Time-poor startup and scaleup founders looking for investment expect potential investors to carry out due diligence on them – but they must conduct their own in return.
David Levine, MD at Glenluna Ltd and principal at Manchester Angels, is a seasoned technology entrepreneur and investor with over 20 years of experience in launching, scaling and exiting businesses.
The founder of Fixtuur – previously DigitalBridge – he helps startup companies to raise money in pre-seed to Series A rounds, and is also an active advisor and mentor for several growing tech companies.
Levine is set to pass on his knowledge at FUEL Manchester 2024 tomorrow (Wednesday 16th October) as an expert on the ‘raising funding’ masterclass.
Asked how a founder might judge the right time to raise, he is candid in his response.
“The best time to raise is never,” he tells BusinessCloud. “The second-best time is when you don’t need the money. And the third-best time is when you have evidence of product-market fit and you are putting fuel on the fire.”
He advises: “Due diligence the investor as much as they do you. Speak to founders in the portfolio – and always the ones the investor hasn’t volunteered.
“The investor needs to be a fit from a sector/stage perspective, but you must also be really clear about 1) what type of help you want from your investors; and 2) how realistic that is – and then be clear to that investor about what you need.”
What is the most important factor in becoming investment-ready, in Levine’s view?
“Ensuring you have sized the market in a sensible transparent way from the ground up,” he answers.
FUEL was created to fuel business growth for promising startups and scaleups. It’s two events in one, beginning with a whistle-stop discussion of some of the big questions facing businesses and finishing with a series of exclusive, invite-only masterclasses for a cohort of exciting startups.
Supported by GM Business Growth Hub, Bruntwood SciTech and the University of Salford Business School, FUEL Manchester 2024 takes place at No.1 Circle Square, Oxford Road, Manchester. Around 180 people have registered for the initial breakfast panel and networking event after we revealed our full line-up of speakers, but there are still 20 places available if you book before 5pm today.
Register for breakfast panel & networking
We have also revealed the experts who, following the breakfast event, will pass on face-to-face advice to our cohort of 30 startups and scaleups in masterclass pods across funding, growth planning, people & performance and technology.