From sitting on the board of Connect Yorkshire, one of a global network of not for profit organisations which nurture science and technology company growth, I can say, without doubt, good advice from experts is what entrepreneurs seek most to help them become investment ready.
Later in November, Connect Yorkshire hosts its bi-annual Investment Forum - a
showcase of science, technology and knowledge based companies seeking finance. The forum gives both selected young companies and UK investors the opportunity to meet and discuss opportunities in a single location.
Advice is critical to the preparations of each company chosen to pitch. Intensive help and mentoring ensures that they capture the attention of investors.
Here’s a snapshot of some of the key advice imparted to them.
Be able to clearly and simply explain what your business opportunity is
A rehearsed ‘elevator pitch’ enables you to explain the problem you are solving and why your approach is different to what is currently available. Companies selected for the Investment Forum are coached on the resonance and clarity of their presentation.
Know your customers and your market
A clear idea of who will want to buy your product or service, and why, is essential. Can you demonstrate to an investor that there is demand for your idea? A great new technology innovation is nothing without a market and competitors. Connect’s experts help young companies to fine tune their go to market strategy.
Sell the experience, knowledge and commitment of your management team
Investors generally back people more than ideas so selling your track record and drive is as important as your product. Have you extracted the value of all of your people in your pitch? For example, a software company could benefit from having a technical expert to demonstrate the product alongside the business person.
Let a potential investor know what’s in it for them
The pitch isn’t just about what you need, it’s about them too. Business angels and VCs need to make money. Can you demonstrate that your proposition is capable of giving them a return on the cash they put in with clear and realistic projections? Connect nurtures companies through access to a panel of financial experts who can road test a forecast before it comes under investor scrutiny.
Ensure that your intellectual property is secure
Before putting their money in your business, investors will need to understand the strengths and weaknesses of any intellectual property that your business relies on. Can you prove to a potential investor that plans are in place to stop a competitor from catching you up?
One final word on advice – it may be your holy grail, but is it good advice. There is a lot of information and help out there so make sure it’s from a trusted or recommended source otherwise it might send you in the wrong direction. The best advice is always from people who have real hands-on experience of the key issues.
Connect Yorkshire’s Investment Forum is open to investors from across the UK.
Dr Gwyn Humphreys is a board member of Connect Yorkshire. He previously worked as a consultant in pharmaceuticals and healthcare at the Biotechnology Unit of the DTI, then at the University of Bradford as director of business development services, and also co-founded Bradford Particle Design which sold for $200m.
