What Are Small Business Investors Looking For In Your Team?
Investment is vital to progress any business. Ensuring your business has the right team in place at the right stage to secure investment is crucial.
Small business investors are always on the look out for the next amazing opportunity. However, in this sector risk is high and managing this is vital. There are key elements that need to be in place before an investor, at whatever stage, will invest. One of the most crucial parts of this investment jigsaw is the team.
Whether you are at the entry level, seed funding stage, looking to work with Angel Investors or you are looking for Venture Capital to expand or you have reached the growth cycle of your business and you need Private Equity, you need to have the right people in place to deliver.
Find out below what investors are looking for in the business teams.
Securing Angel Investment for your Start-up
It’s not easy to convince a room full of strangers that your new product or concept has some value and that people are going to pay good money for your invention. However, that is exactly what needs to happen at the early stage of a startup.
The likelihood is you have a product or service, you have tested it and there is some form of commercial interest. So now you need a team around you, small though it maybe, to help deliver. You can’t do it all yourself.
Gillian MacAuley of Gabriel Investments is the Gatekeeper and Director at Gabriel Investments. She gives us some wonderful insight into what they look for in the early stages. Check out her blog or watch her film opposite.
Funding Your Small Business Expansion
Still within the early stages companies will start to experience expansion, identifying other markets and possibilities for their products. At this stage it is vital to get the right support from the right advisors. Venture capitalists such as Epidarex, who invest in early stage expanding life sciences organisations are committed to working with the management team to support the growth of the company.
They tend to attract investment from further afield who are interested in our life sciences start ups.
At this stage investors are looking for a leadership team that cover the key roles. Investment to support expansion will require a commercially focused CEO, a strong, focused CFO, someone looking at marketing and sales and crucially, especially in life sciences, a Technical Officer who has the knowledge and the expertise to maintain the product development trajectory.
Investment for Growth
Finally, your business will reach the growth stage where you will need to investigate Private Equity funding. At this stage your entrepreneurial venture will likely have a solid foundation and you will need finance to expand into new markets to capitalise on the success of your product or service.
Private Equity firms such as Scottish Equity Partners, whose Partner Jan Rutherford spoke with TalentSpark TV, are looking for a well established management team who have the requisite skills to manage their growth strategy. They are typically investing around £20m and are looking for skills rather than necessarily specific roles.
Investors at this stage are looking for the management team to start to refine their roles and hone in on their skills to add value to the business.