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 annabelle.gauberti@crefovi.com

Fashion !nance law: tools & tips to get funding while retaining control over your fashion business