Investment pitch assistance

[darkjustice]

**PLEASE NOTE THAT I HAVE A PITCH DECK TO ACCOMPANY THIS EMAIL BUT I COULD NOT ATTACH IT. IF YOU WISH TO SEE IT, PLEASE DROP ME A DM**

Good evening everyone,

I'm looking for assistance with my current proposal for investment.

I want to ensure that the information below isn't confusing and doesn't leave gaping holes regarding the business.

I know its not possible to include absolutely everything, but if there's something glaringly obvious that I have missed, please do let me know.

I will invite investment talks here, too, but this is absolutely not my intention. I am looking to learn and develop my pitch to maximise my potential of getting someone on the "table" to have a discussion with me about investing in my company.

That said, please see below.

I would like to introduce to you Fiber Sports Memorabilia. An e-commerce and subscription based sports memorabilia company.

We are looking for an investment of £250,000 for 15% of our company. This share will be eligible for 15% ROI, ensuring the full return of their principal investment plus 15% profit within 18 months.
Additionally, investors in this tier will receive regular dividends post-18 months, based on the ongoing performance and profitability of Fiber Sports Memorabilia.
This offer is structured to provide robust returns and establish a mutually beneficial partnership between Fiber Sports Memorabilia and its valued investors.
Business Growth and Market Potential
At Fiber Sports Memorabilia, our rapid growth and market traction underscore the potential for exceptional investment returns:

• Subscriber Growth: Our subscribers have increased from 232 to 561 in just two months—a growth rate of over 140%.
• Community Engagement: The Fiber Sports Facebook group now boasts over 1,600 members, with our social media presence consistently expanding through organic word-of-mouth alone.
• Brand Launch Status: Fiber Sports Memorabilia has not yet officially launched its brand. Minimal organic advertising efforts and zero paid advertising have driven this remarkable growth, signalling untapped potential with strategic investment.
• Revenue Milestones:
  
  • Generated £179,000 in revenue during our first year of sales.
  • Forecasted revenue of £300,000 in the second year, even without current investment or aggressive marketing strategies.

These figures demonstrate Fiber Sports Memorabilia’s strong foundation and scalability, presenting a compelling case for investors seeking high-return opportunities in a rapidly growing niche market. With additional investment, Fiber Sports Memorabilia is well-positioned to amplify sales, expand its reach, and deliver significant value to stakeholders.
We have attached a pitch deck for your perusal.
If you've any questions, please don't hesitate to get in touch.

 

[Mark T Jones]

There are many, many threads on here around investment and the answers are always similar

You need to focus on how you will run and grow the business on behalf of investors, not on the brilliance of your idea.

 

[Mark T Jones]

Incomplete above

15% ROI is a pitiful return for investors- they will be looking for 100s of percent on exit, in addition to fees and dividends.

Speak in plain English, not hype and jargon (you are selling an investment to professionals, not MLM or Bitcoin)

Whilst you are more off the starting blocks than many, you need to get into the mindset of an investor

 

[fisicx]

From where did you get a company valuation of £1.7M?

How much profit are you making? The revenue figures are meaningless.

For what do you need the investment?

Your slide deck is unimportant. If you can’t write a decent pitch I’m not going to bother watching your PowerPoint presentation.

What makes you different to all the other memorabilia businesses?

 

[Clinton]

What an absolutely ridiculous pitch!

But it was a good way to start Monday - with a smile.

 

[antropy]

Incomplete above

15% ROI is a pitiful return for investors

Yep, it's easy to get more than that in a decent investment fund.

Paul.

 

[darkjustice]

What an absolutely ridiculous pitch!

But it was a good way to start Monday - with a smile.

I'd be interested to see why you feel this? Feedback always welcome.

 

[darkjustice]

Incomplete above

15% ROI is a pitiful return for investors- they will be looking for 100s of percent on exit, in addition to fees and dividends.

Speak in plain English, not hype and jargon (you are selling an investment to professionals, not MLM or Bitcoin)

Whilst you are more off the starting blocks than many, you need to get into the mindset of an investor.

Tough break!
Thanks for highlighting the flaws.

15% ROI plus their funds back after the first year, on top of yearly dividends as they'd also own 15% of the company. The 250k is essentially treated as a loan rather than a valuation.

The dividends on top will obviously be whatever the profit for that year would be, so if there's 500k net profit, their share is 75k.

I did look through previous threads and I've still got it wrong somewhere. That's why I asked the question in the first place as I anticipated this would be the case.

