Investor Spotlight: Reece Chowdhry, RLC Ventures
In Planning growth, Raising finance, Rapidly scaling - 5 months ago - 4 min
Investor Spotlight: Reece Chowdhry, RLC Ventures
Every month we talk to an Investor from our network, who invest in early-stage businesses seeking to raise up to £10m in equity and debt finance. This month we spoke to Reece Chowdhry, Founder and CEO of RLC Ventures.
RLC Ventures is an award-winning venture capital firm with a thematic approach in high-growth potential, seed and early-stage companies. Reece was ranked in the Top 5 UK Asian Tech Investors 2018 (KPMG & Diversity UK) and is the youngest-ever investor to be profiled by The Sunday Times. As a published author, thought leadership contributor and frequent speaker at industry events (including Channel 4, Startup Grind Europe, Growth Business), Reece is an experienced venture capitalist looking to back the best startups that will shape the future.
Could you tell us a little bit more about RLC Ventures?
Our Fund invests with a thematic approach in a portfolio of 6-12 high-growth potential, seed and early-stage companies run by across 5 key verticals: Proptech, Fintech, Enterprise, AI and Social Impact Tech. We have a unique investment thesis – focusing on millennial and diverse founders, having conducted extensive research published in our Millennials in the Investment Landscape Report. This showed that 67% of unicorn founders were younger than 35 upon incorporation, which highlights this immense investment opportunity. To align our investments with the values held by our young founders, we commit to the “Venture Impact Pledge” by donating a portion of our exit profits to a cause of the founder’s choice.
How big is your portfolio? And how much do you typically invest?
Currently, the portfolio consists of 14 companies ranging from P2P property lending platforms, InsureTech apps, betting platforms and Social Impact Tech. Our ticket size ranges from £50k to £500k to fund pre-seed and seed-stage scalable businesses who provide solutions to real-world problems, which will ultimately shape the future.
What are the top three things you look at when considering a new investment?
We focus on 3 main criteria:
1. Team – The founder’s experience, commitment and entrepreneurial drive is fundamental to any business’ success. Having a clear vision and being passionate about the problem they are solving is paramount to achieve their ambitious growth plans.
2. Market – We love businesses that tackle large, inefficient and outdated markets ripe for disruption or updating.
3. Product/Service – The business must be scalable, have barriers to entry and address a real problem that peope incur.
Are there any companies you’d like to highlight that you’ve worked with?
LandlordInvest – P2P Proptech Platform – was one of our first investments and has excelled ever since. Through its platform, it has lent over £5 million to professional landlords unable to access financing from traditional lenders. As a board advisor and investor, helping to grow this business from a raw idea to a multi-million pound company has been a great pleasure.
Any companies that got away that you wish you’d backed?
Revolut – enough said.
What are the big red flags for you when reviewing investment propositions?
- A poorly constructed pitch deck that does not clearly convey the problem that is being addressed, your solution and team experience.
- Lack of a comprehensive financial model backed by realistic assumptions.
- No clear value proposition and USP.
- An unjustified high pre-money valuation.
I wish I saw more…
Founders who don’t just tell us how great their idea is, but are prepared to show us: their unique solution to an imminent problem, specific KPIs that have been achieved, a clear vision for the future and a strong team who are able to results.
I wish I saw fewer…
Outrageous pre-money valuations that have weak justifications to back it up. We would advise companies seeking funding to think hard about your valuation before applying to any venture capital firm.
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What I wish I could tell every founder…
Be passionate about your product and let it show in everything you do – your pitch deck, emails, website and meetings. Expressing this genuine passion allows us to not only get to know you and your business better, but also be able share this same enthusiasm.
What do you see as the next industry to be disrupted?
Insurance is notoriously known for its outdated and traditional style. It’s crazy that in the 21st century we are still manually filling out forms and laboriously going to each individual broker. An exciting company like Wrisk is one to look for as it looks to shock this sector in the next few years.
How should a business seeking finance approach you?
The best way is to directly “Apply for Funding” via our website www.rlc.ventures from which we can review your investment proposal in detail. We would advise looking at RLC Ventures’ investment strategy to ensure we’ll be the right fit for each other.
If you are thinking about raising investment for your business and want to understand your options, get some free guidance from one of our team team today on 08081 722350 or drop us an email: G.Enquiries@uk.gt.com