Who they are:
Providing Tech HR solutions that help businesses find new employees based on core values and culture fit.
How we helped:
The client approached RJF to review a business plan that was to be used to raise finance. After reviewing the plan, suggestions were made to help improve their chances of raising investment and make the company more investable. This was based on RJF’s extensive experience of raising funds for technology startups.
1. Sales Model
Their model charged companies who are hiring staff, a one off fee for each hire, starting at £100 per advert. With previous experience raising finance for software companies, RJF advised that rather than charging per advert, they should charge a subscription fee and move to a subscription as a service (SaaS) model.
The advantages of this is they have a recurring income coming in every month rather than starting from zero. An investor who puts money into the business will know that his money will not only go on recruiting new customers but have a business that is generating ongoing monthly income.
Our experience on recruitment told us that this market is also better suited to recruitment firms as they can offer a unique advantage over other competitors in finding the right person for the job an one that matches the culture of the organisation.
This change in sales model would make the company much more appealing to potential investors.
2. Non Exec Board
To make them more investable it was advised that they look at appointing a Non Exec Board. This gives confidence to investors that startups have experienced people guiding them and makes them far more attractive to investors. RJF was even able to put them in touch with some relevant people.
3. Intellectual Property Protection
From RJF’s experience working with tech startups, it was advised that before seeking any investment, their intellectual property was protected.
● The client is in a much better position in terms of raising funds, receiving a lot of interest.
● RJF has met personally with many investors as their accountant.