Why £3m? I get asked a lot about how to value a pre-revenue business. In order to generate this it can help to think about how much Angel investors are looking to make from their initial investment. Realistically, it’s a 7 year time frame to exit. So at 35-40% pa (IRR) for the high equity risk, compounding for 7 years, that equates to c.10x their money. Yes we’d all love a 100 bagger. But let’s assume 10x. So, what is a “realistic” exit value? £30-40m? Maybe more. But that’s

How big can your business really get? The answer is surprisingly simple — and kind of magical (if you’re into Maths like I am): 📈 Business size limit = New clients per year ÷ Churn rate (Assuming # of new clients and value per client stay constant) Let’s say you bring in 20 new clients a year and your churn rate is 10%. Then your total client base will eventually cap out at 200 clients. Forever. Interesting isn't it?! Why? Because as you grow, churn eventually equals new cl

Looking to raise capital or exit this year? I've spent many years sitting on both sides of the fundraising table, building financial models for Founders & CFOs, and reviewing decks as a VC investor. Here are the Top 10 fundraising mistakes I've seen, so you don't make them.