Spotlight interview with...
Matt Bunn
Co-founder and co-CEO of Form1 Partners
Spotlight interview with...
Matt Bunn
Co-founder and co-CEO of Form1 Partners
Can you give some background into what you do?
My background has been in helping start-ups and scale-ups to grow. We worked with 12 start-ups initially, which included between 30-35 funding rounds. My co-founder and I started Form1 Partners a year ago and as part of that we raised investment from an angel investor ourselves.
What common mistakes do you often see entrepreneurs make when seeking investment, and how can they avoid them?
Fundraising is often described as ‘a nightmare’. It’s very rare to meet someone who’s been through the process without stress, which ultimately impacts the whole team. However, there are often mistakes that I see being made time and time again.”
Avoid common mistakes, such as leaving it too late to raise funds which inevitably gives investors the upper hand and not raising enough the first time around. If you can, then always raise more than you need so you have as long a runway as possible. No one raises enough in the UK, which is different to the US where founders always go for $1bn valuations and there’s a high precedent for that, meaning they can raise once and then spend years building the company. Plan ahead of time and do it as few times as you can to avoid the stress and focus on your business.
"Investors are really metrics based, so know your numbers and be good with them. At a stage of business where the metrics are less relevant then it becomes about the people."
Matt Bunn, Co-founder and co-CEO of Form1 Partners
What are the key considerations founders should keep in mind when choosing between different types of investors, and what unique benefits can angel investors offer beyond financial investment?
Think carefully about what type of investment is right for your business. People assume angel investors won’t be able to invest the same amount as alternative sources, but the right group can still bring good money in, as well as the added benefit that they’re often much friendlier. Angel investor relationships are heavily trust based, but with that comes the ability to leverage their connections and the additional value they can bring beyond financials.
What qualities do investors prioritize when evaluating startup founders and their teams, and how important is it for founders to demonstrate adaptability and a comprehensive understanding of their business model?
When we were looking in start-ups, the founder needs to be insanely impressive. That means being all over the problem but really understanding the commercials and how the business is going to make money, as well as being passionate and presentable. If you have a weakness in one of those areas, then bring in someone else. It doesn’t have to be just one individual at the helm of it all, a team works too. Remember, it’s alright to pivot if it’s super early stage, but you have to have an understanding and a plan of how you’re going to give customers what they want to use and pay for.
Investors are really metrics based, so know your numbers and be good with them. At a stage of business where the metrics are less relevant then it becomes about the people. Your presentation needs to be slick (practice makes perfect), have good branding, good slides, good PR and show that you’ve spoken to your customers and know what they want.
"The role of perception is everything. Fundraising is a sales process. Inevitably, start-ups are risky and unproven, so you must over index for perception by creating a ‘wow factor’ and a level of excitement as you won’t have years’ worth of results to demonstrate "
Matt Bunn, Co-founder and co-CEO of Form1 Partners
How critical is the role of perception and public relations in the fundraising process for startups, and what strategies can founders use to create a compelling narrative that attracts investor interest?
The role of perception is everything. Fundraising is a sales process. Inevitably, start-ups are risky and unproven, so you must over index for perception by creating a ‘wow factor’ and a level of excitement as you won’t have years’ worth of results to demonstrate. Any chink in the armour won’t go unnoticed by investors and will work against you. My business partner and I are firm believers in the power of PR, and have invested in campaigns for our own venture, as well as those we source funding for. For Form1 Partners, we had profile coverage in the Financial Times, The Telegraph and The Sun as well as various industry media when we were raising which positioned us in a way that made our jobs so much easier. You’re trying to convince a naturally sceptical base, so every bit of credibility is immensely helpful.
What are your thoughts on bootstrapping versus raising external funding for startups, and what advice would you give to founders considering these options?
My advice would be to consider boot strapping and not raising money. If you do decide to fund raise, then do it big so you don’t have to do it more than necessary. Be prepared to over-explain everything, be distracted, leverage a different skillset, and suck up your ego. I don’t think enough people think about bootstrapping, even though there’s loads of businesses that do this successfully. The pros of bootstrapping, aside from owning the business, is that it forces you to have commercial discipline really on and not get lazy. It’s easy to hire loads of people and forget you need to make a profit.
About Matt Bunn
Matt Bunn is the Co-founder and Co-CEO of Form1 Partners, a venture dedicated to connecting corporates with breakthrough technology. With over 15 years of experience in the tech industry, Matt has a proven track record of driving growth and innovation. Previously, he co-founded and led Capita’s corporate venture arm, Capita Scaling Partner. Throughout his career, Matt has secured over £2.8 billion in orders and served as a director for numerous scale-up firms, helping them triple their annual revenue on average. He has facilitated over 15 successful fund raises and managed two exits. Matt’s expertise spans M&A, joint ventures, and business development, making him an asset in forging strategic partnerships within the tech ecosystem.
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