Cash On Delivery
Former Army officer John Ryan has proved adept at raising capital for Gigable as it shifts its sights beyond the food dispatch industry, writes Amy Lynch
Ireland’s economy performed very strongly through 2022, and it’s not all down to the multinationals. Venture capital investment in Irish enterprises totalled €1,090m in the first nine months of the year, up by a quarter on the same period in 2021. Contrast this with the outcome elsewhere in Europe, where tech VC investment declined by 44% for the nine months, according to the Irish Venture Capital Association.
The IVCA reported that seed funding, which represents early stage first-round investments, increased by 45% in Q3 to €45m, and that seed funding for the nine months rose by 13% year-onyear to €92m. Ireland’s relative outperformance is due to the number of Irish funds currently investing at seed stage in the Irish market, including ACT, Delta, Elkstone, Furthr and Lightstone Ventures, amongst others. Their funding is buttressed by the government’s €90m Irish Innovation Seed Fund, which is supported by the European Investment Fund.
Enthusiasm to part with risk capital started to taper in Q3 and, happily for John Ryan and Gigable, the company got its €2.6m funding round away in June 2022. Ryan established the business in July 2018 with the idea of matching businesses with freelance delivery drivers.
The shift beyond food delivery work has been a recent development at Gigable, which is also now trying to position itself as a source of part-time workers for security, and hospitality functions beyond delivery. The company claims to have 34,000 gig workers registered the platform in the UK and Ireland.
Gigable was up and running in time for pandemic lockdowns in 2020 and, despite ideal trading circumstances, booked a €260,000 loss. The net loss widened to €600,000 in 2021, yet Ryan (37) proved adept at persuading investors about Gigable’s potential. Through 2021, Gigable sourced €600,000 in loan capital finance and €170,000 in equity finance, bringing total risk capital at play to €1.6m.
The 2021 loss reflected a ramping up in staff numbers from six to 23 people and Gigable deployment into the UK market. Britain obviously represents a much larger market opportunity for the platform than Ireland, though the investment cost is much larger too. That’s where the June 2022 funding round comes in.
An allotment filing indicates that the Bank of Ireland Startup and Emerging Sectors Equity Fund invested c.€900,000 and Delta Partners, which provided loan note finance early on, invested c.€600,000. There were six-figure investments too from Dan and Linda Kiely’s Regsont, Enterprise Ireland, an angel investor syndicate, and a number of individuals.
John Ryan’s success at shaking the money tree suggests that aspiring entrepreneurs shouldn’t rule out a spell with the Defence Forces. A finance degree graduate from UCC, Ryan initially worked with stockbroker
Founder John Ryan with members of the Gigable team, which expanded from six to 23 people in 2021
Goodbody as an equity analyst before departing for a nine-year commission with the Army, where he reached captain rank shortly before departing.
In an interview with The Currency, Ryan recalled: “In the Army you have to dig deep, pretty much from day one. The key word really is resilience because every day is tough. You have to get used to being on time, being up early, being very well presented, even if you were covered in muck a couple of hours earlier. It is something that you just don’t even imagine as a normal civilian.
“It forces you to find levels of resilience and strength in yourself that you wouldn’t normally have to. Everything you do is supposed to be done the right way, done with etiquette, and done in an honourable way. It brings out that professional development, that personal development, and there’s a kind of a spiritual level of development as well.”
It pleases Ryan when freelance workers tell him how much they like the fairness and collective benefits that come with Gigable. “We are trying to reach the industry in a new way that’s transparent and ethical,” he says. “People need the flexibility where they’re in control and can move between the shifts that suit them. People have families, a couple of jobs, taking care of a home, busy with studies — there are countless reasons why people need what we do. “
Ryan secured his introduction to Delta Partners through Enterprise Ireland’s New Frontiers programme for rookie entrepreneurs, while Linked Finance founder Peter O’Mahony, who became a Gigable director in August 2019, taught Ryan about persuasive investment decks. For the last few years, Ryan has been focussing most of his energy on product development. He points out that a company needs to show some revenue to secure funding, comparing it to a chicken and egg dilemma: you need one to get the other.
“As a founder, you have to balance the focus on revenue and product development. It’s hard to do both,” he says. “Securing the funding is about going out there and telling your story to as many people as you can. VCs want to believe in the company they’re investing in, the founder, and the idea.
“If there’s a particular cost to grow revenue, for us it’s the cost of acquiring users. Then you need to have a good thesis on how you’re going to lower outgoings while simultaneously growing your revenue and show that evidence. The product is important but nine times out of ten you’ll have a 30-minute call with an investor who wants to spend 90% of the time discussing the revenue story and how scalable is this business.
“You have to be upfront about that. The vision piece and size of the addressable market is great to attract
interest but may only take up 10% of the conversation. You need to be constantly fundraising, updating your deck and your metrics.”
Ryan acknowledges that venture capital sentiment is tough at present, but he believes that experienced investors recognise that uncertain times last typically 18 months to two years. “If you can show the quality of your business and you’re having the right conversations with investors, it’s the story around your growth that really matters,” he says.
Ryan’s experience of training people in the Army and his enthusiasm for self-development have pushed him forward. He stresses the importance for company founders to focus on what they’re passionate about. For him, it’s empowering workers.
“That’s mission accomplished for me, that’s my juice,” he says. “You can have one eye on the long-term vision but you’ve got to execute really well every day. The right people and the right metrics are also important.”