Enterprenuer
Brooks Newmark is an angel investor and philanthropist. He is also an academic and campaigner against homelessness.
Brooks was a member of the House of Commons for more than ten years.
He served as the Member of Parliament Braintree and as the Minister for Civil Society in the Coalition Government, responsible for charities, the voluntary sector, and youth.
As a Treasury Select Committee Government Whip and Lord Commissioner of HM Treasury, he was also a Lord Commissioner of HM Treasury.
Brooks was a Whip in Opposition. He also founded Women2Win to increase women’s participation in the Conservative party and the Million Jobs Campaign for youth employment.
Brooks is currently pursuing a DPhil in Education at Oxford University.
His research focuses on Education Reform in Rwanda. Brooks is also a visiting academic at the Middle East Centre and is researching a book about Bashar Assad.
Brooks left politics to pursue his passion for education reform and philanthropy.
Brooks is also the co-founder of A Partner In Education, which works alongside Rwandan teachers to provide education for children.
Brooks is also dedicated to ending homelessness. Brooks is a member of the Government’s Rough Sleeping Advisory Panel and a volunteer for Crisis UK.
Brooks authored a 2017 report for the Centre for Social Justice titled Housing First: Housing-led Solutions to Homelessness and Rough Sleeping.
Brooks is an internationally recognized expert who has written numerous articles on foreign and security affairs.
Brooks currently serves on the International Commission of Missing Persons Panel of Experts.
This panel is responsible for locating missing persons due to wars and disasters.
Connaught Brown, Mace Media, Brooks Newmark & Co. are also his board members.
He has a Master’s degree in Education from Oxford University, a Bachelor of Arts in History from Harvard College, and an MBA in Finance from Harvard Business School.
What’s your career story?
Although I was an angel investor for the first time five years ago, I had been a little more cautious than I should have.
After fifteen years in private equity (I was a Senior Partners at Apollo Global Management), I went into public service, serving ten years as a Member of the UK Parliament.
After I left Parliament in 2015, I met a successful investor who was a friend and had successfully invested his own money.
He knew me for a while and suggested that I be a good start-up investor.
I was part of the team that created the Seed Enterprise Investment Scheme (SEIS) while in Parliament.
We recognized the lack of risk capital for start-ups in the UK, so I was one of its architects.
When I left Parliament, I invested in and mentored pre-revenue companies primarily owned by young entrepreneurs.
I have supported ten businesses to date, one of which was a slight turnaround. None of these businesses has failed.
Some of these businesses have returned 4x, 10x, or 80x of my initial investment, while others have returned 200x.
How do you stay productive?
My day is not typical. I’m a polymath, also known as a “Jack of all trades but master of none,” so I tend to do multiple things at once.
I am currently working on a doctorate in education at Oxford University (I completed my Masters 3 years ago); I run an education charity in Rwanda (see www.apartnerineducation.org), which I founded over ten years ago; and, I am a prominent campaigner for homelessness and sit on the UK government’s Rough Sleepers Advisory Panel.
I speak with entrepreneurs I have supported once or twice a week to offer my business advice and help them navigate any obstacles and opportunities.
People also contact me daily with business ideas.
How do you bring ideas to life?
Angel investors don’t bring new ideas to life. I support people who do.
Many people who have great ideas are not exemplary businesspeople.
As a businessman, I ensure they don’t make mistakes or run out of money.
Angel investors and venture capitalists are not entrepreneurs.
They shouldn’t think they are or get into the details of what an entrepreneur is trying to bring to life.
I’ve failed to question an entrepreneur who pivots on an idea almost every time. In a way, I’m like a gardener tending an exotic plant.
I let it do its thing and try to keep it from withering on the vine. Many businesses fail because their original ideas aren’t great.
They run out of money. If I believe in someone or something, I ensure they don’t run short of cash until their idea is realized.
What’s your favorite trend?
I don’t follow the trends, and I am more of a contrarian investor than a trend follower.
I began my career at Apollo, arguably the most successful contrarian investing company globally.
