Consumer Products · Venture capital

Has anyone had any experience raising capital in the CPG world?

Luke Hambly Co Founder of Pressa Bottle

April 17th, 2018

We have been in the market for just over 1 year and have seen our sales grow month over month and have now on boarded with some large retailers in the US. We are continuing to grow but looking ahead if we want to fulfill all orders we need to raise.

We are currently rejecting some order to fulfill others and it is only due to inventory and cash flow.


I would love to hear any sugestions of firms that invest in the CPG space. We are open to debt as well.

Thanks,

Luke

Chad Pavel, CPA CFO, Fundraising, Pitch Decks, M&A, Investment Banking, Growth Hacker

Last updated on April 17th, 2018

Hey Luke, Pedro nailed it. Capital can be very expensive at the wrong time.


Sounds like you are getting orders from big retailers, which makes financing your B2B POs more secure than financing orders coming in through Shopify.


Now the question is - Equity or debt, and what makes sense for your business and your goals?


Feel free to PM me if you want to chat about strategy, raising capital, etc.


Thanks

Chad


Pedro Sostre Marketing Pro. CEO @ WebLift. Founder @ Black Helmet (acquired). Author, Web Analytics @forDummies

April 17th, 2018

Hi Luke,


I started a lifestyle brand which manufactured and sold apparel and accessories. Not exactly the same, but similar in the sense that it is inventory based and we sold to retailers.


The cash flow problems that come with a growing inventory based business was not something I had experienced in my previous digital and service based businesses.


Ultimately, it became the thing that halted our growth. We never capitalized when we should have. We ended up getting into bad (expensive and short term) debt, and it became increasingly difficult to recover.


No one wanted to lend to a company in our space. Either they 1) felt there wasn't enough growth potential or 2) were worried we were a trend or fad, or that 3) feared competition would swallow us up.


If you're still showing strong growth numbers and decent profitability, build relationships with some bankers and ask them exactly what they need to see in order to grant you a revolving LOC.


Also, get a CFO. This can be an outsourced position if you can't afford a full-time person, but don't underestimate the value of having someone on your team that can create and execute on a financial plan that ensures proper capitalization for every milestone you need to hit over the next 5-10 years.


Happy to connect and share more if you have questions!


Best,

Pedro

Ateeq Arif Cofounder @ libas e khaas

April 18th, 2018

salam... what is cgp space means and which type of orders you want to raise and how can i help u in that ?

Mr. Kelly Johnson Looking for Co-founder

April 19th, 2018

Did factoring companies turn you down? If you have PO's, I don't see why they wouldn't work with you. Maybe because only a year history? I do really like your product, and that home page video is quick and to the point. It's a product I would buy, but not for $36.99. Needs to be a $19.99 price point for me. But that may be just me.


Coincidentally enough, I am currently changing the business model of my existing supply chain related business to exactly what you need. Actually, you are the poster child for my target market in a lot of ways. I am still working through the financial regulations of my business model with my attorney, so I can't help you now unfortunately. Message me in private if you want me to refer you to someone who can probably help now.