🏄♀️ Carcinotech raise, seagrass seeds, Aveni AI, BR-DGE & Discover, plus Boards
Your Board. uhh. yeah. what is it good for...
Here's your Campfire for the 5th of February, 2024.
💼 This issue of Campfire is sponsored by Shepherd and Wedderburn's initiative to supercharge start-ups and scale-ups. Be sure to follow the Start to Scale LinkedIn page for useful videos and posts designed to help founders.
🏄♀️ Boards
By Robert Gelb
It's a subject that elicits a different reaction from almost anyone I ask. Purpose? Compensation? Control? Does your sector matter? Your stage? Are they helpful? Harmful? Somewhere in between?
A reader wrote in and suggested that some of these questions might be good to share with the community to get different viewpoints. I posted on a few communities, and here are the very unscientific and in some cases contradictory takeaways (note — I've paraphrased the below statements to combine reflections and maintain anonymity):
Very few people report that they pay their board members, especially in the early days. They try to avoid large boards, and instead opt for non-fiduciary advisory boards where they can pay for expert advice when needed.
Should you even have a board? Ask yourself why you're purposefully giving up control in your business. Especially when you're an early stage business (especially if you’re in tech), there is a good argument that you shouldn't need a board, and one filled with the wrong members often slows you down and can do more harm than good.
When closing a round or fundraising, everyone is on their best behaviour. It can be difficult to discern how someone will act when things get tough. It's important to ask for references, however unlike a bad hire that you can deal with, a bad director is far more difficult to get rid of.
Most responses highlight the importance of direct experience as current or former operators when considering their most valuable board members. "Business advisors" are rarely seen as value-add (to put it generously) and investors without direct operational experience aren't usually able to provide an outsized value-add on areas other than finance strategies.
Keep control of your company for as long as you can. Maintain control of who you bring onto the board, and board members should have expectations and targets. They should be there to help, and they should be willing to do work.
If you've raised less than £1m, investors shouldn't expect a board seat. Investors who demand paid board seats should be avoided. Some investors are extremely valuable, others are not. Just because someone puts money into your business, does not mean they should be entitled to a board seat.
Startups, especially early stage ones have lots of ups and downs, and investors aren't always patient. If you get stuck with one that isn't great to work with, they are very difficult to get rid of.
Giving someone a board seat because they may have connections is not a good enough reason to give someone fiduciary responsibility and control of your business.
Investors should only get a board seat if they are a significant investor and it's a significant round. Investor majority rights usually take care of most concerns. If you have investor-directors, board seat rights should be pegged to a minimum percentage of ownership
Everyone on your board should work. Passive boards filled with board members who only show up to meetings and react to what you're reporting to them aren't providing value.
If you have board disfunction, then a good chair can make all the difference, as long as they bring accountability, prioritise strategic discussion, and ensure everyone is heard.
A good board can be extremely valuable, but understand why you actually need one and whether or not your goals can be achieved in another way. Paid advisory is always an option.
Companies in certain industries and sectors (especially outside of mainstream tech) may be benefitted by operational, regulatory, or commercial experience. The allure of having a 'big shot' on the board could serve as an important sign of industry validation.
Many young companies, especially in Scotland feel like they 'should have a board' because they're told they should. They end up making one so they feel more like a 'real company', or as a stand-in for legitimacy. That isn't a good enough reason.
A few board members also chimed in:
If a board's role is to provide a counterweight to an executive team, to provide accountability and an alternative perspective, then naturally that dynamic will sometimes generate friction.
Often founders can fail to make use of or manage their board in an effective way.
Sometimes, and especially when things are not going well, founders can retreat and adopt tunnel vision, rejecting relevant input or dismissing perspectives borne from experience.
A board full of yes-people isn't valuable even if it makes the founders' life seem easier in the moment.
To sum up: If you'd like five perspectives on boards, ask five different founders. At the end of the day the company you build is run by people, so many of the problems, horror stories, benefits, and successes, have to do with relationships and people.
Talk to others. Ask for their perspectives. Know that their experience probably won't be yours, but anything you can learn that will lead to more clarity in expectations, responsibilities, and efficiency has to be a good use of your time.
Have a different take? Want to share your perspective? Want a deeper dive into this as a subject? Get in touch!