 

[Mark T Jones]

Tough break!
Thanks for highlighting the flaws.

15% ROI plus their funds back after the first year, on top of yearly dividends as they'd also own 15% of the company. The 250k is essentially treated as a loan rather than a valuation.

The dividends on top will obviously be whatever the profit for that year would be, so if there's 500k net profit, their share is 75k.

I did look through previous threads and I've still got it wrong somewhere. That's why I asked the question in the first place as I anticipated this would be the case.

Investors are predominantly interested in exit and multiples. This repayment 'promise' is both a distraction and potentially a stick to hit you with. On the other hand, if you can confidently demonstrate how you will turn their £250k into £300k liquid funds in 18 months, it could add significant value to your pitch.


The broader point - drop the spammy sales pitch and thing about how you can prove your ability to give them a lovely turn on their investment

 

[Clinton]

I'd be interested to see why you feel this? Feedback always welcome.

Okay.

It looks like you've been watching too much Dragons Den.

You talk about "exceptional investment returns" and offer a derisory 15%. You think 15% is exceptional for an investor? They'll laugh you out of the room.

"... zero paid advertising have driven this remarkable growth, signalling untapped potential with strategic investment."

That is puke worthy, sorry! The entire copy stinks of you praising the business, talking it up, exaggerating. It leaves a horrible, horrible taste in the mouth.

More examples:

The Fiber Sports Facebook group now boasts...
... compelling case for investors
high-return opportunities

Also, 'zero paid advertising' is not a good thing. It shows you have no clue about advertising and that you have no demonstrated working advertising channel and definitely, therefore, no clear evidence on scalability! "We've grown purely by word of mouth" is exactly what most investors DON'T want to hear.

"These figures demonstrate Fiber Sports Memorabilia’s strong foundation and scalability..."
They don't! Besides, you make the classic mistake of doing the thinking for the buyer. "Don't form your own opinion. Here, take mine!" That sentiment runs like a thread throughout the copy.

You may have skills in many areas, but the one thing you don't have is the ability to write a pitch for investment. For goodness sake, give up on that and get an expert to write it for you.

But your valuation is what takes the biscuit. You generated £179K of revenue in the first year, with no mention of profitability (!!), no hard projections for the next 3 years on t/o and profit, and you think your business is worth a pre-money valuation of £1.67 million! Why? Because of all the hype and bluster and your personal opinion that there is massive potential? You've not justified your valuation in the slightest and, no, you don't justify it with bullsh*t narratives, you justify with numbers.

The sheer arrogance of the valuation is incredible. It's plain that you think you've built something far, far more serious than what you've actually got on the table there.

For £250K, I'd want controlling interest in the business, maybe even 90%. I'd want to tie you to performance targets and feed my £250K in tranches, as and when needed. If you fail to hit targets in a particular month, you get no further funding. I'd want detailed breakdowns of what you're going to do with the money. If you claim marketing, I'll want to see proof you know the first thing about marketing and that you won't simply blow the money on marketing that doesn't work. I'd want a personal guarantee from you to repay me whatever I invested in the first year in the event you fail to meet performance targets in Y2. I'd want all sorts.

Think I'm being ridiculous? Go in front of real investors and you'll realise I'm a pussycat in comparison!

 

[cjd]

On the other hand, given your pitch, you have sales and growth without marketing spend, why do you need an investor? Why can't you grow steadily from your own resources?

 

[darkjustice]

Okay.

It looks like you've been watching too much Dragons Den.

You talk about "exceptional investment returns" and offer a derisory 15%. You think 15% is exceptional for an investor? They'll laugh you out of the room.

"... zero paid advertising have driven this remarkable growth, signalling untapped potential with strategic investment."

That is puke worthy, sorry! The entire copy stinks of you praising the business, talking it up, exaggerating. It leaves a horrible, horrible taste in the mouth.

More examples:

The Fiber Sports Facebook group now boasts...
... compelling case for investors
high-return opportunities

Also, 'zero paid advertising' is not a good thing. It shows you have no clue about advertising and that you have no demonstrated working advertising channel and definitely, therefore, no clear evidence on scalability! "We've grown purely by word of mouth" is exactly what most investors DON'T want to hear.

"These figures demonstrate Fiber Sports Memorabilia’s strong foundation and scalability..."
They don't! Besides, you make the classic mistake of doing the thinking for the buyer. "Don't form your own opinion. Here, take mine!" That sentiment runs like a thread throughout the copy.

