The anatomy of a venture capital deal – as told by a menswear entrepreneur

Lean canvas workshop

Kruger: Having spent months getting bogged down in the finer details around the technology and operational aspects of the business, the lean canvas workshop presented a great opportunity for Steve and I to take a step back and look at the business again almost with fresh eyes.

Now joined by Dharmesh Raithatha, Forward Partners’ product partner, we looked at the fundamentals of the business from a high-level view – what were we selling, who we would sell to, how we would find our customers, how we would make profit and what overheads would we expect. We then drew out various assumptions around which the success of the business would rely on and made judgements on how quickly and easily these could be tested.

Given that Forward Partners invests in tranches, with only a relatively small amount of initial capital, we realised that it would be vital to execute the business with as lean an approach as possible – i.e., to test quickly, learn and re-iterate. It was refreshing to see that Forward Partners had considerable experience supporting their investments through this process.

Bradley: As mentioned, we’re super familiar with the markets that The Drop is going after and perfectly suited to provide the support and guidance that the guys needed.

Throughout the lean canvas, Jonathan and Steve continued to impress – happily engaging in reductive thinking on their idea, open to suggestions and happy to collaborate on what the business required and needed to prove over the coming months.

But there was still this damned “is this possible” niggling doubt.

Find out how Forward Partners overcame this niggling doubt on the next page.

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