🌊 Updates
💰 Edinburgh-based biotech start-up Carcinotech (3D-printed living tumours) has raised £4.2 million led by the Eos Advisory, alongside the Investment Fund for Scotland (IFS), managed by Maven Capital Partners, Scottish Enterprise, Old College Capital, Investing Women Angels, and existing investors Tricapital, SIS Ventures, Gabriel Investment Syndicate and Alba Equity, to bring more effective cancer treatments to market and expand into the US. TS UKTN SS ACS
🪸 Edinburgh-based start-up Robocean has received £100,000 to build a robot to place seagrass seeds on the seabed faster and cheaper than currently available methods, supported by Edinburgh University entrepreneurial development scheme Converge and Scottish Enterprise, through prizes and grants. SBN TS FS DGT
🎮 The Scottish Government has given its backing to the creation of a national games strategy to increase understanding of and support for Scottish games ecosystem. TH DGT TH
🤖 Building in compliance? FinTech Scotland has established the Financial Regulation Innovation Lab (FRIL) alongside Deloitte, Tesco Bank, Morgan Stanley, and abrdn, and is putting out a call for entrepreneurs who are solving regulatory challenges using tech and AI. FS DGT IN
💡 Edinburgh-based fintech Aveni AI will use its generative AI technology to help drive improvements for the life insurance arm of Lloyds Banking Group. FS
🤝 Edinburgh-based payment orchestration provider BR-DGE has announced its latest collaboration with Discover® Global Network to start accepting Discover cards (350 million members who spent $55bn last year on their Discover cards). DGT
🌱 Edinburgh-based start-up Trademylux raised £300k from TRICAPITAL Angels and Scottish Enterprise to for their art and other luxury goods resale platform. IN ACS
💊 Glasgow-based Aurum Biosciences (therapeutic and diagnostic technology) has raised ‘nearly’(?) £730,000 from InnoScot Health, Scottish Enterprise, TRICAPITAL angel syndicate, co-founder Dr Celestine Santosh, and a number of private investors. the first tranche of a new funding round aimed at further developing its therapeutic and diagnostic technology. DGT
📣 Asks & Offers
🍳 Fancy breakfast? We’re considering piloting a monthly founders breakfast in Edinburgh to meet and get to know one another over… breakfast. Interested in joining? get in touch!
👭 Interested in connecting with possible co-founders? Fill in your listing on Cofounder Curious today! Connect with others for possible cofounder matching here.
✍️ Want to write something for Campfire? Have an opinion you'd like to share? get in touch!
Shepherd & Wedderburn's innovative and personable approach helps companies from first incorporation onwards (including through to an exit – if that’s the goal). Their global reach means they can scale and grow with you, like they have with clients like Epic Games, FanDuel, Parsleybox, and TVSquared.
👉 To learn more, send an email to starttoscale@shepwedd.co.uk & set up a chat.
📅 Events
🔗 05/02, 17:00 🗺️ Edinburgh: Monthly Scottish Blockchain Meetup (Leith): Welcome to the monthly Scottish Blockchain Meetup. This particular event is at the Zumo office and they are the sponsor for the event. MORE INFO
🤝 06/02, 09:30 🗺️ Online: Online Coworking Session - Week 3: Join us for an accountability session and let's get things done in 2024! MORE INFO
👥 06/02, 17:30 🗺️ Edinburgh: Tech Meetup Edinburgh: The Tech Meetup is a monthly excuse for the tech community around Scotland to network, learn and share new ideas! Come along to enjoy informative presentations from your peers, listen to exciting projects in the community and make some new connections. MORE INFO
☕ Series: Unfiltered: An in-person and informal catch-up and coffee with colleagues and the community!
⛾ 07/02, 08:30 🗺️ Aberdeen MORE INFO
⛾ 07/02, 08:30 🗺️ Dundee MORE INFO
⛾ 07/02, 08:30 🗺️ Inverness MORE INFO
⛾ 07/02, 08:30 🗺️ Stirling MORE INFO
⛾ 07/02, 08:30 🗺️ Edinburgh MORE INFO
📈 07/02, 17:30 🗺️ Edinburgh: 2024 Startup Survival Guide: Master your Fundraising, Mindset & Growth: Hear from 3x startup experts on how to make you and your business more resilient: MORE INFO
🍷 08/02, 10:00 🗺️ Edinburgh: SWURF - CoWorking & After Work Wine for Women in Tech: This is the kick off for a series of Co-Working events organised by SWURF. Our mission is to connect people with places, create community and tackle the loneliness problem that comes with remote work. MORE INFO
🔌 13/02, 09:30 🗺️ Perth: Unplugged Perth: Open to everyone, CodeBase Unplugged is a networking event for people working in, or interested in, tech startups. MORE INFO
🤝 13/02, 09:30 🗺️ Online: Online Coworking Session - Week 4: Join us for an accountability session and let's get things done in 2024! MORE INFO
🗃️ 13/02, 13:00 🗺️ Perth: Techscaler Office Hours [Perth]: An opportunity to receive personalised guidance on how Techscaler can support you. MORE INFO
