Gemma Whates helps mothers to start and grow a business alongside raising a family, via start-up courses and the ALL by MAMA community. 

EPISODE NOTES

**Please remember to rate and review the podcast – it really helps others to find it.**

Today on the podcast I’m talking to Gemma Whates of All By Mama. Gemma helps mothers to start and grow a business alongside raising a family, via start-up courses and the ALL by MAMA community. Gemma is a returning guest to the podcast and this time is here to talk about seeking investment for your business. Gemma has raised a lot of money over the years and is also a Venture Capitalist Scout for Ada Ventures. 

Gemma explains the reasons that she sought investment, how she did it, why you may want to do it, and how to go about doing it yourself. It is an episode packed full of information, that is applicable to all businesses, large and small, whether you are just starting out or looking to scale. 

Listen in to hear Gemma share:

  • An introduction to herself and her business (02:46)
  • Why Gemma started looking for investment for her business and how she started (03:56)
  • The different types of crowdfunding that are available (06:24)
  • Other ways to fund a business and how she got involved with Ada Ventures (07:46)
  • How much investment she has raised (10:11)
  • Different types of investors (11:26)
  • Some of the things you might get investment for (13:14)
  • What happens if things go wrong (15:42)
  • How to start looking for investment (17:00)
  • How the working relationship with investors works (24:51)
  • The key things that she has learnt along the way (26:55)
  • The downsides of investment (28:40)
  • The positive sides of investment (30:40)
  • Ways to work with Gemma (32:50)
  • Her number one piece of advice for anyone thinking of seeking investors (36:03)

USEFUL RESOURCES:

Gemma’s Website

Gemma Whates Facebook

Gemma Whates Instagram

Gemma Whates Linked In

RESOURCES GEMMA MENTIONS:

Ada Ventures

Angel Academy

Crowdcube

Forward Partners

Kickstarter

Swoop

LET’S CONNECT

Join my free Facebook group for product makers and creators

Find me on Instagram

Work with me 

Transcript
Vicki Weinberg:

Welcome to the, Bring Your Product Ideas To Life podcast, practical

Vicki Weinberg:

advice, and inspiration to help you create and sell your own physical products.

Vicki Weinberg:

Here's your host Vicki Weinberg.

Vicki Weinberg:

Today, I'm really excited to invite Gemma Whates back to the podcast.

Vicki Weinberg:

Gemma helps mothers to start and grow business alongside raising

Vicki Weinberg:

a family via startup courses and the All By Mama community.

Vicki Weinberg:ma was on the podcast back in:Vicki Weinberg:

Today she's back to talk with us about seeking investment.

Vicki Weinberg:

Um, Gemma has raised a lot of money over the years.

Vicki Weinberg:

Although she tells me that compared to some investments, it really is a drop

Vicki Weinberg:

in the ocean, um, for All By Mama.

Vicki Weinberg:

And she's going to talk about how, the reasons that she sought investment,

Vicki Weinberg:

how she did it, and importantly, how, and when you might want to think about

Vicki Weinberg:

seeking investment for your business, and if you do how to go about it, what you

Vicki Weinberg:

need to do, what you need to be aware of.

Vicki Weinberg:

And.

Vicki Weinberg:

All of all of the details.

Vicki Weinberg:

Um, I say all of the details, obviously it's a huge topic, but I would say

Vicki Weinberg:

this is a really good starting point.

Vicki Weinberg:

We kind of aimed for this episode to be a really good introduction into

Vicki Weinberg:

investment, um, who might consider it, why you might consider it, what

Vicki Weinberg:

you might use it for and just the basic to get you thinking about it.

Vicki Weinberg:

And then of course, if you need any further information, you can, um,

Vicki Weinberg:

do some investigation from there.

Vicki Weinberg:

Or you can also contact Gemma via the show notes for this episode.

Vicki Weinberg:

As you know, she's got loads of knowledge to share.

Vicki Weinberg:

And as I say, I only went into this really lightly on this episode

Vicki Weinberg:

because it is a huge, huge topic.

Vicki Weinberg:

Um, I think you're going to find it really interesting.

Vicki Weinberg:

Um, hopefully perhaps inspiring as well.

Vicki Weinberg:

And, um, yeah, with all that said, I would love to introduce you to Gemma.

Vicki Weinberg:

It's always dread that I might forget.

Vicki Weinberg:

I haven't never forgot to do that.

Vicki Weinberg:

I might forget.

Vicki Weinberg:

So I am going to, again, I'm going to record the introduction separately.

Vicki Weinberg:

I think I got know what I did last time.

Vicki Weinberg:

I've started doing them after we've spoken so I can kind of pull on

Vicki Weinberg:

what we've actually spoken about.

Vicki Weinberg:

Um, Yeah.

Vicki Weinberg:

So if you're, if you're good to go, I will ask you to introduce yourself.

Vicki Weinberg:

And obviously you can choose how you want to introduce yourself.

Vicki Weinberg:

Because obviously last time we were talking about, All By Mama, and now

Vicki Weinberg:

we're talking about something different.

Vicki Weinberg:

Although I think All By Mama was still relevant to this audience.

Vicki Weinberg:

Say, you introduce yourself.

Vicki Weinberg:

However you'd like to introduce yourself and then we'll take

Vicki Weinberg:

it from there if that's okay.

Vicki Weinberg:

Oh, sorry.

Vicki Weinberg:

No, that's fine.

Vicki Weinberg:

Say hi Gemma.

Vicki Weinberg:

Thank you so much for being.

Gemma Whates:

Hi there.

Gemma Whates:

Thank you for having me.

Vicki Weinberg:

So can you start off by giving an introduction to yourself?

Gemma Whates:

Yeah.

Gemma Whates:

Sure.

Gemma Whates:

So for those of you that don't know me, my name's Gemma, um, I am a founder

Gemma Whates:

of a business called All By Mama.

Gemma Whates:

Um, I'm also work in marketing and I'm a VC scout for Ada Ventures

Gemma Whates:

and I'm a mum of two boys so there's a few strings to my bow.

Vicki Weinberg:

Definitely.

Vicki Weinberg:

And today we're going to talk about the investment string on your bow.

Vicki Weinberg:

So we want to talk, but investments, um, because I know it's something that can be

Vicki Weinberg:

needed either at the outset of starting your business or to grow your business.

