CEO Roundtable Dinner: How to Maximise Your Growth Through Investment

Prydis recently held its first quarterly Roundtable Dinner event at Riverstation restaurant, Bristol, on Thursday 10^thOctober. As wealth performance management professionals who strive to create integrated and proactive financial plans for businesses, we have created a platform where scale-up CEOs, directors and founders can network and share their insights on growth and fundraising.

Bristol is an exciting new space for scale-up technology companies, so we wanted to use this market as a platform to encourage disruptive businesses to develop and collaborate. Some of the innovative technology businesses represented at the event include Zynstra, Helm Squared, Sparkol, Duel, Burrington Estates, and Gapsquare.

Sam Handfield-Jones, Director of Growth and Innovation at the Octopus Group and Co-Head of Seccl Technology, joined us as our expert speaker. Prydis has worked closely with Sam and recently assisted in the Octopus Group’s £10m acquisition of wealth management technology company, Seccl. With extensive experience of driving growth in the fintech investments sector, we were happy to have Sam share the Octopus journey and his practiced advice for scale-ups looking for funding.

Read the following insights gained from Sam’s talk and the valuable discussions shared between the Roundtable attendees:

The Octopus Story

Although Octopus was born from humble beginnings, it is a culturally transformative business. Reminiscent of Google’s journey, Octopus was launched in 2000 from a small living room but has now expanded into  a group of companies that are dedicated to positively impacting lives across energy and financial services. Sam and his entrepreneurial team at Octopus are driven in supporting and advancing technologies that disrupt and improve traditional industry models.

How and when should you engage with a VC?

Every business needs something different regarding funding. Therefore, the first question you need to ask is whether venture capitalist investment is right for you. For example, a VC investor will have some influence over the business direction, whereas alternative methods of funding may give you more independence.

“I realised there are benefits to alternative fundraising methods, for example, privately owned, internally funded businesses have more flexibility.” – Martyn Bull, Riskaware

At the point of contact, your business should have a solid proof of concept and be experiencing steady growth. It is also important to a VC that further growth is only limited by your access to capital, and that there is potential for your business to grow exponentially. Once your business is generating revenue independently and the model can be scaled by at least 50 times, VCs will start to take interest and invest.

VCs invest in less than 0.5% of companies that approach them with a proposal, making it an arena that is extremely difficult to penetrate. The best way to make contact is to be recommended by a trusted advisor. Therefore, it is essential to actively network where VCs will be, either by evaluating your current connections, or attending roundtables, panels and technology meetups. During this process, be resilient – it takes time and patience to get noticed in a competitive investment market.

“It became clear that to build a hyper-growth company which required continuous funding, it really is about who you know, not what you know.” – Giles Mitchell, Office Pantry

How do I find the right VC?

Make sure the VC you partner with is a good match for your business. Firstly, consider the VC’s requirements for investment, such as what returns they need and over what time frame, and whether your business strategy can accommodate them.

“My advice about exit strategies and investments to Zoe from Sparkol was that it is essential to plan early and evaluate your options before acting.” – Joe Priday, Prydis

And remember, the job of the VC is to support you, so establish and prioritise your own needs. Ensure that your VC has sufficient access to capital, excellent distribution services, and that they specialise in your sector. If they understand your market, they can offer more knowledgeable advice and access to a more valuable network. The VC arm of Octopus is split into three specialist areas, Fintech, Health and Industry to allow the teams to specialise in their verticals.

Businesses need to look beyond the tangible offers of a VC and ensure that their values will be reflected in their working relationships. A good VC will offer clients support, distribution opportunities, new team hiring introductions and guidance to create a healthy ecosystem in their partnerships. This is done by advocating shared values, providing mental support during transitions, and creating a mutually beneficial collaboration.

Key Takeaways

We have opened a forum where businesses can share first-hand experiences of fundraising and company growth.  “A Roundtable Dinner was a fantastic way to talk to people at different stages of growth, and who are all doing interesting things in the space,” Sam says. “Prydis have created a fantastic opportunity for scale-up businesses to collaborate and learn from one another.”

Attendees came away having gained valuable advice about alternative funding methods from our experts at Prydis and experienced Bristol-based businesses. James Priday explains; “By implementing this support network for innovative businesses, we can advise companies on how to create tailored plans which will enhance their wealth.” These events will be held quarterly with new speakers, and new insights about how to manage your business wealth.