2023-24 Funding Landscape

Notes on what to expect if you'll be fundraising in 2023 & 2024

What is stopping most founders from getting
funded?

1 Founders not communicating the proposition well

2 Founders struggling to find relevant investors.

3 In 2023 more preparation than ever is needed to raise capital

Projected Investor Behaviour in 2023/24

1 Will take longer to make decisions

2 Will be carrying out more due diligence

3 Expecting rounds to be smaller

4 Build it ‘and they will come’ is over

5 Focus on profit more than growth

6 Lack of appetite in investing in ideas

They will be looking for...
1 Sensible runways, ideally 18/24 months

2 Constructive planned growth

3 More testing on finances than usual, checking of financial capabilities of

founders, expectations of managing of finance plans and to be able to re-
do finances upon request of investors

4 Great ideas will not raise investment, it is the quality, trust, loyalty and
commitment of founders they are looking for

5 Looking for great communication from founders

Investors are backing FOUNDERS that...

1 Are highly resourceful

2 Have a great Vision

3 Have an understanding of financial risk

4 Understand what commercial success looks like

5 Can quantify success and return on investment

Investors will be looking for

1 Short term plans

2 Long term plans

3 Market research

4 Marketing, go to market strategy

5 Investment objectives & exit plan

Prepare for these

1 60 month business plan

2 60 month cashflow plan

3 Income v expenditure

4 Cashflow forecasts

5 Rolling balance sheets

6 Dashboards with key metrics

7 Financial communication
Fundraising Strategy
How To Go About Raising Funds
Fundraising Strategy

Your fundraising strategy outlines how you plan to go about raising funds.
It should answer these Questions
1 Why are you raising capital

2 How much will you raise

3 What type of capital are you raising

4 Who are you raising from

5 When are you raising (Now & Future)

6 How will you go about the raise?

Why are you raising capital?

You need capital to execute a growth strategy.

How much will you raise?
 Where is the business at? Current State

What are our objectives? Growth Picture

How To What are the alternative paths? Research

Determine
Your Ask What is our selected path? Strategy

What is the cost of the path? Execution

Cost + cushion? Your Ask

How much will you raise?

Your ask should be tied to milestone(s) and timelines

What type of capital are you raising?

1 Equity

2 Debt

3 Grants

4 Crowdfunding

What structure/terms of each is appropriate?

Who are you raising from?

1 Be clear about what type of funder matches your stage

2 As in sales, focus more on prospects, not leads

3 What are you looking for in a funder. Money plus; support, mission, values...

4 Where can they be found

When are you raising?

1 Clarity on the lead time between now and cash in?

2 Budget for all stages; prospecting, conversations, due diligence, terms...

3 Think about how much runway you have before cash arrives

4 When will you need to raise again?

How will you go about the fundraise?
How will you go about the fundraise?

1 Process: Relationships? Online? Networking? Pitch events? Business

support? Consultants? ...

2 Map out an action plan

3 Research helpful resources

4 Use a fundrasing CRM tool

Get Started
davies.okeowo@gbslepgrowthhub.co.uk
Thank You