Vicki Weinberg:

But until really, really recently, I knew nothing about investment, about

Vicki Weinberg:

who could seek investment types of in fact, I still know very little about

Vicki Weinberg:

the sort of types investment available and that's what you're here for.

Vicki Weinberg:

But I just think there'll be lots of people who have never even considered

Vicki Weinberg:

getting investment for their business, whether it's to start it or grow it.

Vicki Weinberg:

And, um, yeah, I would love if you can share all about the

Vicki Weinberg:

world of investments with us.

Vicki Weinberg:

And I know there's a really big topics that we're literally gonna be skimming

Vicki Weinberg:

the surface today, but I think it would be a really good starting point of this.

Gemma Whates:

Okay.

Gemma Whates:

Yeah.

Gemma Whates:

Sure.

Gemma Whates:

Um, so shall I share with you kind of what I did, um, and how I learned, what I, what

Gemma Whates:

I know, and maybe we can go from there.

Vicki Weinberg:

That'd be perfect.

Vicki Weinberg:

Thank you.

Gemma Whates:

Okay.

Gemma Whates:

So, um, when I had the idea for All By Mama, which is an online marketplace

Gemma Whates:

that supports, um, mothers in business, I had a little bit of savings from

Gemma Whates:

my full-time job, but I didn't quite have enough to build the tech that

Gemma Whates:

I needed to support the marketplace.

Gemma Whates:

Um, and I thought, well, I'm gonna need to get some money from somewhere.

Gemma Whates:

So I ended up just researching all of the different ways that I could fund

Gemma Whates:

my business and started off really not knowing anything, either at all.

Gemma Whates:

Um, and went to, um, some contacts of people that I knew.

Gemma Whates:

So it wasn't really within my immediate friendship group, but

Gemma Whates:

I kind of thought, who do I know that white might know someone?

Gemma Whates:

Cause I didn't have friends or family money, which is what sometimes people

Gemma Whates:

rely on to get their first round.

Gemma Whates:

And you'll find in the world of investment, it's, um, very privileged

Gemma Whates:

world and it's also very um, it's full of unconscious bias and bias.

Gemma Whates:

Um, and women are not genuinely the ones funded.

Gemma Whates:

There's some shocking statistics.

Gemma Whates:

I think the latest was just around the 2% mark of, um, solo

Gemma Whates:

female founders that are receiving investment against male founders.

Gemma Whates:

So.

Gemma Whates:

What I did was go, who could, I know, who do I know that might know somebody that

Gemma Whates:

might be interested in paying some money to this business, because right now I

Gemma Whates:

can't even really get it off the ground.

Gemma Whates:

And that's what I did first.

Gemma Whates:

And I did find someone and I got a little bit of investment.

Gemma Whates:

Initially.

Gemma Whates:

They really loved the idea they knew of me.

Gemma Whates:

And obviously I went and met him a few times and talked me through what

Gemma Whates:

the plans were and they invested to help us get the business launch.

Gemma Whates:

So after that point, um, I thought, okay, Um, it, it was so difficult to

Gemma Whates:

build the tech and to get the first year kind of up and running and underway.

Gemma Whates:

And, um, I thought, right, I'm going to need to get some more information

Gemma Whates:

about how to run a business and how to potentially fund a business.

Gemma Whates:

So I joined an accelerator and at the time the one I joined was

Gemma Whates:

called Entrepreneurial Spark.

Gemma Whates:

And it was since acquired by NatWest.

Gemma Whates:

So some people might know it as the NatWest accelerator.

Gemma Whates:

Um, and I joined, I did it just before it, it turns to be NatWest.

Gemma Whates:

And through that process, I learned a little bit about via the mentors

Gemma Whates:

there and via the community there.

Gemma Whates:

What other investment options there were and starts to like learn and

Gemma Whates:

understand about crowdfunding.

Gemma Whates:

So for those that don't know, there's two different types of, well, there's

Gemma Whates:

lots of different types of crowdfunding, but broadly there's equity crowd

Gemma Whates:

funding or reward crowdfunding.

Gemma Whates:

So equity crowd funding is where people, um, put money into your business and

Gemma Whates:

you'd give them a percentage share of your business and reward crowdfunding is where

Gemma Whates:

people put money into your business that, you know, Um, reward them with something.

Gemma Whates:

So be that the product at a reduced price or something, else like something

Gemma Whates:

promotional or something, um, merchandise.

Gemma Whates:

So those are the two kind of main types of, of crowd funding that I

Gemma Whates:

was looking at with the business.

Gemma Whates:

Being a service business.

Gemma Whates:

I didn't really have anything that fits into reward.

Gemma Whates:

So that's platforms like Kickstarter.

Gemma Whates:

So it was going to for equity crowd funding, which is where I tried to

Gemma Whates:

raise a little percentage or some money.

Gemma Whates:

Um, and, um, yeah, I would people, the people that invested would

Gemma Whates:

get a share in the business.

Gemma Whates:

So, um, I learned a lot about that.

Gemma Whates:

Um, then decided to give it a go and, uh, raised 75,000 pounds

Gemma Whates:

with a platform called Crowdcube.

Gemma Whates:

That's one of the equity crowd funding platforms in the UK.

Gemma Whates:

So, um, after that, I kind of thought right now, learnt a little bit

Gemma Whates:

about crowd funding and investment.

Gemma Whates:

Um, what other ways are there to fund the business?

Gemma Whates:

And once you go on a investment kind of trajectory, it's different than if

Gemma Whates:

you're either self funding obviously, or you're kind of running off the

Gemma Whates:

profit that your business is generating.

Gemma Whates:

So.

Gemma Whates:

I was kind of on this investment trajectory and thought, what other

Gemma Whates:

ways are there that I can raise money?

Gemma Whates:

Um, so, um, I looked at Angel Investment and that was essentially finding people

Gemma Whates:

it's, I wouldn't really say in my network, some people might be able to

Gemma Whates:

find people in their network, but I really didn't have anyone in my network

Gemma Whates:

other than the people that I'd found via crowd funding, um, that I could go to.

Gemma Whates:

So I thought, right, how do I find a network?

Gemma Whates:

And that was a case of attending lots of different events.

Gemma Whates:

Again, talking to people that I knew slightly, um, or people that could

Gemma Whates:

introduce me to somebody that they knew.

Gemma Whates:

And it was a really, a lot of.

