Autumn Ambience 2022 – Raising Investment with Global Family Offices

As we enter in the UK into vibrant autumn months Q4 in our industry and I am feeling the recession coldness in the UK as it is so quiet having access to investment but being slow to commit/allocate and Due Diligence and Term Sheets taking for ever.

Also, with the death of our inspirational Queen Elizabeth II which is so sad though we must be positive and welcome Charles 111 as our new King.

I have now been asked several times to author a book, yet another book though not written one since 2017 on ‘Being Investment Ready for Family Offices’ and have several offers of collaboration so watch this space.

FOUNDERS – INVESTMENT READINESS PROCESS 2022

Since the pandemic there have been a lot of changes that Founders do not seem to be aware of:

1.??????Funnel of Investors – we call this our Traffic Light System and prepare this for all our clients. If you wanted to save money prepare this yourself and update daily with Investor lead, contact details and the journey and action. I sometimes go back to these after collaborating with a Founder on first round then go back several years later.?We run?workshops on this next one 12 Oct London https://www.eventbrite.co.uk/e/new-2022-autumn-founders-how-to-create-your-own-database-of-investors-tickets-148595060827 then one on 14 Dec London.

2.??????As a Founder/Fund decided who are your target audience re Investors not just location but are you looking at Family Offices/UHNWI higher tickets investors VC’s or Angels. At our last Family Office conference London in the Summer one of my FOs USA advised me that she was asked several times for a list of USA FO’s. There are about 100000 FO’s globally and only one thousand in the UK with only thirty of them in the UK having a London office. Though we have over forty thousand investors in our data room – no I do not have ten thousand but around seventy thousand. This took me many years to acquire, and we lose around two hundred Investors monthly but gain ten thousand new Investors monthly. You need to have a Premier LinkedIn account with Sales Nav and in our Workshops, we show you how to create this yourself.

3.??????We do not do introductions to our Investors unless you are a Founder/Fund/Client, and we have a way of warming them up. Through our process we use a Teaser followed up by a Summary before we send Pitch Decks, and all these documents are produced by Cedric our Investment Readiness Director.

4.??????Founders, please note Financials and your cash flow over 5 years are crucial in raising investment. We have found this year that some Founders have not left themselves a long enough ‘RUNWAY’ cash flow before raising first or second round and thus will not make it. Also tell the Investor you have debt loans – always be honest up front do not give them or us nasty surprises. Cedric can produce your Financials and Cash Flow if a Founder and if a Fund then Roshni steps in here. We can also have our Finance Director check them over for reassurance.

5.??????Founders – settle your inhouse disputes before RAISING. If someone on your Team is causing friction to get rid of them if you can as this is not attractive to Investors.

6.??????Presenting at suitable Events – our next one is 13 Oct London https://www.eventbrite.co.uk/e/autumn-family-officeinvestor-event-tickets-390028033347 then 15 Dec our Grand London Christmas party the only party you should be seen at in London where genuine Investors hang out.

7.??????We follow up with all our Investors for our clients after our Events weekly until we close all Investor leads. How many times should you follow up with an Investor without ghosting them – well I do not do more than three times then we leave them.

8.??????Once we have hooked the Investor, we arrange a call or meeting and sometimes will join the call but not participate if we can help it unless the Founder/Founders forget vital information.

9.??????There are normally several calls or meetings if moving towards a Team Sheet and indeed within Family Offices which we specialise in there are sometimes several layers of DD with their own in-house teams. It used to take 6-12 weeks now it takes 6-9 months. There is ‘DRY POWDER,’ but DD and the process is taking longer.

10.??We do not get involved in Term Sheets – you can produce your own which your Lawyer can advise, or we can signpost a Lawyer, but you need to agree these Terms and most FO’s like to issue their own.

11.??Family Offices now like to structure a deal where the investment is deployed in tranches over a time when the Founder hits set milestones.

12.??With Family Offices and most Investors, you will be required to produce monthly reports and attend a monthly meeting with them.

13.??Sometimes, if we are working closely with the Family Office, they will approach us to find other suitable Family Offices not always to collaborate on the raise not just from the beginning but right the way through even into the next round which we are happy to assist as it is in our interest.

Since raising investment now mainly with Global Family Offices I speak to several daily and learn so much and they are forever evolving, and many changes happen as we work with now much younger Leaders in Family Offices and young women too which is so refreshing.

If you would as a Founder or Fund like a complimentary consultation, please send your documents or even an enquiry to [email protected] ?Download our Winter New Brochure with our Services and fees. https://gateway2enterprise.co.uk/wp-content/uploads/2022/09/G2E-Brochure-Winter-Brochure-1.pdf

Wishing you well.