Adrian Kirby Gives Advice on how to Secure Investment
By Adriankirby.com, PRNESunday, August 22, 2010
LONDON, August 23, 2010 - Entrepreneur Adrian Kirby (www.adriankirby.com/) gives some do's
and don'ts on obtaining funding.
The market is both diverse and complicated but essentially the primary
source of funding for your business is derived from commercial lenders, the
Banks. The other funders are larger institutions such as insurance companies
through to Sovereign funds, Private Equity and specialized investors such as
hedge funds.
The funding market for your business.
The hard reality is that today the investment community as a whole
including the major clearing banks do not have much appetite for start up or
small and medium size enterprise. These "funders" like larger deals where
they have security on their money and a critical mass so they can earn good
margins on their loans and investments. Many of the Bank and Private equity
players (who rely on the availability of vast amounts of wholesale money to
leverage) already have good performing investments which are mature and, if
properly financed are historically profitable to hold. If these investments
are subject to refinancing then the likelihood is that the "funders" extant
resources are required in a relatively illiquid market place to fund "in
house" activity.
Do's and Don'ts.
Do's
Try a Bank first to get a loan, it will be your best option and the most economic. Start your pitch by getting the decision makers attention. Always make your best and strongest points at the outset. Show early that you as a person are investable, funding is also about investing in people. Ask yourself if they (the funders) are interested quickly, and if so move swiftly to getting an early decision in principle. If you get an in principle decision move fast to close. These people work under pressure and have hundreds if not thousands of opportunities to look at every year. Show you are passionate and committed to your cause. Make sure you know the last detail about your business, its market and competitors. Highlight why you are different. Demonstrate that you can deliver, funders like people who can close.
Don'ts
Don't turn up poorly dressed and badly presented. If you haven't got the funders attention quickly, stop and ask if there is something they don't like about the business or they haven't understood. You will know quickly. Don't mess up the financial part of the presentation and if you are using projected figures disclose this at the outset. Funders don't like surprises, especially nasty ones, always be honest. Don't give up if you get knocked back. Don't try and give an answer if you just don't know. Just say I don't know but will find out.
Top Tip!
Ravensbourne Private Equity.
Ravensbourne is a specialized funder who looks to invest in small and
medium size enterprise. They are especially active in turning around private
equity providing funding for Corporations that are denied access to the
funding market generally if they are distressed.
They are also useful for start up corporations involved in the
environment. Ravensbourne has a number of strategic partners in this sector
and is actively engaged in seeking to expand its own operations.
Contact: David Brookes - +44(0)207-0251-360
Tags: Adriankirby.com, August 23, London, United Kingdom