A delightful phrase that was completely new to me. It means that a company must have a significant stake in their own business i.e. must stand to lose a lot, before a VC is likely to invest. Investors are not seeking to fund projects but businesses and the importance of a good team came up time and again. Hugh Pembridge outlined the cycle that most business go through, from start-up to lifestyle business to the more mature, more established business they would be more likely to invest in.

Tips when looking for investment

Know your investor – are they hands on or hands of? Speak the same language as them – what is their priorities?

Get a concrete business model – VCs are not philanthropists and do not care about creative integrity. They are looking for a return on their investments in the next 3 – 5 years

Look at Small firms loan guarantee if you are just starting up

Like a marriage you need to get on as you will be working together for the next 3 plus years

Your business plan must be clear and show how investment will be used must have been thought through