what is venture building?

Posted by in Investing

Our website proudly proclaims ‘We are Venture Builders’ – but what does that mean? First let’s start with what it isn’t. It isn’t ‘incubation’ as incubation is generally short-term. Our Venture Building is a commitment of 5+ years. It isn’t ‘acceleration’ as again acceleration is equally short-term. It isn’t ‘investing’ [replace with venture capital or […]

milestones and cheese

Posted by in Investing, Opinions

I have found myself referring to milestones a lot recently. A word that resonates for me, is common parlance in investing yet like many things might not be clear to all. Milestones, for me, relate to strategy. Certain points in a business’ life when an event, or events, conspire to deliver a transformational change in […]

pre-money and post-money

Posted by in Investing, Opinions

A conversation yesterday prompted me to republish this post from March 2011: A very personal topic that’s unavoidable in every equity investment conversation is that when equity risk investment comes in, a percentage of the company must change hands (otherwise it’s not an equity investment). The investor needs the equity to drive their returns (and through […]

I really doubt it’ll be a majority stake…..

Posted by in Investing, Opinions

Often when meeting entrepreneurs for the first time you are faced with the inevitable question ‘how much equity will you want’? An important, emotive and understandable question even if it is challenging to answer in an initial meeting. The fear is always that you will want a majority of their business. And I agree that […]

growth vs paying shareholders – the disconnect

Posted by in Investing, Opinions

Bit of a dry one this, my apologies. But super important. Basically the need to look at the entirety of the investment proposition and to consider the medium term impact of investment terms rather than just looking at the pure ‘what % am I giving away’. I’m a little bit old-school when it comes to […]

how much, how often and why

Posted by in Investing, Opinions

There are two reasonably well rehearsed points of view that I find somewhat frustrating when it comes to advice on raising capital, firstly the ‘get as much as you can’ ethos and secondly the ‘take as little as you can’ ethos. The get as much as you can ethos is flawed in so far as […]

alignment of interests

A difficult and abstract subject to blog about, however the requirement for alignment of interests between investor and entrepreneur in growth capital situations is a firm belief of mine. This alignment is driven by the structure of investment agreed between entrepreneur and investor. Please bear with me! At it’s most basic, I am a fan […]

understanding your investor – portfolio investing

Posted by in Investing, Opinions

Investing into private companies (as is the case with any type of investment) carries risk. With risk comes the risk of failure or, more importantly in this example, losses for an investor.  The earlier the stage of the business (and/or the higher the debt gearing in the investment) the higher the risk. Small private companies […]

risk and reward

Posted by in Investing, Opinions

Getting on my soapbox a bit about the old school style of an investor keeping their cards to themselves and business managers/owners trying to sweep issues and reality under the carpet. It all starts with a subject that I feel is often not covered well and/or avoided which is the fact that in both building […]