Gemma Whates:

No, so, and a lot of please can you introduce me a lot of conversations

Gemma Whates:

around, would you even be interested in a conversation, um, and finding

Gemma Whates:

people that I could talk to you that were high net worth that might have

Gemma Whates:

some money to invest in the business.

Gemma Whates:

And I did find a few, three or four angels to invest.

Gemma Whates:

Um, and then I did another accelerator and this accelerator was called ignite.

Gemma Whates:

And this accelerator also put investment into your business as part of the

Gemma Whates:

accelerator, some do some don't.

Gemma Whates:

Um, this one did.

Gemma Whates:

Um, so I got some VC funding via that, um, that accelerator

Gemma Whates:

only a very, very small amount.

Gemma Whates:

Um, From that community.

Gemma Whates:

I then met some VCs, um, which are venture capitalists for anyone that doesn't

Gemma Whates:

know, because why would, you know, if you're not in the, in, not in the world.

Gemma Whates:

Um, and, um, I met a, an amazing woman called Check Warner,

Gemma Whates:

who is, um, she has a fund.

Gemma Whates:

She started a fund with a guy called Matt called ADA Ventures.

Gemma Whates:

And over time getting to know, Check and Matt.

Gemma Whates:

their vision and their mission is all about supporting

Gemma Whates:

underrepresented founders.

Gemma Whates:

I became a scout for them, which means I go out and look for businesses that want

Gemma Whates:

to raise VC investment and see if they're appropriate or relevant to ADA Ventures

Gemma Whates:

and if they are make an introduction.

Gemma Whates:

So I suppose that's a slight whistle stop tour of all the ways that I have

Gemma Whates:

raised or learns about investment over the past five, six years.

Vicki Weinberg:

That's amazing.

Vicki Weinberg:

Thank you.

Vicki Weinberg:

And wow, you've done a lot.

Vicki Weinberg:

Gemma I hadn't realized if you don't mind.

Vicki Weinberg:

Um, don't tell me if you don't want to answer this, but do you mind giving

Vicki Weinberg:

us an idea of how much money you've raised over that over that time?

Vicki Weinberg:

Cause it looks like you've put in a lot of work.

Gemma Whates:

Yeah.

Gemma Whates:

No Problem.

Gemma Whates:

Yeah.

Gemma Whates:

I mean it's hard, really hard work.

Gemma Whates:

I've raised a total of £250,000.

Gemma Whates:

Um, and that's spread out over time.

Gemma Whates:

In the investment world, that is really nothing.

Gemma Whates:

And especially if you were looking at raising VC, you know, that it's,

Gemma Whates:

it's not, it's not a lot at all.

Gemma Whates:

Um, but obviously for me trying to start my business, it felt,

Gemma Whates:

it feels, it felt like a lot.

Gemma Whates:

Um, but it is a it's a hard process and there's lots of things I didn't

Gemma Whates:

really know at the start that I wish I'd knew that I know now.

Gemma Whates:

And I think with investment, it's something that you should learn as

Gemma Whates:

much as you can about before you do.

Vicki Weinberg:

Yes, definitely.

Vicki Weinberg:

So let's talk about a bit of that and then we'll come back.

Vicki Weinberg:

Some of the things you wish you wish you'd learned.

Vicki Weinberg:

Look, I definitely don't want to let that one go, Gemma.

Vicki Weinberg:

Um, can we just, so you mentioned lots of different ways of finding funding.

Vicki Weinberg:

So you talked about VC and angel investors and crowdfunding.

Vicki Weinberg:

Can you just give us a really quick run through of what all the different

Vicki Weinberg:

options are just for anyone who missed it when they were listening to your story?

Vicki Weinberg:

Would that be ok?.

Gemma Whates:

Yeah, sure.

Gemma Whates:

I mean, there's loads of different options and for funding,

Gemma Whates:

business funding your business.

Gemma Whates:

So I'll leave that side of the funding to the financial professionals, but

Gemma Whates:

in terms of what I've done on equity, raising equity, investment, um, so

Gemma Whates:

you've got venture capitalists or VCs.

Gemma Whates:

So they will typically invest in something which is highly

Gemma Whates:

scalable from say, 500,000 up.

Gemma Whates:

I mean, you can find some of them, that's more, some of invest

Gemma Whates:

less, but broadly you're looking at something highly scalable.

Gemma Whates:

Um, if you're going into a VC, um, you've then got things.

Gemma Whates:

Uh, angels say angels are generally high net worth individuals, um, who

Gemma Whates:

wants to invest money in businesses.

Gemma Whates:

Um, and that's a case of approaching kind of finding and approaching them.

Gemma Whates:

Pitching to them.

Gemma Whates:

And, um, for that it, for them to make an investment, you

Gemma Whates:

need to agree on a valuation.

Gemma Whates:

So you'll put a valuation to your business and then they'll say yes or no.

Gemma Whates:

Um, and then that's broadly how that works in terms of angel investment

Gemma Whates:

and then crowdfunding.

Gemma Whates:

So crowdfunding, equity investment crowdfunding, generally you'll find a

Gemma Whates:

platform where you can, um, put your business on to, um, there'll be lots

Gemma Whates:

of, kind of due diligence prior to that.

Gemma Whates:

And then you will put your business or your pitch onto the platform.

Gemma Whates:

And that would be a video pitch decks, um, key facts.

Gemma Whates:

Um, and you wanna invite people to come in and invest in your

Gemma Whates:

business for percentage share.

Gemma Whates:

And again, that's done on an evaluation, agreed with you

Gemma Whates:

and the crowd funding platform.

Vicki Weinberg:

Perfect.

Vicki Weinberg:

Thank you for that.

Vicki Weinberg:

And when it comes to angel investors and VC investors, just so I've got

Vicki Weinberg:

this really clear in my head as well.

Vicki Weinberg:

So is what they get from it.

Vicki Weinberg:

A percentage of the business.

Vicki Weinberg:

Is that typically how it works?

Gemma Whates:

Yeah, exactly.

Vicki Weinberg:

Perfect.

Vicki Weinberg:

Thank you.

Vicki Weinberg:

Okay.

Vicki Weinberg:

Let's talk a little bit about, um, when you might be thinking about

Vicki Weinberg:

seeking investment for your business, because, and you spoke about getting

Vicki Weinberg:

some investment to get started.

Vicki Weinberg:

So I guess that's one time when it might be good, but when, when the other

Vicki Weinberg:

times that people might want to think about getting investments or, um, yeah.

