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Poacher turned Game Keeper – My insights on exiting a business!

By David Yates on April 18, 2014 / Blog Post, business, M&A / Leave a comment

As an entrepreneur turned corporate finance professional, I thought I could give some unique insights into exiting from a business I have established and exited from a number of business ventures prior to sitting on the other side of the table as an advisor and probably the only more stressful endeavour for an entrepreneur other than managing a business is exiting from it. Typically both activities have to be carried out simultaneously and this can be demanding for an experienced entrepreneur and even more for one embarking on the process for the first time. Having

The £150,000 SEIS threshold is not enough!

By David Yates on March 5, 2014 / Blog Post, business, Investment, PE/VC, SEIS / Leave a comment

With the Tax Year end looming now is the time for both start-ups and investors to take advantage of tax-efficient Seed Enterprise Investment Schemes (SEIS). But is £150,000 per start-up really enough to succeed in today’s economy? Since its introduction in 2012, SEIS has helped some 1,250 businesses. However, with just £150,000 per start-up available to small and early-stage businesses, many of these start-ups will face fundamental problems due to the lack of follow-on capital. Whilst SEIS is helping to pave the way for business growth, more is required if

RBS and NatWest unveil £6.6bn loans bonanza for SME’s

By David Yates on February 23, 2014 / Blog Post, business, Loan / Leave a comment

A massive £6.6billion of new business loans will be offered to small and medium-sized businesses by Royal Bank of Scotland and NatWest. The banks will be contacting 23,000 small and medium-sized business customers in a move that comes ahead of a new inquiry by MPs into bank lending to firms. Ian Cowie, chief executive of business and commercial banking for NatWest and RBS, said: ‘We are proactively speaking to customers to let them know how much we could lend if they want to invest.’ If you are an existing customer

7 mistakes to avoid when approaching investors

By David Yates on February 21, 2014 / Blog Post, business, Investment, SEIS / Leave a comment

When trying to raise money and even before pitching to investors many entrepreneurs make mistakes. Here are 7 of the most common mistakes which should be corrected before approaching an investor. 1. Pitching the wrong money Many people waste time sending business plans to any investor that they can find (Banks, Angels, VC’s, Crowdfunding etc). If you use this kind of “Shotgun” approach in your finance-raising strategy, you’ll experience rejection, frustration and waste a lot of your valuable time. Research the best source of finance for your stage of business

Why a non-exec Director may be just the tonic your growth strategy needs

By David Yates on February 12, 2014 / Blog Post, business, Investment / Leave a comment

Many SME’s think that a non-exec Director is for big businesses with big budgets but this couldn’t be more wrong and is probably the best kept secret of some of the country’s fastest growing small businesses. Here are just 6 reasons why we think you can’t afford NOT to appoint one! Accountability Many small businesses, particularly if owner managed, may not bother to have board meetings at all – or if they do, they turn into long rambling affairs where nothing significant is achieved. A non-exec will facilitate and chair

Are you the next $1 Billion Startup?

By David Yates on January 7, 2014 / Blog Post, business, Investment, PE/VC / Leave a comment

Do you think that you have what it takes to be the next $1 Billion Startup? What are the actual Odds of your business being the next Instagram, Tumblr or Twitter? The odds that your tech startup will become worth $1 billion or more are incomprehensibly small, according to recent research done seed-stage investment fund, Cowboy Ventures. They’re so tiny that the VC industry has coined a new term for $1 billion startups, “Unicorns!” and it seems unlikely that you’re getting into the Unicorn Club any time soon. So far

Crowdfunding crackdown: FCA to regulate financing

By David Yates on December 12, 2013 / Blog Post, business, Crowdfunding, Investment, SEIS / Leave a comment

The Financial Conduct Authority (FCA) is to regulate crowdfunding and peer-to-peer financing early next year. The FCA is the regulatory authority that oversees financial firms providing services to consumers and is the replacement body to the Financial Services Authority. The new regulator has published a consultation paper outlining its intended restrictions on traditional crowdfunding methods. It means products listed on crowdfunding websites may find it harder to source finance. Proposals include firms forced to disclose any potential risks and restricting sales to ‘sophisticated’ investors. It also intends on imposing restrictions

Wonga for Business takes advantage of banks’ funding gap

By David Yates on October 4, 2013 / Blog Post, business, Investment / Leave a comment

Wonga for Business is providing more than £500,000 in short-term loans a month. Directors increasingly are using alternative forms of finance to fund their companies. A survey of 5,000 SMEs has revealed that 44 per cent used “non-core” finance in the second quarter, up from 39 per cent. The survey showed that instead of turning to traditional loans, credit cards and overdrafts, companies were taking other options, such as leasing, invoice discounting, grants and loans from directors. The use of short-term loans from companies such as Wonga for Business

You can’t fire your investors – 5 tips to keep investor relationships strong

By David Yates on October 4, 2013 / Blog Post, business, Investment, M&A, PE/VC, SEIS / Leave a comment

Have you ever seen a story about a start-up firing its investors? Me neither. The reality is that investors don’t get fired. They may get squashed in a recapitalisation, minimised in a down round, or bought out, but they don’t get removed. Because the minute they give you money, they aren’t going anywhere. Unlike an employee that quits or a founder that gets replaced, your investors aren’t walking away until they get their money back, regardless of how painful the process is. Investors are professional at one thing: Investing. Yes,

An entrepreneur said to the Investor: Will you sign an NDA?

By David Yates on September 7, 2013 / Blog Post, business, Investment, PE/VC / Leave a comment

It sounds like the start of a really bad joke doesn’t it? But the truth is that this question is often asked by entrepreneurs and is probably one of the most infuriating questions VC’s and Advisors are faced with. No legitimate VC or Advisor will sign an NDA they have to keep as many doors open as possible and it just shows naivety on the part of the entrepreneur. Asking this question will in most cases lead to a – “We’ll get back to you.” – response and will almost