Tag Archives: Fundraising

Business Advice, News

Five lessons for would-be angel investors

Written byy Chantelle Arneaud, Envestors

Delivering both finance and expert knowledge, angel investors are thought of as smart capital. But if you are new to the role of angel you risk feeling less than smart if you don’t pay attention to these lessons learned by five expert angels (names are changed to spare blushes).

 

Check who owns the IP

One of John’s first investments was in an interactive app for tourists. ‘Not long after I parted with my cash, the company got into financial trouble and folded.’

It transpired that the CEO and not the business owned the IP. This meant that when the business folded, the CEO walked away with its greatest asset, the Intellectual Property, and started a similar company.

If the IP is not owned by the company, walk away.

 

Be wary of ambitious expansion plans 

Tom invested £50k into a bakery business but cracks started to show. ‘The CEO was overly relaxed about the financial affairs of the company. He was keen to show growth to investors and so expanded quickly to around twenty sites.’

This rapid expansion caused issues. ‘The customer experience had suffered as a result of the business trying to do too much too quickly – which impacted the brand.’

Quick expansion and high standards not being able to remain consistent led to the critical mass never being reached. ‘It was inevitable that the company was going to go into administration once the overheads outweighed the revenues by a ridiculous amount’.

Interestingly, the company was bought by someone in the industry with more experience and it is now a thriving business with stalls across London train stations.

The lesson here is about speed and experience. Of course, as a minority shareholder, you can’t dictate the company’s plan, but you can counsel them. And if you see them trying to go too fast in an industry in which they are new, put up a red flag.

 

Check data sources are credible

Six months after an initial investment into a flower distribution company, Caroline discovered that the business owed £350k in VAT. ‘My due diligence on this investment, like all my investments, was done with a fine-toothed comb. The problem, I later learned, was there was missing information.’

The Business Plan that was sent to Caroline didn’t disclose this financial information. If it had, she would have quickly seen the company was insolvent.

At Envestors, we always recommend our companies work with accredited advisors to show investors information has been reviewed by a qualified third party. This could be an accountant or corporate finance advisor or, failing that, we recommend investors work with an investment network that is regulated by the Financial Conduct Authority to protect themselves from situations like this.

 

Be vigilant

Julie conducted her due diligence in time to get benefit from the Enterprise Incentive Scheme (EIS), which meant her £10k investment into a fitness business would be subject to 30% tax relief and if things went badly a further £2,800 in relief, so the total amount she stood to lose was £4,200 and not the full £10k. Or so she thought.

‘Sadly, the business was absolutely not the next big disrupter.’ The business folded. ‘I was upset when I found out, but I exploded when I learned my tax relief wasn’t coming.’

Julie learned that the EIS paperwork had been incorrectly filed and there was no tax relief to be had.

Ensure all paperwork (including EIS) related to your investment is being handled by a qualified individual such as a lawyer or company secretary.

 

Expect the unexpected

External factors can’t always be controlled. Tanith invested £20k into a boating business. ‘The company was doing really well and decided to expand. We were all onboard with it. To purchase more boats, the company took a loan from an international bank.’

However, when the financial crisis took hold in 2008, the bank pulled in the loans, leaving the founders scrambling to find new backers in the worst financial crisis in recent memory. Unable to do so, the boats were sold off.

The key lesson to take away here is that stuff happens, and building a diverse portfolio to balance risk is the only way to protect yourself against the uncontrollable.

 

ABOUT THE AUTHOR

Chantelle Arneaud is from Envestors. Envestors’ digital investment platform brings together entrepreneurs and investors across geographies, communities and sectors – creating the single marketplace for early-stage investment in the UK.

Envestors partners with accelerators, incubators and angel networks to provide a white-label platform empowering them to promote deals, engage investors and connect to other networks.

Founded in 2004, Envestors has helped more than 200 high growth businesses raise more than £100m through its own private investment club.

Envestors is authorised and regulated by the Financial Conduct Authority.

