Founding director of The Bigger Boat, and shareholding director of Digital High Street, Andy McCaul takes us through his investment history.
What was your best investment?
Pretty sure my wife would say her engagement ring! That aside, setting up and growing my first business.
Are wise investors born or made?
Successful investors possess certain traits, but much is learned on the job. A wise investor is someone who listens to expert advice, calculates risk, and avoids making the same mistake twice.
Do you believe it’s become harder for entrepreneurs to make prudent investments since the crash of 2008?
In businesses, no. Look at the huge popularity of crowdfunding websites – there are tons of opportunities needing investment.
What’s the worst investment you’ve ever made?
A business that needed both money and expertise – I couldn’t give both and it suffered as a result.
What advice would you give to entrepreneurs looking to make a major investment?
Be clear on your role, responsibilities and ambitions.
Which sectors are likely to offer handsome returns for business investors?
Digital businesses and technology companies are still selling for decent multiples. Investing in start-ups is very risky, but it also comes with the potential for a better return.
Are there any sectors you feel should be avoided?
All the ones that you don’t know anything about!
What lessons did you learn from your worst investment?
Define what you want out of it. If you’re going on to a board as part of the investment you need to input time and expertise, as well as money.
What was the best piece of investment advice you’ve received?
Don’t fixate on % shareholding; look at your overall value. If a business needs more money to grow than you can provide, then diluting down is not always a bad thing.
Posted by Dave Learmont on February 27, 2017