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LETS GET DOWN TO BUSINESS.

Question :
I am very close to finalising a new range of coconut products (craft coconut if you like). I have developed and secured the supply chain including a unique biodegradable packaging.  I need to complete the branding and be ready to go once the lockdown lifts.  I have agreed a distribution arrangement for New Zealand & Australia, i did have the final funding i required agreed (not delivered) but unfortunately the funder has closed down due to Covid-19.I am looking for advice and assistance to secure the necessary funding to enable me to be ready to go once countries re open.  My branding and packaging are to be made in Auckland.  The raw ingredient comes from the Philippines.I look forward to and thank you in advance for any advice/comments.  Stay safe.Michael

Question submitted 06/04/20 @ 02:03pm
Industry: Business Growth
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  • Its a tough time to close a new funding round. Not knowing what type of investor you were talking too I would suggest you need to
    1) update your pitch deck (and if necessary your business model) to show how your products will be more relevant in the post Covid new world we will live in – including support from your distribution partners
    2) Make a list of other types of funders you could approach and who are still investing ( I am not pretending this will be easy – it wont)

    Michael, good advice from Greg. Once you’ve updated your pitch deck, send it through and I can forward to Icehouse Ventures for an initial evaluation.

    I expect your funder will reevaluate the investment. The landscape and risk capital available is very different now. I see there is already an established player in this space, Little Island, who have also had to put funding on hold. Any pitch should also explain what differentiates you from more established players.

    Michael, do you have a current business that this new opportunity has sprung from? Might that offer you a path to self-fund the initial launch of your coconut product? As the guys have indicated above, the next few months and quarters will be inhospitable to new but unproven products … but a shipping product, initial market acceptance and proven revenue growth opportunities will be more investable.

    Hi Michael,
    This is an interesting challenge and the timing is tough.
    Ref the raise – Greg is on the money in terms of the actions. The key will be to understand the min required in terms of funds and work from there.
    Ref the parties – it is time to think dynamically in terms of investors. Can you look at supply chain, complimentary products or entities in market (both local and international). There is money out there and as long as it is sensible it is possible to cut through the C19 noise.
    Regarding parties to work with – the government is yet to loosen up the investment entities regarding their parameters. NZTE is being pretty proactive at the moment regarding export support.
    Your challenge is clearly one that would do well with a deeper conversation and I am happy to jump on a call and talk it through with you as needed. Let me know
    Adam

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