Presentation on London's

1. Incubating, Accelerating and
Financing London’s Tech Sector
Start-ups.
.
Presented by John Spindler CEO of
Capital Enterprise
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2. Scale focused start-ups are…different
• Ambitious: want to be worth
£10M+ minimum in 3-5 years.
• Solve a big problem for potential
customer in a “Game Changing /
disruptive” new way.
• Introduce new technology/
business model innovations
• Smart Team & Key Partners buy -
in.
• Ability to adapt and change as
they develop.
• At some stage will need
investment
• Expectation of success is
“radically uncertain”
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3. Scale Focused Start-ups need to progress by
stages…
Steve Blank- The Start-up Owners Manual
See Steve Blank, Four Steps to the Epiphany

4. Go Lean to prove concept and
market
“Lean Start-up is about
reducing market risk by
working out how to fail
fast”
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5. Lean Canvas Model
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6. Idea to Tech Business- Three Chasms.

7. Start- Up Funding road –map.
Idea Hackathons/ Hatcheries/ Meet-ups.
Bootstrap- FFF
Problem/
Space
Exploration MVP Factories
Start-up Loans
Design/ Innovation Awards
Prototype
Crowdfunding i.e. Kickstarter
Accelerators Beta Test
Seedrs/ Crowdcube
SEIS Adapt/
PivotX2
Accelerators
Super Angels/
Launch
Angel Groups
Early Stage VC’s
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8. Forming & Exploring Ideas
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9. Forming Businesses.. ideas from???
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10. Developing the team & the tech
• Hipster (Designer)
• Hacker (Developer)
• Hustler (Distributor)
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11. Sources of Start-up Help for Tech
Entrepreneurs
Information:
• Capital Enterprise What’s On in London- www.capitalenterprise.org/whats-on
• Meet-up - http://www.meetup.com
• Mobile Academy- http://themobileacademy.org.uk/
• Makers Academy- http://www.makersacademy.com/
• Skills Matter- http://skillsmatter.com/
• Start- up Britain - http://www.startupbritain.org
• British Library- www.bl.uk/bipc
• Google Campus- http://www.campuslondon.com
• General Assembly- https://generalassemb.ly/locations/london
• Innovation Warehouse- http://www.theiw.org
• IC Tomorrow - https://connect.innovateuk.org/web/ictomorrow
• UCL Decide- https://www.ucl.ac.uk/decide
• Start-up Weekend- London- http://london.startupweekend.org/
• Launch 48- http://launch48.com/
• Start-ups on Air at Google Campus-
https://docs.google.com/spreadsheet/viewform?formkey=dEpuYlRFRFJ6SUVDdHVLRms3YmdBcmc6MQ
• Hubventurelabs - http://hubwestminster.net/hubventurelabs
• 3 Beards- http://www.3-beards.com/
• Founders Fit- http://foundersfit.com/
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12. Prototyping
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13. Funding Product Development
Grants & Awards General
• J4B- Portal for grant finding http://www.j4b.co.uk
• Technology Strategy Board ( R&D Funding) - http://www.innovateuk.org -
http://www.innovateuk.org/content/competition/grant-for-rd-single-business.ashx
• Knowledge Transfer Networks- www.innovateuk.org
• IC Tomorrow- https://connect.innovateuk.org/web/ictomorrow
• NESTA- http://www.nesta.org.uk/
• London European Enterprise Network- http://www.een-london.co.uk
• E Funding for SME R&D - http://www.eurostars-eureka.eu/what.do
• EU Funding for R&D collaborations: http://ec.europa.eu/research/participants/portal/page/calls
• Knowledge Transfer Partnerships funding support- http://www.ktponline.org.uk/ktp-what-will-it-cost-
my-business
Translation/ Follow on research funds.
• www.rdfunding.org.uk/bulletin/queries/Search.asp?TheCloseMonth=July&TheYear=2011.
• http://www.rcuk.ac.uk/kei/ktportal/Pages/Followon.aspx
• https://ktn.innovateuk.org/web/145175/overview
• http://www.ahrc.ac.uk/FundingOpportunities/Pages/BrowseOpportunitiesOld.aspx
• http://www.ahrc.ac.uk/Pages/default.aspx
• http://www.theculturecapitalexchange.co.uk/
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14. Crowdfunders
Crowd funding Platforms-
Reward based Crowdfunding platforms- will help you to
raise funding to build a proto-type and market test a
great idea or product.- Great for pre-selling cool tech
hardware.
• www.kickstarter.com
• www.indiegogo.com (USA)
• www.peoplefund.it
• www.sponsume.com
• https://www.buzzbnk.org
• www.pleasefund.us
• www.wefund.com
• www.pozible.com
• www.crowdfunder.co.uk
• http://spacehive.com
• https://www.banktothefuture.com
Seed/ Early stage Investment Platforms:
www.crowdcube.com
www.seedrs.com
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15. Need less than £10K to start?
Grant-
www.j4b.co.uk
No Funds
New Enterprise
Unemployed?
Allowance Scheme
Need Less than
£10K to Launch a Self Fund
business Community
Development
Write a simple Finance Institution
Borrow Business Plan & 12
month cashflow
Start-Up Loan Bank
- Sources of Grants- www.j4b.co.uk
- Competition funding £1000 issued to 10+ businesses per month- http://www.shell-livewire.org
- Princes Trust http://www.princes-trust.org.uk/need_help/enterprise_programme.aspx
- £1000- £15,000 Enterprise Loans for Under 25’s- www.startuploanslondon.co.uk or www.startuploans.com
- New Enterprise Allowance Scheme – Check who delivers the scheme in London by e-mailing Capital Enterprise.
- Community Development Finance Associations- http://www.cdfa.org.uk - Also check out North London Community Finance
- ELSBC Access to Finance – Business Plan support for those looking to raise up to £10K
• Soft loans for Creative Businesses- http://www.creativeindustryfinance.org.uk/
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16. Incubation – Virtual or Real
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17. Idea to Tech Business- Three Chasms.

