Events Recaps

RECAP: Get Investment-Ready – Strategy & Valuation

June 21, 2018

Last night’s ‘Get Investment Ready’ workshop covered a wide range of essential topics to help entrepreneurs get these two pieces of the funding puzzle in place. Here are some of their best tips for entrepreneurs seeking funding.

Understand the reasons why investors invest – and why they don’t.

Oliver Woolley of Envestors gave some important insights into the minds of investors. There are plenty of reasons why they might not want to invest in companies at all:

So why do they offer their hard-earned money to entrepreneurs? Usually, they aim to benefit from one or more of these incentives:

Show investors how your business speaks to the reasons they invest in the first place and is well worth the risk.

Learn all about EIS/SEIS.

Martin Sherwood of Enterprise Investment Partners encouraged entrepreneurs to pay special attention to these UK tax relief schemes.

The Enterprise Investment Scheme (EIS) offers investors 30% relief, while the Seed Enterprise Investment Scheme (SEIS) offers 50%, offsetting the risks of investing in a seed-stage company. To take advantage of them, you need to be a UK taxpayer, but not necessarily a resident. 

To register for EIS/SEIS, you’ll need to write to HMRC. You can do this yourself, but make sure you get it right. Submitting incorrect information could lead to a troublesome investigation by HMRC and cost you a lot of time. If you have any doubts, hire a tax adviser to do the paperwork for you.

Include your failures in your storytelling.

As an entrepreneur, you probably understand why storytelling is important, but do you know how to tell yours? According to Barry Pilling of No Mean Feat, it’s not about presenting yourself or your business as a picture-perfect success story. To capture investors’ attention and appeal to their human side, talk about your failures. 

Pilling recommends dividing your story into five plot points that answer these questions:

By showing investors that you’re a competent, experienced entrepreneur who’s onto something big, your story helps determine your valuation. Make it as compelling as possible!

Start small, but have a big vision.

Planning a funding strategy can be tricky, but Angelika Burawska of Startup Funding Club offered some great tips on keeping it in perspective.

Burawska also recommended that entrepreneurs seek advice only from people who invest, not ‘advisors’ who don’t do any investing themselves, and presented the Quick Guide on Startup Valuation below to give entrepreneurs a rough idea of what their business is worth.

There’s more than one way to reach – and present – a valuation.

Anthony Rose of SeedLegals identified one of three main ways to value your company:

When you think about how to include your valuation in your pitch, remember:

Strategy and valuation are the keys to success in business funding, so use these points as food for thought as you consider – and reconsider – yours before pitching to investors.

Ready to try out your funding strategy? Meet investors and other entrepreneurs at our Christmas Networking Soiree with Funders on 12th December. The event will be hosted at WeWork Moorgate and begin at 6:00 p.m. Secure your ticket now!

Can’t get enough funding tips and contacts? Meet even more funders and learn about every aspect of the funding journey at the flagship Business Funding Show 2018! Experience a full day of talks, showcases and one-on-one meetings at Canary Wharf’s East Wintergarden on 22nd February. Get your ticket here!

Written by:
The Business Funding Club Team
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