Whether you’re offering equity in exchange for funding, or paying back a secured bank-loan, securing early investment into your startup comes with it’s challenges. Below we explore some of the top trending topics in the capital investment world that may impact start-ups seeking investment. Coupled with Luke Tobins insights, as a serial entrepreneur and tech investor, and how he can provide valuable support.
Please note that these topics are based on general trends of the economic climate today, which is a rapidly evolving space. It’s always a good idea to conduct additional research to stay up to date with the latest trends.
Social Impact Investing
Impact investing refers to investments made with the intention of generating positive social or environmental impact alongside financial returns. This trend has gained significant traction as investors increasingly prioritize sustainability and social responsibility. Start-ups that align with sustainable and impact-driven goals are likely to attract interest from impact investors.
I can offer guidance on how to align a start-up’s mission and operations with impactful and sustainable goals. My experience in taking Digital Ethos through the B-Corporation process and becoming the first digital marketing agency in the UK to gain this certification in 2022, allows me to help start-ups develop strategies that integrate impact metrics into their business models, making them more attractive to broader impact investors.
Start-ups that prioritize environmental sustainability, social responsibility, and strong governance practices are more likely to attract capital. ESG is a framework that helps stakeholders understand how an organization is managing risks and opportunities related to environmental, social, and governance criteria (sometimes called ESG factors). Incorporating these ESG principles into business operations and communicating them effectively can enhance a start-up’s appeal to investors.
As a mentor and consultant, I can provide insights on how to incorporate environmental, social, and governance practices into a start-up’s operations and culture. It is important to work collaboratively to identify areas for improvement and develop ESG strategies that align with investor expectations.
Tech & Disruptive Innovation
Investors are often drawn to start-ups that leverage cutting-edge technologies and offer disruptive solutions. Deep tech areas such as artificial intelligence, blockchain, biotech, and clean energy continue to generate interest and investment. Start-ups that can demonstrate a strong technological advantage or offer innovative solutions in these areas are likely to be appealing to investors.
My experience as a tech investor positions me well to support start-ups in the deep tech and disruptive innovation space, offering valuable advice on market trends, potential partnerships, and marketing strategies. Consultancy can help start-ups refine their technological advantages, navigate the competitive landscape, and position themselves as attractive investment opportunities.
Diversity, Equity & Inclusion
Increasingly, investors are recognising the importance of diversity, equity and inclusion (DEI) within companies. Research suggests that diverse and inclusive companies consistently perform better and that’s even more prominent with inclusive leadership; teams with inclusive leaders are 17% more likely to report that they are high performing.
Start-ups that take into consideration diverse teams and inclusive practices are more likely to attract investment. Investors value diverse perspectives and understand that inclusive companies tend to perform better in the long run.
A pretty shocking study from Harvard Business Review revealed there are more CEOs of large U.S. companies who are named David (4.5%) than there are CEOs who are women (4.1%) — and David isn’t even the most common first name among CEOs.
I recognize the importance of diversity and inclusion in building successful businesses, providing guidance on fostering diverse teams, identifying underlying bias, creating inclusive cultures, and implementing effective diversity and inclusion initiatives. By leveraging my network, I can help start-ups access resources and connections to support their diversity and inclusion efforts, ultimately enhancing their growth.
Resilience & Adaptability
The COVID-19 pandemic has highlighted the importance of resilience and adaptability in businesses. Investors are looking for start-ups that can demonstrate their ability to navigate uncertain times and adapt to changing market conditions. Start-ups that have successfully pivoted their business models or demonstrated resilience during challenging periods are likely to be attractive to investors.
My experience as a serial entrepreneur can be instrumental in helping start-ups develop resilience and adaptability, providing mentorship on agile business strategies, crisis management, and navigating uncertainties. Identifying potential risks and developing contingency plans to mitigate them can help to make the business more robust and attractive to investors.
These are just a few trending topics in the capital investment world that can be relevant to start-ups seeking investment. It’s essential to research and understand the specific interests and preferences of potential investors in order to tailor your pitch and strategy accordingly.
Mentoring and consultancy can provide start-ups with the necessary guidance, insights, and strategic support to enhance their investment readiness. Having access to expertise in scaling businesses can prove invaluable in helping start-ups secure the necessary funding for growth and success.