18. Accelerators In London
http://www.f6s.com/
https://capitallist.co

19. Accelerators help by ..
Offering early Stage
Entrepreneurs… …so that they can test..
• Fellow Community of • Product- Assess Functional use/
entrepreneurs & supporters improve design & UX
• Runway support & funding • Market Reaction- interest/
(£15-£100K at standardised investment terms. )
usage/revenue - AARRR
( 3-6 months on average)
• Physical Space & Facilities • Revenue/ profit Potential-
pricing, market timing, LTV/CCA
• Mentors ( 1st Industry- 2nd
Investors) • Business Model- “To Pivot or Not
To Pivot”
• Help to Rapid Field Trail with
users & customers. • Investor reaction- interest and
valuations
• Demo days- Introductions to
Investors/ customers • Team- ability to work together and deliver.

20. Accelerators want businesses who..…

21. Accelerators
Accelerators : Training & Mentoring programmes that provide fast-track to seed funding for
Scalable new businesses
• Lean Start-up : - http://be.foundercentric.com/
• Start-Up Weekend: http://london.startupweekend.org
• Launch 48: http://launch48.com
• Tech Hub : http://www.techhub.com – Google Campus- http://www.campuslondon.com/
• FIG- http://www.findinvestgrow.com/
• Y-combinator- http://ycombinator.com/
• Tech Stars- http://www.techstars.com/
• Seed Camp: http://www.seedcamp.com ( Applications open)
• Hackfwd: http://hackfwd.com
• Emerge Venture Labs- http://www.theemergelab.org
• Ignite 100- http://ignite100.com
• BBC Worldwide Labs- http://www.bbcworldwide.com/digital/labs.aspx
• Tech Stars Europe -Springboard- http://springboard.com/
http://www.techstars.com/program/locations/london/
• Student Start-ups- http://studentupstarts.com
• Accelerator Academy- http://acceleratoracademy.com
• Fintech Innovation Labs- https://www.fintechinnovationlablondon.co.uk/about.html#4
• Wayra- http://wayra.org/en/wayra
• Innotribe- ( Fin Tech Only) http://euclidopportunities.com/
• The Bakery - http://thebakerylondon.com/#!/
• Innovation Warehouse- http://www.theiw.org
• Healthbox- http://www.healthboxaccelerator.com/
• Collider12- http://collider12.com/
Check out – www.f6s.com and http://www.seed-db.com/accelerators
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22. Proving the Business Model Key
Milestones
• Human Resources - Hiring key people that will make a huge impact on your organization (not just
employees for workload purposes, but like a shit-hot marketing person, for example).
• Product – MVP- Beta- First Pivot-Full Launch- On-going Iterations
• Market – Market validation. As in, first customers, or first paying customers, etc
• Funding – Maybe some money being committed to a round that the investor in question can lead
or participate in.
Other examples of milestones include*:
• Proof that you can work together as a team, usually historical evidence
• Proof that you can build something, i.e. working prototype
• Proof that it’s useful to someone – first users and clients
• Proof that you can talk to investors – every financing round, even small ones
• Proof that you can talk to audiences – 100k users or 1M users or 10M users…
• Proof that the initial team is able to attract talent –
• Proof that ecosystem agrees with your ideas – bringing respected industry advisors partners on board
• Proof that there is market – £1M annually/ Proof that the market is big! – £25M annually and beyond
• Proof that you can manage your finances – cash-flow positive operation
• Proof that you can scale – £10M annually
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23. Metrics
• AARRR
• Customer Acquisition
Costs VS Life Time Value http://blog.kissmetrics.co
• Retention/ Churn m/9-metrics/
• Referral/ Viral
Coefficient
• Revenue http://guidetostartupmetr
ics.eventbrite.com/#
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24. Investment Essentials
Type Amount Purpose Source See
Seed Under £50K Proof Of Conept FFF www.crowdcube.com
Crowdfunding www.seedrs.com
Seed £50K-£500K Launch to "Beachhead" Angels/ Seed Note Average valuation for a
Investors pre-revenue company in
London is between £350-
£600K
Launch to "Beachhead" + Syndicates of Not as common in the UK as US
Super Seed £500-£2m Build scalability Investors
VC's/ Family Traditionally where UK
Series A Trust/ Supper investor money enters the
(Small) £1m-3M Scale Angels market
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25. SEIS is…… “a game changer”?
Seed Enterprise Investment Scheme-SEIS is a tax break launched in April 2012 for UK
tax payers to encourage them to buy shares in start-up companies registered in the
UK
The Facts:
• SEIS investors can input £100,000 in a single tax year rising to a maximum £150,000 over two
or more tax years in to a single company
• Investors cannot control the company receiving their capital
• Investors pick up 50% tax relief in the tax year the investment is made, regardless of their
marginal rate.
• In the 2012-13 tax year, tax payers can roll any chargeable gain in the tax year in to a SEIS
with a full capital gains tax exemption (another 28%)
• The business must be a start-up company -registered in the UK within 2 years of claim.
• The company must not employ more than 25 workers.
• The company must have assets of less than £200,000.