Vicki Weinberg:

And what different things can you use investment for?

Vicki Weinberg:

Cause you mentioned you did yours to invest in the tech.

Vicki Weinberg:

What are some of the things that people consider getting investment for?

Gemma Whates:

Yeah, I think that was massively varies depending on what

Gemma Whates:

kind of investment you're getting.

Gemma Whates:

Say for instance, if you're going for VC investment, you're looking at scale.

Gemma Whates:

So scaling your business or getting your business off the ground.

Gemma Whates:

If it's something like you said, that's got high amount of really expensive

Gemma Whates:

tech or something like that, that you need to actually up and running before

Gemma Whates:

you can scale or acquire customers.

Gemma Whates:

Um, if you are, um, If you're looking at, you might need, if you're looking

Gemma Whates:

at friends and family rounds or angels, again, that can be right at the start.

Gemma Whates:

So you just actually need some funding to get the business off the ground that might

Gemma Whates:

be to buy stock and it might be to, yeah.

Gemma Whates:

Do some tech.

Gemma Whates:

It might be marketing.

Gemma Whates:

So maybe you've got a proven track record in marketing and you can show your ROI.

Gemma Whates:

Um, and you know that if you pay X and you'll get X out, so you want, you want

Gemma Whates:

some funding to scale that marketing, um, or it might be to bring people on board.

Gemma Whates:

So you need some resource or you'd want some resource to help you scale again,

Gemma Whates:

um, and run the business, but you can't do that out of the turnover or the profit

Gemma Whates:

rather that the business is generating.

Gemma Whates:

So, um, you'll look there.

Gemma Whates:

Um, you can look to investment for that.

Gemma Whates:

Um, there's so many different reasons, and I think the main thing to do is to have a

Gemma Whates:

think about why you know, like you've just said you you'll considering investment.

Gemma Whates:

What the output is that you think you're going to get.

Gemma Whates:

If you do get the investment what's, what's it going to look like?

Gemma Whates:

What are you gonna use it for?

Gemma Whates:

And what's it gonna like after you've spent it and just make sure

Gemma Whates:

you spoken to somebody that really understands what it means to give

Gemma Whates:

away shares in your business.

Gemma Whates:

Obviously, obviously you speak to your accountant about that, or,

Gemma Whates:

um, a lawyer that understands.

Gemma Whates:

That and how that, how that impacts your business.

Gemma Whates:

Um, so I know if a lawyer is the right word, um, I would just recommend that

Gemma Whates:

before you take on any investment you're in a position of, of, of slight knowledge

Gemma Whates:

or not slight knowledge of knowledge.

Vicki Weinberg:

Yes.

Vicki Weinberg:

Yeah.

Vicki Weinberg:

That definitely makes sense because I guess it's a big commitment by size of

Vicki Weinberg:

the you're giving away a share of your business, but the other party or parties

Vicki Weinberg:

are giving away a chunk of their money.

Vicki Weinberg:

Um, what happens.

Vicki Weinberg:

I'm interested, as I was saying, there's a question just popped into my head, Gemma,

Vicki Weinberg:

what happens if it sort of goes wrong?

Vicki Weinberg:

What happens if you, you know, you don't see a return on the money

Vicki Weinberg:

that's been invested or is that something that's agreed up upfront?

Vicki Weinberg:

What happens there?

Gemma Whates:

Well, generally.

Gemma Whates:

I think you you'll see, you seek investment with the intention of it,

Gemma Whates:

of your business scaling, obviously giving a return to your investors,

Gemma Whates:

but ultimately you need to make it clear to anyone that's investing.

Gemma Whates:

That capital is at risk.

Gemma Whates:

And as part of a crowdfunding campaign, you'll say capsule at risk, but underneath

Gemma Whates:

any promotional activity, because, um, you have to make sure people realize that.

Gemma Whates:

And essentially, you know, you can't, you can't guarantee a return.

Gemma Whates:

Um, so.

Gemma Whates:

If it's at the risk of loss, essentially.

Vicki Weinberg:

Okay thank you.

Vicki Weinberg:

Then let's read.

Vicki Weinberg:

I just think that's really good to know.

Vicki Weinberg:

Um, so I'm thinking that most people listening will be people who are perhaps

Vicki Weinberg:

looking to either create their first products or maybe bring on some, some

Vicki Weinberg:

new products, their product range.

Vicki Weinberg:

Someone in that situation, what kind of things would you

Vicki Weinberg:

need to be thinking about?

Vicki Weinberg:

And I guess what I'm trying to ask is how would you go about seeking investment?

Vicki Weinberg:

So let's say you've got this brilliant idea for a product, but you need

Vicki Weinberg:

some money behind you to actually get it, get it developed and made.

Vicki Weinberg:

What would you need to do and have in order to sort of go and seek investment?

Vicki Weinberg:

I know from sort of friends and family, it's one thing, but let's see.

Vicki Weinberg:

So you think, okay, I need to go and find some angel

Vicki Weinberg:

investors or venture capitalists.

Vicki Weinberg:

What would you sort of need to be armed with as such to do that?

Gemma Whates:

I think the first thing is a real clarity of why you need the

Gemma Whates:

money, what for, and then I think you also need to make sure that you've looked at

Gemma Whates:

options for, for self-funding and that doesn't have to be money in the bank.

Gemma Whates:

That can be things like loans, or it can be personal debt and

Gemma Whates:

stuff, and those kinds of options.

Gemma Whates:

So I think.

Gemma Whates:

Initially the you'd have to have, you'd have to think to yourself what all the

Gemma Whates:

ways I could potentially fund this.

Gemma Whates:

So there's a really good, um, resource, um, from a company called Swoop.

Gemma Whates:

Um, so if you look at that company, they'll go through and tell you,

Gemma Whates:

put in what you're trying to do.

Gemma Whates:

They'll, they'll go through and tell you all the different ways that you can

Gemma Whates:

look to get money into your business and investments just one of those.

Gemma Whates:

So I think that's the first step deciding what, what you need.

Gemma Whates:

Money-wise and why you need it and what you think is going to happen when

Gemma Whates:

you've got it, um, is really important.

Gemma Whates:

Um, and then in terms of, if you decide that raising investment is the right

Gemma Whates:

way to go, you'll need to prepare some projections and financial projections.

Gemma Whates:

So, um, normally that's three years out and sometimes it's five years out,

Gemma Whates:

but normally it's three years out.

