Last year we went to market looking for investment partners.
We presented to high net value investors as well as fund managers in Cape Town and Durban.
Our pitch was organised around three distinct information chunks:
- who we are as people (owners of the business).
- why will this business grow (the macro trends putting wind behind our sails).
- how we make money (the business model).
The sessions went really well: we were able to competently answer tough questions, we made people laugh, and the feedback from the investors was very positive
We had investors who, subject to due diligence, were keen to put money into the business.
Plus, the agreed valuation was good.
And then, after completing due diligence, nothing really happened.
Momentum was lost.
And the South African economy turned from a tummy ache into full on diarrhea.
The investment company tried to keep some investors "hot".
But now we had to deal with deal fatigue.
And then Covid.
And that was the end of that.
Why did this fail?
It just took to bloody long from the end of the road show to finishing due diligence.
Potential investors got bored, the positivity waned, they looked elsewhere, and then became risk averse and just sat on their money.
In any business momentum (and speed) is key.
As my brother says "slow is poison".