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InvestorConnected, getting entrepreneurs ‘investment ready’ – a case study


  • By Neil Martin
  • News

 

InvestorConnected is a platform and portal that bridges the gap between entrepreneurs and investors. It provides start-ups and scale-ups with the ability to generate pitching decks and financial projections while offering investors the ability to search for businesses that meet their specific criteria. InvestorConnected is currently fundraising with Invesdor.

Serial entrepreneur Thierry Clarke has worked in investment management for the past 15 years; ten of which have been for Schroders Investment.  As the Head of Central and Emerging Europe, he garnered vast experience in pitching to large investors – including central, private and retail banks – while also advising entrepreneurs on how to communicate with investors. “Time and again I saw that the language that investors speak and language that entrepreneurs speak is very different,” he explains. “I wanted to bridge that gap, and that’s where the idea for InvestorConnected was born.”

Shared questions that need answering

To start, Thierry “modelled the mind” of his business partner, Jeremy Hunt, who is a Chartered Accountant. “I sat him down in an interrogation chair, and we worked to identify the major shared financial questions that entrepreneurs and investors need answering,” he says.

They then developed a model that analysed an individual business and automated the process of putting together fully complaint financial projections. “We amassed and analysed a sample of over 70,000 companies across the world, working with over 25 million data points to give us the basis for our analysis,” he explains. “We then matched this with what investors told us they were looking for, creating a tool that provides answers to all of the major questions an investor will ask.”

The live platform enables entrepreneurs – with no knowledge of finance – to create full financial projections. It takes in 40 different factors and generates a credit-rating type score, then guides entrepreneurs through the process of finding investors. It also creates pitching materials and evaluations. In tandem, investors can search through InvestorConnected’s portal, and can find businesses that meet their specific criteria. “Investors like numbers and want to see information on momentum, and yet the biggest place where entrepreneurs often fall down is with the numbers and putting together projections,” he explains.  “We help get entrepreneurs investment ready by completely removing that complexity,” he says.

Extensive due diligence

InvestorConnected launched its MVP at WebSummit in 2015, with a soft launch in Feb 2016.  So far, use of the platform has been free, which Thierry says has given him the chance to amass feedback and data from the industry. “1200 people have run projections using our tool and we’ve learnt from that,” he explains. “We’ve used that as a kind of learning experience to make sure that when we launch and start charging that we’ve gone through extensive due diligence. Already we’re underpinned by the benefit of four years of research, trial and error testing, countless investor conversations, and analysis of investor websites.”

InvestorConnected is currently fundraising with Invesdor, with the goal of raising between 100K – 350K. Thierry says the funds will be used to build up InvestorConnected’s development and management team, sales and marketing, and other staff. “But first and foremost, we’re a tech platform,” he says. “We want to keep developing and growing our offering, such as more extensive filtering and matching of pitches.  This is just the beginning.”