Gemma Whates:

Um, in terms of what you think you're going to get from cash flow perspective.

Gemma Whates:

So all the things that you're going to generate revenue for you, your

Gemma Whates:

costs, what your marketing activity will, will bring in, um, costs like

Gemma Whates:

resource and, and that kind of thing.

Gemma Whates:

Um, so you'll need to have a cashflow projection.

Gemma Whates:

Um, and then you need great pitch deck, which will essentially tell somebody

Gemma Whates:

it doesn't know anything about your business, what your business is.

Gemma Whates:

Um, so you'll have.

Gemma Whates:

A one pager that would introduce what your businesses know that include things

Gemma Whates:

like your team, what you've achieved to date, what you want the money for,

Gemma Whates:

what you think the money will do.

Gemma Whates:

Um, anything else notable about the business?

Gemma Whates:

Like if you've got IP or anything like that, um, and what you're trying

Gemma Whates:

to raise, how much you're trying to various, so you'll create a pitch deck.

Gemma Whates:

Sometimes when you're looking at raising investment, if you're going to through a

Gemma Whates:

pitch, a pitch day, um, so you can apply to pitch to organizations, um, that have

Gemma Whates:

pitch days, um, they'll sometimes ask for what's called an executive summary, which

Gemma Whates:

is, um, all the information in your pitch deck in a one pager, not, not all the

Gemma Whates:

information, a summary of the information in your pitch deck on a one-pager.

Gemma Whates:

Um, and I think it's good to have that anyway.

Gemma Whates:

Cause it will streamline your thinking about what goes into the pitch deck.

Gemma Whates:

And then you can create a.

Gemma Whates:

Kind of boiler room of information, which has got your pitch deck.

Gemma Whates:

It's got your financials, it's got your exec summary.

Gemma Whates:

You can include a list of investors that you're trying to improve approach.

Gemma Whates:

You can include any kind of press that you want to get, or

Gemma Whates:

any press that you have got.

Gemma Whates:

Um, you can include any feedback that you've had previously from investors

Gemma Whates:

that have, or haven't invested or any that if this is your first time that

Gemma Whates:

as you go, people will say yes and no.

Gemma Whates:

So you can include that.

Gemma Whates:

What's a what to change.

Gemma Whates:

And I think it's good to have an editable pitch deck because, um, especially if

Gemma Whates:

you're talking about to everybody, but if you're speaking to Angel investors

Gemma Whates:

and they're often going to be have different motivations, um, so having,

Gemma Whates:

uh, an editable pitch deck will help you.

Vicki Weinberg:

Okay by that.

Vicki Weinberg:

Do you mean sort of say that you can pitch so you can have it that, that

Vicki Weinberg:

maybe aligns with that person's interests or their motivations, for example?

Gemma Whates:

Yeah.

Gemma Whates:

Say for instance, if he knows something about the particular investor, the

Gemma Whates:

type of thing that he liked to invest in, or if the, if you think this is

Gemma Whates:

like an emotional investment, perhaps it's something that they have that

Gemma Whates:

has impacted them in their life or that they know about particularly.

Gemma Whates:

Or if you think that that it's, if it's not, if it's,

Gemma Whates:

if, if, if it's they're very.

Gemma Whates:

Data lead investor.

Gemma Whates:

And they might know, you might want to just see what the numbers are like even

Gemma Whates:

when you're talking to different people.

Gemma Whates:

It's quite hard to know sometimes, but sometimes you

Gemma Whates:

might know something about that.

Gemma Whates:

Those people you're going to be talking to.

Gemma Whates:

And therefore you must like, what's it slightly change how you, how

Gemma Whates:

you share the same information.

Vicki Weinberg:

That makes sense.

Vicki Weinberg:

Yeah.

Vicki Weinberg:

And it sounds like you need to know a little bit about

Vicki Weinberg:

who you're talking to anyway.

Vicki Weinberg:

Um, ahead of time, how do you do that?

Vicki Weinberg:

So how do you, you know, if I wanted to fight to get investment

Vicki Weinberg:

with something today, how would I go about finding people.

Gemma Whates:

I think that's really hard part of it.

Gemma Whates:

And I think this is one of the reasons why, um, investment is, is so hard if

Gemma Whates:

you're not in a world of high net worth or, um, you're, you haven't, you know,

Gemma Whates:

you don't come from a background of a lot of wealth because it's all about networks

Gemma Whates:

and, and there are opportunities to apply to different kinds of organizations

Gemma Whates:

where you can pitch your business.

Gemma Whates:

But if you know, people who have money.

Gemma Whates:

It's a lot easier to find an angel investor than it then if you don't.

Gemma Whates:

Um, so if you don't, it's a case of networking.

Gemma Whates:

So I think accelerators are really good place to do that.

Gemma Whates:

I mean, that's always been my number one place to find networks and learn about

Gemma Whates:

investment and has been accelerators.

Gemma Whates:

I've done.

Gemma Whates:

I think they really good opportunity.

Gemma Whates:

Um, and if not, you've got LinkedIn as well, so really use LinkedIn.

Gemma Whates:

Um, you can type in angel investor.

Gemma Whates:

So some people put that in their profile.

Gemma Whates:

You have to do a little bit of a, do a little bit of due

Gemma Whates:

diligence to look you're here.

Gemma Whates:

You're here actually here.

Gemma Whates:

You're actually looking out, but you can use LinkedIn.

Gemma Whates:

You can also look at, um, businesses that, you know, have investors and have

Gemma Whates:

a look at who their contacts are to get an idea of the kind of investors.

Gemma Whates:

I'm not saying steal you're, you're competitors, you're competitors,

Gemma Whates:

investors, but some investors like to invest in a certain industry so they

Gemma Whates:

might be interested if you are looking at if your food and drink brand.

Gemma Whates:

You are looking for an investor.

Gemma Whates:

You might find a few, some investors come up, you want to get other

Gemma Whates:

food and drink brands, contacts.

Gemma Whates:

You might find the same person comes up a few times.

Gemma Whates:

And that might be because they're an interested agent

Gemma Whates:

and investor in that industry.

Gemma Whates:

And the other thing is to speak to other founders.

Gemma Whates:

Who've raised investments.

Gemma Whates:

Sometimes there'll be people that it's it's, uh, that they can share

Gemma Whates:

like angels that they have in their business that they're happy to share.

