A Match Made In Shoreditch: Connecting Great Brands With the Right Investors
For challenger food and drink brands, securing investment isn’t just about funding growth, it’s about finding the right partners who believe in your vision. At Bread & Jam’s Founders x Funders events, powered by Joelson, innovative brands get to pitch their businesses while investors seek out the next big opportunity. We spoke to two founders who attended and two exited founders, now angel investors, to get their take on what makes an investment journey successful.
The Founders’ Perspective
Chris Kong, Better Nature
What was it like walking into a room full of investors at Founders x Funders? Did you do anything specific to prep for it? Not going to lie, it was a little bit daunting at first but the investors in the room were very friendly so I quickly felt at ease. To prepare for the event, I made sure that my elevator pitch (no longer than 45 seconds) was nailed and committed to memory. I also noted the top 3 things I wanted to get across to all the investors I spoke with in the room. I knew that the investors were going to be bombarded with lots of other brands, so I made sure to keep the points that I wanted to communicate as succinct as possible—that's the only way what I said would be remembered!
Did you make useful connections at Founders x Funders? Yes I did! One of the investors in the room ended up investing in Better Nature, and I had super helpful and interesting follow-up conversations with potential investors and advisors after the event, including Giles Brook (ex-Innocent and Vita Coco) and Julie Waddell (exited Founder of Moorish Dips).
How long does it typically take to secure investment? It varies, but a good rule of thumb is to start pitching at least six months before you expect to have the investment banked. Even after you secure commitments from investors (which can take months of calls and emails), it can take a while to get the legal paperwork in order, coordinate all of the investors to sign the necessary documents and have them all transfer the funds.
What’s the focus of your current fundraising round? In 2024, we grew our UK retail sales by 457% YoY, making us the UK's second fastest-growing meat-free brand. At the same time, we've also experienced significant growth in Germany. The primary focus of the funds from this round is to ensure we can continue to build on our momentum in these two markets and enable us to grow even more in the future.
Are you trying any different or creative approaches to raising funds this time around? It's no secret that the fundraising environment for F&B brands today is extremely tough. As such, we've decided to focus more on raising from Angel investors rather than institutional investors (e.g. VCs). With Angels, there are typically fewer hoops to jump through as you've only got one person to convince - the Angel investor. That said, the process with institutional investors can take much longer as they're beholden to their investors (their LPs) to make the best possible investment decision. The downside is that Angels typically invest significantly smaller sums than institutions, so, depending on how much you're looking to raise, you may need to win over more of them, which can complicate things.
Why is Better Nature a great opportunity for investors? Better Nature is the UK's leading gut-friendly, all-natural, meat-free brand. Since the start of 2023, we've launched into major retailers such as Tesco, Asda and Ocado in the UK. At the same time, we've launched into REWE, Globus and Tegut in Germany. And though we've grown our UK retail sales by 457% and increased our distribution in Germany by 5X last year, we have no intention of slowing down. We want to establish Better Nature as Europe's leading gut-friendly protein brand and are just getting started.
When are you planning to wrap up your round? And how can someone jump in if they’re interested? We plan to wrap up our round by the end of March. If you're interested in getting involved, please email me (chris@betternaturetempeh.co)!
Paige Gibbons, Lonkero
What was it like pitching at Founders x Funders? Did you do anything specific to prep for it? Walking into a room full of investors can feel pretty intimidating - you can often feel like there's a lot riding on it. However the Bread & Jam team were fantastic at making everyone feel exceptionally welcome and at ease. It was also really interesting to have investors pitch to brands - it was a great way to remind us that investment is a two way pitch - you're choosing investors just as much as they're choosing investments.
In terms of preparation, know your pitch. And treat every conversation as an opportunity to sell. You never know who you're talking to. Get them hooked, keep your 'what we do' pithy, and expect questions. We also always research investors before we attend events. I will always produce an investor crib sheet (complete with photos so we know who we're looking for!) ahead of each event. This allows us to be really targeted with our conversations. Of course networking is important but I'd much rather spend my time talking to investors who are interested in what we're doing, and have a cheque size appropriate to our raise.
Did you make valuable connections? Absolutely - there were a lot of familiar faces in the room and it allowed us to reconnect in person & further some conversations. We also met a lot of new people, most we're still in active conversations with about this raise (& the next!). I also think these events are great, because investors always have pressing questions, and often come at your business plan from a different angle. We're always open to the hard questions, and always keen to get these people's opinion as it can only help & strengthen your business plan (and future pitches!)
How long does it usually take to actually secure investment once you start pitching? Securing investment is a long process & so much of it is in the prep work. You want to be on investors radars long before your round opens. We did our first investor pitch in July 2024 for our seed round opening January 2025.
