Category: In Business

  • How to raise capital during these times

    How to raise capital during these times

    LinkedIn is my personal go to source of information, a curated alumni of experts, industry peers and thought leaders (I’m not referring to those trying to spam you SEO services). Following the recent successes of many start-ups in this region and specifically within the mobility sector is compelling, empowering even, yet, also raises some questions.

    With media highlighting some massive raise successes this year, other mediums promoting the unicorns of turn, and the power KSA demonstrates in innovative investment strategies, it really does amplify the power of collaboration. 

    Most of the questions when raising capital start with “How”, I have been delving a little deeper into the understanding of raising capital (as we’ve been on a journey for the past few months).

    I’m not writing this entry as a 101 guide to raising investment, I’m not qualified. Since being on this adventure, I’ve been approached by many to share my story and progress. It is a quagmire of discovery, it is also not the only route you should be taking. You have to prove to yourself and your customers your business is needed. My stance is “if you prove your business and meet milestones – then you can at that moment – decide whether or not you want to accept the investment interest you’ll receive”.

    When I started ONE MOTO, I never sought a want to raise investment, I believe that to build a successful business, the foundations should be ‘growth through sales’ a simple business model, yet a somewhat antiquated philosophy during these times!? I was mistaken, it was an oversight on my behalf, albeit a positive one.

    How? Well our market study and meticulous research into the need for EVs, the want of a ‘switch’ to a cleaner state of mobility was very apparent, yet I had not foreseen the traction we would create so quickly.

    Our research turned into a published white paper “Mainstreaming Electric Mobility in the GCC” and evaluating the wants from our potential customers, led to a much faster growth curve than we had anticipated.

    The journey of ONE MOTO’s capital raise started with VCs in Dubai, many eager to find out what we had in store, yet their current focus is/was FinTech, MediTech and very few (respectfully) flourish interest from their fund mandate. Something to note, many VCs receive in excess of 1,000 pitches a year, to which they may invest in 3-4. So the odds are against you, unfortunately “no” is a far easier notion to offer you. I’m not a comfortable recipient of “no” so I reflected, maybe it was the pitch: “The UAEs first and only approved EV manufacturer, wanting to raise to meet demand and growth”. Was this enough? Apparently not. My network was later opened to a prism of Angel investors – predominantly those taking a higher risk at a smaller stake – if the appetite is too small, avoid this route, as you’ll fall short, fail to meet your milestones and struggle at your next raise juncture.

    One Angel I met helped me a great deal, he has since become my go-to for advice, soon into our first conversation he claimed, “it’s like being asked to invest in Tesla back in 2003”. I was humbled, and I share this quote as a reminder that we can see the road ahead of us. 

    I’ve often led with a philosophy in business that “you don’t need more money, you need a different strategy”, this holds true, mine was a collaborative network as the new strategy and an unrivalled focus (bypassing the dormant egoist).

    Taking #micromobility on a global focus, we’ve seen the celebrated successes of Lime, Bird, TIER Mobility, Lyft, Uber and winced at the ‘hiccups’ that availed themselves in 2020. Yet, the industry remains strong, future mobility is a wash with opportunity. Which can also conflict with your focus and the wrong message prevail.

    Strategy can be an incredibly exciting journey.

    We know these stories because we read (indirect advertising is trusted a lot more than direct. You’ll trust your friends recommendations above an advert right?!). Yet, when you read the seven/eight figure raises, let it inspire you, not deter you from continuing. There has been some bravado around the raise, so unless you see their annual report and divulge the intimate financials, you’ll never understand the facts behind the figures. Plus, my casing point on this; right now, do you need an eight figure injection? What would you do with it? Don’t fix yourself on this, think about what you need right now and what’s a nice to have. I’ll cover off a few suggestions shortly.

