Every Technology and High Growth company needs finance – whether because it is starting up or looking to develop and grow.
We can help guide you as to what type of finance is best suited to the development of your business, who you should approach for funding, and help prepare the documents that finance providers will require
Here’s why your company needs an expert, rather than a “high street” accountant if it is planning to raise equity finance.
Whenever a business raises finance it is entering into a long-term commitment. But what exactly have both parties committed to undertake and for how long? These are questions that need to be fully answered by a professional who understands your business and its needs.
Are you hoping that the investor will also bring their strategic knowledge and business acumen as well as their cash? Does your investor want to be consulted (or vote) on management’s decisions? These are points that we regularly advise on and need to be thought through carefully by management in order to avoid problems later down the line.
Whilst raising funds by issuing shares has many benefits compared to alternative sources of finance, it may not be best for your business. This will very much depend on your ambitions and requirements. A specialist will be able to talk you through the options and help identify what’s right for your business.
In order for an investor to qualify for the tax breaks on offer (such as SEIS and EIS), both the company and the investor must meet various criteria. If you fail on a technicality, your investors will not be impressed.
Michal Szlas, CEO
“Metric have worked with me to help me grow the company to where we are now. They are professional and available to help whenever required. They are also very knowledgeable about the market and have helped me with raising money as well as other corporate matters. As a result, they helped take the Company from turning over £25k a month, to almost a million per month. Helping me raise money which has definitely aided the business growth and which has been greatly appreciated”
The founder of Otty, Michal Szlas, met Metric when the Group was funding its operations organically. Michal knew however that in order to avoid losing market share to its competitors it needed to undertake a funding round to have the ability to finance further growth.
With help from Metric, Michal considered the various funding options available before pressing ahead with a small “seed” round of investment and then, in due course, a larger “Series A” raise.
This has allowed Michal to expand operations, entering the B2B market and overseas markets.
Michal recognises the importance of having a professional advisor that understand high-growth companies:
“Metric have worked with me to help me grow the company to where we are now. They are professional and available to help whenever required. They are also very knowledgeable about the market and have helped me with raising money as well as other corporate matters. As a result, they helped take the Company from turning over £25k a month, to almost a million per month. Helping me raise money which has definitely aided the business growth and which has been greatly appreciated.”
Looking ahead, the Group is entering a new phase of growth, to reflect the demands of a larger management team and shareholder base. This places greater importance on the need for accurate gross profit margin analysis and forecasting, which Metric are helping to develop.
We asked Michal what his advice for other companies would be that are growing rapidly, with all the benefits and potential pitfalls that this brings. Michal said:
“Build strong relationships with the people and companies you think are going to see you through the growth and take your time to perfect the product.”
Wise words indeed.
For many, the tech startup scene is about lifestyle choice and purpose. We feel the same way.
We actively seek to interact and learn from the disruptive community in order to improve the ways in which we help.
We strive to provide quality advice which is good value for money and on fair payment terms.
Because we are specialists, we have developed strong relationships with a range of key players in our sector.
Unlike many accountancy firms, we have the specialist knowledge and experience to provide the tailored advice that your company needs.
We’re confident that our experience of helping Award Winning companies will ensure that you eliminate much of the pain – and costs – associated with operating your technology or high growth company.
In order to find out more and to book your free 45 minute consultation, contact us on 0203 542 4990 or get in touch via our contact us page.