1. / aristos peters
EARLY STAGE FUNDRAISING
‘Show Me The Money’
Tech Meetups

2. My Big ‘Early-Stage’ Picture
 1 EIS Investment & 3 sweat Investments (but not an angel)
 Founder Institute, Seedcamp, Oxygen (& other ‘new/program’
accelerators)
 WeKlik (investment ready, fundraising & corp fin)
 Angel Groups (Networks & Clubs)
 Keiretsu Forum (Angels, HNWs, Family Offices)
 Beer & Young (growth/expansion finance for £1m+ T/O)

3. Funding – What’s Out There
 Program or the New ‘Accelerators’
 Debt: Borrow against assets or near future opportunity (Sales contracts, IP, etc)
 Grants (sector, location)
 Funding Organisations (SEIS & EIS seed funds, VCs, Angel Networks/Clubs)
 Competitions
 Crowdfunding
 Go get a fundraiser / broker / intermediary (Individual or Corporate Finance)

4. The Door Opener
 An Executive Summary
template / Structure E X E C U T IV E S U M M A R Y
> O n lin e R e t a il ( H o m e A c c e s s o r ie s & G if t s ) <
W it h £ 3 0 k in i t ia l s t a r t - u p in v e s t m e n t c a p it a l, t h is o n lin e r e t a il b u s in e s s K e y D a ta
h a s b u i lt a n d e s t a b lis h e d a s t y lis h b r a n d o n a m in im a l m a r k e t in g
 Killer introduction
b u d g e t t o a t u r n o v e r o f £ 2 4 7 k in it s t h ir d f u ll y e a r . T h e c o m p a n y , • S e c t o r : O n lin e R e t a il ( H o m e
w h o s e p r o d u c t s h a v e a c o n t e m p o r a r y O r ie n t a l f e e l w it h E u r o p e a n A c c e s s o r ie s & G if t s ) .
s t y lin g a n d a c o m m it m e n t t o u s in g e t h ic a lly s o u r c e d a n d p r o d u c e d • S t a g e : E a r ly G r o w t h w it h 3
g o o d s a r e lo o k in g t o t a k e o n in v e s t m e n t t o e x p a n d o p e r a t io n s a n d t o y e a rs re v e n u e s .
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t u r n o v e r a n d w it h h ig h p r o f it a b ilit y . T h is is in c o n t r a s t t o o t h e r r e t a ile r s 3 a d v is o r y e x e c u t iv e s
w h o h a v e n o t b e e n a b le t o r e m a in in p r o f it a b ilit y d u r in g t h e s a m e ( in c lu d in g C h a ir m a n ) .
 1 – 2 pages
p e r io d . T h e c o m p a n y h a s s o f a r m a n a g e d t o a c h ie v e g r o s s p r o f it o f
c 6 0 % a n d b e lie v e t h a t t h e y c a n n o t o n ly c o n t in u e t o g r o w r e v e n u e s I n v e s t m e n t & E x it A s p e c t s
a n d p r o f it a b ilit y b u t t h a t w it h t h e ir n ic h e p o s it io n , c a n s c a le u p t o b e a
b r a n d o b t a in in g s ig n if ic a n t t r a c t io n w it h in t h e r e t a il s e c t o r . T h e • S e e k in g : £ 5 0 0 , 0 0 0
m a n a g e m e n t ( w h ic h in c lu d e s a f o u n d e r w h o h a s e x it e d o n a p r e v io u s • T a x R e lie f : E I S a p p lic a t io n
b u s in e s s ) h a s m a n a g e d to a ttr a c t a n a d v is o r y b o a r d a n d C h a ir m a n u n d e rw a y .
w it h s ig n if ic a n t r e le v a n t e x p e r ie n c e a n d c a lib r e t o a s s is t t h e f o u n d e r s • M u lt ip le I n v e s t o r s : Y e s
a s t h e c o m p a n y c o n t in u e s t o e x p a n d . • E x it : T r a d e s a le .
 Headings: I n v e s t m e n t O u t lin e : T h e C o m p a n y c o u ld m a k e a n a t t r a c t iv e in v e s t m e n t
p r o p o s it io n o n c e s c a le d u p . I t h a s d e m o n s t r a t e d a m a r k e t f o r it s g o o d s in
b o t h U K c o n s u m e r a n d t r a d e m a r k e t s a n d h a s b e e n a b le t o e s t a b lis h h ig h 2009
•
F in a n c ia l P r o j e c t io n s
( £ 0 0 0 ’s – in c ’ in v e s t m e n t )
/1 0 ( A c tu a l)
Turn o v er £247
m a r g in s o n m in im a l m a r k e t in g a c t iv it y . I t s n e x t p h a s e is t o s c a le - u p t h e
o p e r a t io n , e s p e c ia lly t o m e e t d e m a n d f r o m t h e C h r is t m a s p e r io d , b y • G / P r o fit £166
- Investment Outline
in c r e a s in g t h e p r o d u c t r a n g e , a u d ie n c e b a s e a n d s a le s r e v e n u e s v ia it s • N e t P r o f it £45
w e b s it e a n d t o u n d e r t a k e n e w m u lt i- c h a n n e l m a r k e t in g in it ia t iv e s t h a t it 2011 /1 2 ( P r o je c tio n )
h a s n o t b e e n a b le t o a f f o r d . I t h a s d e v e lo p e d a d d it io n a l r e v e n u e s t r e a m s • Turn o v er £ 1 ,4 5 0
a n d p r o d u c t o p p o r t u n it ie s a n d n o w t h a t t h e b r a n d a n d b u s in e s s h a s b e e n • G / P r o fit £825
e s t a b lis h e d , t h e c o m p a n y a r e lo o k in g f o r in v e s t m e n t t o s c a le b e y o n d t h e • N e t P r o f it £25
