30 July 2013
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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Key issue for SMEs: managing working capital requirements
• 53% starting with less than 2,000 euros • 49% relying solely on their personal !nancial funds
• 15% take a bank loan
• 5% receive grants and subsidies
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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SME development & funding instruments
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
Pre-seed phase Seed phase Start-up phase Emerging growth Expansion
Valley of death
Higher risk Lower risk
Entrepreneurs, friends, family
Business angels
Seed/early stage VC funds
Bank loans & guarantees
Formal venture capital funds
Public stock markets
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Funding sources @ pre-seed & seed stage
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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Seed & pre-seed stage: love money (aka family, friends & fools!)
Savings
Personal loans
Donations / gifts
Equity?
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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Seed & pre-seed stage: grants & support schemes
Grants/support
BFC’s NEWGEN
Fashion Fringe
UK start-up loan scheme
Creative Industry Finance
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
Apply!
UK creative industries: over talented, under resourced
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Seed & pre-seed stage: crowdfunding
AudaCity of fashion
Wowcracy
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
Proof of concept?
Have you protected your IP?
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Funding sources @ start-up stage
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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Start-up stage: business angels
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
No. of deals
0
10
20
30
40
50
60
70
80
90
UK angel investment
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
£m 20
15
10
5
0
10
Start-up stage: how to convince business angels that your fashion business is a success worth backing?
Business Plan
Intellectual Property
Distribution & points of
sale
Supply chain Business partnerships
Projected cash "ow/earnings
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
Proof of concept?
Be prepared & professional
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Start-up stage: providing working capital against invoices
Invoice !nance
Factoring Invoice discounting
Purchase order !nancing
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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Start-up stage: UKFT’s tradeshow access programme
• Grants covering half the cost of a stand
• Promotion of British brands at grant supported shows
• Key shows in Paris, Berlin, Florence, NY & Hong Kong
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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Funding sources @ emerging growth stage
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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Emerging growth stage: bank !nance
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
US$b
0
2000
4000
6000
Global bank lending conditions (G20 countries)
2005 2006 2007 2008 2009 2010 2011
12
8
4
0
%
15
Emerging growth stage: credit guarantee schemes
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
• Underwriting the risk of lending to fashion SMEs
• Enterprise Finance Guarantee in the UK
• When will we have a UK “fashion bank”?!!
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Emerging growth stage: Venture capital
VC !rms
Corporate venturing
Passport system for European VC funds?
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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What’s next after obtaining funding for your fashion business?
Keep in touch with !nancial stakeholders
Develop a thriving business
Next move?
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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Funding sources @ expansion stage
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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Expansion stage: available !nancial options
Private equity
IPO
Capital markets
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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Conclusion
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
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Fashion !nance law: tools & tips to get funding while retaining control over your fashion business
Annabelle Gauberti Founding partner [email protected]
Fashion !nance law: tools & tips to get funding while retaining control over your fashion business