L-R clockwise. Leon Bailey-Green (Editor, Upper Clash), Kevin Davis (Creative Director, The Designlab), Sheena Amin (Director, UKTV Ventures), Paul Adrian (Founder & CEO, Mojo Skin and Hair), David Lockwood (Co-founder, The Tapestry Agency), Rob Bridgman (Founder, Snug), Freddy Ward (Co-founder, Wild Cosmetics)
RETAIL COMMERCE DISCUSSION, Episode 11
Evaluating Funding Options
For Consumer Brands
Scroll down or click here to watch videos. Find us on LinkedIn and YouTube.
In this discussion founders of consumer brands shared experiences, advice and opinions on funding options – from venture capital, to private investors, equity-for-services, inventory financing and running on cashflow. The founders of Mojo, Snug and Wild shared all. (Videos below).
Rob Bridgman, founder of sofa-in-a-box brand Snug, thinks brands in the home space taking venture capital might find themselves being pushed towards becoming tech, rather than furniture, businesses – “Being a tech company unlocks a different valuation multiple” he said.
“I’ve met lots of people that have wanted to invest, but thank god they didn’t. You start speaking to them and within five minutes they’re trying to run the business” said Mojo founder Paul Adrian, who thinks founders should look to emerging financing options to raise capital.
Natural deodorant brand Wild recently closed its second seed funding round led by JamJar Investments. Speaking of his new venture capital partners the brand’s co-founder Freddy Ward said “They’re not looking for 100x, I’m sure they’d love it, but they’re realistic and willing to let founders grow at their own speed.”
Paul, Freddy and Rob were joined by Sheena Amin, Kevin Davis and David Lockwood for this discussion hosted by Upper Clash editor Leon Bailey-Green.
Sheena, a director at UKTV Ventures, explained the rationale behind the company’s venture fund which offers direct-to-consumer brands advertising airtime across its portfolio of TV channels in exchange for equity.
Similarly, Kevin, from creative and e-commerce agency The Designlab, spoke of tie-ups between agencies and brands, when the former take an equity stake in the latter as part payment.
As marketing budgets increase post-investment, David, from marketing strategy company The Tapestry Agency, offered tips on customer retention.
Scroll down for the long edit.
The returns investors are looking for – 2 minutes 43 seconds
Interference from investors – 2 minutes 16 seconds
Equity deals, inventory funding and venture capital alternatives – 2 minutes 59 seconds
Negotiating with investors and presenting the opportunity – 4 minutes 15 seconds
Different routes for different founders – 1 minute 41 seconds
Glamorised venture capital funding VS Profit – 1 minute 20 seconds
Post-investment marketing – analysing spend – 2 minutes 7 seconds
Starting out – 1 minute 20 seconds
The Long Edit – 30 minutes 17 seconds