depend on pipeline and market conditions.

Eligibility will be determined using both the supporting spreadsheet and the relevant narrative responses within the application form, which together provide evidence of the syndicate's current diversity profile or credible plans to achieve the programme's diversity expectations.
 

Introduction to the application form

This application form enables the British Business Bank to assess syndicates against the Diverse Angel Syndicate programme’s objectives and selection criteria. The information provided will be used to evaluate the angel recruitment strategy, investment strategy, operational capability and growth potential of applicant syndicates. While not all questions are directly scored, the information provided will contribute to the overall assessment of the syndicate against the programme’s selection criteria.

The DAS application process begins with a short online Eligibility Check. Responses are assessed automatically against the programme’s minimum eligibility requirements. Applicants who meet these requirements will receive the Application Form (Word) and accompanying Supporting Template for Applications (Excel) by email.  The form contains 8 sections (Syndicate Overview & Programme Fit; Syndicate Leadership & Governance; Angel Recruitment & Retention; Investment Strategy; Deal Activity & Pipeline; Financial Plan, Resilience & Business Model; Data Protection & Privacy Notice; Applicant Declaration) and a combination of numeric and narrative questions, tables and declarations.  

We estimate that the application will take approximately 2.5–5 hours to complete overall.[MJ2.1] The time required will vary depending on the maturity of your syndicate, the amount of historic information you need to provide and how readily available that information is. Applicants should allow sufficient time to collate and verify supporting information and spreadsheet data, particularly where historic investment, membership and financial information is being provided.

In addition to completing the Application Form, applicants will be required to complete and submit the accompanying Supporting Template for Applications (Excel), which includes diversity, deal activity, pipeline and financial information. Completed copies of both documents must be returned by email to the DAS inbox by the application deadline.

Before you start:

To help you complete the application and supporting template, you may find it useful to have the following information available:

• Membership information: current and historic angel membership numbers, membership growth and relevant diversity data, together with any membership growth projections or targets.
• Investment and pipeline information: historic deal activity, amounts invested, typical angel and syndicate investment sizes, current and projected deal flow/pipeline, and relevant diversity information relating to portfolio companies. 
• Investment approach: your investment thesis, typical investment stage and sector focus, investment structures, co-investment and follow-on approach.
• Governance: your governance and investment decision-making process, including how opportunities progress from sourcing and screening through due diligence and investment decisions.
• Financial information: financial projections, current and anticipated income streams, operating costs and other funding sources.
• DAS funding: your proposed use of DAS funding, anticipated expenditure and the activities and outcomes this would support.
• Supporting information: any existing business plans, financial plans, sustainability plans or other relevant documents that may help you complete the application.

The information required will vary depending on your syndicate's stage of development. Newly forming and early-stage syndicates are not expected to provide historic information where this does not yet exist.

We recognise that some applicant syndicates may be new or early-stage groups and may not yet have complete operational data or established track record. Where this is the case, please answer to the best of your ability and, where information is not yet available, explain how you intend to develop this area over time.

• ^{Return to footnote location 1}

  For the purposes of DAS, recognised diversity characteristics include sex, ethnicity, disability, and underrepresented groups in relation to religion or belief, sexual orientation and age. All recognised diversity characteristics contribute equally to the Overall Diversity (%) figure used to assess the relevant numerical diversity requirement or target. 

  The programme has a particular focus on increasing the representation of women and people from ethnic minority backgrounds within angel investing. Female and ethnic minority representation will therefore be captured separately across all applicants, while information relating to other recognised diversity characteristics may be provided on an optional basis. 

• ^{Return to footnote location 2}

  For the purposes of DAS, a company is considered diverse where at least 33% of its founding team or board, at the point of investment, falls within one or more of the diversity characteristics recognised by DAS.