Investment - Agenda

‡ Case studies on British creative

companies and their investment journey
‡ Knowing your business needs
‡ Knowing what an investor is looking for
‡ Working this through
‡ Comparing against the MyCake
benchmark
 Case Studies
‡ How did they get going without investment?
‡ When did the investment happen?
‡ How much?
‡ Who?
‡ What was it used for?
‡ What was the result in terms of growth?
‡ Has there been a return on investment?
 Oo any of the following
problems exist?
‡ Smaller businesses face competition in accessing
equity from the more favoured large businesses
‡ Problems faced by businesses in a particular industry
‡ The size of investment: smaller investments are
harder to raise than larger investments
‡ The stage of the business: start-ups have greater
difficulty attracting equity than established
businesses
 Oo any of the following
problems exist?
‡ The technology basis of the business; new
technology-based firms find it harder to attract
finance than businesses using established
technology, with the caveat that this was the case
until "the recent and possibly short-lived 'dot-com
stampede'"
‡ The location of the business; those based in
peripheral regions have more problems accessing
finance than those based in economic core regions
ðets look at your businesses
 Investment - Activity
‡ 4 groups
‡ Pick one of your businesses to work on
in each group
‡ Collect one pair of workshop sheets &
some postits, poker chips, cusinaire
rods etc
 Part 1 - headlines (20)
‡ What does the business do now?
‡ What would investment enable?
‡ How much are you looking for?
‡ Equity or debt investment?
‡ When will you be able to provide a ROI
to the investor(s)?
‡ How will the company exit?
 Part 2 - the uses of money
(20)
‡ Using the post-its, poker chips etc work out
the value of your current assets in each of the
areas shown (Investee)
‡ Add more areas of your own if necessary
‡ Next work out how you much you need as
investment in each of the areas (Investor)
 Part 3 - the cashflow (30)
‡ On the second sheet work out when these
investments will need to be made in the business
(across a 3 year time frame)
‡ Add in the rest of the running costs of the company
‡ If you need some comparators use the MyCake
benchmark data to help you
‡ Make best guesses at what you think the sales will be
for each year if you have this investment
‡ Work out the profit (if any) in each year
 Part 4 - reviewing needs (10)
‡ Use the prompts on the first sheet to
clarify your motivations for wanting
investment
‡ What do you think the motivation of the
investor would be?
‡ What would be the investment and
return you are offering to the investor?
‡ New vs. existing market & products?
So, how did that work out?
 Results of each group
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