I support ideas as well as people. I prefer business opportunities that are scalable and have low barriers to entry.
I also avoid businesses that may make my tech ideas obsolete. Cryptocurrencies are what I consider the 21st-century’ tulipmania’.
What habits make you productive?
I stand by my convictions and will support my entrepreneurs multiple times.
Many angel investors make the mistake of only being available for one round of investing.
You should support your entrepreneurs no matter what.
As long as communication is maintained between you and the entrepreneur (essential advice to any entrepreneur: keep investors in the loop in good and bad times), you can communicate with them.
Angel investors often spread their money in the hope of making one or two investments.
I tend to be more focused. I invest two and three times a year in the business and take 10% to 20%. This aligns my interests with the entrepreneur as much as possible.
What’s your advice for the Noob?
Never give up. Keep believing in what you are doing. Importantly, it would be best to work with people you enjoy and in a company, you are passionate about.
You will love going to work every day, even if the money doesn’t.
Do not take on a job for the money unless necessary. It’s a recipe for misery for life.
What is one thing we can all agree on?
The best investment I have made right now is to back someone who has previously failed spectacularly.
The business failed because of his brilliant idea.
This is the UK. Unlike the US, where failure is an honor, and people believe that one can learn from mistakes, the UK has an entirely different culture.
The business establishment is often closed down. Over the past four years, I supported him several times when it was nearly impossible to find other investors (except for three).
We launched a technology business during the Covid pandemic of September 2020.
Since then, the company has grown tremendously, with an 80x return on my initial investment.
What do you recommend as an entrepreneur?
I constantly challenge my entrepreneurs. I ensure they never run out of money. I never give up.
What’s your rich strategy?
I am focused on the handful of businesses that I support. I am available 24 hours a day to talk with my backers.
I limit the number of investments I make in a given year to only two to three.
This allows me to provide entrepreneurs the attention and time they need and ensures that I am available to them for financial support over multiple rounds within the first two to third years.
How do you overcome Failure?
In 2013/4, my first investment as an angel investor. A friend asked me to help a friend who was also a friend.
I decided to invest more for a favor than anything else. I lost 100% of my investment.
I don’t trust any other person’s judgment now. This has proven to be a valuable lesson since none of my assets have failed or been lost.
Can you share a business idea?
This was my most expensive idea. To totally disintermediate mobile and broadband companies, which generally offer an awful and costly service that never seems to work when needed.
We will launch a series of mini satellites to circumnavigate the globe to provide mobile phone and broadband service wherever you are.
Although the UK’s satellite tech sector is equipped with the necessary skills, Elon Musk will be able to beat us!
What’s your recent best buy?
Acupuncture. Although I’m skeptical about alternative medicine, it has worked for me. It has made my life much easier.
What are your favorite Softwares or Apps?
In addition, Finance, a bookkeeping company that I was an angel investor in, was my backing.
This helps me and many other angel investors keep track of cash and expenses.
This is an excellent option for start-ups or small businesses. It costs only PS99 per month and is much less than hiring a bookkeeper.
Which book would you recommend?
There is always a chance that there will be something better.
Malcolm Gladwell’s The Outliers taught me how important it is to put in the effort if you want success.
It also taught me not to be afraid to take risks and accept failures and rejections.
What’s your favorite quote?
Two are my mottos: one is short, and one is long. My first motto is “Failure only matters if it’s your last attempt.”
This motto has helped me develop tremendous resilience and never give up on something I believe in or want.
Steve Jobs’ second favorite quote is: “Here’s to the crazy ones. The rebels, misfits, and troublemakers.
They are the ones who see things differently. They don’t like the rules and respect the status quo.
They can be quoted, disagreed with, glorified, or denigrated.
You can’t ignore them, and they are changing things.
They are the people who push humanity forward. While some may view them as crazy, we see genius.
People who think they can change the world are the ones who succeed.
This quote inspired me to take risks and do what I believe is right, even when it goes against the grain of conventional wisdom.
This has positively impacted my business and political careers, sometimes even for the worse.
