Looking for the pot of gold at the end of the rainbow? Whether you are actively speaking to investors or planting seeds for an upcoming round, this blog will provide you with the ins and outs of fundraising, directly from people who have done it and lived to tell the tale.
We had a chat with Pierre Paslier, Maya Pindeus and Amrit Chandan, three Enterprise Hub Members who recently raised and successfully closed a Series A funding round (woohoo!). Keep an eye out for part two, filled with more advice from our Hub Members and Five Top Tips by Jo Slota-Newson Principal at IQ Capital, to understand what boxes an investor hopes you’ll tick before and during your raise.
Maturity and timing is everything
Congratulations, the hard work you’ve put into your business has paid off and a Series A investment opportunity is on the horizon, but how do you know when the time is right? When we put this question to our trusted Hub Members, two things became clear:
1. Raising Series A normally means that a certain level of maturity has been reached within the company and you have a clearer idea of what you can offer investors and your customers;
2. Timing! Make sure you have enough runway when you start to fundraise and keep an eye on the market as you want to make sure potential investors are open to conversation.
Finding the right investor: a matchmaking saga
Finding the right investor is not only about finding the right amount of funding, but also an opportunity to find the right partner that will help you elevate your business. This involves making sure your values are aligned on the vision of your company. Examples can cover, but not be limited to:
Now that you know what to look for, where do you find them? Our three Hub Members all emphasised the value of utilising existing investors’ networks. Warm introductions by investors or corporate lawyers from your pre-seed or seed rounds are excellent, and make sure to nurture those contacts that you made when the timing or stage wasn’t quite right – you never know when they might come in handy. Make the most of networking opportunities such as pitching events or university alumni showcases as you never know who you may meet. Similarly, industry specific organisations or groups can be a very helpful way to meet relevant contacts and investors. And last but by no means least, the Enterprise Hub can provide you connections to a wide network of investors and industry experts including our Fellowship, we are always more than happy to tap into it for you!
“Good fortune is what happens when opportunity meets with planning” – Thomas Edison
If the pandemic has taught us anything, it’s that we can never quite predict what awaits around the corner. In investment terms, this translates into:
Even the most promising conversations can take six to eight months before you see any money in the bank. Our Hub Members suggest:
Creating a compelling narrative
When it comes to telling your story and creating a narrative that will convince investors to take a chance on you and your business, practice makes perfect.
Make sure to read part two to learn more!