Fundraising
- Only when you’ve fully prepared for the close scrutiny of due diligence, should the presentations to investors begin. Whether you’re raising money to finance growth or perform a management buy-out/buy-in, the due diligence process can be time consuming. It will typically involve multiple meetings and interviews with management, at both the investor's and your offices. The preparation for this should not be underestimated and you’ll need to anticipate questions and requests particular to your business.Typically, unless a business can offer the prospect of significant growth within five years, it is unlikely to be of interest to a VC. There is no absolute standard return sought by an investor but as a rough guide, a VC investing in an early or ‘seed’ company may be looking for a compound annual growth rate on their capital of between 50-75% per annum for a period of 5 years. Assuming 50%...this equates to approximately 7.6 times the value of their initial investment over 5 years! For companies that are cash flow positive, and turning over more than £3M Euro’s this percentage could be reduced to between 25-40% p.a. or (assuming 25%) a return of 3.05 times their investment over 5 years.
However, first of all you have to find the right investor for your business. Fullbrook’s network of investors means that regardless of the stage of your investment, we can connect you quickly to the right audience. Under normal circumstances, for every investor that you have to present to, significant resource will be utilised and a great deal of time will be expended. Our fast track routes often mean the difference between success and failure.
"The true meaning of life is to plant trees, under whose shade you do not expect to sit". Nelson Henderson.