Web: https://www.envestors.co.uk/

Charity & CSR, News

Bedfont Scientific Ltd. spreads festive joy by donating 250 presents this Christmas

Bedfont and its sponsored football team, Medway United FC, have teamed up to donate 125 gifts to Medway hospital and 125 gifts to Children’s Cancer Charity, My Shining Star

Medical device manufacturer, Bedfont Scientific Ltd., has joined forces with the local football team it sponsors, Medway United FC, to spread a little Christmas Joy by donating 250 gifts. On Tuesday 14th December, Bedfont and Medway United donated 125 gifts to Medway Hospital for the children who will there over Christmas, and another 125 gifts to the children’s cancer charity ‘My Shining Star’ also based in Medway.

Jason Smith, Managing Director at Bedfont, “Winston Churchill said, ‘We make a living by what we get. We make a life by what we give.’ Medway United and Bedfont are happy to spread some festive cheer at a time of year, which can be so difficult for many.”

Cherly Jones, Fundraising Officer at the Medway Hospital Charity, “We are extremely grateful to Bedfont and Medway United for their incredible donation of presents to our children’s ward at Medway Hospital.  Their generosity is very much appreciated, especially at this time of year, and I know our patients will be thrilled to receive them.”

Finance and Banking, News

Questions an investor should ask before investing in a company

By Chantelle Arneaud, Envestors

 When it comes to early-stage investing, the devil really is in the detail. All of Envestors’ companies go through the same readiness process. This alerts entrepreneurs to any potential investor red flags prior to going to market, and investors get standardised information supplemented with due diligence flags that indicate areas for further exploration as part of any investment decision. This process, of course, does not take away risk, but it goes a very long way towards minimising it.

Investors need to know what to ask before they part with money, and here are a few questions to include in your due diligence:

Exactly who owns the Intellectual Property (IP)?

The question of ownership is a vital one. Assume nothing. Start by checking what IP there is and who owns it. It should be the business. It should not be a director and definitely not a third-party. It does not need to be a deal breaker when it is an innocent mistake. But if they are not willing to change this, think very, very carefully about handing over your money.

Another detail to explore is ownership structures where you are dealing with group companies. What looks like a solid opportunity quickly unravels when you learn that the company offering you equity for your hard-earned cash does not own the IP. Sometimes it is a topco (which you are not investing into), sometimes it is another company all together.

 

Who is working for the business and why?

Make sure all directors have the right skill set for their role and that their salary is in line with market norms for the sector and business stage. If you find a case where there is a really good reason to have a husband and wife founding team, make sure there is a chair or independent non-exec on board to act as arbitrator should issues ever arise.

Ensure there are solid contracts of employment for key personnel with sufficient non-compete and good/bad leaver clauses. This minor detail is an important one as you want to ensure a co-founder does not slink away and re-emerge as the founder of a very similar business.

If that all looks good, make sure that no director has any conflict of interest with any supplier or customer. You want to ensure they do not also own a company which happens to be a vendor to the business.

 

Are there any unresolved disputes or lawsuits?

The last thing you want is to get blindsided by a dispute with a vendor, employee, customer or, more frighteningly, HMRC that means the company runs out of cash. So, you need to ask about open disputes. Check there are no significant outstanding invoices or purchase disputes that might put the cash flow situation at risk.

 

Who is keeping an eye on cash flow?

Few relish the idea of investing into a business that needs a cash injection to sustain itself as opposed to driving growth. But many companies fundraise for this reason and so make sure you really understand the motivation behind the raise. Scrutinise the balance sheet and ensure there will be enough cash in the bank to keep going – before the investment comes in and after.

A central part of this process involves giving yourself confidence in their accounting by making sure they have a qualified accountant.

 

Has all the necessary paperwork been done correctly?

Fundraising in the UK involves many complicated processes – from applying to the Seed/Enterprise Investment Scheme (S/EIS) to preparing the investment agreement. While there are tools on the market to help with things like legals and EIS application, be wary of inexperienced founders who have done a DIY job and not worked with a professional. You want to ensure that the company has dotted all the i’s and crossed all the t’s before you commit.

One last tip: ensure that the business will exit. You do not want a no-longer-ambitious CEO who is a little too fond of flying first class to meetings and conferences and shows no sign of driving for exit and return. Make sure there is a long-term plan for exit and that the founders have the appetite and determination to get you a return.

