WELCOMEto The Accelerator Network’s
Investment Readiness Overview
Tuesday 15th November 2016www.TheAcceleratorNetwork.com
© 2016 The Accelerator Network Ltd All rights reserved.
Pleased to meet you…(Then)
• Exited, serial entrepreneur• 20 year career, building ‘scale ups’
– Music industry (friends & family, grants, debt finance)
– Radio group (corporate venturing)– Publishing buy & build (joint venture, angel
syndicate, VC)– Outdoor advertising (buy-out, angels)– Digital media (share purchase)
• 3 successful trade sales (FTSE100, Financial buyer, Egmont -Trade)
Pleased to meet you…(Now)• Senior roles across enterprise, innovation & investment:
– UK Business Angel Association, Member council leader– Capital Enterprise, Board & Finance Committee– Startup Funding Club, Shareholder, Investment committee– Cabinet Office’s £10m Social Incubator Fund, Investment committee– UKTI’s Sirius £6m SEIS Fund, Founder & Investment committee– Dell for Entrepreneurs, UK Board
• Start up / scale up advisor to UK Government (UKTI, DCMS, BIS) • Managing Partner, White Horse Capital (Series A & B investment)• Angel investor in number of emerging scaleups including:
– Communication Partners media planning & buying agency (leader of £3m syndicate)
– Launchpad Recruits recruitment technology (£9.5m HNW/VC consortium)
• Investor & Chair of The Accelerator Network (Business training / acceleration / incubation / seed funds)
• Winner of Great British Entrepreneur Award; “Entrepreneur Champion”
Sources of capital for entrepreneurs
• Profitable customers• Cashflow neutral customers• Suppliers• Friends & Family• Startup Loans & Grants
• Equity
}AngelCorporate
Crowdfunding
VC / PE
Type of equity? Research, seek advice, use intermediary
Is equity right for you?
Distraction
Time spent
Risk
Dilution
Size of pie, not slice of pie
Protection, confidence of delivery
Control
Delusion
Not new management team!
Discipline
Board meetings, reporting
Tight ship
Exit focus
Overview of Investment Landscape When & Where to Find Your Investors
www.TheAcceleratorNetwork.com
Investment by life stage
Crowdfunders
SEIS >£150k EIS
£150k+
Accelerators £25-35k
StartupLoan £25k
Grants: £5-100k+
Seed Funds £300k+ VCs £1m+
Investor ReadinessDocuments & Due Diligence Checklist
Documents to prepare
• Business Plan (word document) content• Pitch deck (10-20 slides) • Financial models (excel)• Presenting numbers…
Use Of Funds
Where does the funding get you to?
• How will it be used?• Strategic not tactical• Breakeven is important• Outline milestones• …with validation
Investor Proposition / ROI
What are you offering?
• Board seat?• Equity? • Debt?• Expected return?• Liquidity?• Exit?
Fundraising Roadmap
Fund Raising Checklist
Who Why HowWho are you going to
approach, can you name individuals,
organisations, Venture firms, syndicates,
corporate investors, your network
Why would you like them to invest? Do you
want them to have a particular role within the
business or be silent investors
How are you going to network or find these
investors – through friends, online, work
contacts?
Programme stages
1. Users – Customer profile, segmentation2. Prototype / pilot3. Business model canvas4. Brand5. Sales and growth6. Investment7. Entrepreneur mindset 8. Pitch practice