How the London Accelerator & Seed Investment Scene is looking in 2014
( Get to the end and you will find lots of links to who is investing in W 2014? )
2. A start-up is…
“ an organisation in search
of a repeatable and
scalable business model”
– Eric Ries- Author of the
Lean Start-up.
@capenterprise
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3. Scale focused start-ups are…different
• Ambitious: want to be worth
£20M+ minimum in 3 years.
• Solve a big problem for
potential customer in a “Game
Changing ” way.
• Build/leverage new
technology/ business model
innovations
• Acquire and leverage as many
“Unfair Advantages as
possible”- team, key
partners, resources etc
• Move very FAST
@capenterprise
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4. “ An Investable Start-up Needs..
• Team, Tech & resources
that is FIT for the task of
creating an awesome
company
• Smart Ass Team
• Product that is the best
solution FIT for the target
customers problems.
• Disrupting a Big Ass
Market
• with a Kick Ass Product
( Jeff Clavier 3 Ass-es rule)
• Business Model that is FIT
to be scaled.
+ Capital Efficient to Scale.
@capenterprise
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13. Funding Product Development & Beta Testing
Grants & Awards General
•
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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-costmy-business
J4B- Portal for grant finding http://www.j4b.co.uk
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/
@capenterprise
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14. Crowdfunding (Reward)
Crowd funding PlatformsReward 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
@capenterprise
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15. Need less than £20K to get to Build and test MVP?
Grantwww.j4b.co.uk
No Funds
Unemployed?
Need Less than
£10K to Launch a
business
New Enterprise
Allowance Scheme
Self Fund
Borrow
Write a simple
Business Plan & 12
month cashflow
Community
Development
Finance Institution
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- £20,000 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/
@capenterprise
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17. Accelerators help by ..
Offering early Stage
Entrepreneurs…
• Fellow Community of
entrepreneurs & supporters
• Runway support & funding
(£15-£100K at standardised investment terms. )
( 3-6 months on average)
• Physical Space & Facilities
• Mentors ( 1st Industry- 2nd
Investors)
• Help to Rapid Field Trail with
users & customers.
• Demo days- Introductions to
Investors/ customers
…so that they can test..
• Product- Assess Functional use/
improve design & UX
• Market Reaction- interest/
usage/revenue - AARRR
• Revenue/ profit Potentialpricing, market timing, LTV/CCA
• Business Model- “To Pivot or Not
To Pivot”
• Investor reaction- interest and
valuations
• Team- ability to work together and deliver.
22. Start- Up Funding road –map.
Hackathons/ Hatcheries/ Meet-ups.
Idea
Bootstrap- FFF
Problem/
Space
Exploration
MVP Factories
Start-up Loans
Design/
Prototype
Accelerators (Early)
SEIS
Super Angels/
Angel Groups
Innovation Awards
Crowdfunding i.e. Kickstarter
Beta Test
Adapt/
PivotX2
Seedrs/
Crowdcube/F6s
Accelerators (Late)
Launch
Early Stage VC’s
@capenterprise
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23. 4
3
1
Idea
Stage
2
Commitment
Stage- Secure
Co-Founders
FFF funding
round –Build &
Beta Test
Minimum Viable
Product
Seed Investment
Round (Angels +
Early VC’s)
- Prove Business
model & acquire
metrics to prove
scalability
5
Series A Round
(Angels, VC’s &
Strategic Investors)
– Go for scale, build
out
team, technologyEXECUTE
6
Exit
(Average 7 years
and after many
rounds) – Trade
Sale or IPO
££££££££££££££
How Start-Up Funding Works ?Why 100% of “Nothing” is worth Less than 10% of something big
@capenterprise
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24. Investment Essentials
Round
Pre- Seed
Seed
Amount
Purpose
Under 50K
Under £250K
(SEIS £150K)
Assemble Team/ Build
MVP
Beta Test- Launch into
Beachhead Market
Super Seed
£250K-£1m
Series A (Small)
£1m- £5M
Valuation
Guideline
(London)
Zero
£450-£750K
(Pre Money)
Proof of Market &
Scalability
£1-£3m
Scale - Build out Team/
Technology and Expand
Marketing
£3-20m
@capenterprise
Source
Own Money/ FFF/
Crowdfunding/ TSB
Angels/
Crowdfunders/ TSB
Seed VC's/ Angel
Syndicates/ CoInvestment Funds/
Family Offices
VC's/ Corporate
Venture Firms/ Family
Offices.
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25. SEIS is…… “a game changer”?
