Valuing your business is one of the most important yet challenging aspects of raising investment. It’s important to be realistic while also not underselling your proposition. 

In this episode, I hear from Ed Lee, founder & director of investment and consultancy firm Bowbridge Capital.  Ed and his team work alongside business owners to implement growth strategies, build infrastructure, deliver efficiencies and embrace technology, whilst also working closely with them through funding rounds, growth capital and, ultimately, exit.

With Sifted reporting that the pre-series A investment deal number has hit a 3-year low, Ed shares timely advice on where to begin when valuing your business for investment as well as how the recent market changes have changed everything for founders. 

Ed’s advice:

• When you are looking for investment, you need to have at your fingertips:
  • Your business plan
  • Your strategy
  • Your historical numbers
  • Pre-empt the due diligence question
  • Understand the market you are in
  • Have pre-prepared responses
• You need to instil confidence and not lose momentum, so be quick to provide information
• If you’re not sure what you need to know, get involved in networks to learn what you need to learn
• Ask advice from people who’ve done it before and never be embarrassed to ask
• Don’t be wedded to a particular evaluation
• The reputation of your business, and the founder’s track record, will count
• Future cash flows and profits will be taken into account
• Remember that the enterprise value is different from the equity value (which may be affected by debts)
• Try to have 18 months ‘cash runway’ - ie you are covered for 18 months.  Sharp investors may try to run the clock down on you and delay until you are seriously short of capital, thus in a weak position

If you'd like to contact Ed you can reach him on [email protected]

FF&M enables you to own your own PR. Recorded, edited & published by Juliet Fallowfield, 2023 MD & Founder of PR & Communications consultancy for startups Fallow, Field & Mason.  Email us at [email protected] or DM us on instagram @fallowfieldmason. 

Let us know how your start up journey is going or if you have any questions you would like us to discuss in future episodes. 

FF&M recommends: 

• LastPass the password-keeping site that syncs between devices.
• Google Workspace is brilliant for small businesses
• Buzzsprout podcast 'how to' & hosting directory
• Canva has proved invaluable for creating all the social media assets and audio bites.
• For contracts check out Law Depot.

MUSIC CREDIT Funk Game Loop by Kevin MacLeod.  Link &

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