Building Bridges: How Sheffield Angels has taken the Cambridge Angels model North.

Andy Evans founded Xactium, a Sheffield-based risk-management software business that he sold to a global competitor just before the pandemic. Since then, he has become an active member of Cambridge Angels and co-founder of Sheffield Angels – a network built on the Cambridge Angels model.

Can you give us a bit of background about yourself?

“I came to Sheffield as a student and never left, which is quite common in Sheffield,” he laughs. Andy studied for a degree in Applied Science in Sheffield, then completed a PhD in Software Engineering at Leeds, leading to a lectureship in the University of York’s computer science department. After a number of years building a career in academia, he realised it wasn’t really for him. “I wanted to do something a bit more impactful and be in control of my own destiny.”

That instinct led to Xactium. “We started as a software consultancy, then realised we needed a product to sell rather than just services. We eventually landed on a cloud-based risk-management software platform built on Salesforce,” he says. The business grew organically, working with major regulated clients including Direct Line, the FCA, various banks and brokers, HS2 and Highways England. By the time the business was acquired, it employed around 40 people.

What led you into angel investing, and what made you join Cambridge Angels?

Andy didn’t move straight from founder to angel investor. “Selling the business was quite a shock for everybody, and then there was this period of, ‘Well, what am I going to do with my life?’, which was quite traumatic in a way.” He and his wife, Sheila Gupta, who was a co-director of Xactium, subsequently set up a family investment company called Mandashi, backing local businesses in and around Sheffield, which has a rapidly growing startup scene. “We had really benefited from the input from our angel investors at Xactium, and that experience, combined with our keenness to make a positive impact on the local community, started us on the angel investment path.”

Cambridge Angels came next, following encouragement from family friend Ronjon Nag, who was already a member of the group. “I really felt there was a big gap between investment levels in the south of the UK and the north, and I wanted to build a bridge between those two parts of the country.” He credits the late Peter Cowley, former chair of Cambridge Angels, with helping him get to grips with the processes and terminology of angel investing.

You then co-founded Sheffield Angels. How does that connect with Cambridge Angels?

“I could see the positive impact Cambridge Angels was having locally, and that Sheffield had quite a few exited entrepreneurs and high quality local startups but no cohesive group bringing them together.” Together with Ashley Tate, who had recently exited his own business, Andy wanted to test the appetite for a Sheffield equivalent. “We essentially took the Cambridge Angels model and transposed it into Sheffield.”

Within eighteen months, Sheffield Angels has grown to around 21 members, has a dedicated steering group, regular pitching events,  and successfully completed seven investments totalling approximately £1 million, helping to unlock a further £2.5 million in grants and additional investment. Moreover, several of the investments were in collaboration with Cambridge Angels, which has benefited both groups in terms of sharing knowledge, experience and opportunities.  “I hope we can achieve the longevity Cambridge Angels has,” Andy says. “Their proven model could be replicated across all the major regions of the UK.”

Do you have a particular sector focus?

Given his background, Andy invests primarily in software startups, often with an AI element. He has also built a biotech portfolio, inspired by his eldest son’s PhD in cancer research, with several investments connected to Cambridge Angels’ sector expertise. Ultimately, however, it is as much about the people than the sector. “A lot of it is about the entrepreneurs and that gut feeling you have about them.”

Can you highlight some of the investments you’re excited about at the moment?

Two recent Sheffield Angels investments stand out for Andy. The first, Sansanima, is developing cell-based assays for testing botulism and tetanus toxins, replacing a process that currently relies heavily on animal testing. “They’re essentially programming cells to detect these toxins, and that’s really exciting,” he says. The second, Phast, is developing bioplastics for dental applications, which is very appealing as customers are increasingly trying to avoid exposure to traditional plastics. The company now has both Sheffield Angels and Cambridge Angels as investors, and Andy calls it “a really nice product with so many potential applications.”

How hands-on are you as an investor?

“I like to be involved, either on the board or as a mentor,” Andy says, although the shift from running his own company to becoming an angel investor has been one of his more difficult adjustments. “When you’ve had the CEO hat on, you’re used to having control and influence. As an angel, it’s a much more of an advisory role, even though it can be frustrating when people don’t listen to your advice!”

What is the biggest lesson you’ve learned since you started angel investing, and what advice would you give founders raising their first round?

“Patience,” Andy says without hesitation. “Things always take much longer than you think.” When investing, he keeps coming back to instinct – whether a founder has the right energy and fit, alongside the right product and niche. His advice to founders seeking investors is surprisingly practical: reply to emails quickly. “If a founder regularly takes three or four days to respond, it shows no sense of urgency. That won’t go down well with prospective clients either – it’s a big red flag for me.” There is also a balance to be struck between providing the right information and being overly pushy. “It’s a real sales job, and the best founders know their area inside out without under- or overselling it.”

Outside investing, Andy is also a multi-award-winning, self-published children’s author, known for the Erig the Earwig series of books, which aim to help children engage with nature. “It’s been fascinating to see the crossover between successfully publishing a book and building startups – finding the right market, the right networks and the right time are all key,” he says. “The same principles apply to successful businesses too!”