    THE PR PEG

    The next peg in your quest to raise is vital. PR. As a start up, you might not have the ‘spare cash’ to spend on PR, understandably, and also you might not know which agency/individual to trust with your broadcasts, however, it is an investment, place either the time or the budget to commit to surrounding PR. Unless you have the time, and ability to craft your messages, build a network of journalists and understand how to get your stories published it can be a tough journey. Please consider: As you are meeting new people (investors and their associates) they don’t know you, they do not know your vision and may not know your industry, you need the stories to showcase, answer questions and compose a compelling series of messages surrounding the founders, the industry and indeed your business. You don’t need to be marketing yourselves (direct), let the PR and others talk about how great you are (indirect). If you get the attention of this new network of analysts, investors and executives, these PR pieces help tell other parts of your story (you haven’t had time as you should have been focusing on the pitch).

    Even though you have the roadmap firmly in your head, you can vividly see what the next 3,5 or 10 years looks like. It’s because you live your idea. Don’t expect anyone else to get it so quickly, this was a fault in the early months of discussion. Offer investors a tailored, bitesized and extremely focused insight into your business and if they have questions about the future, you’re already prepared with the answers. If they don’t ask, don’t share (not yet).

    It would be a consideration to profile yourself and those you are pitching to. Personally, I’m a decisive leader, a creative, a risk taker and our pitch presentations impress. However, the first few meetings I was pitching to analytical personas, those hungry for stats, figures and everything with a percentage glyph. My frontal lobe had these hostage, yet they didn’t showcase so prominently in the decks, so these were revisited immediately. 

    Your pitch deck will never be complete, and my advice is to tailor it to whom you are presenting, research their fund mandate, the lifespan of their fund and see if they have invested in other businesses similar to yours and if not, why not (I’ll share some questions that are helpful to consider at the end of this).

    Try not to see yourself as ‘asking for money’ this isn’t the impression you want to present, we know this. You have an opportunity for an investor to make a great return on their investment. Show it. Prove it. Be confident yet humble and conservative, under promise and over deliver in excess.

    The fund you have identified is money requiring to be invested. A committed sum to be deposited with a focused expectation. Try not to be overwhelmed, and do not consider the investment personal wealth! They are funds for your business that over time, if successful, with a huge amount of hard work, and a bit of luck will repay you in personal wealth.

    As we continued our journey through the ‘raise maze’ we explored Convertible Notes as an option, offering them to friends and a close business network – the philosophy is, if your friends believe in you, they trust you, this builds external confidence – we did offer convertible notes back in March and secured an empowering raise, which did indeed offer confidence to the VCs.

    PLANNING

    Plans A, B and C will not rollout as you imagine, creating alternative opportunities and options is key to progression, especially if like methis is your first rodeo.

    Do consider this: “Are you looking for a cash injection, or smart investment?” An investor may just be a cash investor, but would you prefer a resource and expertise package? Would the business progress quicker with the right team alongside you?

    Recapping upon the journey so far; we received positive interest from Venture Capital, Private Equity, Angel Investors yet we needed commitment and confirmation of traction, “nobody wants to be a busy fool” and I want ROI on my time. The past six months of online meetings has been incredible and I feel somewhat fortunate that Zoom has become a respected way of communicating, a structured agenda of discussions opens up easy conversations on a global scale very different from previous years. We’ve been able to JV with distributors in Kenya, Chile, UAE, Nepal, Sri Lanka and the UK, and explore opportunities in a multitude of other countries.

    STAY FOCUSED.

    With so much opportunity it can lead to an endless array of excitement, but don’t lose track of where you started and the original focus. You aren’t on the home stretch yet.

    They say “raising capital is a full time job”, and it can be if you let it. I would recommend reading the 4-hour work week and see if you can “batch” your updates and conversations to ensure everyone you speak to stays up to date with your progress and you can continue to run your business. Remember, an idea is something everyone has, yet execution is something many cannot.

