Going it Alone: Raising investment without an adviser

Businesses are increasingly bypassing the traditional route of appointing a corporate finance adviser and opting to approach potential investors directly. It is a trend we have also seen within our own data. Between January 2023 and June 2024, Maven’s London office received nearly 500 introductions related to future funding rounds. A significant proportion (36%) were received directly from companies seeking investment. 

An increasing awareness of the financing options and the benefits of private equity, as well as a maturing entrepreneurial ecosystem is resulting in many businesses approaching investors direct, often through necessity due to the stage of business and its inability to pay the associated professional fees that come with engaging an experienced adviser.

Yet this direct approach comes with significant responsibility and time burdens, which have the potential to impact a leadership team's day-to-day ability to run their business. Without the structure, preparation, and strategic input typically provided by an experienced adviser, management teams must be ready to lead every aspect of the investment process themselves. For businesses choosing to go it alone, success depends on being thoroughly prepared, strategically minded, attuned to investor expectations, and ensuring that they set aside sufficient time and resource to manage the process effectively. 

At Maven, we encourage and accept introductions through advisors or direct approaches by businesses, providing a simple funding application form for management teams to complete which aims to capture headline metrics such as turnover, headcount and sector to enable our origination team to make an initial assessment. That said, whilst investors like us are making it easier for businesses to connect, the complexity and length of a funding application process should not be underestimated. That is no different, regardless of the source of introduction, and investors will still hold any potential deal to the same level of scrutiny and ensure that it meets their strict investment criteria.

Preparation is the key. In this article, we outline the key actions that a business should take when it plans to go it alone and aims to secure funding without professional guidance.

Prepare a comprehensive business plan

At the core of any investment process lies the business plan, a crucial tool in articulating the opportunity, aligning stakeholders, and demonstrating a credible route to exit.

A strong business plan presents a clear and compelling overview of the proposition. It defines the target market, outlines the consumer or market need, and shows how the business is positioned to capitalise on the opportunity. Investors will look for evidence of commercial traction, whether that’s revenue growth, key customer wins or product development progress. Crucially, the financial section must be robust, detailing not just what funding is required, but how it will be deployed and what it is expected to deliver.

This is where we have seen some self-advising businesses fall short. Plans that are overly optimistic or lack commercial rigour tend to erode credibility. Whilst it is natural for entrepreneurs to be optimistic about the prospects for their business, it is also prudent to think about downside scenarios and how these can be mitigated. A well structured, data-informed plan with clearly articulated assumptions gives investors’ confidence that the team understands the dynamics of scaling a business and managing capital responsibly. 

Think like an investor

Approaching investors without an intermediary means founders must learn to view their own business through an investor’s lens. Investors are ultimately looking for businesses that are scalable, defensible, and led by capable teams.

One of the most critical factors is the strength of the management team. Experience, cohesion, and alignment around the growth strategy all matter. Investors will also assess the market size and potential, how differentiated the product or service is, and whether the commercial model can scale efficiently. Funders want to understand not only how the business will grow, but how and when they are likely to realise value whether that is through a trade sale, a secondary buyout, or a public listing.

Being able to articulate a clear and realistic vision for the future, grounded in evidence and commercial logic, is essential. Founders who can anticipate investor concerns and speak openly about challenges are far more likely to build trust - after all the investor / business relationship will typically span three to seven years so it is helpful to set the right tone from the start.

Alignment through equity incentives and shareholding is also an important consideration that will be expected by any investor. Management having both skin in the game and a financial stake in the company's future success links compensation to long-term value creation, reinforcing trust and ensuring that leadership remains focused on sustainable growth rather than short term gains.

Becoming investor ready

Due diligence is typically intensive, and without an adviser to guide the process the onus is on the management team to have everything in place. Financial reporting must be up to date and transparent. Corporate governance, legal structures, and intellectual property ownership need to be clearly documented. Tax planning, including VCT or EIS eligibility if relevant, should be considered well in advance.

