Welcome to the sixth instalment of Undercover at Two Feet, where we cover each Two Feet topic as they unfold. From Intent, to Funding and Pitching, to Team and Governance, our Two Feeters are covering a lot of ground this year, and we want to take you inside.
This week was all about investment with Ishani Chattopadhyay, read on to find out what was was covered…
Location: The Academy, 50 Miller St, North Sydney
Facilitator: Ishani Chattopadhyay
Vibe: It should come as no surprise that as soon as the topic turns to “how to get more money into my business”, entrepreneurs’ ears prick up. After the last session on Finance fundamentals, today’s session switched to viewing the business through an investor’s eyes.
There are all kinds of investment out there (equity, debt, mezzanine etc.), so it’s important to think through the pros and cons of each investment type and which might be right for your business given the stage you’re at.
The teams got the chance to play their hand at being discerning investors, grilling Ishani on a real world case study. Judging by the quality of the questions, I think we had some savvy potential investors in the room!
Lunch: Wraps and sandwiches
Playlist: Folk, rock, chill (a collection of chilled classics)
“If you take on investment without a sound business model, you may turn a paper cut into a haemorrhage.”
Key Takeaways: Nobody believes in your idea like you do. As an entrepreneur you have a vision and the drive to make it happen. For an investor, their view of your business is going to be very different. There are investors of all types, with different appetites for risk, differing focuses and different values or specialty areas.
Having a key understanding of the risks in investing in your business and demonstrating that you know how to face these challenges is paramount in helping you secure the capital you need.
At the end of the day, investment is not a magic fix. Without a sound business model and a deep understanding of your customer, investment may only delay the end rather than be a catalyst for growth.
Key Moments: The teams really got into the role play, asking very deep questions and really testing Ishani’s knowledge of the business. It’ll be very interesting to see how they handle the pressure when their own business is probed deeply in next week’s funding and pitching!