Angel investing is evolving across Europe, driven by a new generation of investors who combine professional expertise with a commitment to innovation and impact. At the heart of this transformation are individuals like Elizabeth Pauchet, Business Angel and member at the Femmes Business Angels, whose multifaceted career reflects the growing diversity and dynamism of the angel ecosystem.
Elizabeth’s path into angel investing is shaped by her diverse professional background. Her passion for impact-driven innovation led her to join FBA, the largest network of female business angels in Europe, with 175 members from a wide range of industries and disciplines.
Investing in transformative technology
One of Elizabeth’s recent investments is in Outmind, a generative AI solution for enterprise search. “It’s like a personalised, private, and safe ChatGPT,” she explains. The platform enables employees to search across siloed sources, from emails to CRMs, Notion, or Slack, and provides multilingual summaries and comparisons. “It’s a huge boost to productivity,” she adds, highlighting the potential of AI to transform workplace efficiency.
Supporting startups beyond capital
Elizabeth believes that angel investing is much more than funding. “The heart of any successful investment is identifying the most promising startups,” she says. FBA members attend pitch competitions, hackathons, and demo days to scout new ideas and challenge value propositions with their collective expertise.
Support for startups takes many forms. Elizabeth has personally introduced venture capitalists, sponsored startups at conferences, helped with recruitment, reviewed contracts, and even corrected English translations. “Being the CEO of any company is hard, and even harder for a startup founder,” she notes. “Our goal as investors is to provide experience, feedback, and support to help founders progress and develop.”
Building a community of women investors
Elizabeth acknowledges that the activity of business angels is still not widely known. “I think the best way to scout more business angels is by raising awareness,” she says. FBA offers both formal and informal training to new members, covering topics like due diligence, valuation, and shareholder agreements. Experienced investors mentor newcomers, creating a collaborative and empowering environment.
Advice for entrepreneurs: authenticity and ambition
When it comes to pitching, Elizabeth’s advice is clear: “Entrepreneurs have to show their most authentic self.” She emphasises that early-stage investors understand the need for pivots and look for founders with the intelligence to adapt and the grit to persevere. “Along with a touch of folly, this combination is essential for a startup to succeed.”
A message to female entrepreneurs
Elizabeth offers a powerful message to women founders: “Men tend to get more funding because they dare to dream. They dream bigger.” She encourages women to embrace bold financial projections and play the same game. “Business plans drafted by women are often more conservative and probably more realistic, but they’re less attractive to VCs. You can and should dream bigger.”
ESIL’s role in shaping the future of angel investing
Angel investing is evolving, and initiatives like ESIL are helping to build a more inclusive and dynamic ecosystem. The Next Gen Business Angel is diverse, collaborative, and impact-driven. By promoting gender diversity, providing mentorship, and creating pathways for women to enter the investment landscape, ESIL is helping to shape the future of innovation in Europe.
For more insights and to watch the full interview series, visit the ESIL YouTube channel.