What do you do? What are your prospects? Where do you see yourself in five years’ time?
Common enough questions if you’re sitting across from a potential suitor on Channel 4’s First Dates but also questions you need to be prepared to answer if you find yourself opposite a potential investor trying to raise investment and convince them that you are ‘the one’.
Be under no illusion, there is an awful lot of funding available to those who have done their homework and are well prepared for any fundraising exercise.
Beware however that much like a blind date, fundraising is a competitive, cut-throat process. Your start-up Edtech business is vying with that later-stage Fintech company and that sexier AI business that is also flirting for the investor’s attention and ultimately their credit card.
If the dating analogy has been laboured then unashamedly so. Packaging your investment proposition well, researching the investor market to make sure that you have the same ambitions and right chemistry as well as timing your run will maximise your chances of establishing a longer lasting relationship. Unless you put in the effort, more people will turn you down that will succumb to your charms.
Doing your Homework
Preparation is key and business planning should be seen as more than just that end of year budgeting process that you suffer on a routine basis. Forward thinking companies look further ahead to determine longer-term strategic ambitions and the resources required to get there.
Having a credible growth plan (based on defensible assumptions), key Intellectual Property or differentiation in an attractive growing market coupled with in depth knowledge of the competitive landscape are all key ingredients for success.
Timing your Run
It is often said that fundraising is a race against insolvency. Successful companies recognize that fundraising is not a quick process, often taking up to 6 months (or more) to complete so they plan in advance of any cash squeeze or deadline for any investment decision.
2018 was another strong year for investments which according to analysis from Beauhurst saw over £7Bn invested on the back of a record 2017 when over £8Bn was invested.
Areas of Interest
Fintech, Blockchain and AI companies all continue to be particularly popular areas of interest but in a world of SaaS business models allowing nimble companies to onboard customers more quickly and underpin revenue predictability, sector is no barrier to securing investment. Appetite for IOT, Cyber Security and Data Analytics businesses among others remain strong but evidence of commercial traction is a must for the professional investment community whatever the technology.
Who’s Who…
There are hundreds of different investor groups all looking for good quality deal flow, from Venture Capital, Private Equity and Private Family offices through to specialist Venture Debt and Regional funds.
These funds may however be focused on different sectors, technologies, geographies, funding levels and stage and as such, especially if you don’t know where to start, fundraising is a full-time role.
The tech team at HMT led by Partner James Thomas has been working with ambitious fast-growing tech businesses over the last 20 years to support their fundraising and help avoid the bear traps. Whether it is an exploratory conversation to understand the range of financing options available to you or to discuss supporting you on a current or forthcoming fundraise, HMT will help prepare you and your management team for the process and connect you with the most appropriate funders for your business allowing you to focus on running the business.
P.S. Investors are there to make money and will want to know your exit route, and by that we don’t mean the toilet window while waiting for the cheeseboard.
What do you do? What are your prospects? Where do you see yourself in five years’ time?
Common enough questions if you’re sitting across from a potential suitor on Channel 4’s First Dates but also questions you need to be prepared to answer if you find yourself opposite a potential investor trying to raise investment and convince them that you are ‘the one’.
Be under no illusion, there is an awful lot of funding available to those who have done their homework and are well prepared for any fundraising exercise.
Beware however that much like a blind date, fundraising is a competitive, cut-throat process. Your start-up Edtech business is vying with that later-stage Fintech company and that sexier AI business that is also flirting for the investor’s attention and ultimately their credit card.
If the dating analogy has been laboured then unashamedly so. Packaging your investment proposition well, researching the investor market to make sure that you have the same ambitions and right chemistry as well as timing your run will maximise your chances of establishing a longer lasting relationship. Unless you put in the effort, more people will turn you down that will succumb to your charms.
Doing your Homework
Preparation is key and business planning should be seen as more than just that end of year budgeting process that you suffer on a routine basis. Forward thinking companies look further ahead to determine longer-term strategic ambitions and the resources required to get there.
Having a credible growth plan (based on defensible assumptions), key Intellectual Property or differentiation in an attractive growing market coupled with in depth knowledge of the competitive landscape are all key ingredients for success.
Timing your Run
It is often said that fundraising is a race against insolvency. Successful companies recognize that fundraising is not a quick process, often taking up to 6 months (or more) to complete so they plan in advance of any cash squeeze or deadline for any investment decision.
2018 was another strong year for investments which according to analysis from Beauhurst saw over £7Bn invested on the back of a record 2017 when over £8Bn was invested.
Areas of Interest
Fintech, Blockchain and AI companies all continue to be particularly popular areas of interest but in a world of SaaS business models allowing nimble companies to onboard customers more quickly and underpin revenue predictability, sector is no barrier to securing investment. Appetite for IOT, Cyber Security and Data Analytics businesses among others remain strong but evidence of commercial traction is a must for the professional investment community whatever the technology.
Who’s Who…
There are hundreds of different investor groups all looking for good quality deal flow, from Venture Capital, Private Equity and Private Family offices through to specialist Venture Debt and Regional funds.
