In the return of our Behind The Raise series, we interview Andrew Gordon, the co-founder of a brand new disruptor in the health, sustainability and beverage space: Naked Rivals. The Australian brand announced a successful capital raise of A$3 million with AIN, 3 months after launching its first 100% lemon and lime juice cubes product range across 1,600 supermarkets in Australia.
In the article Andrew discusses how his wife and business partner Kate’s pregnancy was the inspiration behind the brand, the problem they’re solving for busy consumers, and the secrets to their successful fundraising through angel investors. You’ll also discover their top tips for navigating the fundraising landscape and their approach to persuading retailers to stock their unique product.
Tell us about Naked Rivals and how you came up with the idea?
Kate was pregnant with our third child, Eloise, a year and a half ago, and during the pregnancy, we began drinking water with lemon juice as part of our daily health routine. With a third child on the way, we became acutely aware of the amount of food waste we were generating at home, and we also had a desire to live a healthier lifestyle.
We figured there must be a better way to maintain a healthy lifestyle while upholding our sustainability values. But there is always a trade-off with living a healthy life, being sustainable, and ensuring you can access food products that are convenient to use and affordable. The three elements of health, sustainability, and convenience are too easily compromised against each other.
What is the problem you are looking to solve?
Our brand strategy centres on the principle of ‘convenience with a conscience’, meaning we exist to help consumers make healthy choices in the food they consume whilst not compromising their sustainability values or need to access convenient food products that are important to them in their busy lives.
Tell us about the business journey to date?
The business was launched in February 2024. Prior to that, it took us 12 months to move from ideation through to product development, market research, branding, and retailer negotiations. Within less than a year and a half, we had successfully completed ranging across 1600 retailers in Australia. The business is based in Sydney, Australia, but we manufacture in Victoria. The juice is squeezed/sourced from local farms across the country.
What attracted investors to your company for this latest raise?
There are three key elements that attracted investors. Firstly, our brand story and value proposition / intellectual property. Secondly, our ability to scale the business in terms of range and global distribution. Thirdly, our passion and commercial knowledge/strategic vision.
Why did you raise via Angel Investment Network?
We knew we couldn’t go on this journey alone. We focused solely on angels, as we wanted to work with someone who wanted to play an active role in the business growth but was passionate about our vision. We also wanted to work with someone who was fun.
What will you do with the funds?
Our priority is to firmly establish our brand, invest in product development and then focus on manufacturing automation to drive margin improvement.
How have you found fundraising in today’s climate?
At our stage, there are limited options. I get it, however, as FMCG brands fail a lot. We bootstrapped the business for the first year, and we confess our bank has been good in supporting us. It wasn’t easy to convince them, though, so you have to get face time so they underwrite the risk properly.
What are your top tips for anyone raising investment for the first time?
There are a few tips I would offer based on our experiences:
- Keep as many options open as possible, as things can go sideways on you quickly.
- Focus on your value proposition – what can you offer that is unique and have you protected that IP.
- Think big – be realistic, but you’ve got to show how you can accelerate and scale your proposition.
- If you’re starting off, don’t give away too much equity. Take only what you need and get strong legal advice from day one.
- Make sure you can talk to your balance sheet with confidence.
Your product is very innovative, how have you persuaded retailers to stock something unique in the market?
I appointed an operations leader to take ownership of our distribution strategy. This individual had the connections, understood buyers’ needs, and was able to work with me to build the product – almost in partnership with the retailers. If you give them the opportunities, the retailers really do take the time to work with you, provide feedback.
We’ve seen some exciting startups coming from Australia, what are the key reasons behind the exciting entrepreneurial culture?
Look, we’re a multicultural, diverse country and that microcosm is a wonderful geography in which to innovate.
Are you looking for an angel investor to help fund your business? Join us at Angel Investment Network, where global investors meet the great businesses of tomorrow.
