Entrepreneur Rhys Jones has spent his entire life deflecting technology investment opportunities like a “high street chugger or pollster.”
He is the CEO of Davidson Gray, a popular video blogger, and regularly asked to invest in his business on LinkedIn.
He's always resisted, but at age 53 he just made his first investment in HR technology startup Candidly and says he couldn't be happier.
Jones told BusinessCloud that he was persuaded to invest by the qualifications of Candidly co-founders Alexandra Slater and Hannah Peet and the innovative nature of their business.
Candidly's all-in-one recruitment platform guides clients through the entire recruitment process, cutting out time-consuming processes.
Mr. Jones' approach to investment opportunities has been to say no.
He said: “I'm well aware that investing in technology startups is a minefield if you don't know what you're doing. My previous non-execs were like, 'Stick to your knitting. ” I once said.
“There’s a lot of money to be made in recruiting and I’m good at it, so why would I enter a very risky market that I know nothing about?
“My opinion about risk was based on the fact that so many tech startups fail. Valuations are often subjective, and a good idea is better than someone with more money and experience.” It could easily be taken over by someone else, reflect your concept (and) steal the market. I could have continued, but I didn't think it would be easy to avoid.”
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But he changed his lifelong habits by investing in Candidly, an HR technology startup founded by Alexandra Slater and Hannah Peet.
He said: “My first phone call with Hannah was very reassuring. I went in thinking, 'This is a tech startup that I'm not really interested in, so what do I have to lose?' I was a very tough audience.
“However, Hannah has shown that she is definitely top notch at presenting and overcoming opposing viewpoints when asked the right questions by me.
“This product is a big-ticket ticket to sell directly to HR software companies, so we needed a very high level of skill to overcome skeptical executive buyers.
“I come from a recruiting background, so I quickly realized that Candidly solves a huge headache for companies that need to hire top talent.”
Jones said he was also relieved to find out who else was investing in the startup, some of whom he knew.
“I talked to some people directly and talked about the fact that they invested in the first round and the second round, so that helped a lot,” he said.
“What’s even better is that they literally just won their first big deal, even though the valuation is still in the second round. This takes a lot of the risk out of the investment. It sealed the deal for me.”
Jones said co-founders Slater and Pete were “key” to the investment decision.
“Hannah and Alex have a proven track record in both recruiting and scaling successful businesses to the point of sale,” he said. “They have the resilience needed to grow their business in a tough market, and they also have a very clear plan for what they need to do to succeed.
“One of my previous businesses was an executive headhunting business, so I've interviewed a lot of senior executives, so I know what talent is like. Alex and Hannah are both very bright; Talented and highly motivated.
“Candidly has a huge opportunity right now and is well-positioned to take full advantage of changes in the HR technology industry.”
Jones did not disclose the exact size of his investment, calling himself a “second round investor.”
“I’m glad I kept quiet,” he said. “But if Hannah or Alex feel I can add value or insight, I'd be happy to help. Knowing the level of other investors they have access to as an advisor, I don't think they'll need me.” not.”
Jones said he wouldn't be surprised if he invested in other technology companies.
“This was a great learning challenge for me, so I'm setting high standards now,” he said. “I have to have some insight into the sector, be impressed with who's on the cap table, and really support the founders. Those three things are non-negotiable.”
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Pete praised Jones' “honest advice and tremendous insight.”
Jones focuses on the recruitment sector and produces video blogs about growing businesses. His channel is called “The Recruitment Podcast with Rhys Jones.”
Jones' previous businesses included Elliott Marsh and Executive Headhunters, which he sold in 2014.