The Ask

Simply put – how much do you need, what will you be doing with it and what are you offering in return. It’s the point in each “Shark Tank” presentation where all the sharks grab their notebooks.

Be realistic and be prepared to negotiate. The more detail you can show on how the investment will be spent, the easier it is to agree that amount, and then the negotiation rests on how much equity is to be traded in return for the capital. Know your worth right now, understand the impact of risks to the business and show that you have a plan with options to cope with unforeseen circumstances.

If you will be sourcing amounts from more than one investor and particularly from more than one investment round, show how a smaller amount can be used as a stepping-stone towards building the value that will entice future investors.

Modelling future returns based on your business model is helpful but rather than just showing the best-case scenario, we recommend producing a range of extrapolations based on overcoming specific risks or restrictions. That shows a good commercial understanding and can show the upper potential as achievable with the right plan and backing.