You may have skills in many areas, but the one thing you don't have is the ability to write a pitch for investment. For goodness sake, give up on that and get an expert to write it for you.

But your valuation is what takes the biscuit. You generated £179K of revenue in the first year, with no mention of profitability (!!), no hard projections for the next 3 years on t/o and profit, and you think your business is worth a pre-money valuation of £1.67 million! Why? Because of all the hype and bluster and your personal opinion that there is massive potential? You've not justified your valuation in the slightest and, no, you don't justify it with bullsh*t narratives, you justify with numbers.

The sheer arrogance of the valuation is incredible. It's plain that you think you've built something far, far more serious than what you've actually got on the table there.

For £250K, I'd want controlling interest in the business, maybe even 90%. I'd want to tie you to performance targets and feed my £250K in tranches, as and when needed. If you fail to hit targets in a particular month, you get no further funding. I'd want detailed breakdowns of what you're going to do with the money. If you claim marketing, I'll want to see proof you know the first thing about marketing and that you won't simply blow the money on marketing that doesn't work. I'd want a personal guarantee from you to repay me whatever I invested in the first year in the event you fail to meet performance targets in Y2. I'd want all sorts.

Think I'm being ridiculous? Go in front of real investors and you'll realise I'm a pussycat in comparison!

Not at all.

This is largely my fault as this is an overview, where the information is in the pitch deck. I haven't articulated this particularly well, but this is what this thread is for. Sooner look silly here and not in the "real world". Would you mind if I messaged you privately with the pitchdeck so I can get a broader opinion?

 

[darkjustice]

On the other hand, given your pitch, you have sales and growth without marketing spend, why do you need an investor? Why can't you grow steadily from your own resources?

Having the investment for broadening our athlete reach helps diversify the stock. The quicker we diversify into different teams and sports, the more customers we appeal to.

We can do this organically, but it would take longer than I'd like. I'd also use the money for targeted marketing as the memorabilia space is pretty poor from a production perspective on the quality of marketing so far. That's something I think can be used to my advantage.

I have a lot of information to digest here and I clearly need an entire rethink on my approach.

I came here to get an idea on where I'm going wrong with this pitch, and it seems I've gone wrong in most perspectives. Not having the pitchdeck to see, leaves a lot of information out so it's hard to see the plan. However, it was mentioned that no one will read my pitch if the info they're seeing isn't what they want to see.

We all start somewhere right? I want to build something I can be proud of. I'm going this to establish a career outside of my current 10 years in the military.

I'm intending on leaving and giving this everything I have.

I welcome the most ruthless feedback possible as that's always the most truthful.

 

[fisicx]

The 250k is essentially treated as a loan rather than a valuation.

Then go to the bank and get a loan.

I'd also use the money for targeted marketing...

Investors will not want their money spent on marketing.

Your pitch deck is totally irrelevant. In fact most investors won't even look at it.

You need to start answering questions beginning with: how much net profit did you make last year and this year. What are your plans to grow the business over the next 5 years? How much money have you personally invested in the business?

 

[cjd]

Having the investment for broadening our athlete reach helps diversify the stock. The quicker we diversify into different teams and sports, the more customers we appeal to.

We can do this organically, but it would take longer than I'd like. I'd also use the money for targeted marketing as the memorabilia space is pretty poor from a production perspective on the quality of marketing so far. That's something I think can be used to my advantage.

If you can grow without investors, then do it - you've now seen what an absolute PITA investors are.

Not only that, if you can demonstrate that your business is safe and working, your bank will lend. But again, it you can do it without debt, do it.

 

[Clinton]

Would you mind if I messaged you privately with the pitchdeck so I can get a broader opinion?

Yes, I'd mind. That would take a lot of time.

Here's another tip for you, founder to founder, entrepreneur to entrepreneur: Don't be tight.

Founders often expect stuff for free, they don't like paying for advice - they'll download template contracts from Google rather than going to a lawyer, that kind of thing.

Reviewing pitchdecks, improving them, or crafting them in the first place is a high skill job, not something an expert would do for free.

You may have intended to offer me money to do this, but you didn't. From your post, it seems you were hoping for some free private feedback.

Free is often very expensive. Relying on free prevents you developing the skills to find the right paid services. But it also leaves you vulnerable to sharks who exploit that micro business vulnerability for free.

So, this would be a good exercise towards gaining an important business skill: Go find a quality (paid) consultant to write you a pitch.