 

ABOUT THE AUTHOR

Chantelle Arneaud is from Envestors. Envestors’ digital investment platform brings together entrepreneurs and investors across geographies, communities and sectors – creating the single marketplace for early-stage investment in the UK.

Envestors partners with accelerators, incubators and angel networks to provide a white-label platform empowering them to promote deals, engage investors and connect to other networks.

Founded in 2004, Envestors has helped more than 200 high growth businesses raise more than £100m through its own private investment club.

Envestors is authorised and regulated by the Financial Conduct Authority.

Web: https://www.envestors.co.uk/

LinkedIn: https://www.linkedin.com/company/envestors-llp/

Twitter: @EnvestorsLondon

Finance and Banking, News

Angel investment Network announces launch of Institutional investment arm, AIV Capital

London-based Angel Investment Network, the world’s largest online angel investment platform, has announced the launch of its Private Equity and Venture Capital division, AIV Capital.

Led by experienced investment manager Ethan Khatri, AIV Capital will invest between $10 -$75Mn+ into established businesses ranging from Growth/Series B to pre-IPO and has a flexible approach utilising both primary and secondary capital. Its sector agnostic focus will be on strong management teams with a demonstrated edge in the space they operate in.

AIV Capital Managing Director, Ethan Khatri brings 16 years of investment experience across the European and Asian venture markets. Over the course of his career, he has successfully completed 27 transactions achieving 13 exits, covering technology, enterprise software, pharmaceuticals, healthcare and consumer. He will be combining his experience with AIN’s early stage market coverage and portfolio of businesses they’ve historically funded. 16 year old AIN has a global network of more than a million entrepreneurs and more than 280,000 investors, winning investment for a host of powerful businesses including What3Words, Simba Sleep and SuperAwesome.

According to Mike Lebus, founder of Angel Investment Network: “AIV Capital is the natural next stage of AIN’s evolution. AIN has been a game changer in democratising access to angel investment and powering the dreams of so many startup founders on the first stage of their fundraising journey. With the right experience and team in place, led by Ethan, we are now able to support businesses right through the fundraising cycle, from the idea in a bedroom to seed funding right through to pre-IPO.”

According to Ethan Khatri: “AIV Capital is a powerful new force in private equity and venture capital. Building on the evergreen network of AIN, our experienced team has access to an extraordinary talent pool of growth to late stage businesses which we can match with the right funding structure to ensure they deliver absolute return opportunities. Our watchword is flexibility. We invest across the capital structure and this is the method by which we maximize returns for all stakeholders.”

News

Gamers gear up to raise £5,000 for Fibromyalgia Action UK this awareness week

FMAUK Gaming for Good, a gaming charity fundraiser, will wrap up on the 12th of September, coinciding with the end of Fibromyalgia Awareness Week UK. The fundraiser aims to raise £5,000 for Fibromyalgia awareness charity, Fibromyalgia Action UK (FMAUK). 

 

What is Fibromyalgia? 

 Fibromyalgia is a debilitating condition which is thought to impact 1 in 20 people in the UK. FMAUK aims to improve the lives of people with fibromyalgia by increasing awareness of the condition throughout the UK and elsewhere, as well as improving the awareness of, and access to, treatments. 

Fibromyalgia can bring unpleasant and life-changing symptoms, such as: 

·         Fatigue and exhaustion 

·         Widespread body pain 

·         Non-refreshing sleep  

·         Cognitive disturbances and confusion 

People who suffer from fibromyalgia can find that it has a huge impact on their lives, and they may not be able to do things that they once did before developing the condition. For unknown reasons Fibromyalgia impacts women more than it does men. The women/men ratio is around 7:1. 

There is no cure for Fibromyalgia. Treatment is focused on managing the symptoms of the condition and includes things such as pain killers, anti-depressants and anti-epileptic medications, Cognitive Behavioural Therapy and counselling.  

 

Gaming for good 

 Gaming for Good is when individuals or teams raise money for good causes through playing video games. According to Third Sector, in the US, which is home to 178.7 million gamers, charitable fundraising has become an integral part of the gaming community. A live-streamed fundraiser run by GuardianCon, an annual gaming convention in Florida, raised $3.7m (£2.9m) for the St Jude Children’s Research Hospital before the convention even started. 

