Interview with an angel: Gavin Davidson
05 May 2010
Gavin
Davidson began his career as a chartered accountant only to realise
his passion was to invest in and run a business – or two.
Gavin Davidson entered the financial world after qualifying as
an accountant with Peat Marwick Mitchell (now KPMG) in 1985. He
then spent three years at Price Waterhouse providing growing
businesses with strategic business planning advice. In 1989, he
embarked on a role with an independent chartered accountancy
company as business development manager, becoming a partner in 1993
and managing partner in 2001.
But it was in late 2003, having completed the merger of the
business with a competitor, he found his experience and expertise
was a valuable commodity when he joined Source Software Ltd as
financial director. A Wales Fast Growth 50 company, Source provides
intermediaries with an online panel of blue-chip insurers providing
household, buy-to-let and income protection policies, allowing them
to compare and buy products on behalf of clients who are completing
a mortgage or re-mortgage.
Davidson successfully applied for the company to become
regulated by the Financial Services Authority in 2004 and working
closely with the company's managing director, Source's
profitability has increased year-on-year ever since.
"I had moved too far away from seeing the action that resulted
from the advice given and I needed to be more hands-on and
creative. I'm quite passionate about things and wanted to develop
this in a new role. Source needed input at a strategic financial
level to steer the company through financial regulation and
capitalise on the opportunities that resented.
"That was very stimulating for me and my role as FD, in
conjunction with the new managing director, was to maximise gross
profit growth through supplier contract negotiation. The company is
profitable and we have seen growth year-on-year through continued
investment," Davidson explains.
Having recruited and mentored a financial controller, Davidson
can now dedicate a few days a month to his passion for getting his
"hands dirty" in early stage ventures. He is now financially and
managerially involved in several businesses, including a financial
services company at concept stage, TicketSource, a free online box
office service for event promoters and WaterSpace, which provides
'floating' offices in marinas and water-side developments.
His first investment through xénos was made earlier this year in
Elderworld, a Monmouth-based online business providing upgradeable
and futureproofed e-learning programmes and governance solutions to
the staff in care homes, and procurement of products and services
in the care home sector.
"I’d known about xénos for sometime and I was keen to see how I
could get involved. I attended some of the xénos forums. These have
proved very useful and informative. As a result I was aware of
Elderworld and after speaking to its managing director I realised
that there was a lot I could bring to the table – in addition to
the investment.
"And that’s what it’s all about. My passion for business and not
just the investment – it allows me to get involved in a business
and support its growth by being hands-on."
Davidson admits that he's had other ideas for start-up
businesses, but because they were not in areas of his expertise or
passion, he hasn't progressed with them. "I'm sure someone else
will have the same idea, take it to market and make it a success.
But while the idea is good, I don’t have the passion for that
particular type of business and I haven't progressed with
it.
"And that's what is important as an angel investor. You need to
be passionate about what you are doing and investing in. You have
to be able to bring something to the business that can support its
growth. In most cases that is financial investment, but the
mentoring and hands-on role is also vitally important."
This article first appeared in insidetrack.
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