• The company has to trade in an approved sector – generally not in finance or investment, for
example, a property company raise capital as a SEIS.
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26. …A potentially “Scalable” businesses
will …
• Solve a relevant Problem
for a Large Addressable
Market.
• Have a Credible Founders
Team.
• Have a Semi-Proven
Business Model.
• Large Returns on initial
capital- i.e. Capital
Efficient to scale.
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27. Seed Investors want …. Winners!
1. Skilled and credible management
team
Investors want to find.. 2. BIG Market Opportunity- a big
problem for a potential large set of
customers that you can solve?
3. The Idea/ Prototype to be proven
and market validated.
4. No Technical Risk
5. Evidence that the Business Model is
both repeatable and scalable.
6. Business Model ready to execute
7. Road Map & Forecasts based on
proven assumptions
8. Metrics
9. Adequate financial returns ( 10X
within 3 years?)
10. People they can trust/ work with
11. A clear exit route- How will they
claim there reward??
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28. Send a slide deck and get introduced
http://www.slideshare.net/slidesthatrock/how-to-pitch-a-vc-redesigned
Ten slides. Ten is the optimal number of slides in a PowerPoint
presentation because a normal human being cannot comprehend
more than ten concepts in a meeting—and business angels are very
normal. If you must use more than ten slides to explain your
business, you probably don’t have a business. The ten topics that an
investors cares about are:
1. Summary and call to action/ what do you want?
2. Problem
3. Your solution
4. Business model
5. Underlying magic/technology
6. Marketing and sales
7. Competition
8. Team
9. Projections and milestones
10. Status and timeline
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29. Business Angels
Public Supported Co-Investment Schemes
• NESTA - www.nesta.org.uk/investments
• Capital 4 Enterprise- http://www.capitalforenterprise.gov.uk/portfolio
• Angel Co-Fund- http://www.angelcofund.co.uk/
• Mayor Of London Co-Investment Fund- http://www.mmcventures.com/
• Enterprise Capital Fund- http://www.capitalforenterprise.gov.uk/ecfp
Seed/ Early stage Investment Platforms:
- www.crowdcube.com
- www.seedrs.com
Capital Enterprise top 10 Angel Network in London
1. London Business Angels: http://www.lbangels.co.uk
2. Oxford Early Investments- http://www.oxei.co.uk/about.php
3. Envestors- www.envestors.co.uk
4. Finance South East- www.thefsegroup.com
5. Angels Den- www.angelsden.com
6. Venture Director- www.venturedirector.com- www.boundarycapital.com
7. Start-up Funding Club- http://www.startupfundingclub.com/
8. E100- London Business School -
http://www.london.edu/facultyandresearch/subjectareas/strategyandentrepreneurship/enterprise100.html
9. #1 seed- www.number1seed.co.uk
10. Ascension Ventures- http://www.ascensionmedia.com/ascension-ventures.php
For an alternative list check out- http://www.designcity.co.uk/angelnews/edition_94.htm#article1
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30. Active London Angels…
• http://bamlondon.blogs
pot.co.uk/p/angels_16.
html
• https://angel.co/
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31. Early Stage VC’s & Investors
Accel Partners: Stage agnostic, see their portfolio here. • ACT: Early to mid-stage, see their portfolio here.
• Bloom Equity: Early to mid-stage angel syndicate, see their
portfolio here.
Anthemis Investment- Stage Agnostic, see portfolio here
• DFJ Esprit: Early to mid-stage, see their portfolio here.
Balderton- Stage Agnostic- See there portfolio here • Charlotte St: Early to Mid Stage, see there portfolio here
• Dawn Capital: Early to mid-stage, see their portfolio here.
Eden Ventures- Early- mid stage – see there portfolio here
• MMC - Series A Fund- Co-Investment fund with Mayor of
London
Index Ventures: Stage agnostic, see their portfolio here. • Notion Capital – SAAS and Cloud specialist- See portfolio here
• Seraphim Capital – Early-mid stage see there portfolio here.
Passion Capital: Early Stage, see their portfolio here.
• Kernel Capital: Early stage, see their portfolio here.
Delta Partners: Early to mid-stage, see their portfolio • Octopus Ventures: Early to mid-stage, see their portfolio here.
here.
• M8 Capital : Mobile Specialists, see their portfolio here
Imperial Innovations: Restricted entry requirements but • Episode1: Early Stage Software Companies
the largest Series investor in the UK in 2012-13 , see their
portfolio here • Arts Alliance: Minimum investment £500K in Media related
tech- see portfolio here
• EC1 Capital: Early stage, see their portfolio here
Atomico: Stage agnostic, see their portfolio here.
• Connect Ventures- Early stage and very cool.
Profounders: Early and mid-stage, see their portfolio • Ballpark Ventures – Early stage Super Angel investors
here.
• Pen Tech Ventures- Early Stage to mid- See portfolio Here
AIB Seed Capital Fund: Managed by two funds which Alternatively you can check out Crunch Base / Angel List
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invest under-€250k and over-€250k, see their
portfolio here. @capenterprise

