1. You and your team
It’s people who make and sell the services, products and content we consume, so any investor will want to know about you, your leadership team and the key people involved in your business. Give them a good idea of your track record and don’t be scared to talk about your achievements – your track record in getting content to market and previous experience and successes are important.
You should also acknowledge any gaps in expertise and clarify what you are going to do to fill these gaps. E.g. We believe an MD/FD/Head of Sales etc with [x defined] skills will help us achieve [y]. We’re going to do x + y to bring in this expertise. Makes sure that this is costed in the business plan.
Do you have skin in the game? All investors will want to see that the businesses they are funding are committed to success so demonstrating how and where you are invested in the company is important. This is especially important in a talent industry like games, tv or film so demonstrating how key staff are being incentivised should also be considered.
2. Your company
You need to have a simple explanation of what you do and your business plan. Do you make content or sell content? Do you provide a service? Who are your customers, what’s different about you? What’s your USP?
Think about how you articulate you vision and purpose – why do you exist and what do you want to achieve? Take time to think and articulate your goals.
What’s your business model and how do you make money? Sounds simple but take nothing for granted and succinctly explain your business model, and your marketing and sales engine. Succinctly explain your assumptions and what you’ve based these on.
3. Your product or services
Whether you make products or content, sell them or provide a service that other businesses use, investors will want to know more details of the product or services that forms the basis of your future plans:
4. Why do you need investment?
This starts with clarity on the goal you want to achieve with the investment. Are you clear about the purpose and impact on your business of taking the actions you are describing?
You should think about what kind of investor you are looking for, any added value you’re looking for and what you are prepared to offer your investors in return? For example, equity funding could bring you expertise that can fill the gaps in knowledge and a wider network, a loan repayment might allow you to remain more independent, a revenue share with a publisher will provide with expert routes to market, etc.
Show clearly what the money you are raising will enable you to do and how this will unlock growth or create resilience within your business.
Investor returns – Weigh up what are you’re prepared to offer you’re your investors in return? For example, how much equity would you be prepared to offer and how have you valued your business. If you want to borrow some money, how will you repay this? What revenue share split are you comfortable with if you work with a publisher.
Once you’ve fixed on an investment route, give some narrative that explains the business model, your timetable and the when investors might expect to see returns. What are you prepared to offer you’re your investors in return?
5. Continuity planning
If your business is affected by the Covid 19 pandemic you should expect questions around how you’re managing your business through this difficult time. Give investors clarity on what actions you are taking to sustain your business. Here’s a few suggestions:
*Beware of state aid limitations for the CBILS scheme.
You’ll of course need to provide some numbers. The type of financial info you provide is specific to the type of investment you’re looking to access. But for higher value investments and equity you should pull together the following: