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/ aristos petersEARLY STAGE FUNDRAISING  ‘Show Me The Money’      Tech Meetups
My Big ‘Early-Stage’ Picture 1 EIS Investment & 3 sweat Investments (but not an angel) Founder Institute, Seedcamp, Oxyg...
Funding – What’s Out There Program or the New ‘Accelerators’ Debt: Borrow against assets or near future opportunity (Sal...
The Door Opener An Executive Summary  template / Structure                     E X E C U T IV E S U M M A R Y            ...
The Approach It’s a different landscape with its own language. Think of it as a campaign (?Months, people, £money) 95+%...
Getting ReadyInvestment Ready > Often just means developing the tangibles of biz plan, ES or pitch-deck)Deal Ready (The ...
Some Turn-offs The overload: “Here’s all our data (50 pages & 4  attachments), tell us what you think.” The drip feed: “...
Investor Questions How many investments done to date? How would you get involved / what do you offer (especially if youn...
I’m done – thank you very much Linked In requests > I am not an open networker or  collector of profiles. If sending me a...
Questions?                       / aristos peters              blog > > http://weklik.wordpress.co.uk                     ...
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Fundraising 11 12_tmu

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Fundraising 11 12_tmu

  1. 1. / aristos petersEARLY STAGE FUNDRAISING ‘Show Me The Money’ Tech Meetups
  2. 2. My Big ‘Early-Stage’ Picture 1 EIS Investment & 3 sweat Investments (but not an angel) Founder Institute, Seedcamp, Oxygen (& other ‘new/program’ accelerators) WeKlik (investment ready, fundraising & corp fin) Angel Groups (Networks & Clubs) Keiretsu Forum (Angels, HNWs, Family Offices) Beer & Young (growth/expansion finance for £1m+ T/O)
  3. 3. Funding – What’s Out There Program or the New ‘Accelerators’ Debt: Borrow against assets or near future opportunity (Sales contracts, IP, etc) Grants (sector, location) Funding Organisations (SEIS & EIS seed funds, VCs, Angel Networks/Clubs) Competitions Crowdfunding Go get a fundraiser / broker / intermediary (Individual or Corporate Finance)
  4. 4. The Door Opener An Executive Summary template / Structure E X E C U T IV E S U M M A R Y > O n lin e R e t a il ( H o m e A c c e s s o r ie s & G if t s ) < W it h £ 3 0 k in i t ia l s t a r t - u p in v e s t m e n t c a p it a l, t h is o n lin e r e t a il b u s in e s s K e y D a ta h a s b u i lt a n d e s t a b lis h e d a s t y lis h b r a n d o n a m in im a l m a r k e t in g Killer introduction b u d g e t t o a t u r n o v e r o f £ 2 4 7 k in it s t h ir d f u ll y e a r . T h e c o m p a n y , • S e c t o r : O n lin e R e t a il ( H o m e w h o s e p r o d u c t s h a v e a c o n t e m p o r a r y O r ie n t a l f e e l w it h E u r o p e a n A c c e s s o r ie s & G if t s ) . s t y lin g a n d a c o m m it m e n t t o u s in g e t h ic a lly s o u r c e d a n d p r o d u c e d • S t a g e : E a r ly G r o w t h w it h 3 g o o d s a r e lo o k in g t o t a k e o n in v e s t m e n t t o e x p a n d o p e r a t io n s a n d t o y e a rs re v e n u e s . b u ild u p o n t h e b r a n d a n d b u s in e s s t h a t h a s b u i lt a s t e a d ily g r o w in g • P e o p le : 2 fo u n d e r s , 4 s ta ff & t u r n o v e r a n d w it h h ig h p r o f it a b ilit y . T h is is in c o n t r a s t t o o t h e r r e t a ile r s 3 a d v is o r y e x e c u t iv e s w h o h a v e n o t b e e n a b le t o r e m a in in p r o f it a b ilit y d u r in g t h e s a m e ( in c lu d in g C h a ir m a n ) . 1 – 2 pages p e r io d . T h e c o m p a n y h a s s o f a r m a n a g e d t o a c h ie v e g r o s s p r o f it o f c 6 0 % a n d b e lie v e t h a t t h e y c a n n o t o n ly c o n t in u e t o g r o w r e v e n u e s I n v e s t m e n t & E x it A s p e c t s a n d p r o f it a b ilit y b u t t h a t w it h t h e ir n ic h e p o s it io n , c a n s c a le u p t o b e a b r a n d o b t a in in g s ig n if ic a n t t r a c t io n w it h in t h e r e t a il s e c t o r . T h e • S e e k in g : £ 5 0 0 , 0 0 0 m a n a g e m e n t ( w h ic h in c lu d e s a f o u n d e r w h o h a s e x it e d o n a p r e v io u s • T a x R e lie f : E I S a p p lic a t io n b u s in e s s ) h a s m a n a g e d to a ttr a c