Business Angel Event
Nov 04
I went to a great Investor event last week where I got to see some very promising businesses that were looking for funding from angels. The event was organized by London Business Angels and I was pleased to see that the downturn has not seemed to dim the enthusiasm for either the businesses or the investors.
Six businesses in total presented and I do not think it would be fair for me to comment on the companies in detail but I saw a couple of businesses that were very impressive and I am looking into perhaps making investments in them. Please note that nothing I write in this business angel blog should be considered as an invitation to invest. The details of the companies will remain anonymous and I cannot make any recommendations for you to invest.
There was one business which was in the cork for wine bottles market. The presentation delivered was fantastic. I hardly drink at all so it was not an area I have knowledge of. But the presentation followed a very simple format
1. It explained the problem with the current solution for corking wine bottles
2. It demonstrated the size of the market (in excess of 1bn corks a year)
3. It then showed how their solution solved the problem in (1)
4. The company had achieved accreditation from reliable sources to verify the solution (and advanced orders)
5. The credentials of the management team and the finances were then outlined
I will be looking into this business in further detail. The management team was credible and I thought the downside was very limited.
There was another great business in the metal shaping sector. Again, this is a business that I know nothing about. The presentation followed a similar format. My concern here was I felt that the business needed a lot more cash to take it to profitability than they had outlined. This reinforces a point I have made from an earlier blog; Dilution: Death by a thousand cuts.
Businesses often need to have more than one round of funding. As an investor, you look for positive reasons for companies needing more cash rather than simply running out of money as that will dictate the terms of the new cash – and hence massive dilution for existing investors.
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