![Page 2: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/2.jpg)
What’s the process?
What’s the stor
y
•Think through your story
•Define in as much detail as you can what you are looking to achieve and why.
Building
your
plan
•Build a business plan
• Document your strategy so it can be easily communicated to potential investors.
Selling you
r plan
•Sell your vision
•Identify your potential sources of funding and sell your plan.
Closing the deal
•Close the deal
•Agree the terms and get good advice.
![Page 3: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/3.jpg)
What’s the story
Vision
Opportunity
LandscapePeople
Execution
?
![Page 4: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/4.jpg)
Importance of execution
Prospects to Cash
Targeting Marketing Selling Deliverin
g Invoicing
![Page 5: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/5.jpg)
Targeting
Who is my target customer?– Type of organisation– Type of individual– Motivation for purchasing
How many potential prospects?– Market size
What do I know about them already?– Using a competitor– Interests
Targeting
![Page 6: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/6.jpg)
Marketing
Which are my most effective channels for marketing?– Online?– Direct?
What is the cost of a lead?
How many leads convert into a sale?
Marketing
![Page 7: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/7.jpg)
Selling
Sales Effectiveness – How many deals can a sales person close in a
period?– Who are my best sales people?– What’s my cost of sale?
Competition– Who are my competitors?– Why are we winning/losing?
Selling
![Page 8: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/8.jpg)
Delivery
Cost of Delivery– Gross margin & profitability?
Time of delivery– How long from Order to Invoice?– Can it be quicker?
Delivering
![Page 9: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/9.jpg)
Have an execution plan
Targeting Marketing Selling Deliverin
g Invoicing
Prospects to Cash
Understand the Metrics!
![Page 10: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/10.jpg)
Build your plan
Detailed business plan– Vision, Opportunity, Market Landscape, People,
Execution– Investment opportunity & ROI– Exit Strategy & Valuations (Comparisons)
Financial Model– P&L, Balance Sheet, Cash flow, Key Metrics
Executive Summary– 3 pages!
![Page 11: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/11.jpg)
Angel Investors
High Net Worth Individuals
Often experienced & successful business people
Typically invest between £10k – £500k per investment
EIS qualification is often very important
![Page 12: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/12.jpg)
Enterprise Investment Scheme
A Government scheme to encourage people to investment in small businesses
Key benefits– Investors can get 20% income tax relief– Investors can get 40% capital gains roll-over relief– Qualifying gains can effectively be tax free
There are rules– You need to be a qualifying business– You can only raise £2m at a time– There are more rules...
http://www.hmrc.gov.uk/eis/
![Page 13: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/13.jpg)
Find Angels
Where can I find them?– Angel Networks (www.bbaa.org.uk)– Your Networks
Lawyers, AccountantsFriends & Family
What do Angels want?– Equity stake – normally ordinary shares– To see a return on their investment– To back great teams
Passion, enthusiasm, drive, expertise– Involvement
Board seat or Advisory role
![Page 14: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/14.jpg)
Venture Capitalists
Professional Investment firms– Money from Pensions, VCTs, other institutions– Funds have sizes and a life cycle
Typically have investment criteria– Stage: Seed, Early Stage, Growth Stage– Sector: Cleantech, IT, Life Sciences, etc– Geography
Investment sizes reflect stage– Seed £500k - £1m– Early Stage £1m - £3m– Growth: £5m+
![Page 15: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/15.jpg)
Finding VCs
Where can I find them?– European Venture Capital Association -
www.evca.eu– British Venture Capital Association -
www.bvca.co.uk
What do VCs Want?– Equity Stake, maybe debt
Focus on Internal Rate of Return (IRR)– Preference shares (different rights)– Board Seat – with a fee– Often syndication
![Page 16: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/16.jpg)
Third Party Advisors
Benefits– Network of contacts– Can organise road show and manage process– Sounding board to validate plan– Negotiate terms
Downsides– Cost (% of funds raised + retainer)
Look for track recent track record and references
![Page 17: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/17.jpg)
Closing the deal
Get good legal advise!
![Page 18: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/18.jpg)
Benefits & Issues
Benefits
Investment capital
Dispassionate advise
Your increased professionalism
Credibility
Issues
Managing shareholders
Risk of different views
Change is shareholders status or strategy
![Page 19: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/19.jpg)
What’s the process?
What’s the story• Think through your story• Define in as much detail as you can what you are looking
to achieve and why.
Building your plan• Build a business plan• Document your strategy so it can be easily
communicated to potential investors.
Selling your plan • Sell your vision• Identify your potential sources of funding and sell your plan.
Closing the deal • Close the deal• Agree the terms and get good advice.
![Page 20: Business start up show: Raising Funding & Business Metrics](https://reader034.vdocument.in/reader034/viewer/2022051314/54c11e7d4a795992178b4582/html5/thumbnails/20.jpg)
Any Questions?