t a n a d v is o r y b o a r d a n d C h a ir m a n u n d e rw a y . w it h s ig n if ic a n t r e le v a n t e x p e r ie n c e a n d c a lib r e t o a s s is t t h e f o u n d e r s • M u lt ip le I n v e s t o r s : Y e s a s t h e c o m p a n y c o n t in u e s t o e x p a n d . • E x it : T r a d e s a le . Headings: I n v e s t m e n t O u t lin e : T h e C o m p a n y c o u ld m a k e a n a t t r a c t iv e in v e s t m e n t p r o p o s it io n o n c e s c a le d u p . I t h a s d e m o n s t r a t e d a m a r k e t f o r it s g o o d s in b o t h U K c o n s u m e r a n d t r a d e m a r k e t s a n d h a s b e e n a b le t o e s t a b lis h h ig h 2009 • F in a n c ia l P r o j e c t io n s ( £ 0 0 0 ’s – in c ’ in v e s t m e n t ) /1 0 ( A c tu a l) Turn o v er £247 m a r g in s o n m in im a l m a r k e t in g a c t iv it y . I t s n e x t p h a s e is t o s c a le - u p t h e o p e r a t io n , e s p e c ia lly t o m e e t d e m a n d f r o m t h e C h r is t m a s p e r io d , b y • G / P r o fit £166 - Investment Outline in c r e a s in g t h e p r o d u c t r a n g e , a u d ie n c e b a s e a n d s a le s r e v e n u e s v ia it s • N e t P r o f it £45 w e b s it e a n d t o u n d e r t a k e n e w m u lt i- c h a n n e l m a r k e t in g in it ia t iv e s t h a t it 2011 /1 2 ( P r o je c tio n ) h a s n o t b e e n a b le t o a f f o r d . I t h a s d e v e lo p e d a d d it io n a l r e v e n u e s t r e a m s • Turn o v er £ 1 ,4 5 0 a n d p r o d u c t o p p o r t u n it ie s a n d n o w t h a t t h e b r a n d a n d b u s in e s s h a s b e e n • G / P r o fit £825 e s t a b lis h e d , t h e c o m p a n y a r e lo o k in g f o r in v e s t m e n t t o s c a le b e y o n d t h e • N e t P r o f it £25 s u s t a in a b le g r o w t h t h e y h a v e a c h ie v e d , e n a b lin g t h e m t o a im t h e b u s in e s s - Business Summary 2012 /1 3 t o w a r d s a 4 - y e a r e x it . I n v e s t m e n t w ill b e s p e n t o n m u lt i- c h a n n e l • Turn o v er £ 2 ,1 6 0 m a r k e t in g a c t iv it y , s t o c k p r o d u c t io n a n d o p e r a t io n a l e x p a n s io n b o t h in t h e • G / P r o fit £ 1 ,3 3 9 U K a n d a t t h e f a c ilit y in A s ia . T h e b u s in e s s a im s t o in c r e a s e it s g r o s s p r o f it • N e t P r o f it £337 m a r g in o n c e it h a s in c r e a s e d c a p a c it y a n d f u lly r e s t r u c t u r e d t h e o v e r s e a s 2013 /1 4 o p e r a tio n . • Turn o v er £ 3 ,0 5 0 - Customer Issues (the problem) • G / P r o fit £ 1 ,9 2 8 B u s i n e s s S u m m a r y : T h e b u s in e s s e s t a b lis h e d in 2 0 0 7 is c u r r e n t ly • N e t P r o f it £500 c o n f ig u r e d a s a p a r t n e r s h ip b u t is t r a n s f e r r in g t o a n e w lim it e d c o m p a n y . T h e C o m p a n y h a s d e v e lo p e d a g o o d c lie n t b a s e a s a r e t a il a n d t r a d e 2014 /1 5 f u r n it u r e s e lle r , w it h c lie n t s in c lu d in g ; R it z C a r lt o n H o t e ls , S h e r a t o n H o t e ls , • Turn o v er £ 5 ,9 0 0 F o u r S e a s o n s H o t e ls a n d R e d r o w H o m e s . T h e C o m p a n y o p e r a t e s it s o w n • G / P r o fit £ 3 ,7 0 9 - Product/Service w a r e h o u s e f a c ilit y f o r it ’s im p o r t e d g o o d s a n d a f u r n it u r e p r o d u c t io n f a c ilit y • N e t P r o f it £ 1 ,3 6 5 in A s ia w a s p u r c h a s e d in 2 0 0 9 w h ic h w i ll a id o n e o f t h e c o m p a n y ’s k e y d if f e r e n t i a t o r s , t o b e a b l e t o c u s t o m i s e a n d t a il o r m a k e t o o r d e r . T h e d e s ig n a n d p r o d u c t io n f a c ilit y a llo w s t h e ir u n iq u e a n d o r ig in a l d e s ig n s t o s t a n d a p a r t b o t h in t h e r e t a il a n d t r a d e s e cto rs . - Target Markets / Sales Channels C u s t o m e r I s s u e s : C u s t o m e r c u s t o m is a t io n is a k e y o ff e r in g t h e C o m p a n y c a n p r o v id e o v e r a n d a b o v e t h e s t a n d a r d o f f e r in g s t h a t t h e h ig h s t r e e t a n d o n lin e r e t a ile r s o f f e r . T h e C o m p a n y a r e a b le t o m a n u f a c t u r e t o o r d e r a n d h a v e t h e f le x ib ilit y t o m a t c h a n d f u lf il n e w c o n s u m e r t r e n d s a c r o s s a n u m b e r o f p r o d u c t a r e a s . S lig h