For entrepreneurs, funding from a venture capital investor could give your business the best possible start on its high-growth journey. However, industry statistics suggest that up to 95% of fundraising attempts are unsuccessful for the following reasons:
The range of venture capital funds willing to invest in a high-growth business is vast, and each fund has its own priorities and interests.
A typical institutional investor receives hundreds or thousands of investment cases a year, and competition for funding is fierce.
Many cases are rejected immediately, not only because they fail to meet the VC's standards, but because entrepreneurs may not have approached the right investors, in the right way, or at the right time.
At the same time, entrepreneurs tend to run fund raising activities in a sporadic manner, constrained as they are by the demands of their business.
In the case of poorly-run fundraising activity, if the funds are forthcoming, they can be accompanied by bad terms and conditions. Fewer than 20% of fundraising attempts are a genuine success.
The time and efficiency benefits of using an intermediary are clear, and obtaining funding is resource, network, and expertise intensive.
We can make it easier for you to review your options, find and deal with potential backers. The venture capital world changes constantly. If you’re thinking about venture capital funding, we can help you by:
Connecting you with potential backers: bringing our network and extensive experience to find the right investors.
Making your proposal as attractive as possible: enhancing the fundamentals including strategy, business model and materials.
Identifying the backers most likely to be interested: providing money, but also guidance towards the most appropriate investor according to their focus and personality.
Keeping you up to date with shifting investment trends.
Negotiating an optimal valuation and a fair shareholders' agreement.
Suggesting other ways to raise funds.
Reducing time spent by management on the transaction in order to focus on company's core business.
To do so, we have close relationships with a diversity of investors: venture capital and private equity funds, strategic buyers, corporate investors, family offices and business angels whom we carefully select based on your profile, needs and objectives.
We also work with venture funds, incubators and accelerators, providing the advice and services they need to help develop their portfolio companies.
Henderton is an investment and growth advisory firm which specialises in providing strategic and financial advice to European growth companies and their investors.
It incorporates Akka Venture, an investment advisory firm with a long record of success, founded in Paris in 2006.
Our team combines highly experienced and motivated professionals with backgrounds including venture capital, consulting, financial services, and blue chip corporations.
This business requires multi-disciplinary skills and we have the highest standards in techniques and process thanks to our seasoned blend of backgrounds, with rich international experience in strategy, operations, sales and marketing and finance.
We have been involved in more than XX fundraising, M&A transactions and advisory assignments from early stage and expansion to late stage in various fields internationally.
Through personal experience as entrepreneurs in different industries, we understand how important it is to find the right investor. Both sides need fair terms and conditions, facilitated by an independent third party whose aim is that both parties can reach a win-win agreement.
Our expertise in valuation, legal set up and financial arrangements helps achieve this dramatically, and by not being part of a large accounting firm or bank, we can provide unbiased, conflict-free advice and funding services to all of our clients.
Each case is different, but generally follow the same framework. Typically, a fundraising process is composed of four phases:
Building a rationale for the transaction and strong business architecture.
Optimisation of your strategic positioning and go-to-market strategy based on thorough market analysis.
Cross-check of our research against your internal information, to process and structure all external and internal information in a relevant and attractive way for investors to be able to understand your potential quickly and fully.
Matching of your vision and input with the forecast hypothesis and P&L.
Validation of operational planning from a technical, business development and sales and marketing perspective.
Selection of potential and targeted investors.
Assessment of the “founder – investor” fit between the entrepreneur and investor.
Approach and initial negotiations.
Training and coaching for founders, and assistance with the fundraising process and market communication.
During this phase, due diligence takes place and leaves no place for lack of transparency – we work with lawyers on both sides.
Balancing the potential discrepancies around valuation, terms and conditions between investors trying to minimise their risk exposure, and entrepreneurs trying to maximise their equity rights and legitimacy.
Many of these situations have been encountered before, and our experience of deal negotiations enable us to avoid over-stringent deal breakers.
We have developed deep expertise in dealing with complex transaction structuring, demanding due diligence and negotiation processes. We have repeatedly demonstrated our ability to work with our clients along their growth path, from seed funding, venture capital and growth equity financing to partial or full exits.
Our advisors have been involved in more than 50 fundraising advisory and M&A transactions and assignments worth a combined total of more than €100m and have a track record in emerging sectors where our cross-border value addition has brought particular benefits for companies seeking to accelerate their expansion into new markets or segments.
Want to learn more about how we can help you grow?
Henderton acts as independent, trusted advisors to innovative companies throughout their growth lifecycle.
Get in touch and understand how we can help you achieve your objectives.
