Lessons in securing investment for growth

We decided to launch the range in 2016 after receiving positive feedback from friends and family, but it took two and a half years to bring it to market. We quickly realised that, if we wanted to launch the same blend that we’d been using as a homemade recipe, we’d have to set up a manufacturing business first.

After two and a half years of research, we set up a bespoke manufacturing unit and launched The Turmeric Co. direct-to-consumers in 2018. 

When we hit capacity at our manufacturing site, we decided to scale up. I was very conscious that we were funding the initial stage of business growth as a family and would need external investment to grow the business further. We also needed to build teams within the business who had specific expertise in areas such as marketing, sales and manufacturing.

An early misstep was talking to investors as if they were customers. When you’re talking to an investor, it’s important that you tailor the communications to what they are looking for. What is the market proposition? What is the market size? Where’s the opportunity?

And then it’s about the fundamentals of the business, such as the value chain of every product and the channel potential. These are the key metrics that you should be tracking as a business and entrepreneur. Tailoring these metrics to investors is how you begin to win.

The initial investment was from strategic private investors. While we had interest from both venture capital and private equity, the decision to go with private investors was pivotal because it meant that we could maintain our core values and vision.

A blue-chip PLC business, AG Barr, has recently taken a stake in our business. With them on board, the vision is still to reach as many people as possible with our range of products.

We’ve received over 15,000 positive customer testimonials to date and are looking to grow this further. 

To achieve this, we need to excel in every single function across every area, ultimately ensuring that we deliver a high-quality product.

Artificial intelligence and AI-enabled software dominate deal flow discussions, with investors prioritising productivity-enhancing platforms and vertical solutions. Energy transition and climate-focused technologies (e.g. renewables, storage and fusion) also remain high priorities, supported by government incentives, energy security goals and corporate sustainability commitments. 

Data and analytics, healthtech and fintech continue to attract capital across asset classes (which continue to hold record levels of private capital), while professional services such as legal, accounting and digital transformation, are also attracting increased private capital investment.

For companies receiving Series A funding (early growth businesses), once product–market fit is validated, acquisition channels become repeatable and early revenues are in place, funding is used to scale operations and refine their business model. For those receiving Series B funding (business expansion), focus is likely on sales teams build-out, broadening market reach, entering new geographies and product investment – all with a view to accelerating revenue growth. Series C funding (increasingly mature businesses) is typically focused on scaling into market leadership, entering new geographies or preparing for IPO/exits, where investors expect mature KPIs and operational robustness.

Private investors or angel investors typically offer flexible and founder-friendly terms, although the size of their investments tend to be smaller than some other funding sources. The value they bring often hinges on their personal networks and experience. 

Venture capital firms provide specialist sector knowledge and are generally willing to fund rapid growth, often with the capacity for follow-on investment. However, this sometimes comes with the trade-off of higher dilution and increased governance requirements.

Private equity investors tend to offer larger cheque sizes and robust operational support, making them more suitable for later-stage companies with proven growth. They are generally less tolerant of hypergrowth dynamics and increasingly favour inorganic growth strategies to maintain momentum in challenging market conditions.

One of the most common pitfalls is initiating the fundraising process too late. With increasingly prolonged timelines to close funding rounds and more rigorous due diligence requirements, this delay can lead to cash flow pressures and a weakened negotiating position. 

Another frequent issue is targeting investors who are misaligned with the business’s vision or failing to clearly define the capital requirement and intended use of funds. Misjudging the company’s valuation, either over or under, can also create gaps between buyer and seller expectations, resulting in extended deal timelines or stop-start negotiations.

Additionally, inadequate governance, poor financial discipline, or insufficient preparation for due diligence, both in terms of depth and breadth, can significantly hinder the success of a funding round.

Demonstrating durable unit economics and a clear path to sustainable profitability is key. To build investor confidence, businesses must present robust financial models, engage in thorough scenario planning and maintain consistent KPI reporting. Clear alignment on valuation, governance and long-term strategy is essential to unlocking competitive terms and fostering sustainable, value-driven partnerships. Additionally, a track record within the senior team (at management or board level) of achieving successful exits is extremely helpful.