"Investors Back People First" Angel investor James Baker on start-ups, rejection, and the future of AI

For most founders, the first fundraising round can feel like stepping into a gladiatorial arena: the pitch deck becomes a shield, the business plan a sword, and investors the gatekeepers to survival. Few understand that battle better than James Baker, the award-winning angel investor whose portfolio stretches from clean energy in the UK to robotics in South Africa.

Baker insists the fundamentals of a great pitch are deceptively simple. "Clarity of purpose and value proposition," he says without hesitation. "Be able to explain in 30 seconds and simple terms the problem you solve, why it matters, and why now."

It may sound obvious, but Baker stresses that clarity is often missing. Too many founders, he argues, focus on polishing a pitch deck before proving that anyone actually wants what they are building. "Evidence of traction and execution: early signs that customers want what you're building, this matters more than the quality of your slide deck," he explains. And above all, one factor consistently wins his backing: "A strong founding team. Investors back people first. Show necessary skills, resilience, track record and the ability to deliver under pressure."

When evaluating early-stage startups, Baker frames his thinking around three pillars. "Market potential: a clear, scalable market with room for growth. Team quality and character: tenacity, adaptability, and integrity stand out. Design IP Protection or similar. If something is able to be protected then that is a strong signal for me to take the opportunity seriously."

Of course, rejection is part of the journey, and Baker is blunt about the process. "A 'no' isn't always final — sometimes it means 'not now.' So try and treat it as feedback, keep investors updated with progress, and demonstrate resilience," he says. "Ask what would have made it a 'yes' and see if that can realistically be implemented. But also beware this can be a bit of a beauty parade/ego trip where potential investors are just kicking the tyres. Try and filter them early."

Despite the harsh realities, Baker is optimistic about where the most exciting opportunities lie. "I'm particularly drawn to automation and robotics, applied AI in traditional industries, and the opportunities emerging across fast-growing African economies where demand for infrastructure, technology, and scalable solutions is rising quickly. Overall, I seek regions that are easier to operate in."

That global perspective is reflected in the companies he has backed. "Battalion Technologies (South Africa): export-ready automation and autonomous guided vehicles, addressing global labour in logistics and manufacturing," he lists with pride. "AmpX Energy (UK): a clean energy storage business developing next-generation solutions beyond lithium-ion, with applications across transport and marine. Helios Agri Drones: precision crop spraying, land mapping, navigation and efficiency in agriculture. Previously backed an aircraft crop spraying business which failed and took this into drones and AI."

Each investment, he insists, must be grounded in reality, not hype. "Each excites me because they're solving tangible problems with strong teams and scalable models — not just chasing headlines and hype."

For Baker, the lesson is clear: investors may be dazzled by big markets and new technology, but at the heart of every deal is the founder. "Investors back people first," he repeats. It's a mantra that could save more startups from making their biggest early mistake — forgetting that credibility isn't built in a slide deck, but in showing you can execute.