Take the dull stuff seriously – the business investment journey

Lucy Paine, Catalyst Programme Manager at the Sussex Innovation Centre, came along to the Brighton Chamber ‘Investment journey for high growth entrepreneurs’ event on 27 March and here she shares her key takeaways from the panel and Q& A. 

The journey of a growing business can be fraught with danger, challenge and excitement. Everything is uncertain and up for grabs. Brighton Chamber had put together an exciting panel of businesses to talk all things investment.

• Jon Cornell, Fund Manager from The FSE Group
• Claire Taylor, CEO and founder at Simply VAT
• Alex Packham, CEO and founder at ContentCal
• Phil Wood, Director and head ice cream maker at Brass Monkey Ice Cream
• Facilitated by Si Conroy from Scarlet Monday.

The panel represented very different businesses at different stages and offered a great variety of experiences and all came ready to share their journeys, plans and goals. Simply VAT, a trading business with early stage investment from an angel investor, Brass Monkey Ice Cream is just about to open an ice cream parlour with investment from contacts and ContentCal described their journey on the quest for multi stage investment tiers reaching into the millions.

Jon Cornell offered a lenders perspective and Si Conroy tied it all together as Chair with a view of the Brighton business world.

But what were the key themes from the night?

Don’t be obsessed by the exit strategy

You’ve just started your business and investors want to know when you’re leaving! Have an exit strategy but don’t feel tied to it – investors need to see an understanding of lifespan and that you are thinking ahead but don’t let that ruin the journey. It demonstrates foresight rather than a lack of commitment to the business.

Talk team not founder

Alex highlighted the value of a strong management team rather than focussing on the founder – which is considered by many to a pompous term and is not as attractive to an investor as a balanced team of combined strength.

Have a passionate pitch

Claire highlighted the value of her experience with NatWest Accelerator Programme (previously called Entrepreneurial Spark), practising the pitch until it feels natural. Make the pitch proactive, be confident in your brand and prepare all your data so you can translate that passion into an opportunity.

Alex has experienced the London accelerator model, being placed in a room with 100 lenders and VC’s, initially too soon but a great experience that proved its worth when he was ready for investment.

Help other people love your ugly baby

You are too close to be objective, but through energy, self-belief, knowledge and determination you can help your potential investors see the beauty of the potential.

You will have knock backs but learn from each one, and try to understand why it didn’t go as expected.

Do your financials research

EIS, SEIS, loans, grants – it’s a confusing landscape out there for funding, so get to know the jargon, understand the benefits and ask the right questions of the right people. Visit Finance South East or talk to the Business Navigator Growth Hub for help getting started.

You need to understand the tax benefits, the risks, the opportunities. And when you do find an investor don’t give away too much too soon, leave yourself room for manoeuvre.

Take your staff on the journey

Involve them, have weekly stand up meetings, solid communications and context – especially at the beginning.

Get the team to bring their heads to work, do the job of their lives – find out what motivates them and celebrate success together.

Take the dull stuff seriously

Have a financial plan, create and maintain a business plan. Start a due diligence folder, with contracts, legal information, disclosure letter, governance information.

Take processes and documentation as seriously as your pitch. Don’t skimp on the legal advice and protect what you can.

Final thoughts from the panel

• Be realistic regarding your emotions about your baby
• Surround yourself with support
• You’ll never feel so alive as when you start your own business

The main points from the evening centred around the investment journey being an intense one but often a necessary journey to get your business off the ground. Getting advice is essential and surrounding yourself with great support can be the key to making sure you keep learning and enjoy the rollercoaster ride of business! 

And clearly, we all need to eat more ice-cream. I can’t wait to visit the Brass Monkey parlour when it opens!

If you’d like more information about how Brighton Chamber can help growing businesses or this high growth event series, please contact one of the team on 01273 719097

Thanks to Lucy Paine from Sussex Innovation Centre for writing this blog.

If you want to contribute to the Chamber blog, contact us on hannah@brightonchamber.co.uk