Gemma Whates:

Sometimes it will be appropriate and sometimes it won't be, but

Gemma Whates:

just building that network, I think is, um, another way to do that.

Gemma Whates:

It's hard and it is about getting, getting the word out.

Gemma Whates:

Really.

Vicki Weinberg:

You were mentioning pitch days before Gemma, are there sort

Vicki Weinberg:

of websites or, or networks where people can go to find out information on those?

Gemma Whates:

Yeah.

Gemma Whates:

Um, I think the best thing to do and your best friend is Google, Google, and also

Gemma Whates:

speaking to other, um, small business owners that you know of raise investment

Gemma Whates:

to see what ones that they viewed.

Gemma Whates:

So, um, the a great one to took to share is Angel Academy.

Gemma Whates:

So I think if anyone's looking.

Gemma Whates:

Have a look at Angel Academy.

Gemma Whates:

Um, some of the VCs also run days where they will, um, talk to founders that are

Gemma Whates:

looking to raise and you have to apply.

Gemma Whates:

And, uh, if you get accepted, you'll get like a 15 minute slot and you

Gemma Whates:

can either use that time to pithc or a great way to use that time.

Gemma Whates:

If you're at the beginning of a journey is for advice.

Gemma Whates:

So you can share a pitch deck, or you can ask, how do I do this?

Gemma Whates:

How do I do that?

Gemma Whates:

Um, Forward Partners do a great one.

Gemma Whates:

Um, and there's lots of others as well that do it.

Gemma Whates:

So, um, The temporarily forgotten what the name is of them.

Gemma Whates:

Um, but if you, if you search your fines research, um, VC, what would you search?

Gemma Whates:

Search?

Gemma Whates:

Uh, gosh I've forgotten the name.

Gemma Whates:

Sorry after I'll have to tell you I have to come back.

Vicki Weinberg:

And, uh, that's fine.

Vicki Weinberg:

Um, that has led me on to another question though, which is, um, when it comes to

Vicki Weinberg:

sort of advice and having opinions on your business, do either VCs or angel

Vicki Weinberg:

investors in your experience anyway, want to have any kind of input into your

Vicki Weinberg:

business, into decisions you make, or is it simply they're happy to give you

Vicki Weinberg:

the money and let you get on with it?

Vicki Weinberg:

Because obviously if they have got to share in your business, I'm just wondering

Vicki Weinberg:

how much input they want to have.

Vicki Weinberg:

I know it will vary from person to person, but I'm just wondering if there's a

Vicki Weinberg:

group of investors that tends to be more, wants to be more involved than others.

Gemma Whates:

You're right, exactly.

Gemma Whates:

That it will vary.

Gemma Whates:

So you might find an angel that wants to be involved.

Gemma Whates:

And again, that will be part of what you discussed before, you

Gemma Whates:

know, you taking the investment.

Gemma Whates:

Um, and there might be some that they want to be involved in.

Gemma Whates:

The financial investment.

Gemma Whates:

So it is definitely case by case, um, with VC, again, it, those vary,

Gemma Whates:

but they'll tend to have more of an involvement, um, in terms of

Gemma Whates:

just making sure you're hitting targets for growth, whereas angels.

Gemma Whates:

Well, it depends on who they are, but often.

Gemma Whates:

It's less of a, how's it going conversation all the time

Gemma Whates:

and it's more supportive.

Gemma Whates:

Um, this I've only really, I mean, I can't really say that about angel

Gemma Whates:

investors as a whole, um, because yeah.

Vicki Weinberg:

no, thank you.

Vicki Weinberg:

And with that in mind, um, do you draw up any sort of contracts when you get

Vicki Weinberg:

investment that sort of states how much involvement someone might have.

Vicki Weinberg:

What's required of you what's required of them.

Vicki Weinberg:

Is that something you would do at the outset?

Gemma Whates:

Yeah, absolutely.

Gemma Whates:

It must have contracts.

Gemma Whates:

Um, so, um, you're looking at putting a contract in place.

Gemma Whates:

Um, you're have, um, bits depending on what type of investment you're raising.

Gemma Whates:

You might also make changes to your articles of association, which are

Gemma Whates:

something that, articles in your business.

Gemma Whates:

Um, Yeah, you need to make sure 100% that you've got contracts in place.

Vicki Weinberg:

Okay.

Vicki Weinberg:

Thank you.

Vicki Weinberg:

I thought so.

Vicki Weinberg:

It's always good to clarify.

Vicki Weinberg:

Um, so let's come back to something you mentioned earlier, Gemma, you said

Vicki Weinberg:

that there were lots of things you would have perhaps done differently.

Vicki Weinberg:

Had you known when you were seeking your first rounds of investment,

Vicki Weinberg:

what are some of those things?

Vicki Weinberg:

If you don't mind sharing them with us so that other people

Vicki Weinberg:

can learn from them please

Gemma Whates:

um, I would, I wish I knew more than what I knew.

Gemma Whates:

So in terms of all the different types of investment, what,

Gemma Whates:

what, what all the options are?

Gemma Whates:

I knew a little bit, but I didn't know what I knew now.

Gemma Whates:

And I just think it would have, I would've made better decisions if I had, um, I

Gemma Whates:

think also in terms of the financial management of the investment, like.

Gemma Whates:

I think you can.

Gemma Whates:

I just know a lot more than what, what I knew, um, back then, because

Gemma Whates:

I think it's a case of, of me.

Gemma Whates:

Working with mentors via accelerators and coaches that I've just become, I

Gemma Whates:

just, I've just learned more over time.

Gemma Whates:

Um, I'm trying to think if there's anything, actually that advice

Gemma Whates:

that, which is actually something which someone can take on board.

Gemma Whates:

Um, I think for me, it's purely, it's purely knowledge.

Vicki Weinberg:

That's great.

Vicki Weinberg:

Thank you.

Vicki Weinberg:

Because I think what I'm getting from that, you know, the entire

Vicki Weinberg:

conversation we've had is it's not something to jump into.

Vicki Weinberg:

So I mean, if you're listening to this and think, oh yeah, this sounds great.

Vicki Weinberg:

Um, it might not necessarily mean that you want to go out

Vicki Weinberg:

tomorrow and look for an investor.

Vicki Weinberg:

It sounds like it's something that you need to do a lot more research

Vicki Weinberg:

on and be absolutely a hundred percent committed that this is

Vicki Weinberg:

the right thing for your business.

