What are investing Non-Executive Directors?
First Flight developed the Investing Non-Exec concept based on the 85/15 principle: successful companies depend far more on strong management than simply having a good idea.
Many entrepreneurs struggle because they lack the right Board, strategy or key skills, which can often be addressed by appointing the right Non-Executive Director.
Companies recruit Non-Executives to bring additional skills, experience and networks to their Board or management team. This might include financial expertise, experience raising institutional investment, sector knowledge, or guidance from entrepreneurs who have successfully scaled and exited businesses.
Investing Non-Executive Directors typically work 1–4 days per month and also invest in the business, often benefiting from SEIS or EIS tax relief. Typical investments are around £25,000, meaning two NEDs could invest approximately £50,000.
This “smart money” can help attract further funding from grants, angels, crowdfunding, venture capital or private equity investors. An independent NED with “skin in the game” can strengthen credibility with investors and align interests with shareholders.
Like other investors, investing NEDs expect a financial return but also contribute time and expertise. In high-growth companies, part of their reward may be equity rather than cash. First Flight advises companies on appropriate structures and expectations.
What sorts of companies recruit investing Non Executive Directors?
Two main types of companies recruit investing NEDs:
PE- and VC-backed companies seeking independent Chairs or NEDs aligned with investors and willing to invest on similar terms.
Management-owned growth companies looking to strengthen both their Board and their balance sheet.
First Flight works with both types of companies and directly with VC and private equity firms.
Companies seeking this service should normally have achieved proof of concept, with a product, customers and revenue, and be able to provide a clear business plan, recent management accounts, historic financials and (if relevant) EIS or SEIS certification.
How can First Flight help?
First Flight pioneered the recruitment of investing Non-Executive Directors and has helped many companies appoint them.Approximately two thirds of the 10,500+ NEDs on our database have indicated a willingness to invest in the companies they join. We also use targeted advertising and specialist search to ensure access to high-quality, board-ready candidates.
We help companies define the skills and experience they need and identify NEDs who meet those requirements. We are selective about the clients we take on, ensuring the strategic value of the NED is more important than their investment.
Our service is fee-based but affordable, with the majority of fees payable only after the successful candidate has joined and invested.
