raising capital for your scaling social venture

Raising capital for your scaling social venture

Suzanne Biegel, Clearly Social Angels, ClearlySo

CONTACT: @ClearlySosimon.evill@clearlyso.com020 7490 9526uk.linkedin.com/in/simonevill

We help social entrepreneurs raise capital

There are at least five keys to entrepreneurial success

A compelling solution to a real problem, need or

opportunity

Having/building a great team

Financial management & control

Producing, selling, and delivering your product or service

Being adequately capitalised

Scaling Growth – What investors look for

Demonstrated traction in the market – product/service out

there and working

An investable team including board

Clarity around the numbers – understanding of the

enterprise business model and capital needs

Testimonials/references from clients, suppliers, partners

Social metrics

Clarity re: your enterprise role in market landscape

Clarity around scaling strategy – replication, growth,

franchising, etc.

Seed Scaling

Concept

At least tech prototype

Commitment

Initial team

Initial plan

Instincts around mkt

Ideas around metrics

Initial customers

Good questions

Real products/svcs

Solid team

Strong scaling plan

Customer testimonials

Partners

Measurement/metrics

Operational processes

Good tech

Commitment

Six things your enterprise should offer

Compelling market opportunity

Source of sustainable competitive advantage

Clear plan

A management team and board which can get the

job done and are “well-functioning”

An attractive investment proposition for where you

are

A clear and realistic plan for exit; or clarity on lack

thereof

The Process

Is your plan together?

Do you have an investable team?

Do you have a clear financial plan, capital raising

strategy, and clarity on timing, use of proceeds?

Are you clear on who is managing the fundraising

process?

Do you have the connections to investors?

Are you ready for due diligence, negotiation?

Are you ready for investors – ongoing!

Five things your “pitch” must do

Be clear about what you are looking (investment/support) for,

what you’re offering in return, and the use of funds - right at the

start!

Present a clear, crisp summary of the market opportunity and

how you uniquely approach it, what is your solution?

Demonstrate that you have the team to get the job done

Present a set of forecasts which evidence your realism and the

proposition’s appeal

Outline the social impact generated and how you will measure it

and report on it

Some of your competitive advantages as a social entrepreneur

Legitimacy/moral authority/lower risk from better

business practices

Passion/Conviction

Access to passion driven labour

Readier access to publicity

Access to below market rate capital, possibly,

And/or values-led advice/counsel/investment

Finding the right investors

Who is your ideal target investor?

What will motivate them to invest?

What are your networks for finding investors?

Are you ready for a full on due diligence process, deal

process?

What are their reference points?

Who is helping you?

Getting through the process

Are you the right person to pitch/negotiate or do you need

some help?

Do you have everything together for due diligence?

Who are they going to ask about you, about your space, and

what will those people say?

Do you have the time to be responsive in due diligence and

negotiation?

Do you know what it means to have outside

investors/board?

Things to know about the relationship

You are being assessed/judged from your first interaction to

your last

Your responsiveness, how you are in written communication,

how you are in pitching, meetings, responsiveness, all feeds

their decision making

This is a relationship – you should be able to ask questions

as well, do you LIKE these people?

You are building a relationship – they may not invest but

may add other value, introductions, or the opposite

Questions!

CONTACT AT CLEARLYSO

Simon Evill, Social Business Manager, ClearlySo @ClearlySosimon.evill@clearlyso.com020 7490 952607813 793 736uk.linkedin.com/in/simonevill

We connect social enterpriseswith investors & the corporate world