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Date
13 November 2015

The Leap 100: Driving up Valuations: Is now the time to take the leap?

On 5 November, Mishcon de Reya hosted the fourth event in The Leap series: Driving up Valuations.

Transcript

Mishcon The Leap 100
Driving up Valuations

Lovely to be back here for the fourth in the series.  Tonight is all about The Leap in terms of funding, in terms of finance, in terms of growth, in terms of exit.

Piers Linney
CO-CEO, Outsourcery Plc

The climate generally for young companies and start-ups is I think very positive. I think as an entrepreneur and an investor it’s a great time to be out there being entrepreneurial.

Jude Ower
Founder/CEO Playmob

The relationship between founder and investor works best when you are completely transparent.  We’ve typically worked with or brought on board investors that are smart money, people that can help the business.

Simon Lord
Managing Director of Altium Capital

First of all you need trust because typically on a first stage round of funding a founder and an investor have got to work together.

Peter Behrans
CCO at RateSetter.com

I think there are some pretty frothy valuations out there because I think there is an awful lot of capital chasing opportunity but I think a lot of those valuations are driven a little bit by some sort of funky share structures which enable the investors to put the money in and maintain values whilst protecting themselves.

Khilan Dodhi
Partner at Encore Capital LLP

I think for professional investors who are investing I don’t think they need a health warning they should have that as part of their armoury when they are investing but I think for some of the retail investors who are going in via the crowd, I think probably the evolution of that part of the funding industry will be some element of health warning that enables people to understand what they are getting into.

Patrick Eve
Founder, Translatemedia

The cliché is always a smaller piece of a bigger pie.  I think that absolutely at the moment it is about having the opportunity and seizing that opportunity to grow the business.  I think there is a lot of growth potential out there for all of the businesses that have the funding.  I think that funding opportunity might well dry up in the latter half of 2016/2017.

Emma Wilson
Managing Director at Harvest Digital

I love businesses like Airbnb and Uber.  Can they sustain the huge valuations you know, I don’t know, time will tell.

Piers Linney
CO-CEO, Outsourcery Plc

I have been a founder myself and the reason I went into business was to create wealth but it is about finding that balance between not just the equity but also the control rights and the veto rights, the consents and the good lead or bad lead clause because these are extremely important but it’s not actually everything when you are looking at structuring a business.

So my advice is try and boot strap with friends, family, your own funds for as long as you can to try and prove out whatever business you happen to be starting or launching I think the more proof that you have that your business is successful, the less chance you are going to get into a bad funding situation.

Mischon

The Leap 100