It was the summer of 2008 and we were launching a new web-based social enterprise and we needed start-up capital. Up until that point I had never encountered the world of investment and my previous career was in senior NHS management. My preparation for understanding investment was watching every episode of Dragons’ Den to see if I could understand every deal and to be able to answer any question.
We had written our detailed 19-page business plan, our 3-year monthly cashow forecast and then came the first discussion with an actual investor.
“So how much equity are you offering?” he asked. “How much would you like?” I responded.
“How much have you got?” he continued. “Errrr…. I am not sure” I responded. At this point he asked to look at our Memorandum and Articles and pointed out that we were a Company Limited by Guarantee and that we had no equity.
Hardly an auspicious start to my career as an investee!