    After several months of meetings and ‘progressive waiting’ I asked more questions surrounding investment and the different avenues. One of them led me to Eureeca.com an equity crowd-funding platform, intrigued I began to research the backgrounds of the company, and more importantly the people behind the brand, as a team of highly successful investors and business people, I convinced them to listen to what I had to say. They don’t take every business or any ‘idea’, they have a selection process and a strong reputation to uphold. I had the belief and needed to showcase ONE MOTO being a business for crowd-investment as our business is for the mobility of people, of all ages – we aim to provide mobility for all. We suited their mandate and fortunately we were selected.

    people walking on pedestrian lane during daytime

    The crowdfunding process can be up to five months – it has opened me up to a deeper appreciation – ONE MOTO is a business built on five core values; Environment, Technology, Convenience, Affordability and Experience, these are shared by our customers, our friends and a lot more people we haven’t met yet. This was a great avenue to tread, harnessing the power of a collaborative network to raise capital for a greater plan. VCs you can take your time making your decisions, this progressive company is charging ahead, with the backing and commitment from the people we built the business for.

    VALUATION

    How do you value a company? It depends on who you ask. So ask everyone. Sales, DCF, MVP, Market, Founders, all appreciated, yet it holds the same equation as how much does something cost? It depends on how much you’re willing to pay for it.

    If you get enthused by owning a $billion company great (that’s your motivator, it’s good to know), but your ego shouldn’t be entertained by this. Milestones of progression will demonstrate your true value. Allowing you to dilute less equity, maintain the focus and vision of the business. After all it is the execution that promotes the value.

    THE KILLER QUESTION

    My closing point which has caught me out a few times, is this one simple question “what do you want from this business?”. The way to answer it isn’t straight forward, you should know what your motivator is in general (the tricky part), wealth, making a difference, notoriety, a Nobel prize? Whatever if your driver, make sure it is true, candid and explored.

    If your plan is to exit at Series B, then state this, when asked why, you’ll have the pre-thought answers on hand.

    Raising capital isn’t easy, nor should it be. Present a value add to an investment portfolio, make sure you are solving a problem, or solving a problem better than others, and you’ll get there. However, consider this again: Do you really need more money, or do you need a different strategy?

    If you are starting out in business, ask yourself this question, “Do I invest the next decade of my life to try and make this idea work, or should I invest my money in others who can make my investment work for me?”. #hindsight.

    Thank you for reading.

    A.

  • How to engage with your investors

    How to engage with your investors

    In addition to traditional Investor Relations roadshows focused on financial performance, companies and boards are now expected to conduct governance and sustainability roadshows that reach out to institutional stewardship teams as well as portfolio managers.

    For issuers, these engagements require the commitment of significant resources internally, including valuable board time. For investors, the expansion of stewardship activities means that even for those who increased the internal resources, the escalating demand on capacity is forcing them to be more selective and raise expectations on the content and quality of engagements.

    Based on experience assisting companies with planning and organisation of governance and ESG roadshows, I note factors that are key to successful engagements.

    Clear objective

    Starting with coherent strategic thinking internally, the company should define and communicate the objective of the engagement. It could be to showcase a new strategic direction, or developments in the business that are related to material ESG themes, or it could be part of an ongoing dialogue with investors about relevant issues. Historically, most roadshows were scheduled in anticipation of a forthcoming shareholders meeting, but I find many shareholders are growing reluctant to take meetings—given that their voting policies are published in detail—purely on this basis, especially during the annual meeting season.

    Mapping of shareholders

    When the primary purpose of a roadshow relates to a shareholder meeting, whether to improve voting quorum or to canvass support, it makes sense to prioritise outreach by holdings. Companies should always consider investors’ voting policies and should follow up on issues raised during previous engagements. However, when the engagement agenda is focused on ESG developments, companies may wish to cast the net wider, and target those investors that are long-term oriented and known to be focused on these issues. The guiding principle here should be to speak with existing shareholders, but also reach out to targeted shareholders the company wishes to have (or wishes to own more stock).

    Investors need to feel your story not just the numbers.
    Deciding who to speak with – location, team members

    Many institutional investors are making efforts to link internally their investment and stewardship teams. Companies should reach out to both investment and stewardship teams, as appropriate, but it is up to the investor to decide who is best to lead a specific engagement. We recommend that companies do their homework and ensure they are including all the appropriate contacts and positioning the engagement campaign so as to make it easier for the investors to decide who should be involved.

