Kickstart funding your business
We have been experimenting with USA based funding sites during May, the idea behind these sites is that investors can back a project without actually buying shares, so supporting a project instead of purely investing in them. You might think that would not work well, but surprisingly businesses are raising $millions in exchange for nothing more than high fives!
Often the companies in question offer their products at the point of launch for backers offering more than the minimum $1. So for example a book author may offer a copy of their book once its published or a technology company a copy of their software etc. This is actually very helpful for all concerned as backers get something for their money and the companies concerned get to raise funds via the promise of future sales.
There are of course also the Crowdfunding sites that offer shares in exchange for an investment and these often have tax advantages such as being Enterprise Investment Scheme (EIS) approved investments or for the pure start up phase businesses the Seed Enterprise investment Scheme (SEIS) approved investments. The tax advantages of these schemes make them very attractive, with up to 50% tax relief being available for SEIS, that greatly reduces the risk for investors and makes fund raising a lot easier. HMRC needs to grant clearance for an EIS / SEIS application, and having the experience of getting prior approval is important.
I’ve tried our kickstarter (which is one of the better known sites) and have dipped my toe in the water, investing in a number of interesting opportunites. There are many similar platforms around including the well know Seedrs site and Crowdcube.
Investing in projects from sites like these is of course high risk, but potentially could be very rewarding, using these channels as a method for raising funding for your own Portfolio clients is a great extra angle to consider when you are seeking funding options.
Rarely do projects get fully funded purely through these seed funding sites, the successful ones have a core of investors that are ready to invest once the opportunity goes live. Its is not unusual to get no subscribers at all. The funding platforms are clever in that the only present the most successful fund raisers on their main pages, and the less successful ones get relegated to obscure positions.
Do you need specialist help to raise funds from private equity houses?
Our team have extensive experience with preparing pitch decks, and pitching to our network of private equity houses. Here at FD Capital Recruitment we can help you right through the process from raising seed finance to a full IPO. Drawing on our experienced Finance Director network we can help with each and every aspect. Preparing a business plan, crafting a pitch deck and making the right introductions for you.
Working with PE houses and venture capitalist is great experience for a Finance Director, you get to build a network of investors and get to understand how PE houses work, and what their expectations are. Working closely with investors and high net worth individuals gives you insight into what they are looking for in terms of information flow and reporting. Once you have one PE house on your CV it then becomes easier to pick up more opportunities which are looking for an FD or CFO with PE house experience.
This is a key advantage of FD Capital Recruitment, is that a big proportion of our clients involve private equity funding of one form or another, which means the FD’s who work with us get a lot of experience in this area and clients welcome the fact that we are familiar with the issues they face.
Recruit an Experienced Private Equity FD / CFO
The biggest advantage of using an experienced FD is that they already have a reputation with the PE houses and will know who is the most likely to invest and who therefore is the most appropriate to approach. Having such a financial professional on-board will make a huge difference to the likely chances of success for a fund raise. If you are looking to raise seed funding or A series for your business make sure to reach out to FD Capital Recruitment as we are specialists in this niche area.
An FD with a background with PE houses and venture capitalists will have a good experience with pitch deck production and financial modelling to support a private equity fund raising round.
FD Capital Recruitment
We focus on the London and West Midlands areas but now have FD’s in Oxford, Bristol, Manchester and Leeds. So we can cover most of the major locations in the UK.
We are increasingly offering specialists, this is a real niche for FD Capital, we have a growing number of professionals with expertise in the following areas:-
- Part Time FD’s – This is our main focus covering the London and West Midlands areas.
- Portfolio FD’s – Part Time FD’s who work for multiple businesses.
- Private Equity FD’s – Finance Directors with experience of working with Private Equity Houses and Venture Capitalists.
- Interim FD’s – Finance Directors needed for short periods.
- Turnaround FD’s – Finance Directors with particular experience of distressed situations and turnarounds.
- E-Commerce FD – Finance Directors with expertise with E-Commerce website and Search marketing.
- Non-Executive FD – Non Executives or NED’s with finance expertise for boards.
If you are looking for an FD or CFO for your seed stage or early stage business reach out to our team today, we have FD’s who have been through the entrepreneurial cycles from Startup through to exits and can really relate to the issues and challenges that businesses in their early stages experience. We can meet for an initial chat over a coffee or via Teams/Zoom, we make the process of FD Search and selection as straightforward as possible and as we are an FD network we have a good number of experienced and trusted candidates immediately available.
If you are a candidate looking for PE house experience then reach out to us today and we’ll work with you to help you find your first PE House / Venture Capital opportunity.