TIME TO RAISE
Fundraising before Pepicon
Cooach’s fundraising journey started in a classical way, combining three common fund sources. First bootstrapping the company by the founders and sweat equity to reduce the operating costs. Secondly, bringing in additional funding from “Family, Fools and Friends” (FFF) in order to cover the costs of digital development. And thirdly, getting initial revenue from first clients offering Cooach to validate and shape its offering and proving its product-market fit.
Already in the early fundraising days Carl-Fredrik Morander, the Founder and CEO of Cooach, recalls the importance and power of building strong relationships across all stakeholders – from the FFF, to clients or investors – making it fairly “easy” to secure financing for Cooach and its growth going forward.
Raising funds with Pepicon
Driven by the vision to expand its services to clients in the whole Pan-European area, Cooach realized it is time for their first larger fundraise. The leadership team discussed a variety of options from getting support from a corporate finance firm to an official listing, but concluded a selection of few strategic investors would serve the company the best. While evaluating the alternatives, Pepicon was recommended to the CFO, fulfilling the key requirements: A structured and professional way to pitch their investment opportunity combined with an investor network to optionally open the offering to.
A decision was made to split the fundraise with Pepicon into two rounds. First, to raise a smaller round of 2,5-3M SEK immediately in May 2021, building relationships and trust with the investors. And to raise a larger round of approximately 15M SEK later in the second half of 2021.
It didn’t take long to grasp how to work with Pepicon. The CEO, CFO and Chairman of the Board found it easy, together with the built-in guidance, to create a professional and visually appealing pitch and to complete the interactive memorandum. For the investor pitching part, Cooach’s team figured out they can get a much greater investor sign-up rate if they nurture the shortlisted investors outside of Pepicon before they send them such personalized invitations. The investor tracking statistics were often used before investor meetings to judge how familiar the investor is with their offering and to prepare for such investor meetings – offering much greater transparency.
Reactions from investors did vary, mentioned Carl-Fredrik Morander. “Some asked for a PDF of our memorandum, some really enjoyed the format in Pepicon saying they haven’t seen such professional pitch before” he shared.
In just 7 weeks, Coach raised its initial round of 2.5M SEK from 8 investors. Moreover, already during this smaller fundraise, they gained a lot of interest in their next larger round planned for the end of the year. Also, Cooach enjoys the flexibility they get with regards to crafting their fundraising strategy. They plan to rebuild their investment memorandum, perfecting their materials and pitch. All while continuing talks with existing and new potential investors onboarding them continuously to their digital offering in Pepicon.
What I like about Pepicon is that it looks at the whole journey with investors – from the pitch, towards digital invitations, tracking of their interest and finally allowing them to communicate their interest and subscribe. All digital, a philosophy we share at Cooach.
Tip! from Cooach
“Don’t believe fundraising will happen by itself. Communicate, build strong relationships and don’t be shy to shout out that you are looking for funding, contacting people from your network and beyond. Don’t rely on pushing one button and stuff happening – go to your close circle first and then expand your investor outreach.”
Carl-Fredrik Morander, Founder & CEO Cooach AB
Cooach supports SMEs by digitizing their support functions, offering the best mix of digital and human business support within the fields of accounting, finance, legal and HR. The value comes three-fold with Cooach. You benefit from automating repetitive and resource-draining business getting more time for your core business. You get access to a pool of experts that bring endless innovative solutions to your business, becoming an integral part of your team and delivering results. And you get access to a “one stop shop” from admin support to senior management support, having all organized together in a digital office space giving you speed and efficiency through digital co-working.