    A key question for companies is whether members of the board of directors should be involved and if so, which directors are needed to address relevant issues. In addition, should members of management be included or not? For example, on compensation issues, investors may want to talk primarily to board compensation committee members. In other cases, HR should be included. The demands on investor resources mean that increasingly they view it as important to have direct dialogue with directors as well as relevant members of the management team (e.g. HR representatives on issues of human capital management).

    On a practical note, I often come across companies who apply a strong home bias in targeting their investors. My experience indicates that cross-border ownership is increasingly common even in controlled companies. In those cases, I recommend roadshow itineraries should include markets where investors are located (e.g. London, Paris, Netherlands), regardless of where the company is domiciled.

    Extensive preparation

    Evolving stewardship responsibilities and regulatory requirements mean that the information investors are publishing about their voting and stewardship policies is more extensive than ever. I recommend that companies conduct meticulous preparation in advance of meetings, and tailor the meeting agenda and materials to meet investors’ preferences. Because investors’ time and resources are limited, engagements should do more than rehash publicly stated positions. The goal is to conduct an informed and informative dialogue.

    Anecdotal evidence shows that, at times, preparation is needed just to secure some meetings. I’m aware that some of the large investors have updated their access processes to ensure that requests for engagement pass a threshold of demonstrating preparedness as a condition to them being considered.

    Follow up

    This is perhaps stating the obvious but thinking about the next meeting and the next engagement means that companies have to maintain credibility and follow up as agreed. For example, when a consultation process culminates in new proposals, it is important to go back to the relevant investors and communicate the rationale for the chosen course of action—i.e. even, and perhaps especially, if the company felt it was not able to fully adopt the preference of the particular investor(s).

    Why this is important?

    Executing an effective investor engagement draws on precious corporate resources including valuable management and board time. It is important therefore that companies fully consider the benefits. Most immediately, this includes strengthening of the relationships with long-term minded owners—those shareholders most companies would wish to have more of. Regular face-to-face meetings with investors can be a critical part of this. Additionally, with the current level of activism, we find that for some clients, especially in Europe, the ability to draw on support from long-term shareholders has been a key component of activism defense. More fundamentally, there are several pieces of academic research suggesting that engagement enhances value, presumably by enhancing communication and helping to close any possible disconnects between valuations and prices.

    Build relationships!

    Thank you for reading.

    A.

  • Working On vs. In

    Working On vs. In

    When starting out most founders will be wearing every proverbial hat available. There must be a focus to release yourself from this, by looking to employ the right team, you will not be an expert in everything.

    Are you a first-time founder or entrepreneur who’s feeling overwhelmed by the sheer amount of hats you must wear to keep your business running? You are not alone! Most founders face the same problem, and it can be difficult to know when to let go of some roles and when to focus on others. But don’t worry! Here you can find the tips and advice to help you understand when it’s time to employ the right team members and get the help you need to make sure your business runs smoothly. Let’s get started!

    One of the most important things to remember as a first-time founder is that you cannot be an expert in everything. In order to succeed, you must focus on your strengths and delegate or outsource the rest. This may seem like a lot of work at first, but it’s important to remember that you cannot do everything alone.

    One way to delegate some of your work is to hire a Virtual Assistant (VA). A VA can handle tasks such as customer service, social media, bookkeeping, and much more. This can be a great way to free up your time so that you can focus on other aspects of your business.

    Another way to delegate some of your work is to hire a freelance worker. Freelancers can handle tasks such as graphic design, web design, content creation, and much more. This can be a great way to get help with specific tasks that you may not have the time or skills to do yourself.

    No matter what method you choose to delegate your work, the important thing is to make sure you are focusing on your strengths and not trying to do everything yourself. By delegating some of your work to others, you can free up your time to focus on the most important aspects.

    Working on your business requires open planning.

    “Work On It, Not Just In It” is a term that encompasses the mindset shift you need to make in order to create a successful business. It’s a shift in perspective that recognises that the purpose of your business is not to serve your life, but rather, your life should be served by your business.

    So, why is it so important for you to shift your thinking in order to build a business that works? 

    Regardless of how much you may identify with being one, it’s a myth that most businesses are started by entrepreneurs. By our definition, “Entrepreneurs” are people who go into business with a vision of a company they want to create—people who don’t rely on their own effort and ability to produce results.

