how to raise investment for purpose-driven brands
You have a product or service for change. How will you fund your launch or growth? Fundraising is a skill any changemaker needs in order to implement and scale their brilliant ideas.
In June 2021 we hosted a skills share session with Ángel Figueroa Mayordomo of Meet Jack, a Dutch jackfruit company that wants to help meat lovers eat less meat.
Meet Jack recently raised the investment they need for their next growth stage. Ángel, team architect at Meet Jack (and a certified Brand The Change trainer and meetup host), is opening up his experience of the investment process to the community.
Watch the full chat here, and browse the key takeaways below 👇
12:54 What type of financing options do you have if you need to grow your business?
In the idea stage, you are raising seed funding. Investments of 10-30k euros. It could be a loan
Small cash amounts to prove that you have a solution that works for a problem in the market.
At the startup stage, you have done a successful proof of concept. The funding raised is startup financing.
Ranges between 50k-200k Euro.
Cash is meant to bridge the period when the sales cannot sustain the full operation of the business.
If the startup is successfully set up, it is ready to raise funding to allow the business to grow.
At the growth stage, the company raises the first round of investment. ( series A)
At this stage, the business model has proven to work and needs support to enable the business to accelerate.
At the expansion stage, growth is steady and the business is performing well. The company raises the second round of investment (series B investment).
At the stardom stage, the company has enough assets to take bank loans.
14:40 Where do you look for funding?
Seed financing can be raised from family and friends.
At the startup phase, you crowdfund with people who believe in your product/service
Incubators
Financing for growth comes from venture capitalists which are teams focused on scouting the market for startups with high potential.
Explore partnerships with bigger companies within the same value chain.
At the expansion stage, you work with venture capital corporates that invest in your company to help it expand to other territories.
26:41 What were your key learnings at each stage of the fundraising journey?
At the idea phase, get your story straight:
Make your branding decisions
Be clear on the problem you are trying to solve
Be clear on the solution you propose
What makes you different from others doing similar things?
At the startup stage, get your numbers right:
Tell your story
Show your numbers
Explain your next goal and why you need their investment
Ask for help
In the growth phase, get ready to grow and learn:
Listen and improve customer roadmaps
Have data to show consumer insights clearly
Own your business performance
29:56 What are investors looking for?
High-potential return on investment
An amazing product with a high perceived value from consumers
Detailed financial plan with fine details of monthly breakdown and forecasts
That you effectively assign resources
The potential of the company
The team has the right balance of skill
45:40 Which tools or frameworks have you used in your fundraising efforts?
Angel recommended and loved using; the value proposition canvas, business model canvas, brand thinking canvas, story brand framework, business case sheet, team design, and business plan templates.
50:08 How do you pitch to investors?
Angel presents the full pitch for Meet Jack as a fruit for meat lovers looking to reduce their consumption of meat.
1:01:50 Do you create different value propositions for different types of investors?
Mainly you do not have to create different value propositions for the different products although you pitch differently to different investors. Most things such as your story and your value proposition and the financial performance of the company remain the same.