🗣️ 13/02, 17:30 🗺️ Stirling: In Conversation With Harper MacLeod: Join us at CodeBase Stirling, where seasoned professionals from Harper Macleod will share their knowledge into the legal startup world. Gain invaluable insights and inspiration as they share their experiences, providing a roadmap for those navigating the dynamic landscape of legal entrepreneurship. MORE INFO
💼 14/02, 09:30 🗺️ Kilmarnock: Fair Work Workshop: What's the event about? This is a fully funded workshop which will help participating companies to understand the benefits of fair work. MORE INFO
🛠️ 14/02, 13:30 🗺️ Dumfries: Demystifying Tech [Dumfries]: Session 2 of our Intro to Tech Series - brought to you by South of Scotland Enterprise, SRUC, Borders College & Techscaler. MORE INFO
🍳 15/02, 00:00 🗺️ Perth: Scottish Enterprise/SMAS Continuous Improvement Workshop Breakfast in Perth: Join this a breakfast event and develop your understanding of Lean Thinking Principles through interactive exercises. MORE INFO
🤝 20/02, 09:30 🗺️ Online: Online Coworking Session - Week 5: Join us for an accountability session and let's get things done in 2024! MORE INFO
⚤ 20/02, 12:00 🗺️ Online: Closing the Gender Pay Divide: Strategies for Success: This online session is for employers who want to understand the root causes of the gender pay gap and how they can relate to their business. MORE INFO
🛠️ 20/02, 13:30 🗺️ Galashiels: Demystifying Tech [Galashiels]: Session 2 of our Intro to Tech Series - brought to you by South of Scotland Enterprise, SRUC, Borders College & Techscaler. MORE INFO
👩🏼💻 20/02, 17:30 🗺️ Stirling: Digital Skills 4 Girls [Stirling]: Digital Skills 4 Girls is a monthly workshop for girls and non-binary people who want to learn new digital skills or develop existing skills. The recommended age for attendance is 10-15. MORE INFO
🔌 21/02, 11:30 🗺️ Eyemouth: Unplugged @ Hometown Hub [Eyemouth]: Open to everyone, CodeBase Unplugged is a networking event for professionals working in, or interested in, tech startups. MORE INFO
📅 21/02, 18:30 🗺️ Striling: Techmeetup Stirling February 21st: We meet in Codebase Stirling every month on the third Wednesday from 18:30. TM Stirling is about meeting other people involved in tech, learning something and chatting. MORE INFO
📈 22/02, 08:30 🗺️ Edinburgh: Scaling your business: what you need to know?: Join Burges Salmon and YCF for a half day seminar which explores the key things to consider when scaling your business. MORE INFO
💼 22/02, 12:00 🗺️ Online: Selling your business masterclass: Do you have a business succession plan in place? Have you considered selling your business to an Employee Ownership Trust? MORE INFO
🎬 22/02, 12:00 🗺️ Glasgow: Future Ready Digital Programme: Join this five week programme and gain the insights and tools to help your business harness the full potential of emerging technologies. MORE INFO
🎯 22/02, 14:00 🗺️ Online: Startup Next Steps Explainer Webinar [Online]: Join us for this informal online explainer event where we'll unpack what our upcoming course is and if it's right for you! MORE INFO
💡 22/02, 17:30 🗺️ Edinburgh: ProductTank Edinburgh February Social: Join ProductTank Edinburgh for an exciting evening of networking and camaraderie at our first casual pub meetup of 2024! MORE INFO
💡 22/02, 18:00 🗺️ Glasgow: CES Unveiled: Inside stories from 'the most powerful tech event in the world' (Startup Grind): This February once the dust has settled we're going beyond the hype and bringing you exclusive inside stories from those that were there. MORE INFO
🔗 26/02, 17:00 🗺️ Edinburgh: Monthly Scottish Blockchain Meetup: Welcome to the Monthly Scottish Blockchain Meetup at the Bayes Centre in Edinburgh. The event takes place at the ground floor in G.03. MORE INFO
⚡ 27/02, 09:00 🗺️ Edinburgh: Edinburgh Professionals Networking: We wanted to bring together our local network, here in Edinburgh, as a way of introducing them to each other. MORE INFO
⚤ 27/02, 12:00 🗺️ Online: Closing the Gender Pay Gap: Steps You Can Take: Identify inequalities in your business and learn practical steps from experienced practitioners that can help you tackle the issue. MORE INFO
🎯 Deadlines
📐 The Royal Academy of Engineering’s Enterprise Fellowships: A twelve-month accelerator programme designed to support talented university graduates to transform breakthrough engineering innovations into disruptive engineering and tech spinouts. Grants of up to £75k. Applications close 26 February 2024.
🇬🇧 Upcoming Innovate UK deadlines:
UK and South Korea data driven urban innovation Bi-Lateral Applications close 21 February 2024
Creative Catalyst 2024 Applications close 6 March
Eureka collaborative R&D: Eurostars 3 Call 6 Applications close 14 March
Are we missing your event or deadline? 👉 Submit it here!
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That’s all for this week - have a great one!
Team 🔥 Campfire