    In fact, most businesses are started by what we call “Technicians”. These are people who create a place to go to work for themselves, and make the fatal assumption that understanding the technical work of their business means they’ll be able to successfully build a business that also does that technical work.

    It’s an assumption that’s simply not true. It’s not only the primary cause of the failure rate of businesses—half of all businesses never make it to their fifth anniversary—but also leaves the remainder in survival mode. Many are just hanging on. Others have lost their passion, just not having fun anymore.

    Here are some examples of what we mean:

    If you’re a graphic designer, you may have the technical skill to produce superb visual communication through type, photography and illustration, but it doesn’t mean that you understand what it takes to build a graphic design business that can make a promise to its customers and keep it every time—consistently and predictably.

    If you’re an electrician, you may be so technically savvy that you can wire a building the size of the Sears Tower in Chicago, but it doesn’t mean that you know anything about building the marketing, finance, management, lead generation, lead conversion, customer fulfilment or leadership processes that every successful electrical contracting business needs.

    If you’re a real estate agent, you may be outstanding at representing clients who are looking to buy a new home or sell the one they have, but it doesn’t mean you’re prepared to create a real estate firm that can thrive whether you’re there or not, leaving you free to live the life you really want.

    If you’re a Technician at heart, you’re not just passionate about the product or service you deliver – you’re also really good at what you do. From the very first day you went into business for yourself, you’ve been relying on your personal ability to get things done, because no one does it better than you. It’s almost heroic what you’ve been able to accomplish!

    Get creative, write, scamp, do whatever it takes to get your vision on paper.

    And, it’s just not enough. It can only get you so far. At a certain point, you can’t help but feel the impact of all the demands of owning and operating a business that you just weren’t prepared for.

    Trying to stay on top of it all can be pretty overwhelming. You can spend a lot of time working without feeling like you’re getting anywhere. It’s a tragic expenditure of time and effort.

    But it just doesn’t have to be that way.

    Working on it, not just in it can change everything.

    Thank you for reading.

    A.

  • Questions to ask investors

    Questions to ask investors

    Can I ask investors questions?

    Absolutely you should. This is a fact finding, value aligning exercise, to ensure there is a right fit for both parties and be prepared to walk away if it doesn’t stack up, feel right and their values are aligned with yours.

    Saying this, you must consider the fact that they will know financials better than you, they won’t know your business, sector or company as well as you – as you live, breathe, sleep it – use their wisdom to help you level up.

    In 2020, I had my first conversation with a VC, in Dubai. Crikey I was unprepared, the acronyms, the information they expected left me feeling like I wasn’t ready, yet I knew I was, the company was ready – my issue? The narrative. I didn’t portray the focus of the company in a way they would understand, I certainly didn’t speak the same language, in fact, I left that first meeting with a question “what did I learn, and what do I need to?” I could have skulked away from that encounter deflated or add them to a database of investors I admired, and keep them in a regular newsletter towards our progress.

    I didn’t communicate very well in the early days, I thought, if I understand the vision, then anyone can. Give yourself more credit, they don’t, wont, and not need to. If you consider every VC is poised to say no, then you won’t be disappointed, my advice is to do your research on the investors you’re planning to meet, discover their portfolio, why they invested in them particularly, why not their competitors? If their portfolio if investments, has synergy, add them to a short list. If they don’t have an active fund, then don’t invest your time.

    Be very specific in who you want to connect with and why. Don’t try to sell them the business idea. Present the benefits and show them why they should believe in you, your team and your vision. Personality and relationship building is crucial in the investment world. It will come down to numbers eventually and aligned with the exit strategy for the fund, however, with the right questioning and research you’ll understand what their fund mandate is and align yourself with that… or not.

    questions text on a pink surface
    Use your time to ask questions, it helps you stand out from others. Remember you’re not sat in front of an investor asking for money… you are offering them a great opportunity!