Participants of the FMAUK Gaming for Good fundraiser have been invited to host their own gaming marathons or tournaments in September, encouraging friends and family to fundraise in teams, or alternatively, challenge themselves to a game for a set period of time. 

Andrew Hardy, Gaming for Good fundraiser, comments “I chose to help FMA by raising money via Gaming for good as I find that gaming can really help distract me from pain. It’s something I believe can help many young people with fibromyalgia.  

I will be raising money via Game streams on Twitch.tv as the website allows me to interact with people directly and I feel I can talk about Fibromyalgia and raise awareness and vital funds. I will keep supporting FMA UK via gaming and any other events I can do for as long as I am able to as I strongly believe that one day, we will find better treatments & a cure for Fibromyalgia. 

If I can help people like myself get out of pain, then I have helped make the world a better place for Fibromyalgia sufferers. I will be dedicating my fundraiser to my mum, Lindsay, who inspires me every day to continue the fight against Fibromyalgia & to help FMA UK!”  

FMAUK has seen previous success through gaming fundraisers. Frankie Lollia raised £1,795 in May 2020 through a gaming live stream on YouTube, smashing the original target of £500.   

Fundraising will be supported by Give as You Live, an online innovative charity fundraising platform. 

Des Quinn, FMAUK Chair, comments “People with fibromyalgia often try to find distraction and respite from their condition in things they enjoy. Online gaming is increasingly popular, so it seemed like the perfect way to raise money this Fibromyalgia Week.  We’re incredibly proud to be part of such a supportive community. It’s wonderful to see people come together and spread the word.” 

Annabelle Risdon, Director and Head of Partnerships at Give as You Live, adds “At Give as You Live, we’ve seen first-hand how difficult the past year or so has been for small charities like FMAUK. We’re incredibly happy to see money and awareness being raised for such a worthy cause.” 

 

About FMAUK 

Fibromyalgia Action UK is a registered charity run primarily by unpaid volunteers. The majority of volunteers are also fibromyalgia sufferers who work extremely hard, despite their condition, in order to forward the cause of fibromyalgia.  FMAUK was established in order to provide information and support to sufferers and their families. In addition, the Charity provides medical information for professionals and operates a national helpline. 

We aim to encourage NHS and other funding sources for new research projects. At present there is very little research being carried out in the UK and sufferers are told there is no cure. We hope that will be a statement of the past. 

 

Mission Statement 

To improve the lives of people with fibromyalgia by increasing awareness of the condition throughout the UK and elsewhere, and improve the awareness of, and access to, treatments for fibromyalgia. 

 
Our Charity Registration number is:  1042582 
Our HMRC Reference number is: available on request 
Company Registration number is: SC492045 

Marketing, PR and SEO, News, NHS News

The greatest minds in marketing come together to fight for our NHS heroes

More than 200 of the UK’s leading marketers have joined forces to raise awareness and vital funds for NHS workers affected by the coronavirus pandemic through the publication of a new book entitled ‘Excerpts from Experts: Marketing.’

Spearheaded by one of the industry’s foremost leadership recruitment businesses, Fortune Hill, the near-400-page book includes insights from the prominent marketing industry stalwarts from the likes of Spotify, Sky, O2, Deliveroo, Virgin, Snapchat, Samsung, LadBible, Tesco, and Sainsbury’s.

According to recent figures published by the Office for National Statistics, over 600 NHS workers have died from COVID-19, and since March an estimated 500,000 NHS working hours have been lost because of stress-related absence.

Joel Barnett, Founder & Managing Director at Fortune Hill, whose wife is an NHS Doctor, said: “The NHS were at the forefront of everybody’s minds a few months ago. Every Thursday we would clap for them, as a sign of our immense gratitude and recognition of their heroism.

But it seems our NHS workers have become something we take for granted once more. Their sacrifice for the rest of us forgotten and the astonishing impact of their lives ignored. Showing our appreciation for a few months simply wasn’t enough, it’s time to show our appreciation for those who risk their lives to protect ours and that is what this book aims to do.”