Seed Enterprise Investment Scheme-SEIS is a tax break launched in 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 2013-14 tax year, tax payers can roll 50% of a chargeable gain in the tax year in to a
SEIS with a full capital gains tax exemption (another 14%)
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.
@capenterprise
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26. Think like an Angel!
Why Do Angels Invest?
Where to find them?
www.capitallist.co #capenterprise
27. Key to being s Successful Business
Angel?
• Good Reputation – “Track
Record”
• Great Source – “Having good
introducers”
• Good Selection – “ Sticking
to what you know”
• Adding Value- “ Offering more
than money to increase the chance of
success”
• Ability to Follow on
Successes/ Walk Away
from Failures.
• Getting Value – “Getting a
Good deal at all stages”
www.capitallist.co #capenterprise
28. Capital List –
The Minimum Viable Introducer
“ Showcasing and connecting
Entrepreneurs to champions and
investors”
beta.capitallist.co
@capenterprise
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29. 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
Send to : magdalena@capitallist.co
@capenterprise
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33. Syndicates.
Top SEIS Funding Syndicates
Top Traditional Angel Syndicates
1.
1. London Business Angels:
2.
3.
4.
5.
Jenson Solutionswww.jensonsolutions.com
Ingenious Mediawww.ingeniousmedia.co.uk
Ascension Ventureshttp://www.ascensionmedia.
com/ascension-ventures.php
Start-up Funding Clubhttp://www.startupfundingcl
ub.com/
Ascot SEIS –
www.ascotwm.com
http://www.lbangels.co.uk/
2. E100 (LBS)
3. Oxford Angels:
http://www.oxei.co.uk
4. Cambridge:
http://cambridgeangels.com
5. Envestors- www.envestors.co.uk
6. Angels Den- www.angelsden.com
@capenterprise
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34. Super Seed Investors
• Playfair Capital- http://playfaircapital.com
• Angel Pad/ Avonmore http://www.avonmoredevelopments.com/
• Kima Ventures- http://www.kimaventures.com
• Boundary Capital - www.boundarycapital.com
• Venerex ( Fashion Tech- see Capital List)
• Jam Jar Investments- http://jamjarinvestments.com
• No 1 Seed - www.number1seed.co.uk
• Warner Yard Associates - http://www.warneryard.com/
• Angel List – www.angel.co
@capenterprise
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35. Active VC’s in London.
Cool Cats
Big 5
•
Accel Partners: Stage agnostic, see their portfolio here.
•
Balderton- Stage Agnostic- See there portfolio here
•
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DN Capital : Early and mid-stage, see their portfolio here
•
DFJ Esprit: Early to mid-stage, see their portfolio
here.
•
Spark Ventures : Stage Agnostic- See there portfolio here
•
Octopus Ventures: Early to mid-stage, see their portfolio here.
Piton Capital: Early and mid-stage specialize in market
places.
M8 Capital : Mobile Specialists, see their portfolio here
Wellington Partners: Stage Agnostic, see there portfolio here
•
Amadeus Capital: Early and mid-stage- just launched
new fund.
Index Ventures: Stage agnostic, see their portfolio here.
•
Profounders: Early and mid-stage, see their portfolio
here.
•
•
•
ECF’s/ Public funded.
•
Notion Capital – SAAS and Cloud specialist- See portfolio here
•
Passion Capital: Early Stage, see their portfolio here.
•
Episode1: Early Stage Software Companies
•
Arts Alliance: Minimum investment £500K in Media
related tech- see portfolio here
•
Longwall – Oxford Based – Science backed Start-ups focus
•
EC1 Capital: Early stage, see their portfolio here
•
MMC Ventures - Series A Fund- Co-Investment fund with Mayor of
London
•
Connect Ventures- Early stage and very cool.
•
Hoxton Ventures – New and focus on seed with next mobe
to USA.
•
@capenterprise
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36. Specialist Funds
Social/ Tech for Good
NESTA - www.nesta.org.uk/investments
Unltd – www.ubltd.org.uk
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
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/investmentopportunities/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
@capenterprise
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38. UK Investment State of Play 2013
Deals Under £0.5M
Deals Over £0.5m
• SEIS Deals £5-6m per month
- 82 Deals - £72K Average
• EIS & SEIS - £600M in New
Companies in 2012-13.
- Estimated 1,116 New
Companies received
investments.
Courtesy of Stuart McKnight at
www.ascendant.co.uk
38
39. If you want an introduction then
send a slide deck
Magdalena@capitallist.co
@capenterprise
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