How I raised £1 Million for my business (as someone who was completely clueless)

This is everything I know and a simple guide to starting your fundraising journey.

I used to be a terrible businessperson when it came to financial planning. I only realised I needed to raise money when I was running out of cash for my skincare brand, Faace. Lesson one: Always raise money when you’re still well-funded. Why? The less desperate you are, the stronger your negotiating position and the more time you can take over finding the best fit.

I want to caveat that I am the opposite of an expert when it comes to fundraising. Which is precisely why I wanted to share my journey and essentially, my start-up fundraising guide, with you. I had to begin from a place of zero intel, before the launch of ChatGPT so Google was my only friend.

So, this dummies guide (me not you, of course), aims to inform you of some of the things I learnt along the way, and how I managed to secure the best part of a million quid, with zero skills (ironically) to pay the bills.

My only redeeming quality being, I’m pretty good at telling a compelling narrative via a deck format, so you might pick up some pointers there too.

My first cash injection: winning an investment competition

While stressing about cash flow, I came across The Red Tree Beauty Accelerator. It was in its first year and I entered and won alongside the awesome deodorant brand, Fussy.

As this was a rushed entry, I had to quickly up-skill in creating the relevant materials to enter an investment competition or go after investment at all.

One of the main questions to enter, being: What do people even look for in an investment deck?

Whilst I was a novice then, I’ve used the power of networking over the years to learn how to not only how to create an investor pitch deck, but also how to make one stand out – from VC’s and Angels, finance and Crowdfunding experts and other brand owners who have successfully and significantly raised – many people have fed into my approaches, which now makes me feel confident in the result.

What’s more, selling into press, retailers and even selling Faace has allowed me to home in on the messages people care about the most – the versions of the materials I create are just nuanced dependant on the audience.

Consider becoming a paying subscriber below to unlock my page-by-page account of creating an investment deck, as well as tips for securing business funding.

But in the meantime, more about my own fundraising journey here.

Next stage: seeking Angels

I had no idea where to find wealthy individuals willing to invest. So, I took to the internet and found some useful sites like Angel Investment Network, which enables you to network with potential investors (funnily enough). It was here I found a great Angel investor. I was dubious when I discovered the site, as you have to pay a monthly fee to be part of the system, but it came up with the goods for me, so perhaps it could for you too.

Don’t be disheartened if you don’t understand

Before I continue I also want to say, that I literally made things up at every step of the way. I didn’t understand the lexicon of the financial world, I’m not even sure if I do now. So, if you’re feeling confused or overwhelmed by the prospect of raising money, then I think that’s probably quite normal. We don’t learn these skills at school, and the deep understanding of finance is unique to the select few. But networking groups like Female Founders Rise are there to help, so this is a good place to start if you’re looking for support.

You need more than a solid pitch deck to get investors

On this entire journey I learnt about all sorts of new things - cap tables, financial models, projections – the list goes on. My advice? Spend time researching all of these documents before you start speaking to investors. You want to be savvy on your figures and have your docs to hand, so when you’re on those investor calls you can have confidence in your convictions. Plus have any follow-up materials ready to share after meetings for immediate impact. Speed is essential in keeping any new relationship feeling fresh.

Crowdfunding came next

Looking back, I have mixed feelings about crowdfunding.

At the time, it was really beneficial in terms of not just bringing the money into the business, but also, it was a great brand awareness activity. We secured coverage in press titles like The Grocer and Cosmetics Business, and it gave us lots of opportunities to share our story on social media. But the process can feel like a relentless hustle. You must be prepared to network like you’ve never done before.

It enabled me to up-skill on LinkedIn and get into a groove on posting there. But now I’m selling the brand, and whilst for my investors to get a significant return, I would have had to be selling Faace for millions and millions of pounds, it feels like I’ve let people down. The nature of Crowdfunding is that a lot of people you know, invest. And whilst I haven’t taken any money lightly – I have significant gratitude for the money and faith invested from all parties over the years - it does hit differently when it’s money from people you know well. So I urge people to think about the potential emotional impact of funding in this way, before doing it.

Venture Capitalist: the funding that never was

We had discussions with a lot of VC funds. Dozens. But it felt like we never did this at the right time. I’m no expert in VC funding, but I’ve heard a few things from those who are. Timing is everything – whether it’s an idea that’s not yet got proof of concept, or a launched business that has significant and proven traction – you need to convince the VC that growth is imminent and huge returns on investment a reality. I’m not sad we never got to take this route as the pressure (so I hear) is immense.

Self-funding

We self-funded Faace for hundreds of thousands over the years. One thing I would say to anyone thinking of starting a business (beauty brand or any) is that unless you create a plan for funding early and are able to resource that along the way, you really need to be prepared to put your money where your mouth is.

Dragons’ Den

I’ve banged on about Dragons’ Den a lot before (linked two posts if you’re interested), so I’m not going to go into detail here. But what I will say is this, whatever your reasons for heading on the show, the process could be gruelling and the publicity game-changing, so I’d consider the opportunity carefully.

Whatever route you take when it comes to raising money, one piece of advice is this: be realistic in that funds are essential for success. The end.

Easy mistakes to make when raising capital (and how to avoid them)

It’s hard not to get disheartened when seeking investment. Whilst I didn’t do well in the pre-planning department, I was lucky in that I didn’t always have to do a zillion meetings to get some money in. But it’s a numbers game and you need to be prepared that it could be more than a year long journey before you get any results (if at all). So stay relentless in your approach.

It’s also key that you take money from someone or an organisation that feels like the right fit. So think about the who, not just the what you need. This is a long term partnership, after all.

Don’t spend all your money. It’s tempting (trust me I’ve been there) to spend the investment quickly once it does come in for impact. But spending too much, on too many things, can make it hard to know what is giving you the best result. So again, tread carefully here and try and streamline your focuses and your spending for optimal return.

I’ve not only created a successful investor deck; I’ve also been privy to many others. So, if you are looking to create one, consider becoming a paid member of FFF to see my page-by-page guide below, as well as tips for success.