Many promising businesses come unstuck at this stage because their internal processes do not stand up to scrutiny. Investors need to see that the company is not just growth ready, but investment ready. For founders seeking to raise capital without external support, getting this right early can be the difference between progress and stalled conversations.

Investors appreciate that not every business will be the finished article, and many will require some form of professionalisation throughout the life of the investment, especially as it scales. Effective portfolio management is a crucial tool in the armoury of any reputable private equity firm, helping introduce disciplines and best practice vital to the transition into a larger, more valuable business. However, an investor will still look for the tell-tale signs of a well run business with long-term viability and indicators of robust management.

Strengthening the management team

The team behind the business is often a defining factor in the investment decision. Investors are backing people as much as they are backing ideas. A team with clear leadership and ambition, diverse experience, and strong executional capability is important.

One particularly important role is that of a Finance Director. Businesses that do not yet have a full time FD should consider appointing one, at least on a part-time or interim basis, before engaging with investors. A strong FD brings the financial control, forecasting discipline, and strategic oversight that institutional investors expect. Their presence not only enhances internal operations but signals to investors that the business is professionally managed and financially resilient.

Presenting with clarity and confidence

Without a corporate adviser managing investor communications, founders must take the lead in presenting the opportunity. This means preparing a concise, well designed investment deck that complements the business plan, and being ready to engage directly in investor discussions with complete clarity over every aspect.

The leadership team should be able to clearly explain the business model, articulate the growth plan, and defend assumptions within the financial forecasts. Presentations should demonstrate a deep understanding of the market, as well as the commercial realities of building and scaling the business. A professional and polished pitch can create a strong first impression and increase the likelihood of an investor moving to the next stage in its selection process. 

Finding the right investment partner

Choosing the right investor is about more than just capital, especially in the context of equity investment. The best partnerships are built on shared values, mutual respect, and aligned objectives. Without an adviser to mediate or negotiate on a founder’s behalf, it is important to conduct thorough due diligence on prospective funders.

Founders should consider an investor’s sector experience, track record of supporting businesses at a similar stage or with similar challenges, and the level of involvement expected post-investment. In many cases, a supportive and experienced investor can make a significant contribution to a business’s long term success. Prioritising a good fit over speed or valuation often leads to stronger and more productive relationships.

Striking the right balance around valuation

Valuation can be one of the more sensitive elements of the process, particularly when founders are handling negotiations themselves. Unrealistic expectations or a lack of understanding of investor return requirements can lead to misalignment and ultimately deter investors.

It’s important to approach valuation with a balance of ambition and pragmatism. Consideration should be given to equity dilution, future funding needs, and how the proposed valuation reflects both current performance and future potential. A flexible mindset, supported by a credible business case, often opens the door to more constructive conversations.

Knowing when to seek support

Going it alone does not mean going without any support. Many founders assemble a small team of trusted advisers, such as legal or tax, who can provide targeted input without managing the entire process.

This hybrid model can be effective for some, allowing founders to maintain control while still accessing critical expertise where needed. Engaging advisers on a selective, project-specific basis can be a cost effective way of enhancing professionalism, distributing the workload, and mitigating risk.

Final thoughts

The increasing trend of businesses raising capital without a corporate finance adviser can offer greater autonomy and transparency and can streamline the process for well-prepared businesses. But it also demands a high level of strategic and operational readiness.

Founders who take the time to prepare thoroughly, to think like investors, and to present their business with clarity and credibility, are far more likely to secure the funding they need. For those prepared to shoulder the responsibility, going it alone can be a rewarding and successful route.

Businesses that do their research on potential investors to understand their sector experience, cheque size limit, investment sweet spot, and eligibility criteria will also have a better chance of their business plan or pitch deck piquing interest.

Maven welcomes early conversations with founders and management teams considering equity investment whether they are working through an adviser or independently. If you’re preparing for a fundraise and want to understand what investors are really looking for, we’d be pleased to help you shape your journey.