This investment is what founders' dreams are made of, but what was the secret of Harry's owners' success? Here are a few tips to draw investors in and make the most of them once you've got them:
1. Belief that you have a great product is not enough. You have to show what you're made of with a robust business plan and financial projections. Is there a gap in the market? Is there a market in the gap?
2. Your business plan should help you identify what you need money for. Investors want to know what you will spend money on. Make it clear what they are getting for their cash.
3. Investors are not just sources of funds, but sources of expertise. They are trusted advisers and you can leverage their knowledge as well as their cash. Identify the gaps in your own understanding. Do you need a sector expert? Or more contacts?
4. Don't sell the farm. You'll probably need several rounds of investment, so don't give away too much equity at the beginning, otherwise you'll find yourself having to give away control at a later stage.
5. Seed and other early stage investors will likely be getting tax breaks for their investments, so while they may be giving you £100,000, they're also saving a percentage of that in their income tax bill. So don't sell yourself short.
And a sixth tip for free - get a great lawyer to make sure there's an expert fighting your corner. Send me an email if you want to discuss.
Under the purchase, Edgewell will pay 79% of the deal value in cash and the rest in shares, giving Harry's shareholders an 11% stake in the combined company upon completion of the deal.