When You Accept Investment, Everything Has To Be Just Right
After two and a half years of bootstrapped consultancy, we attracted smart investment and changed our business for the better
Investment can be a double-edged sword. With money comes politics, high returns and questions of ownership.
A cash injection can cure one problem but bring new ailments.
Or so goes the well-rehearsed, “Startup Horror Story”.
That’s why we’ve dismissed investment in the past. But this time, everything just felt right. We entered negotiations with Cornerstone Partners in August and they became official investors in November 2019.
So, what was different this time around?
The Right Time:
We had just figured out what we’re actually good at
We realised that validating ideas and products is not only an essential step in the development of any successful product or service, but it is the most overlooked.
Indeed, what we actually realised is that there is a massive gap in the marketplace in the service that we offer. Yes, there are more agencies in London building apps than there are uber drivers (probably!), but few, if any, place an emphasis on the validation process.
We set ourselves apart by building products that the market actually demands (not what someone thinks is a cool idea). We do this via a combination of qualitative information captured through user interviews, and quantitative data we locate and dissect on your customer, product and market.
It’s the right time, therefore, because it took years of experience to develop this process. Under our previous brand name, Metier Digital, we validated the ideas and products for 30+ clients, across the industry-mix. In truth, one year ago, we probably weren’t ready.
As they say, timing is everything.
The Right Fit:
We both want to build long-life SAAS applications.
One of Cornerstone’s principal investment interests is supporting a business who are producing SAAS products.
And it just so happens we’ve got an internal “ideas” doc of SAAS applications. It runs 20 entries long!
You may have already heard about the first going into production: Reach Out, the world’s first global mental health service. The video platform will link psychotherapists from around the world with people in need, anywhere. The service will dramatically improve the accessibility of mental health support, reduce its cost, and fast-track psychotherapy into the 2020s by harnessing digital technology.
Then there’s On Target: A dash-board-like-visual tool that allows business leaders to view how their business is performing in real-time via their mobile phone.
Yes, the two products couldn’t be further apart — one is B2C, the other B2B — and yet both encapsulate the priorities of our personal and business objectives: Healthy Minds and Healthy Businesses = Happy People.
Cornerstone were excited by our plans.
The Right People:
They have a clear strategic vision to assist businesses from idea to exit
Cornerstone are a group of 20 Angel Investors, focused on exclusively invested in businesses owned and run by black founders. Their roster includes a new fin-tech platform, Pay Angel, that allows for cheap and secure remittance payments to Africa, and, Cellar Door, an “audacious” events and experiences company based here in London.
Tectonic CEO, Nana Parry, met Roydon Greaves, one of Cornerstone’s main players, a good 18 months ago.
In that time, we built a solid relationship. Cornerstone even recommended new clients to us, such as Byt Out, a restaurant finder app based on dietary requirements that will be coming out soon.
Nana learnt about their big vision and how they had set up Cornerstone to not only invest in black businesses but to also support them all the way. Like us, their objective is not just about Return On Investment (ROI) but adding wider societal value.
Everything Has To Be Just Right.
Investment might sound like the most exciting part of any startup’s roadmap, but it can be full of pitfalls.
Sourcing, negotiating and, even, accepting investment can all be stressful and exhausting experiences and should not be taken lightly.
Despite the “$$$” signs in your (or their) eyes, always question:
- Is it the right time?
- Are you both the right fit?
- Are they the right people?
Because everything has to be just right.