Excerpts from Experts is a charitable collaboration of senior marketeers at the very top of their profession who have generously contributed their insights, knowledge and time to raise money for the NHS Charities Together COVID-19 appeal. The charity provides vital support for NHS workers, its volunteers and its patients.

Retailing at £19.99, every book sold sees the full price being donated to the charity and the firm is aiming to reach a goal amount of £100,000.

Adam Arnold, Global Chief Marketing Officer of leading creative agency BBH, added: “Using creativity for social good is one of the most rewarding parts of any marketers job. This book of distilled creative wisdom has real purpose too – raising money and awareness for the heroes of the NHS. A cause that deserves our ongoing attention and respect.”

Charity & CSR, Sport

Football club celebrates 10 years of fundraising success with African prison partnership

A POPULAR community football team celebrating 10 years of fundraising success has netted new partnerships in lockdown – including an African prison’s soccer squad.

The North Wales Dragons refused to let the Coronavirus pandemic stand in the way of their drive to support social change and raise much needed funds for charities and health organisations across the UK.

Made up of players aged 16 to 65 years old, the team came together a decade ago for a charity soccer match and have been together ever since, highlighting the importance of sport and exercise in creating a positive environment.

Co-founder Chris Roberts, from Colwyn Bay, said while 2020 has been “hugely challenging” there have been positives for the Dragons.

“Since the turn of the year we have made huge strides, though of course the COVID-19 pandemic has had an effect,” he said.

“We had visited universities, attended charity events and even had the opportunity to attend Celtic Park in Glasgow, to find out more about how a top-flight football club deals with social conscience.

“The team also played in a match to raise awareness of men’s mental health awareness in Leeds and attended a diversity fashion show in Manchester.”

Chris added: “The lockdown period put an end to our plans to be at more events this year, which is a huge shame, but behind closed doors we have continued to be busy.”

Other progress includes a new collaboration with Bangor University Sports Centre, the creation of the North Wales Dragons Women’s team, and donations to local foodbanks, hospitals and cancer and children’s charities.

They even formed a partnership with Hearts of Ruiru Sports FC, a club with players drawn from a prison and community in Nairobi, Kenya, and will be delivering memory workshops to dementia sufferers when it is safe to do so, with social distancing measures in place.

Chris added: “There are many reasons for us to be positive about the future after what has been an unprecedented few months.

“For anyone out there who needs us; if you are struggling, need someone to talk to or want to work together with North Wales Dragons to help make a difference, please get in touch.”

For more information, visit the website www.northwalesdragons.co.uk or email chris@northwalesdragons.co.uk

Charity & CSR, North of England

Arco raises over £175,000 for Macmillan Cancer Support

Following a week-long programme of fundraising activities to support Macmillan’s ‘World’s Biggest Coffee Morning’, Hull-based safety specialist Arco, raised over £11,192 for Macmillan Cancer Support, lifting the total amount Arco has raised to £179,505 in the 14 years the company has supported the coffee morning initiative.

This year’s fundraising kicked off with a visit from Becky Read, the Regional Fundraising Manager for Macmillan, to provide an overview of the work Macmillan does and how the money is spent.

Arco employees from across its numerous office sites and retail stores decorated workspaces and undertook a variety of fundraising activities such as: department coffee mornings with coffee and cake, playing fun interactive games, undertaking fitness classes and competing in pool tournaments.

The cake decorating challenge, saw contestants having just 10-minutes to create their best safety themed cupcake design before being judged by Pipe & Glass Michelin star chef, James Mackenzie.

To conclude the week, Arco held a company-wide ‘Wear it Green Day’ and ran its famous raffle. With huge company engagement and ticket sales, Arco is delighted with the continued support from its suppliers who always support the raffle by generously donating a variety of highly desirable prizes.

Coordinating the busy week of activities, Karen Narey, Campaign Manager for Arco said,

“We have supported Macmillan for the past 14 years and our colleagues across the country always get involved to raise money for this excellent cause. This year’s total of £11,192 is a real collective effort and I would like to thank everyone at Arco for getting involved.”

Further information about Arco, visit www.arco.co.uk.