32. Specialist Funds
Women
- Stargate Capital- Trapezia- http://www.stargatecapital.co.uk/trapezia_1.aspx
- FSE- Incito- http://thefsegroup.com/investors/business-angels/incito-ventures/
- Aspire Fund - http://www.capitalforenterprise.gov.uk/files/Aspire%20Information%20Leaflet%20(v%202)%20Flyer%20brochure.pdf
Green
- Bridges Sustainable Fund- http://www.bridgesventures.com/sustainable-growth-funds
- Ingenious Media- Cleantech Fund http://www.ingeniousmedia.co.uk/investments/investment-
opportunities/clean-energy
- Carbon Trust- http://www.carbontrust.com/about-us/our-investments
- Low Carbon Accelerator- http://www.lowcarbonaccelerator.com
- CT Investment Partners- http://www.ctip.co.uk
- Wellington Partners- http://www.wellington-partners.com/wp/index.html
Social
- MEWE360: £1m fund set up by Ingenious Media
- Big Society Capital- http://www.bigsocietycapital.com
- Sources of Social Finance- http://www.bigsocietycapital.com/finding-the-right-investment
- Bridges Venture Fund http://www.bridgesventures.com/social-entrepreneurs-fund
- Big Issue Investment- http://www.bigissueinvest.com
- Social Finance- http://www.socialfinance.org.uk
- Social Investment Fund- http://www.thesocialinvestmentbusiness.org
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33. UK Mobile Investments 2012
• Highgate Labs NA
• Mytaxi £8.3M • Somo NA
• Playdemic NA
• Hailo £31.4M
• The Mobank Group £2.25M
• Mobile Travel Technologies £3.2M • SkyDox £20M
• Net60Six £500k • Huddle £16m
• AirSense Wireless NA • iNeed £50k
• StylistPick £11M • Capablue NA
• Kabbee £3.25M
• MymCart £475K
• REALRIDER £285K
• MobileReport NA • Wilcocks & Associates NA
• Astute Labs NA • Busuu £5M
• Chupamobile NA • MobiCart £300k
• Parcel Genie NA • Fanatix £750K
• HowDo NA
• Knowledge Transmission NA
• Proteo 200k
• Blink Booking £2.5M • SlickFlick 100k
• Albagaia £240K • Outplay Entertainment £2.6M
• eWowBooks £100K • LoveThis 1.25m
• Serious Parody £770K • YPlan £1.1m
• Unifyo NA
• Quipper £2.3M
• RouteMonkey 500K
• Mindshapes £4M • Paperless Receipts 1M
• TreatTicket NA • ERN £1.5M
• Adaptis Solutions NA
• Lifecake NA • Total deals 45, total amount invested (disclosed)
£120.910M
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34. Q &A
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35. If you want an introduction then
send me a slide deck
www.capitalenterprise.org
john@capitalenterprise.org
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