These funds may however be focused on different sectors, technologies, geographies, funding levels and stage and as such, especially if you don’t know where to start, fundraising is a full-time role.
The tech team at HMT led by Partner James Thomas has been working with ambitious fast-growing tech businesses over the last 20 years to support their fundraising and help avoid the bear traps. Whether it is an exploratory conversation to understand the range of financing options available to you or to discuss supporting you on a current or forthcoming fundraise, HMT will help prepare you and your management team for the process and connect you with the most appropriate funders for your business allowing you to focus on running the business.
P.S. Investors are there to make money and will want to know your exit route, and by that we don’t mean the toilet window while waiting for the cheeseboard.
HMT are delighted to announce that James Thomas is joining as a Corporate Finance Partner to establish and lead a specialist technology team.
James was previously a Partner at ICON Corporate Finance, an advisory boutique specialising in the technology sector. During his 14 years at ICON, James completed almost 50 fundraisings and M&A transactions across the TMT space including software, SaaS, B2B & B2C, internet of things (IoT), telecoms, nanotech and new materials companies.
More recently and immediately before joining HMT, James was a Director in BDO’s National Renewables team, leading on transactions in the Energy and Cleantech sectors. At BDO, James led assignments for energy technology companies and project developers totalling in excess of £600 million. Recent transactions include the disposal of a renewable energy portfolio company for a leading VCT, the refinancing of Europe’s largest Anaerobic Digestion facilities with leading banks and UK pension funds, a £100 million financing of an early stage battery storage company providing balancing services to the grid and a significant equity financing for a leading marine energy technology business.
A significant increase in fundraising and M&A activity has been witnessed across the TMT sector in recent years with continued interest from investors and a strong increase in transaction multiples driven by disruption in established markets such as Software, Fintech, Insurance, Transport and Energy to name but a few.
In the past few years, HMT has advised on a large number of significant transactions in the technology sector which includes three rounds of fundraising for Channel Mum, the investments in e-commerce and mobile platforms My 1st Years, Watchfinder, MPB and Hoop and the MBOs of software businesses CIPRH, The Property Software Group and ProspectSoft amongst others. The appointment of a specialist technology partner will strengthen our offering and expertise in this sector.
Andrew Thomson commented,
“We are delighted to welcome James to strengthen our corporate finance capabilities and lead our TMT offering. We have enjoyed an extremely strong deal flow across various sectors and have ambitions to continue to grow our business. Having made the decision to invest in the technology sector, we are delighted to attract someone with James’ experience and track record to lead this team.”
James Thomas commented,
“I am delighted to join HMT at a strategic time for the firm and to bring to the team my 20 years of experience in advising technology companies. HMT already has an excellent track record of completing transactions across a number of sectors including the TMT space and so I am delighted to be joining such a well-recognised and leading advisory firm to help them further build their specialist tech team and market offering.”
HMT are delighted to announce that James Thomas is joining as a Corporate Finance Partner to establish and lead a specialist technology team.
James was previously a Partner at ICON Corporate Finance, an advisory boutique specialising in the technology sector. During his 14 years at ICON, James completed almost 50 fundraisings and M&A transactions across the TMT space including software, SaaS, B2B & B2C, internet of things (IoT), telecoms, nanotech and new materials companies.
More recently and immediately before joining HMT, James was a Director in BDO’s National Renewables team, leading on transactions in the Energy and Cleantech sectors. At BDO, James led assignments for energy technology companies and project developers totalling in excess of £600 million. Recent transactions include the disposal of a renewable energy portfolio company for a leading VCT, the refinancing of Europe’s largest Anaerobic Digestion facilities with leading banks and UK pension funds, a £100 million financing of an early stage battery storage company providing balancing services to the grid and a significant equity financing for a leading marine energy technology business.
A significant increase in fundraising and M&A activity has been witnessed across the TMT sector in recent years with continued interest from investors and a strong increase in transaction multiples driven by disruption in established markets such as Software, Fintech, Insurance, Transport and Energy to name but a few.
In the past few years, HMT has advised on a large number of significant transactions in the technology sector which includes three rounds of fundraising for Channel Mum, the investments in e-commerce and mobile platforms My 1st Years, Watchfinder, MPB and Hoop and the MBOs of software businesses CIPRH, The Property Software Group and ProspectSoft amongst others. The appointment of a specialist technology partner will strengthen our offering and expertise in this sector.
Andrew Thomson commented,
“We are delighted to welcome James to strengthen our corporate finance capabilities and lead our TMT offering. We have enjoyed an extremely strong deal flow across various sectors and have ambitions to continue to grow our business. Having made the decision to invest in the technology sector, we are delighted to attract someone with James’ experience and track record to lead this team.”
James Thomas commented,
“I am delighted to join HMT at a strategic time for the firm and to bring to the team my 20 years of experience in advising technology companies. HMT already has an excellent track record of completing transactions across a number of sectors including the TMT space and so I am delighted to be joining such a well-recognised and leading advisory firm to help them further build their specialist tech team and market offering.”