s u s t a in a b le g r o w t h t h e y h a v e a c h ie v e d , e n a b lin g t h e m t o a im t h e b u s in e s s
- Business Summary
2012 /1 3
t o w a r d s a 4 - y e a r e x it . I n v e s t m e n t w ill b e s p e n t o n m u lt i- c h a n n e l • Turn o v er £ 2 ,1 6 0
m a r k e t in g a c t iv it y , s t o c k p r o d u c t io n a n d o p e r a t io n a l e x p a n s io n b o t h in t h e • G / P r o fit £ 1 ,3 3 9
U K a n d a t t h e f a c ilit y in A s ia . T h e b u s in e s s a im s t o in c r e a s e it s g r o s s p r o f it
• N e t P r o f it £337
m a r g in o n c e it h a s in c r e a s e d c a p a c it y a n d f u lly r e s t r u c t u r e d t h e o v e r s e a s
2013 /1 4
o p e r a tio n .
• Turn o v er £ 3 ,0 5 0
- Customer Issues (the problem)
• G / P r o fit £ 1 ,9 2 8
B u s i n e s s S u m m a r y : T h e b u s in e s s e s t a b lis h e d in 2 0 0 7 is c u r r e n t ly
• N e t P r o f it £500
c o n f ig u r e d a s a p a r t n e r s h ip b u t is t r a n s f e r r in g t o a n e w lim it e d c o m p a n y .
T h e C o m p a n y h a s d e v e lo p e d a g o o d c lie n t b a s e a s a r e t a il a n d t r a d e 2014 /1 5
f u r n it u r e s e lle r , w it h c lie n t s in c lu d in g ; R it z C a r lt o n H o t e ls , S h e r a t o n H o t e ls , • Turn o v er £ 5 ,9 0 0
F o u r S e a s o n s H o t e ls a n d R e d r o w H o m e s . T h e C o m p a n y o p e r a t e s it s o w n • G / P r o fit £ 3 ,7 0 9
- Product/Service
w a r e h o u s e f a c ilit y f o r it ’s im p o r t e d g o o d s a n d a f u r n it u r e p r o d u c t io n f a c ilit y • N e t P r o f it £ 1 ,3 6 5
in A s ia w a s p u r c h a s e d in 2 0 0 9 w h ic h w i ll a id o n e o f t h e c o m p a n y ’s k e y
d if f e r e n t i a t o r s , t o b e a b l e t o c u s t o m i s e a n d t a il o r m a k e t o o r d e r . T h e
d e s ig n a n d p r o d u c t io n f a c ilit y a llo w s t h e ir u n iq u e a n d o r ig in a l d e s ig n s t o s t a n d a p a r t b o t h in t h e r e t a il a n d t r a d e
s e cto rs .
- Target Markets / Sales Channels
C u s t o m e r I s s u e s : C u s t o m e r c u s t o m is a t io n is a k e y o ff e r in g t h e C o m p a n y c a n p r o v id e o v e r a n d a b o v e t h e
s t a n d a r d o f f e r in g s t h a t t h e h ig h s t r e e t a n d o n lin e r e t a ile r s o f f e r . T h e C o m p a n y a r e a b le t o m a n u f a c t u r e t o o r d e r
a n d h a v e t h e f le x ib ilit y t o m a t c h a n d f u lf il n e w c o n s u m e r t r e n d s a c r o s s a n u m b e r o f p r o d u c t a r e a s . S lig h t
v a r ia t io n s in t h e o r d e r f r o m t h e c u s t o m e r ( s iz e , c o lo u r a n d m a t e r ia l) c a n b e a c c o m m o d a t e d , a s t h e r e is n o
m e c h a n is e d f a c t o r y lin e . T h e c o m p a n y a ls o in c o r p o r a t e s t h e e t h ic a l s o u r c in g o f it s p r o d u c t s a s a k e y c o n s u m e r
- Sales & Market Strategy
p u r c h a s in g p r in c ip le .
P r o d u c t / S e r v ic e : T h e a im f o r t h e C o m p a n y is t o d e v e lo p a s a m u lt i- c h a n n e l r e t a ile r . R e t a ile r s w it h s u c h a
f o c u s h a v e c o n s is t e n t ly o u t p e r f o r m e d t h e ir p u r e - p la y c o u n t e r p a r t s in t e r m s o f s a le s g r o w t h . T h e C o m p a n y
c o n t r o ls t h e c o m p le t e s u p p ly c h a in , w h ic h in c lu d e s u t ilis in g t h e ir o w n d e s ig n t e a m in A s ia a n d w o u ld lik e t o
r e a c h o u t a n d c r e a t e m u lt ip le c o n s u m e r ‘t o u c h - p o in t s ’ s u c h a s : t o o p e n a n o u t - o f - t o w n b a r n - s h o p s t y le o u t le t ,
- Competition
e s t a b lis h a P a r t y P la n d ir e c t m a r k e t in g n e t w o r k , p a r t ic ip a t e in t r a d e f a ir p r o g r a m m e s ( in c lu d in g a C h r is t m a s
m a r k e t s c h e d u le ) , p r in t c a t a lo g u e s / b r o c h u r e s f o r v a r io u s t r a d e a n d r e t a il s e c t o r s , a s w e ll a s t o e n g a g e a n
a g e n t n e t w o r k t o r e a c h t h ir d p a r t y r e t a ile r s .
T a r g e t M a r k e t s / S a l e s C h a n n e l s : T h e C o m p a n y h a s t w o m a in r e v e n u e c h a n n e ls w h ic h a r e c o n s u m e r r e t a il
( 7 5 % ) a n d t r a d e r e t a il ( 2 5 % ) b u t h a v e a ls o b e e n d e v e lo p in g a s e r v ic e o f lu x u r y h ig h - e n d in s t a lla t io n s .
- Future opportunity / Exit C o n f id e n t ia l 1

