Investment scams: five red flags to look for

The digital age has made it much easier for cowboys to create convincing profiles online to extort young businesses… but with a good understanding of some common red flags, you can be confident that you are working only with legitimate potential investors.

B2A

Are we on the verge of creating artificial influencers, marketers and salesmen that will target artificial decision makers? Will procurement become an hyperfast and hypercompetitive process, akin to what high-frequency trading is today? It seems the world is already moving in this direction… Will B2A become an important part of the market?

KPIs

It is generally agreed that four to ten measurements may be suitable for the majority of companies, but the number and type of key performance indicators used may change depending on the company and also over time

Disclaimer Template

Whilst it is obviously important for the deck to include a persuasive pitch for investment, it’s also vitally important that you include a disclaimer to protect yourself from any legal action further down the line.

The Abu Dhabi Investment Scam

It recently happened to one of our clients: their company is UK based, with no operations or interests in the UAE – they are fundraising and this investor contacted them out of the blue with a tempting message…

Know your investor

Finding investors can feel like an incredible thing – but make sure you carry out these checks and look before you leap.

SAFE / ASA

Early-stage valuations may feel uncomfortable for both founders and investors… Is there a simple way?

Valuations Made Easy

We are happy to announce that we’ve partnered with Equidam: an online platform for startup valuation that enables entrepreneurs to understand their valuation, transparently discuss it, and close fair deals.

Sophisticated Investors and HNWI

A sophisticated investor is an investor that has sufficient capital and experience to evaluate independently the soundness of an investment opportunity, and bring forward such investment process.

Karma Works

Everybody has a desire to accrue wealth – we all want more money for our families and for ourselves. But the vast majority of us…

Cap Table

A capitalisation table offers a breakdown of the shareholder equity that a company has. These tables or spreadsheets are known as cap tables and…

Blind Teaser

If you have decided to sell your business or are looking for investments with Venture Capital, you may be wondering whether to advertise your business with an anonymous teaser…

Slicing The Pie

When it comes to your start-up, you want to ensure complete equality of equity. Finances are of the utmost importance, and it’s essential you find a way of fairly and impartially determining the stakes in your business.

The Crowdfunding Video

Crowdfunding: you put together a video, ready to let your idea off into the investment stratosphere. But what goes in the video?

The Funding Dictionary

Here you can find a short summary of the specific vocabulary of the funding process. This is a list we share with our founders before diving into negotiations. You can download our Founders’ Prep Meeting Pdf here.

Info Memo Checklist

The key to successfully securing investments for a business is a strong information memorandum, also referred to as an info memo

9 Negotiating Principles for Investment Success

What are the underlying principles that you should be using in a negotiation? It doesn’t matter whether you’re the one looking to make the investments or the business looking to attract investors because these principles and techniques will always work – whichever side of the negotiating table you happen to be sat on.

NDA Template

WHEN AN INVESTOR SHOULD SIGN ONE?
If you think you have a special idea and you are scared somebody could steal it from you, think again… Many people have the same ideas at the same time, but the difference is all in the execution!

Not What But How

WHY COMES FIRST BUT DON’T FORGET HOW!
Everything starts with “why”, we can probably all agree on that.

Values First – ESG Later

THE IMPORTANCE OF BEING EARNEST

Environmental, Social, and Governance (ESG) criteria are an almost mandatory aspect of today’s investment markets. But is this a fad?

Lehman Scale

LEHMAN FORMULA
So, let’s address the elephant in the room first: the Lehman Scale takes its name from the infamous Lehman Brothers that developed this method in the late 1960s to bring under control and standardise the market of private bankers’ finders fee.

Funders’ Dilution

It’s important to plan ahead and have your exit strategy clear from the start. What do you want to do with your life and your company? And how much of it should you give to investors in order to see new equity flowing into the business, propelling you towards the next stage of expansion?

The Trinity of Management

WE ARE MAKERS, MARKETERS AND MANAGERS
We believe that in order to deliver amazing results a company must excel at 3 things

DCF Valuation Template

This Discounted Cash Flows technique involves deriving the value of a business by calculating the present value of its expected future cash flows. Projected cash flows, inferred from the Business Plan, are used for the five years ahead while the Terminal Value is adopted for the remaining foreseeable future.

Valuation

How to value my company? Sure, you want to minimize the number of shares you will eventually give to investors, but you don’t want to scare them off as well. Above all being reasonable is the key when it comes to valuing your own company…
But first, let’s talk about the theories behind assets valuation.

What Really Matters

OUR MANIFESTO: The world advances thanks to the effort of single brave individuals that innovate starting from zero. All successful companies become institutions sooner or later, and loose the ability to change and fuel progress. And the advancement of our human race is left in the capable hands of Founders and Entrepreneurs.

Investment Process

Closing an investment is something that could theoretically take less than a month, but this almost never happens. Normally six months is a good ballpark to start preparing your agenda, but what can you expect from this process?