The Wrap – Our weekly roundup of funding news
This week’s round-up of the latest female funding news on The Wrap by Next Chapter Raise, presented by Diana Dorahy.
Hi and welcome to the wrap, our quick look at the week that was. I’m Diana Dorahy.
It was a jam-packed week for Next Chapter Raise members. We had a fabulous live Q&A call with our Investor-in-Residence this month, Georgie McNee.
Here are just some of the insights she gave us around valuation:
- First up, your financials need to match your valuation. Very important.
- What’s your annual revenue and look at multiples of that.
- Get a better idea of valuation by looking at benchmark pricing by similar companies and industries.
- Be clear to an investor about what your funding will be spent on.
- And if you’re going to spend money on resources then get the potential hires lined up and show that you’re engagement-ready.
- If you’re a covid-benefit business, you’ll also want to be thinking about upping your valuation.
Georgie also talked a lot about customer acquisition costs:
- The important thing to demonstrate to an investor is how you can lower that cost over time through strong sales and marketing.
- Remember, an investor is also likely to ask you about churn or loss of customers so be ready to answer that too.
- Plus, highlight an increase in “share of wallet” i.e. additional services for existing customers
There were a lot of other points she covered. In the future, at Next Chapter Raise we will run a masterclass on valuations including long term planning as part of your investment ask. This means having a robust financial mode. If this isn’t your strong suit, sign up for membership. It’s worth it just to have the skills for this covered.
Moving on, and we also had Andrew Barclay back this week for a follow-up masterclass on managing foreign exchange as part of your cash flow. This is critical if you’re selling in one currency and buying in another. Lots of great advice there too.
Plus, we also released our next podcast episode all about angel investor advice. One of the key takeaways was this: during times of crisis, it’s really important to flood your investors with updates and information. Knowledge breeds confidence.
Nicole also addressed global alumni from the Paris HEC Business School about her story and helping female founders get funded. It was a great online event.
In funding news this week,
My story of the week comes from a fabulous piece in Marie-Claire magazine profiling women who are making significant strides in Femtech. From period apps to fertility trackers and portable pregnancy monitors, there are all sorts of innovations.
Interestingly, working-age women spend nearly 30% more on healthcare compared to men while women’s health accounts for only 4% of overall funding for R&D on healthcare products and services.
But the good news is that as more investors become aware of femtech’s potential, more women are finding the money to develop their products.
My tip of the week this week comes from a piece by Pitchbook.
Investors are looking for a good track record when it comes to everything really including spending and projections and female founders are already in a good position to achieve that.
Entrepreneur and founder Lesley Eccles, founder of Relish which raised $5 million in a series A round last quarter says “Underrepresented founders are used to thinking about risk in an intelligent way. They are constantly thinking about ways to protect themselves from worst-case scenarios.”
In another words, female founders are perfectly poised to lead a Covid recovery.
Coming up next week on Next Chapter Raise….
- We’ve got our live Q&A call with our Entrepreneur-in-Residence, Joanna Hotung
- Joanna also guest stars on our next podcast episode out next week
Plus a whole lot more….
Have a great weekend and see you next time on the wrap.