5. The Approach
 It’s a different landscape with its own language.
 Think of it as a campaign (?Months, people, £money)
 95+% of businesses approaching investors …. No guarantees.
Many don’t get to the deal negotiation stage

6. Getting Ready
Investment Ready > Often just means developing the
tangibles of biz plan, ES or pitch-deck)
Deal Ready (The smart stuff) > Get: advisor/mentor,
financials stress tested, traction, benchmark, exit &
valuation). This is called ‘de-risking.’
Above all, tell your ‘investment or opportunity’ story
(not your product/service or business story)

7. Some Turn-offs
 The overload: “Here’s all our data (50 pages & 4
attachments), tell us what you think.”
 The drip feed: “Here’s the biz plan, finances will be ready next
week.”
 No start-up experience but plenty of blue chip CV.
 Everything Outsourced. “We have selected an agency to
manage our sales.”
 Opportunity greatness overrides all other considerations.
 Flowery, vague, over spun, hyped up, dressed-up and totally
entangled with ‘marketing speak.’No acknowledgment of
possible uncertainties or weaknesses.
 No early chunky salaries – Be exit motivated.

8. Investor Questions
 How many investments done to date?
 How would you get involved / what do you offer (especially if young or
new angel)?
 Smallest & largest deals (£?)
 How many in last 12 months (or 24)?
 How many times have you syndicated with others?
 Would it be ok to contact any of your past/current investments for
references?
 Would or could you bring in any colleagues on the deal also (if you’re
not taking the whole deal amount)
 Will you be looking to follow-on if necessary?
 Have you managed to exit yet? Had any failures yet (references)?

9. I’m done – thank you very much
 Linked In requests > I am not an open networker or
collector of profiles. If sending me a connection request, say
why you want to connect.
 If emailing me > Send a really good executive summary. No
NDAs, no business plans and no email outlines.
 Remember > When fundraising you are in competition and
YOU WILL get filtered. So do everything you can to NOT get
filtered.

10. Questions?
/ aristos peters
blog > > http://weklik.wordpress.co.uk
twitter > > @ w e k l i k
linked in > > http://www.linkedin.com/in/aristospeters
email (We Klik) > > apeters @ weklik.co.uk
email (Keiretsu Forum) > > apeters @ keiretsuforum.com