t v a r ia t io n s in t h e o r d e r f r o m t h e c u s t o m e r ( s iz e , c o lo u r a n d m a t e r ia l) c a n b e a c c o m m o d a t e d , a s t h e r e is n o m e c h a n is e d f a c t o r y lin e . T h e c o m p a n y a ls o in c o r p o r a t e s t h e e t h ic a l s o u r c in g o f it s p r o d u c t s a s a k e y c o n s u m e r - Sales & Market Strategy p u r c h a s in g p r in c ip le . P r o d u c t / S e r v ic e : T h e a im f o r t h e C o m p a n y is t o d e v e lo p a s a m u lt i- c h a n n e l r e t a ile r . R e t a ile r s w it h s u c h a f o c u s h a v e c o n s is t e n t ly o u t p e r f o r m e d t h e ir p u r e - p la y c o u n t e r p a r t s in t e r m s o f s a le s g r o w t h . T h e C o m p a n y c o n t r o ls t h e c o m p le t e s u p p ly c h a in , w h ic h in c lu d e s u t ilis in g t h e ir o w n d e s ig n t e a m in A s ia a n d w o u ld lik e t o r e a c h o u t a n d c r e a t e m u lt ip le c o n s u m e r ‘t o u c h - p o in t s ’ s u c h a s : t o o p e n a n o u t - o f - t o w n b a r n - s h o p s t y le o u t le t , - Competition e s t a b lis h a P a r t y P la n d ir e c t m a r k e t in g n e t w o r k , p a r t ic ip a t e in t r a d e f a ir p r o g r a m m e s ( in c lu d in g a C h r is t m a s m a r k e t s c h e d u le ) , p r in t c a t a lo g u e s / b r o c h u r e s f o r v a r io u s t r a d e a n d r e t a il s e c t o r s , a s w e ll a s t o e n g a g e a n a g e n t n e t w o r k t o r e a c h t h ir d p a r t y r e t a ile r s . T a r g e t M a r k e t s / S a l e s C h a n n e l s : T h e C o m p a n y h a s t w o m a in r e v e n u e c h a n n e ls w h ic h a r e c o n s u m e r r e t a il ( 7 5 % ) a n d t r a d e r e t a il ( 2 5 % ) b u t h a v e a ls o b e e n d e v e lo p in g a s e r v ic e o f lu x u r y h ig h - e n d in s t a lla t io n s . - Future opportunity / Exit C o n f id e n t ia l 1
  5. 5. The Approach It’s a different landscape with its own language. Think of it as a campaign (?Months, people, £money) 95+% of businesses approaching investors …. No guarantees. Many don’t get to the deal negotiation stage
  6. 6. Getting ReadyInvestment Ready > Often just means developing the tangibles of biz plan, ES or pitch-deck)Deal Ready (The smart stuff) > Get: advisor/mentor, financials stress tested, traction, benchmark, exit & valuation). This is called ‘de-risking.’Above all, tell your ‘investment or opportunity’ story (not your product/service or business story)
  7. 7. Some Turn-offs The overload: “Here’s all our data (50 pages & 4 attachments), tell us what you think.” The drip feed: “Here’s the biz plan, finances will be ready next week.” No start-up experience but plenty of blue chip CV. Everything Outsourced. “We have selected an agency to manage our sales.” Opportunity greatness overrides all other considerations. Flowery, vague, over spun, hyped up, dressed-up and totally entangled with ‘marketing speak.’No acknowledgment of possible uncertainties or weaknesses. No early chunky salaries – Be exit motivated.
  8. 8. Investor Questions How many investments done to date? How would you get involved / what do you offer (especially if young or new angel)? Smallest & largest deals (£?) How many in last 12 months (or 24)? How many times have you syndicated with others? Would it be ok to contact any of your past/current investments for references? Would or could you bring in any colleagues on the deal also (if you’re not taking the whole deal amount) Will you be looking to follow-on if necessary? Have you managed to exit yet? Had any failures yet (references)?
  9. 9. I’m done – thank you very much Linked In requests > I am not an open networker or collector of profiles. If sending me a connection request, say why you want to connect. If emailing me > Send a really good executive summary. No NDAs, no business plans and no email outlines. Remember > When fundraising you are in competition and YOU WILL get filtered. So do everything you can to NOT get filtered.
  10. 10. Questions? / aristos peters blog > > http://weklik.wordpress.co.uk twitter > > @ w e k l i k linked in > > http://www.linkedin.com/in/aristospeters email (We Klik) > > apeters @ weklik.co.ukemail (Keiretsu Forum) > > apeters @ keiretsuforum.com

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