I do commend, however, your reaction to my last post. You didn't go all p*ssy and offended. That's a good quality in a founder. So, I'll provide you a link that I think would help you: an article I've written on how to craft a pitchdeck (or something like that).

 

[Mark T Jones]

If you can grow without investors, then do it - you've now seen what an absolute PITA investors are.

Not only that, if you can demonstrate that your business is safe and working, your bank will lend. But again, it you can do it without debt, do it.

Some are a PITA, some are a push-over, most are professional. The difference between a forum and real business is that on here, you will get feedback - often feedback that you don't want to hear. In real life they will just ignore you and move on.

I do agree though. Getting investment is a job - which sucks up time, energy and money. All of those might be better spend developing the business - a point made by the founders of Fever Tree

 

[cjd]

I do agree though. Getting investment is a job - which sucks up time, energy and money. All of those might be better spend developing the business - a point made by the founders of Fever Tree

Plus they make demands and want control. They can be a right royal bloody nuisance.

 

[fisicx]

I'm going this to establish a career outside of my current 10 years in the military.

This isn’t a career. It’s a business that might last a couple of years before demand dries up or a competitor with better marketing eats into your niche.

Be prepared for everything to fail.

 

[Paul FilmMaker]

Yes, I'd mind. That would take a lot of time.

Here's another tip for you, founder to founder, entrepreneur to entrepreneur: Don't be tight.

Founders often expect stuff for free, they don't like paying for advice - they'll download template contracts from Google rather than going to a lawyer, that kind of thing.

Reviewing pitchdecks, improving them, or crafting them in the first place is a high skill job, not something an expert would do for free.

You may have intended to offer me money to do this, but you didn't. From your post, it seems you were hoping for some free private feedback.

Free is often very expensive. Relying on free prevents you developing the skills to find the right paid services. But it also leaves you vulnerable to sharks who exploit that micro business vulnerability for free.

So, this would be a good exercise towards gaining an important business skill: Go find a quality (paid) consultant to write you a pitch.

I do commend, however, your reaction to my last post. You didn't go all p*ssy and offended. That's a good quality in a founder. So, I'll provide you a link that I think would help you: an article I've written on how to craft a pitchdeck (or something like that).

100% this about hiring pros. Especially when it comes to getting someone to create a pitchdeck.

A mate of mine I've known for 40 years is founder and CEO of the UK's biggest independent SEIS investment firm. I set him up with someone and he offered him £170,000 over a phone call.

He only looks at pitchdecks with video. Everyone knows that if you don't have a pro video in his pitchdeck, he won't look at you. And while that sounds stupid, it's just his thing.

Most pros in that market will know him, his business and know what he wants. They're the difference between getting your deck seen by him and missing out on investment.

 

[darkjustice]

Yes, I'd mind. That would take a lot of time.

Here's another tip for you, founder to founder, entrepreneur to entrepreneur: Don't be tight.

Founders often expect stuff for free, they don't like paying for advice - they'll download template contracts from Google rather than going to a lawyer, that kind of thing.

Reviewing pitchdecks, improving them, or crafting them in the first place is a high skill job, not something an expert would do for free.

You may have intended to offer me money to do this, but you didn't. From your post, it seems you were hoping for some free private feedback.

Free is often very expensive. Relying on free prevents you developing the skills to find the right paid services. But it also leaves you vulnerable to sharks who exploit that micro business vulnerability for free.

So, this would be a good exercise towards gaining an important business skill: Go find a quality (paid) consultant to write you a pitch.

I do commend, however, your reaction to my last post. You didn't go all p*ssy and offended. That's a good quality in a founder.

Thank you Clinton. Feedback is feedback; it's no secret that I'm learning but if I can't accept criticism, I don't deserve the opportunity I have. I'll digest the information given and will use it to re-evaluate.

I appreciate you taking the time to reply to me.

 

[darkjustice]

This isn’t a career. It’s a business that might last a couple of years before demand dries up or a competitor with better marketing eats into your niche.

Be prepared for everything to fail.

A valid point and a mindset I'll adopt, thank you.

 

[darkjustice]

Thank you everyone for taking the time to reply. The feedback is appreciated and welcomed.

 

[fisicx]

A valid point and a mindset I'll adopt, thank you.

Every business needs an exit plan. It might be to sell the business, stop trading or something else. For example you may see profits drop after a couple of years and decide to sell the stock and start something new. Nothing wrong with this, it’s part of a normal business cycle.

Since I left the Army I’ve run a dozen businesses some of which worked and some didn’t.