Securing investment is a crucial step for any tech firm looking to scale its operations and drive innovation. Manchester, known for its vibrant tech ecosystem, recently hosted an event where local entrepreneurs shared their experiences and insights about attracting investors.
The Tech Climbers List launch event brought together leading minds in the tech industry to discuss the best strategies for securing funding. From understanding the importance of foundational work to leveraging local resources, the discussions offered invaluable advice for tech startups.
Understanding the Foundations
Daniel Hayhurst of law firm Brabners emphasised the importance of having all the right “foundations” in place for a business. He highlighted that early-stage tech firms must focus on areas often overlooked, such as where contracts are stored and maintaining comprehensive employee handbooks. These aspects become critical during investor due diligence checks.
Caitlin Morris from Marks & Clerk added that protecting intellectual property (IP) should be a priority from the outset. She cautioned against premature public disclosure of valuable IP, citing misconceptions about prominent figures like Elon Musk as examples of common pitfalls.
Building Strong Support Networks
Naomi Timperley of Tech North Advocates stressed the significance of leveraging the support available within Greater Manchester’s tech community. She underscored the power of tech events in facilitating valuable connections and fostering collaboration among firms.
Timperley also highlighted the uniqueness of Manchester’s tech ecosystem, noting how it differentiates itself from other tech hubs. In her view, the city’s supportive environment is instrumental in the growth and success of local tech firms.
Practical Tips from Successful Entrepreneurs
Ayan Mohamed of Digitech Oasis shared her journey of relocating her robotics and automation business to Manchester two years ago and securing funds in the US. She emphasised the importance of controlled growth, warning that scaling too quickly can be as detrimental as scaling too slowly.
David Levine, co-founder of Manchester Angels, advised that businesses need to be clear about why they need funding and how they plan to use it. He likened the investor relationship to a marriage, insisting that both parties must consider the long-term implications.
Patrick Smith from Zally advised founders to remain flexible. He shared how his firm had to pivot to meet the demands of new global customers, illustrating the need for adaptability in a rapidly changing market.
Customer Obsession and Company Structure
Amman Ahmed, co-founder of MusicForPets, emphasised the necessity of being “obsessed” with understanding and meeting customer needs. He advised building companies in a way that allows for easy transition and leadership change, ensuring sustainability beyond the founder’s involvement.
Ahmed’s insights into customer obsession were echoed by others, stressing that a customer-centric approach is crucial for long-term success.
Fostering a Positive Mindset
Patrick Smith highlighted the need for a positive outlook among tech founders. “A negative mindset doesn’t attract a positive response in any capacity,” he said, urging entrepreneurs to focus on the opportunities available rather than the challenges.
David Levine added to this by encouraging firms to raise their ambitions and strive for bigger and better things. He asserted that the North West has ample funding opportunities, but businesses must be proactive in attracting it.
Leveraging Educational Resources
Ayan Mohamed pointed out that Manchester tech firms are situated among some of the best universities in the world. She advised founders to leverage these educational resources and the broader support system available in the city.
Utilising university partnerships can provide firms with access to cutting-edge research, potential talent, and collaborative opportunities that can drive innovation and growth.
Summary and Final Thoughts
The Tech Climbers List event underscored the importance of foundational work, strong support networks, and a customer-centric approach for tech firms seeking investment.
Manchester’s unique tech ecosystem, combined with the proactive and positive mindset of its entrepreneurs, creates a fertile ground for tech startups to thrive.
Encouraging Entries
With the Tech Climbers nominations now open, Manchester’s tech community has a valuable opportunity to showcase their achievements and gain further recognition.
The event highlighted the vibrant and supportive nature of Manchester’s tech scene, encouraging more firms to participate and benefit from the shared knowledge and experiences.
The insights shared by Manchester’s entrepreneurs at the Tech Climbers List launch event provide a roadmap for tech firms seeking investment. From foundational practices to leveraging local resources, these strategies can significantly enhance a firm’s attractiveness to potential investors.
Manchester’s dynamic tech ecosystem and proactive entrepreneurial community offer a rich environment for growth. By following the advice shared by experienced entrepreneurs, tech startups can navigate the challenges of securing investment and drive their businesses towards success.