How do you influence and optimise a funding round? A few weeks ago I attended a great event on that topic, hosted by Nick Ford-Young and Mike Robb of Boldspace | B Corp™ with guests Jonathan Keeling (ex-Crowdcube) and Gillian Gray (ex-Barclays Rise). There were some brilliant insights into the psyche of investors which, whilst focused on early stage raises, were in my view very applicable to every stage of capital raising, indeed as well as later stage exits and buy-outs. They aligned with what we at SI Partners Global regulary hear from buyers and investors. The key takeaways I noted were: ✅ The providers of equity capital have been through the same turbulence as everyone else over the past few years. Their motives have changed somewhat (crudely summarised as: from a focus on growth to a focus on profit, especially for earlier stages) and so the successful investee will follow suit. ✅ Funding is an always-on marketing campaign. Whether you're raising a Series A round or seeking a later stage exit, founders and management should always have an eye on potential investors / partners. Even if this is just teeing up conversations when there is no immediate need. In the case of an exit, nothing attracts a premium like a buyer with a strategic driver to do a deal! ✅ Of course keep the other eye on the fundamental financials. This is very different dependent on stage though. A buy-out is underpinned by diligence over historical performance. A Series A round is priced based on future forecasts which can't be verified in the same way. ✅ If you're looking for an angel investor, almost everyone is a potential angel. SEIS, EIS and similar schemes (and some companies) are further 'democratising' angel investment. So your public profile matters (company and individual). ✅ And finally... use everything at your disposal: LinkedIn is a great tool and, dare I say, seek out the best experts! #funding #manda #seriesa #corporatefinance #mergers #acquisitions
Really enjoyed the discussion. Good to meet you Jack Mehigan.
Partner @Haatch | Giving investors tax efficient exposure to the UK’s best B2B companies from Pre-Seed and Seed | Founder @edge. | NED @WineFi🍷| Crowdfunding Specialist |
5moI really enjoyed the event and a pleasure meeting you, Jack. I look forward to chatting further!