EVENTS |Finance and Investment Masterclass

WE PROMOTE DIGITAL INNOVATION FOR SUSTAINABLE AND INCLUSIVE DEVELOPMENT.

“Finance and Investment” Masterclass

On February 20th, 2019, Make-IT in Africa in partnership with V8 Academy organized a free masterclass on “Finance and Investment” which provided extensive practicable information, knowledge, and tips on how start-ups and existing businesses can raise capital for sustainable business growth and scaling.

The expert presenter for the event was Tobi Oke (Managing Partner, V8 Capital Partners), while Simi Adejumo, aka Simidrey of Beat 99 FM, was the event facilitator.

The presentation included the following topics:

Demystifying key finances terms and knowing the right time to raise funds

Finance/investment terms such as Capex, Angel Investors, Equity, Crowdfunding, and many more were explicitly described at the opening of the presentation. This was followed by a conversation on knowing when the time has come to raise capital: That is when an idea is truly formed and well tested, with a clear and workable business model, a great team, a proper SWOT analysis and an efficient understanding of the market, sufficient skin in the idea and enough transparency to attract funding.

Funding instruments & types of investors

Participants were taken through various available funding instruments and investments plug-ins as Grants, Debt, Equity and Mezzanine.  It was very important to stress that each of these instruments and plug-in needs to be well understood – their pros and cons as well as the different types of investors to seek depending on the nature of business.

Funding life cycle and approaching investors & pitching

It is very important for start-ups to understand the different types of businesses and suitable funding instruments, as this would also influence the choices of investors.

The 5 golden rules to remember when talking to investors include: (1) Money almost ALWAYS has an ALLOCATION/PURPOSE and will only invest in your business if you MATCH that allocation/purpose. (2) Investing is mostly a JOB and not a privilege/right of the investment professional. (3) The AIM is to make your business MATCH the investor’s goals and not the other way round. (4) NEVER burn bridges as this reduces your CREDIBILITY which is key in the long term. (5) The attitude of a business owner has the biggest influence on an investment decision so be thoughtful when dealing with investors and be LONG TERM in your view.

Pitching, negotiation & valuation

In this last session, participants learned how to take advantage of the pitch deck, and how to negotiate with investors for a win-win result. Participants were also made to understand the three business valuation methods such as asset-based approaches, earning value approaches, and market value approaches.

Takeaways

  • Raising Capital can be the difference between success and failure of many businesses.
  • Successful investors / founder relationships need some time to grow.
  • Raising capital is all about building TRUST. So make sure you are relatable, believable and trustworthy with your plans and demands.
  • Ability to execute is one of the most important entrepreneurial assets to possess.
  • Stay focused but open to all possibilities. Success in raising capital requires flexibility.
  • Always try to understand the motivation of your investors.
  • Don’t raise too much too quickly. Raise just enough to get you to the next major milestone!

Implementing Partners

photographs taken by Winifred Titilayo Amakulor (V8 Academy)

Menu
X