Key takeaways
- Investors fund a plan, not a need: show what the money changes.
- Equity, debt and partnerships cost different things, so choose deliberately.
- Prepare the evidence before the first meeting: accounts, unit economics, licence and legal documents.
- Agree reporting, decision rights and exit terms as carefully as the price.
Decide exactly what the money is for
“We need capital to grow” is not a plan. “We need this amount to open a second site, which reaches break-even in this many months on these assumptions” is. Tie the amount to specific uses and to the results they should produce.
- The amount, split by use: fit-out, equipment, working capital, hiring
- The result each use should produce, and when
- What happens if results arrive later than planned
Choose the kind of money
| Form | What the investor gets | What it costs you |
|---|---|---|
| Equity | A share of the company and of future profits | Ownership, and usually some say in decisions |
| Debt | Repayment with interest or fees | Fixed repayments, whatever the results |
| Co-investment | A share of a specific project or company, alongside other investors | Shared control of that project |
| Strategic partner | A stake plus a role in operations, supply or property | Ownership, and dependence on the partner |
Prepare the evidence
- Financial statements and current management accounts
- Unit economics: revenue and cost per site, per customer or per product
- A forecast with its assumptions written down
- Your trade licence, ownership structure and key contracts, including leases
- The team: who runs what, and who is still to be hired
- A one-page summary and a short presentation
For a new business, a feasibility study is often the evidence. Our feasibility study checklist lists what one should cover.
Agree terms you can live with
- Price and share
- What the investor pays, and what share or return they receive.
- Decision rights
- Which decisions need the investor’s approval.
- Reporting
- What you report, how often and in what format.
- Management
- Who runs the business day to day after the investment.
- Exit
- How and when either side can sell, and on what terms.
Take independent legal and financial advice before signing investment documents.
Expect due diligence
A serious investor will check what you have told them: the accounts, the licence, contracts and leases, the market and the team. Having documents ready shortens the process and builds confidence.
How New Line Investment invests
We invest our own capital in operating businesses, new ventures and commercial property, alone or with partners, and we stay involved in what we back. See growth capital, co-investment and new ventures. To share an opportunity, use the contact form and choose “Pitch an opportunity”; we will ask for documents after the first call.
Questions we get asked
Should I raise equity or debt?
It depends on what the money is for and how predictable your cash flow is. Debt keeps ownership but needs repaying whatever happens; equity shares ownership and future profits. Many businesses use both.
What do investors look at first?
What the money is for, whether the business already works at a small scale, and whether the team can deliver the plan.