Business, ambition and fundraising

Fundraising is brutal. It's time-consuming; it requires resilience and no small amount of luck. Despite this, it's a thrill for entrepreneurs. You get to speak to people who want to believe in those creating something new. 

Anyone who starts a business is ambitious. 

But when it comes to raising investment, ambition is no longer all that counts. Gone are the halcyon days of free-flowing cash and ballooning valuations. Today, winning the backing of intelligent people who can add value to your business is more complicated. Investors are now looking for solid foundations, a pathway to profitability, a vision that solves a consumer problem, and a team that can execute this vision. These factors are all ever present in the Food and Drink industry. 

So why, between 2018 and 2022, did just 5% of the market raise external investment? 

This isn't a small market. 97% of the UK's Food and Drink manufacturing sector (total 22,800 businesses) are SMEs and create over 300,000 jobs. This is a highly capable and productive sector, but it needs to change now more than ever. 

Soaring inflation and cost of living pressures have put healthier options out of reach for many. Healthier food now costs three times as much per calorie as unhealthy food, exacerbating dietary and health inequalities. The food industry, but mainly investors, have a major role in tackling this inequity, and the scale and urgency of the needed changes require funding. 

And it doesn't need to cost the earth. 

Our research showed that most startups began their business with £15,000 from family and friends. This early seed capital can light the touch paper, helping brands think about product development, branding and team building. They're unlikely to scale and tackle these big industry problems without this. 

Start-ups are well placed to challenge the household names that have long dominated our shopping baskets - they have the ambition to do this.

So why don't investors?