Tag Archives: funding

Time for a change?

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Ah, I get it now; there were more people who did not want to see my friend’s band than did! The ‘out of comfort zone ‘ was too much, then risk too great. I understand, nothing ventured and all that. Risk profile too high; however exposure to risk varies greatly depending on which hilltop you reside.

It surprises me the way we humans fail to learn from past models that have been unsuccessful; it is as if we are paralysed or fearful of trying something new, getting it wrong or getting fired. Given that shareholder value remains the key objective with great exits playing a huge part in this, indeed the primary objective; why aren’t more investor funds exploring alternatives, why are they not seeking out ways to reverse current trends, why are they not actively seeking ways to change their approach?

It turns out that some are. Since my last announcement it looks like we will be nearer 14X ROI if we close the current fundraising. We are now being contacted by funds and fund managers asking to how we achieved such returns particularly in such a poor economic climate and inquiring as to how we might work together. We welcome this; we want relationships with investors like the Carbon Trust, where we can add value in this level either as partners in JV’s or partnerships.

Therefore if you are seeking to attract and raise additional funds or have portfolio investments that need to get to revenue; we offer a proven approach and successful track record that offers a significant differentiator; indeed if you have companies that really need accelerating to unlock the value, or indeed if you wish to know if they won’t, then again we would be happy to talk to you about how we can assist.

We work in various ways: a strategy to scale programme; time and expertise for equity models; new innovative approaches to qualify commercial viability; generation of quality deal flow; IP FTO diligence; outsourced sales channel capability; understanding and control of the commercial process; or even to be your commercial expert on the board. We have proven our value through our approach in hundreds of early stage companies over the last ten years. We pride ourselves on a great value proposition that offers an inside track into deal flow and a clear route to maximise exit strategies.

It is a combination of these approaches and in working with fund and portfolio managers that have enabled us to deliver such a significant ROI.

Please call 01235 831777 or email info@conduitpartners.co.uk to discuss how your fund or your portfolio companies can benefit from our experience and approach.

Why the Dragons are right to roar at the unprepared

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If you’re seeking investment to transform your business, and you know you’re going to pitch to investors with a ferocious reputation, then doing your homework should be your top priority. As an entrepreneur, you should know your business inside out – the proposition, the figures, the projections – and you should do some research on the personalities and preferences of the panel you’ll be facing, or you risk being eaten alive.

This is exactly what happened on Dragons Den episode eight.

Deborah Meaden was right to put the young guys under pressure. Companies going for investment need to be prepared for intensive scrutiny and intrusive due diligence. It is the most uncomfortable process, and if unprepared you will be caught out and exposed.

However, I believe that Duncan Bannatyne took advantage of the youth and inexperience of the RKA Records entrepreneurs. High risk? Possibly. A punt? Maybe. But grabbing 79% is, in my view, wrong. It has helped Duncan hit the headlines for securing a record stake (pun intended!) in the company. He is quoted as saying: “With my investment and hands-on involvement, we can really take the business forward and achieve their ambitions.” Some may argue that being left with 21% equity in a potentially huge business is better than 100% of a tiny one, but I can’t help feeling that the teenagers have been ripped off.

The estate agent guys had not prepared, and I think they missed an opportunity to review and revamp the way homes are sold. A flat-fee approach would be more attractive for example. The whole model the guys presented was flawed, in my opinion, and again their lack of preparation let them down. And it was the same for the hotdog guy, who had not thought through his proposition.

We spend our working days with early-stage businesses, preparing them for investment. We have years of experience on mentoring and coaching entrepreneurs, working with them to put a robust plan in place in anticipation of those testing and sometimes awkward questions when they come to face investors.

Don’t let your brilliant idea go up in smoke because you haven’t done your research. Call us on 01235 831777 or email info@conduitpartners.co.uk to discover how to put fire into your pitch.