Michelle Omoregha pitched her business 989 Spaces to get an investment of N100 million for 10% equity of the business. Her knowledge impressed the Lions, but she almost lost out... #UltimaLionsDen
Fantastic!!! Sooooo glad this showed up in my feed. I am a shark tank & Dragons Den fan....what a delight to see this here in usa. I quickly shared it with everyone on my friends list
Lovely woman....sometimes I wonder whether these entrepreneurs understand some of the venture capital/investment speak that these lions dish out e.g. vesting, redeemable vs. Convertible debt, liquidity etc. I hope someone is explaining in the background so that there is indeed true communication
I love the lady. She absolutely knows what she's doing. And it seems like Adenike and Bolaji love to partner together, they probably have a good business understanding. I would love them on my team if i have the opportunity.
Met Michelle a couple of times at 989 never knew she was one of the founders. They have solid spaces though & most definitely the 100M for 10% is well worth the valuation.
Paul's muteness was something to consider; thank God he confessed. The lady has a good way of presentation, she came prepared. I'm happy she got a deal.
Seems there is something more to this -"that's why you have to listen, you really really have to..." Lion Paul's declaration, though. Nice one, integrity. But, there is certainly more... Smart Michelle 💗
I love this lady's delivery and composure. Mr. Paul's transparency is something to learn from. Mr. Bolaji approach to investment is so brilliant and unique
Standing in a room of intelligent people, some may fear that asking certain questions make them appear less than smart. Funny thing is, even the most intelligent person in the room does not always understand everything. I cringed when I saw her accepting the second deal over the first. Another lesson learned...
You're absolutely right. That's more equity to the lions having reserved the right to convert at the next liquidity - which they most likely will - as opposed to the first deal at 26%
The first deal might sound tasty, but I would still go for the later. 60m for 20% equity, and 40m as redeemable/convertible debt. Which even if the Lions decides to convert at the next liquidity, the company at that time will be valued higher and their 40m can not buy 6% equity unless in an unfortunate situation where the company is doing a down valuation. Aside that, its a great deal. She got her hundred million naira seed fund.
Dan's reason is quiet 'un-business' like and too 'personal', risk takers don't see business that way, He want he just wanted to opt himself out by all means because Nike and Bolaji already had interests... However, I love Dan's entrepreneurial mindset... very cool, calm and collected!
I think the first deal of #100m for 26% was better. 40m at 1.5 times return rate in 24 month equates to a 50% interest in 24 months... That in my opinion is on the high side for venture capitalist investment. Well I believe there is a due process afterwards, may be there will be some adjustments if the terms allow. I wish her the best.
Indeed it was much better. She could have also negotiated for reduced equity upon returns on investment, so when the investors receive their money back within an agreed timeline (I think the proposal was 24 months), they reduce their equity shares to perhaps 15% in the company. That would have saved her and the company the complexities of the counter offer from Bolaji. She is very smart and very personable but got a bit carried away and didn't quite fully appreciate the complexities of the proposal on the table.
Should’ve taken the first offer and tried to negotiate the 26% down to 20%. She didn’t really understand the second offer, she only heard 60mil and 40mil lol. Hopefully, she retraced her steps and went back to the first offer later on. Great investment btw
Standing in a room of intelligent people, some may fear that asking certain questions make them appear unintelligent. Funny thing is, even the most intelligent person in the room may not always understand everything. I cringed when I saw her accepting the second deal over the first. Another lesson learned...
This business is very profitable. So many start-ups are in the need of workspaces. With the high rate of start-ups springing out every year, she will definitely be able to accrue more profit.
These are spur of the moment contractual agreement which is not the best. You actually need the full details on a hard copy to discuss with a lawyer to make your final decisions.
Here's a breakdown of what she accepted. The first offer was that she gives 26% of her company for 100M. This offer values her company at around 384.6M The second offer which she agreed to was to basically give 25% of her company for 60M and have the remaining 40M as a convertible loan that will yield a 50% interest rate. This second offer values her company at 240M The implication of the offer she took is that she will pay back 60M and 25% of her company will still be in the hands of her investors untouched. Not only that, the investors can convert her debt at their convenience to a stake in her company at a 20% discount on its valuation. When they convert 60M at a 20% discount of her company's 240M valuation, the investors will end up as owners of her business with a total of 56% stake. I wonder who she called that gave her the convertible loan idea.
But am wondering, hope the grammar was not too much for her as it was for me? 😅 Because what she accepted is much lower compare to the previous offer 🤷♀️
Very nice presentation as she so composed, but she should learn to fully understand and have clarity instead of just listening and keep saying Ok when the other person is speaking. The first offer is way better than the second offer...I hope there will be some adjustments afterwards. I wish her all the best!
I dont think she should have taken the deal. The first deal was better. 100 million for 26% vs 60 million for 25% and the 40m loan with some long conditions etc. I think she got confused. The latter deal was worde off in my opinion. Correct me if I am wrong.
Well, I think I understand your view, but thriving in Nigeria is not a simple one, then considering the bank bogus terms, one will happily take anything out of this place just keep ahead.
I also feel like the first deal was better. Cause he said they have a right too... What if they decided to turn that extra 40 millon to share capital which she is not willing to give out
My same thoughts, her haste to accept the counter offer made her ignore the new valuation proposal been offered. They are basically getting almost the same ownership for less than initially offered with an extra debt obligation on her side at 50% for two years.
She should have taken the first deal, more money still get them to push. What she could hv added is that they should allow her to buy back a portion in the next round.
Come on, not the same equity for N60m with another N60m debt in 24 months. She should have cycled right back to Deal 1 & negotiated 18/20%. If they refuse, give them the bloody 25%, no convertible loan anything & take 2 Lions.
Great presentation and negotiation skills. She is a true definition of an African woman. Congratulations - we celebrate you. Well done the Lion 🦁 Team.
I have read through comments and I see people hailing her. She messed up big time. Eloquence and smiles does not equal business savvyness. The first offer was way better. She needed their money so badly to the extent that she didn't "listen" as earlier advised. Now she is losing 47+% of her entire business. If you don't understand, always ask.
Wait if I understand the initial offer, the man offered her 100m for 26% equity, while the woman offered 50m for 13% equity. Altogether 150m for 39%. While the second offer was for 60m for 25% and 40m for 1.5 times the price as debt, that is 100m as debt within 2 years and it is redeemable.
Don’t know who she called but I will say she accepted the wrong deal. She just shake ends to handing over her company if she doesn’t raise her company’s value in 24months. Do the math and you will understand
Lol did she just go for a far lower valuation because of the 1% discount in equity? Probably a better entrepreneur than. I am but definitely not so good a mathematician.
I am not sure this lady knew what she just did. She just accepted the crappiest ever offer. Hope the deal collapses before she signs anything, because she will be the one crying later down the line
Nah! I'm not taking that deal. The first was 100M for 26% and the second was 60M for 25% and Debt Instrument or Convertible note for 40M. What the feck? Was she in a haste to close the round? Cause I feel, they've got money issues and they needed to raise so bad to stay in business.
I think she hurried to accept the deal cos her co-investors told her it was a good deal, but if she could negotiate for anything better then she should and accept it. She didn't think the counter offer through, she thought she was still getting 100m for 25% equity.
WOW EXCELLENT, I just fall in 💓💓💓💖💖💖 with this LADY'S ZEAL & PASSION in what she knows how to do BEST: and as we have all heard she's so so VERSATILE and WELL-ORGANISED in her STUFF and her PRESENTATION & DEAL CLOSURE_👍👍👍⏫⏫⏫⤴️⤴️⤴️🆙🆙🆙!