Gemma Whates:

I feel like that.

Gemma Whates:

Yeah.

Vicki Weinberg:

And are there any downsides to, to investment that

Vicki Weinberg:

you can, that you can think of or things that people need to sort of

Vicki Weinberg:

have at the back of their minds?

Vicki Weinberg:

Looking at it.

Gemma Whates:

I mean, again, it's a bit, it depends on what type

Gemma Whates:

of investment you're raising.

Gemma Whates:

But for instance, if you take crowdfunding, I mean, it takes it's at

Gemma Whates:

six months from me saying I'm going to raise money via crowd funding to actually

Gemma Whates:

getting the money into my bank account.

Gemma Whates:

So, and during that time, it will just take you out of date day

Gemma Whates:

is very time intensive, um, and all the way through the process.

Gemma Whates:

So you have to consider the time that it will take you to do that.

Gemma Whates:

And equally with angel investors, It takes, you know, when you

Gemma Whates:

might be talking to somebody who's about to buy your product instead,

Gemma Whates:

you're talking to an investor.

Gemma Whates:

So it does take you out of some of that day-to-day running, so that either

Gemma Whates:

doubles your workload, or if you're only got one or two people in your

Gemma Whates:

team where it's just you, then you can't do, you can't do it all the time.

Gemma Whates:

Um, so you're making a decision to spend that time that you might've been

Gemma Whates:

spending on marketing activity or sales or something else I'm talking to investors.

Gemma Whates:

So I think that is a real consideration about how long, how much time it takes.

Gemma Whates:

And it's very often it's not, and it's not quick.

Gemma Whates:

So you also need to think about what I'm going to do between now

Gemma Whates:

and when I'm planning to raise.

Gemma Whates:

So normally I'd say maybe like a six month period.

Gemma Whates:

You give yourself, I'd like to raise X by say six months.

Gemma Whates:

Um, so yeah, it's, it's something that takes a bit of time.

Gemma Whates:

It requires a bit of planning, but, but yeah, ultimately, um, it

Gemma Whates:

does take your time as the founder.

Vicki Weinberg:

Wow.

Vicki Weinberg:

I hadn't even considered the time element either that it would take

Vicki Weinberg:

or could take so long or that it would take so much of your time.

Vicki Weinberg:

I've definitely been getting a sense of it.

Vicki Weinberg:

As we were talking that you was talking about the things you had to prepare.

Vicki Weinberg:

And then I guess there's a lot of research, you know, finding people,

Vicki Weinberg:

having conversations, but I hadn't actually considered the, yeah.

Vicki Weinberg:

That could be a full-time job in itself.

Gemma Whates:

Yeah.

Gemma Whates:

And I mean, I don't feel like I've talked about all the positives

Gemma Whates:

yet too much, but I have met.

Gemma Whates:

Some incredible people, um, via the world of investment, be that other founders.

Gemma Whates:

Be that investors that haven't invested, but have given me some amazing

Gemma Whates:

mentoring or advice along the way.

Gemma Whates:

And I've got some great non-execs in my business that have just been

Gemma Whates:

nothing but totally supportive.

Gemma Whates:

And I've learned a lot from them, um, and have been that to kind.

Gemma Whates:

Of guide me during difficutl times.

Gemma Whates:

Um, That that has been some real, real positives for me.

Vicki Weinberg:

That's brilliant.

Vicki Weinberg:

Thank you.

Vicki Weinberg:

Any other positives you want to share?

Vicki Weinberg:

Cause you're right.

Vicki Weinberg:

We'd be talking a lot about that.

Vicki Weinberg:

The harsh reality of it, but it would be good to talk about.

Vicki Weinberg:

I mean, obviously for you, it'd be fantastic.

Vicki Weinberg:

You had that money to raise, you have raised that money that you could invest

Vicki Weinberg:

back into your business, but what have been some of the other positives

Vicki Weinberg:

you've seen over for you or for others?

Gemma Whates:

I mean, definitely.

Gemma Whates:

Um, the fact that could actually get launched.

Gemma Whates:

So that was a real positive.

Gemma Whates:

Um, I think, yeah, sometimes it's a case of.

Gemma Whates:

You can't do it if you don't have the money and it's that simple.

Gemma Whates:

And if you don't have the money.

Gemma Whates:

And savings or you can't, haven't got access to it, then you just can't

Gemma Whates:

go any further with your business.

Gemma Whates:

So yeah, you know, there's that obvious positive.

Gemma Whates:

Um, and I do think if you can, um, work with investors that can act as

Gemma Whates:

advisors, that is again, really important benefit and a great benefit to have as

Gemma Whates:

part of your business, someone that's actually got an invested interest in

Gemma Whates:

your business and is able to act as a mentor or advisor, um, in that capacity.

Vicki Weinberg:

Yeah, it does definitely sound like it could be a really good

Vicki Weinberg:

way of if you're prepared to do the work a really good way to give your

Vicki Weinberg:

business a bit of a, I don't want to say a headstart, maybe a kickstart is the

Vicki Weinberg:

best way of phrasing it, but to get you a little bit further ahead in terms of

Vicki Weinberg:

financially, and as you say, the knowledge from someone who's perhaps got ahead,

Vicki Weinberg:

or yeah, I think that sounds lovely.

Vicki Weinberg:

That sounds really beneficial.

Vicki Weinberg:

I can definitely see the benefits of.

Vicki Weinberg:

So are there people out there, Gemma?

Vicki Weinberg:

Um, and actually, well, I know that you're one of them that could help

Vicki Weinberg:

with finding investors and actually let's do this as part of the answer.

Vicki Weinberg:

Maybe talk a little bit more about what you're offering at the moment.

Gemma Whates:

Um, yeah, I mean, uh, People that will, you can work

Gemma Whates:

with to help you raise investment.

Gemma Whates:

I don't offer that, but there are people advisors that do offer that.

Gemma Whates:

Um, there's, uh, the best communities are, are ones.

Gemma Whates:

I find either accelerators or founder communities that

Gemma Whates:

kind of create themselves.

Gemma Whates:

Um, and then there are events hosted by various different kinds of companies that

Gemma Whates:

you can, um, could go to for networking, which I think are really beneficial often,

Gemma Whates:

obviously with COVID that's been slightly, there's been quite a lot of change

Gemma Whates:

in that, but, um, you will find them.

