innocent drinks & JamJar Investments co-founder Richard Reed’s funding tips
The entrepreneur and investor reveals the key insights he’s learnt from both sides of the investment process
Richard Reed, founder of innocent drinks and JamJar Investments, reveals his top funding tips in an exclusive interview.
Richard is an ambassador for Plusnet Pioneers– a collaboration between business broadband and phone provider Plusnet and Startups.co.uk to help the UK’s small businesses take on some of the biggest challenges they face in funding and marketing.
He’s joined by five other Pioneers, Katie Massie-Taylor and Sarah Hesz, co-founders of mum’s meet up app Mush, LDN Muscle (LDNM) co-founders Tom and James Exton, and Social Chain co-founder Steven Bartlett.
When preparing to pitch to investors, Reed says you should be optimistic with your financial forecast, but also realistic. It should be an exciting figure to get the investors interested, but backed up by credible information. “Don’t just pull them out of thin air”, he says.
Being rejected is all part of the funding process Richard explains, and it shouldn’t dishearten you. If you go in expecting the answer to be no most of the time you’ll find the whole process a lot less frustrating.
Thirdly, although Richard says you can “blag” to get the money in the first place, you should be completely honest with your investors from then on – they’re there to help you, and they won’t be able to provide support unless you are prepared to be frank and open about any issues that arise.
Drawing on his own experiences of investing, Richard says that JamJar would “much rather back a team” than an individual. Your team should be one with a wide set of complementary skills and “bonded like glue” around the visions and values of the business.
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The Plusnet Pioneers campaign is on a mission to support the millions of small businesses that jobs and money for the UK economy. You can find out more information about business broadband and phone provider Plusnet here.