    Don’t send everything you’ve got as an investment deck, stagger it. Here’s how I structure my communication with investors:

    1. Send a one page summary outlining your roadmap and successes.
    2. Investment teaser 6-8 pages of topline facts and numbers.
    3. Create an Investment Memorandum (IM)

    The more meetings you have face-to-face the better (it build relationships), don’t email everything, they can easily get forgotten, misinterpreted, not followed up (which leaves you chasing). Remember, “Investing in your business isn’t as important to them as it is you”.

    No investor really wants to say “No” they never want to be the one to claim, they walked away from the early investment opportunity in Uber, AirBnb, Tesla. 

    I took my own advice, levelled up, remained in contact with the VC I met with back in 2020, and that VC has now become a close friend, ally and mentor.

    Here are my top 10 questions to ask investors:

    1. How do you understand my marketplace?
    2. How do you see my company fitting in to your existing portfolio?
    3. What excited you about my business? What concerns do you have?
    4. What do you like about the company, and what don’t you love?
    5. What weaknesses do you see in my business?
    6. What milestones do we need to accomplish (after this) to get to the next round?
    7. How do you personally like to work with founders?
    8. What has been your greatest investment and why?
    9. How do you help CEOs in your portfolio help each other?
    10. What are the next steps, what is your appetite to invest in me?

    FUNDRAISING QUESTIONS

    You may get asked: “Are your existing investors participating in this round?”

    • Our existing investors of course want to participate in this round. They will likely want to do their pro rata investments  –  some might even want slightly more.
    • I know that new firms have ownership targets. I feel confident I can meet these. If it becomes sensitive between a new investor’s needs and previous investor’s –  I’m obviously not going to tell my investors they can’t participate, but I feel confident I can work with them to keep the sizes of their cheques reasonable.

    What a VC hears when you say this:

    • My existing investors are supportive. I will eventually call them anyway to confirm but I can continue my investment assuming they are supportive.
    • In the future if we raise a larger round, this entrepreneur won’t try to screw me by forcing me not to take my pro rata rights because they weren’t throwing existing investors under the bus with me.
    • This entrepreneur is sophisticated enough to know that fundraising is a dance in which I need to meet the needs of both new investors and of previous investors. They will work with me so I can get close to my ownership targets.

    Any thoughts on the above? If you use some of these tips and would like to share please feel welcomed to do so.

    Thank you for reading.


    A.

  • A Game of Show & Tell

    A Game of Show & Tell

    Branding, Content and your customers.

    This is an overview of what I spent many years busy with, building an organisation of four businesses supporting multinational clients and hundreds of start ups. Engaging millions and refreshing brands through the psychology of the consumer environment.

    You may have seen some of the commercials on TV, web, or shoots in magazines, social or even supermarkets, but may not know how we do it.

    The Show.

    Your customers have micro-particles of time to understand your message, and for them to decide if they need it. It’s obvious, however, multi-targeting your message and key times will help convert leads.

    A similar message can be broadcast several times (depending upon your offer), to engage with the customers at a time they need it.

    The Tell.

    I am an experienced story teller working with some incredible brands with great stories. It’s not all about marketing these, most of the time highlighting the benefits through PR are far more powerful.

    The Game.

    Self-proclaimed experts vs. Industry professionals.
    Customer psychologists vs. Customers.

    As an industry professional working with customers to build brands and content worth watching, delivering engagement and brand loyalty. The magic may come from the edit suite, when all the hard work is professionally mastered to offer a compelling visual experience, however, to achieve this, there must be time invested in pre-production. This is where the story is written the shots are decided, the script is born and the message to be communicated is crafted.

    photo of men holding camera
    New SEO.

    It took me several few years to really master SEO, and to fully understand the best methods. My approach is unlike others – I educate our customers as to what it is and how it will help here’s my advice. Videos for your business will help dramatically when customers are reviewing which company to work with, purchase from or buy in to.

    Label your content thoroughly, whether it be blogs, video, images you want to be found, creating content without the correct labelling voids it of purpose, if you are having your website designed by a third party supplier, ensure they are correctly labelling your content or even better, invest your time to ensure this is done how you need it. You never want to see ‘image.png’ as a label.

    Can I help?

    If you’re looking for advice on how to create a great content and brand strategy, get in touch and we can work through it together.

    Thank you for reading,

    A.