fashion finance law webinar - london
DESCRIPTION
Check out Crefovi's webinar on "Tools & tips to fund your fashion business and retain control over it". This presentation was made by Annabelle Gauberti, founding partner of Crefovi and president of ialci, in London in February 2014.TRANSCRIPT
30 July 2013
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
2
Key issue for SMEs: managing working capital requirements
• 53% starting with less than 2,000 euros • 49% relying solely on their personal !nancial funds
• 15% take a bank loan
• 5% receive grants and subsidies
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
3
SME development & funding instruments
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
Pre-seed phase Seed phase Start-up phase Emerging growth Expansion
Valley of death
Higher risk Lower risk
Entrepreneurs, friends, family
Business angels
Seed/early stage VC funds
Bank loans & guarantees
Formal venture capital funds
Public stock markets
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4
Funding sources @ pre-seed & seed stage
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
5
Seed & pre-seed stage: love money (aka family, friends & fools!)
Savings
Personal loans
Donations / gifts
Equity?
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
6
Seed & pre-seed stage: grants & support schemes
Grants/support
BFC’s NEWGEN
Fashion Fringe
UK start-up loan scheme
Creative Industry Finance
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
Apply!
UK creative industries: over talented, under resourced
7
Seed & pre-seed stage: crowdfunding
AudaCity of fashion
Wowcracy
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
Proof of concept?
Have you protected your IP?
8
Funding sources @ start-up stage
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
9
Start-up stage: business angels
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
No. of deals
0
10
20
30
40
50
60
70
80
90
UK angel investment
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
£m 20
15
10
5
0
10
Start-up stage: how to convince business angels that your fashion business is a success worth backing?
Business Plan
Intellectual Property
Distribution & points of
sale
Supply chain Business partnerships
Projected cash "ow/earnings
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
Proof of concept?
Be prepared & professional
11
Start-up stage: providing working capital against invoices
Invoice !nance
Factoring Invoice discounting
Purchase order !nancing
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
12
Start-up stage: UKFT’s tradeshow access programme
• Grants covering half the cost of a stand
• Promotion of British brands at grant supported shows
• Key shows in Paris, Berlin, Florence, NY & Hong Kong
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
13
Funding sources @ emerging growth stage
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
14
Emerging growth stage: bank !nance
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
US$b
0
2000
4000
6000
Global bank lending conditions (G20 countries)
2005 2006 2007 2008 2009 2010 2011
12
8
4
0
%
15
Emerging growth stage: credit guarantee schemes
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
• Underwriting the risk of lending to fashion SMEs
• Enterprise Finance Guarantee in the UK
• When will we have a UK “fashion bank”?!!
16
Emerging growth stage: Venture capital
VC !rms
Corporate venturing
Passport system for European VC funds?
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
17
What’s next after obtaining funding for your fashion business?
Keep in touch with !nancial stakeholders
Develop a thriving business
Next move?
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
18
Funding sources @ expansion stage
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
19
Expansion stage: available !nancial options
Private equity
IPO
Capital markets
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
20
Conclusion
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
Annabelle Gauberti Founding partner [email protected]
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business