Gemma Whates:

Um, and I think that they're great to go and to learn and to listen.

Gemma Whates:

Um, so in terms of.

Gemma Whates:

Well, I'm trying to do so I do have a power hour where you can ask me

Gemma Whates:

anything about raising investment and I'll just share with you the

Gemma Whates:

knowledge that I, that I have.

Gemma Whates:

I think that's helpful for people that don't really know where to start.

Gemma Whates:

but need some help.

Gemma Whates:

What goes in a pitch deck, or I think I want, can you talk to me a little

Gemma Whates:

bit more about grant funding or for that kind of, um, person, um, And

Gemma Whates:

I'm a VC scout for Ada Ventures.

Gemma Whates:

So if you have got a business where you're looking to raise a seed

Gemma Whates:

round, um, definitely share your pitch doc with me, you can find me.

Gemma Whates:

I'm sure Vicki will link actually in the, in the, uh,

Gemma Whates:

uh, notes where you can find me.

Gemma Whates:

Um, but yeah, I do look at pitch decks as well for people that are looking

Gemma Whates:

to raise VC investment and I'm working on an investment community, which

Gemma Whates:

really with just the kind of ambition of connecting founders that are trying

Gemma Whates:

to find out about how to raise and are raising their first rounds and are

Gemma Whates:

looking for supportive place to do that.

Gemma Whates:

And a little bit of an info sharing, um, and, uh, Networking opportunity.

Gemma Whates:

So I haven't got that live yet.

Gemma Whates:

I'm still working through that, but, um, hopefully I'll be

Gemma Whates:

able to offer that soon as well

Vicki Weinberg:

oh, perfect thank you.

Vicki Weinberg:

And of course I will link, um, for a direct link in the show notes so

Vicki Weinberg:

people can contact you if they're what's the name or by any of this.

Vicki Weinberg:

So thank you so much, Gemma.

Vicki Weinberg:

I've just got a few final questions if that's okay.

Vicki Weinberg:

Yeah.

Vicki Weinberg:

Um, so one thing I, in the back of my mind, and I think it could possibly

Vicki Weinberg:

be, you know, in the back of some others as well, is that if you're

Vicki Weinberg:

a tiny, tiny business, let's say it's just you, you're selling one

Vicki Weinberg:

product or a small range of products.

Vicki Weinberg:

Um, you really, you know, you consider yourself a really small business.

Vicki Weinberg:

Can you still seek investment?

Vicki Weinberg:

Are there people out there who want to, to invest in small businesses?

Gemma Whates:

Yeah, absolutely.

Gemma Whates:

And I would say yes, if you've got, if you're, um, you know, what you

Gemma Whates:

want to achieve at the investment.

Gemma Whates:

I think ultimately if you're looking at investment it means that you want to grow

Gemma Whates:

and you want to scale because that's how your investorwill likely see a return.

Gemma Whates:

So I think.

Gemma Whates:

Everyone starts small.

Gemma Whates:

So if it's that, you are, you are small right now and you're one person with one

Gemma Whates:

product, but you think, well, actually I want to, to grow and scale this then.

Gemma Whates:

Absolutely.

Gemma Whates:

Yes.

Gemma Whates:

And there's lots of angel investors that get involved at a really early stage, um,

Gemma Whates:

and really small businesses like that.

Gemma Whates:

You know, either have an affinity to the type of business or an emotional

Gemma Whates:

connection, or just really can see the opportunity financially.

Gemma Whates:

Um, but yes, I think if you're like that, if you're small now, but you've got

Gemma Whates:

the ambition to grow and scale, you can absolutely look at seeking investment.

Vicki Weinberg:

Oh, that's amazing to know.

Vicki Weinberg:

It's really, reassuring.

Vicki Weinberg:

Thank you.

Vicki Weinberg:

And one final question before we wrap up Gemma, what are the key things you'd

Vicki Weinberg:

like people to know about investing?

Vicki Weinberg:

What sorts of things would you like people to take away from?

Gemma Whates:

I think, um, in terms of key things to take away, it would be one.

Gemma Whates:

Get some knowledge, start learning a little bit about it

Gemma Whates:

before you make any decisions.

Gemma Whates:

The second thing would be, be really clear on why you need the money and what

Gemma Whates:

you're going to spend it on and what the potential return is for an investor

Gemma Whates:

and how do they get their return?

Gemma Whates:

Um, make sure you've looked at all options for paying funding into your business.

Gemma Whates:

Not just investment.

Gemma Whates:

And, um, consider how you can get additional advice for any

Gemma Whates:

investors that you do bring in.

Gemma Whates:

So be that as non-execs, or be that as advisors and investors, um, make sure

Gemma Whates:

you have a think about how either them or their network might be able to help you.

Vicki Weinberg:

That's brilliant advice.

Vicki Weinberg:

Thank you.

Vicki Weinberg:

Thank you so much for sharing all of this.

Vicki Weinberg:

I appreciate that it is an overview because it's such a huge topic and I'm

Vicki Weinberg:

sure there's lots more we can cover, but I think that's given us just the

Vicki Weinberg:

right amount for people to get started.

Vicki Weinberg:

I will link to your website in the show notes.

Vicki Weinberg:

If people want to book a power hour with you or they've got something

Vicki Weinberg:

they want to discuss, they'll be able to contact you easily.

Vicki Weinberg:

And yeah.

Vicki Weinberg:

Thank you so much for being here.

Gemma Whates:

Thank you so much for having me.

Gemma Whates:

It was lovely to chat to you.

Vicki Weinberg:

No problem at all.

Vicki Weinberg:

I always thank you so much for listening all the way to the end of this episode.

Vicki Weinberg:

If you enjoyed it, please do leave me a review that really helps

Vicki Weinberg:

other people to find this podcast.

Vicki Weinberg:

Make sure you subscribe.

Vicki Weinberg:

So you don't miss any future episodes.

Vicki Weinberg:

Do you tell your friends about it too?

Vicki Weinberg:

If you think that they also might enjoy it you can find it at

Vicki Weinberg:

vickiweinberg.com, there you'll find link to all of my social channels.

Vicki Weinberg:

You'll find lots more information.

Vicki Weinberg:

All of the past podcast episodes and lots of free resources too.

Vicki Weinberg:

So again, that's vickiweinberg.com.

Vicki Weinberg:

Take care, have a good week and see you next time.