What’s the focus of your raise? Growth. We need to hire our first employees, ramp up marketing and ensure we have the working capital to scale effectively.
Are you taking a creative approach to fundraising? I'd say we've got a very logical approach to fundraising - it's effectively a sales pipeline. You just need to understand your conversion rate, and then it's all about feeding the pipeline! Of course, there are more & less effective ways to feed the pipeline - i.e. warm introductions have a higher conversion rate, so this raise we're all about sweating the network!
Why should investors be excited about Lonkero? 25% of UK drinkers don’t have a go-to drink. We’re solving that with a pint-sized, spirit-based beer alternative that’s light, fresh and citrusy. We’re not just launching a product; we’re creating a whole new drinks category.
When does your round close? Our round opens on 20th January, and we're looking to have it wrapped up in March. We have 50% funds committed already and a lot of conversations in the works, but we're always keen to hear from interesting people that want to be part of a category defining start up. My inbox is always open - paige@lonkero.co.uk!
The Investors’ Perspective
Kris Li, Angel Investor, Co-Founder - Jing A Brewing
What do you look for in a challenger brand before deciding to invest? First and foremost, it starts with the product. I need to be a massive fan of the product, and it needs to be in a category where I feel like there is a current market gap.
Secondly, the voice, story and overall feel of the brand is also critical. I tend to gravitate towards brands that have a very authentic story, like to be playful and don’ t take themselves too seriously.
Finally, I need to really connect with the founder. There isn’t a black and white answer for this one, it’s more about a general gut feeling I get after spending time with a founder as well as understanding his or her story.
Looking back at your own exit, what do you wish you had known earlier about scaling and attracting investment? Alongside my co-founder we grew our craft brewery fairly quickly and most of the time it felt like we were building an airplane while simultaneously learning how to fly. When we were ready to scale the business we raised a seed stage round from a group of angels.
In hindsight, I think we over raised and should have been more selective of who joined as angel investors. We had more capital than we needed for that stage of growth and several of the angel investors did not end up adding the strategic value we had hoped for. My advice here is to be picky about who you choose as your angels. It’s your party and you get to invite who you want.
How do you balance gut instinct with data? I’m actually a “numbers guy” and love getting into the data. However, for early-stage investments it’s very easy to get into a state of “analysis paralysis” and convince yourself out of an opportunity. I think if you believe in the overall opportunity, the product, the brand and the team, then you need to go for it.
Having said that, the two numbers sets that I’m most interested in looking at are topline revenue growth and more importantly, the momentum behind this. The next is a healthy gross margin. In the early stages of a business, it’s unclear what your full cost structure is going to look like, however if you can have a healthy GM, then you at least have some runway to work with as the business begins to grow.
What are red flags that make you walk away? If the product is great, success depends on the opportunity, brand, and founder.
In a competitive category, if a challenger brand lacks a clear edge, it’s risky, big players can copy it at lower costs. Strong branding and community are crucial for standing out, though brand identity can evolve, making this a "pink flag" rather than a dealbreaker.
The biggest red flag? The founder. Unlike a brand, a founder is harder to change. Issues with trust, leadership, communication or strategic focus can make or break the business.
Beyond capital, how do you support founders? My favourite part of angel investing is having the chance to work closely with smart, creative and energetic founders. For example, as an investor and advisor to Yep Kitchen, I’ve been working very closely with Tom Palmer (who is already a very talented entrepreneur). We meet at least once per month and discuss all aspects of the business ranging from long- term strategic planning, fundraising as well as operational challenges.
The financial return for my involvement can be in the form of a valuation discount, advisory shares that vest over a specific period, or specific preferences on the rights associated with my invested shares.
Tom Mercer, Angel Investor, Founder of MOMA Foods
What do you look for in a food & drink brand? Engaging, driven founders with realistic sales forecasts and strong gross margins.
What do you wish you’d known about scaling and attracting investment? Scaling requires objectivity, it’s easy to lose perspective when you’re deep in the business. When raising investment, be crystal clear on what you need the funds for.
How do you balance instinct with data? I start with data, market growth, sales potential, profit margins, but gut instinct comes in when assessing the product and team.
What are your biggest deal-breakers? A market that’s too small or a business with no clear path to profitability.
How do you support founders? I prefer making significant investments and staying involved through quarterly meetings and ad hoc calls.
Founders x Funders isn’t just about raising money, it’s about forging relationships that drive success. For brands, it’s a chance to refine their pitch, connect with investors and get valuable insights. For investors, it’s an opportunity to discover game-changing products and back passionate entrepreneurs. If you’re a challenger brand or an investor looking for the next big thing, this event is the place to be. Register your interest below to hear more.