It has been reported that the value of UK venture capital deals in quarters one to three of 2023 fell by 43.1% year-on-year while the number fell by 25.9% in the same period. However, VC deals are still being struck by innovative businesses.
In this episode, I speak with Steve Tidball, co-founder and CEO of Vollebak, the material science-driven clothing brand. Having co-founded in 2015 with his twin brother Nick, the brand has raised over $10m in outside funding, led by the London-based venture firm Venrex, with participation from Airbnb co-founder Joe Gebbia, and Headspace CFO Sean Brecker, among others. This allowed Vollebak to create the world’s first solar-charged jacket and the first computer-programmable clothing.
Given the uncertainty around raising VC investment, Steve offers his advice on the best ways to pitch to a VC fund and shares how his business has used VC investment to scale.
Steve's advice:
- Build your network (if you can bring one from a previous career so much the better)
- Be original to be noticed
- Be prepared to tolerate some failure
- Be aware that Venture Capitalists tend to invest in just one area/type of business
- VCs are typically willing to take earlier and relatively speculative risks
- Whereas private equity investors are risk-averse
- And angel investors will take on even greater risks than VCs
- Another way of raising funds can be crowd-funding
- Because a VC can take over control, it’s important that you are compatible (apply the flat-mate test!)
- It’s a mutual commitment; they will care about your success, and help in a crisis
- It’s useful to read up on how big businesses work (always expect a crisis)
- You must learn to communicate quickly and have a coherent, compelling story which you can express in 30 seconds
- You need a good idea which will elicit a question in return
- Eventually there will probably be a full or partial sale/industry buy-out; know in advance what the likely time period for this is
- Always have an idea of what you want to achieve in the long term
- Allow your subconscious brain the chance to work things out (by exercise, meditation etc.)
You can reach Steve on steve@vollebak.com
FF&M enables you to own your own PR. Recorded, edited & published by Juliet Fallowfield, 2023 MD & Founder of PR & Communications consultancy for startups Fallow, Field & Mason. Email us at hello@fallowfieldmason.com or DM us on instagram @fallowfieldmason.
Let us know how your start up journey is going or if you have any questions you would like us to discuss in future episodes.
FF&M recommends:
- LastPass the password-keeping site that syncs between devices.
- Google Workspace is brilliant for small businesses
- Buzzsprout podcast 'how to' & hosting directory
- Canva has proved invaluable for creating all the social media assets and audio bites.
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