AI and robotics • • Index Ventures: Early and mid-stage LocalGlobe: Seed and Series A • • Atomico: Early and mid-stage Point Nine Capital: Seed and Series A • • Notion Capital: Seed and Series A Seedcamp: Seed and pre-seed • • Octopus Ventures: Seed and Series A Passion Capital: Seed and Series A • • Mosaic Ventures: Seed and Series A Firstminute Capital: Seed and Series A • • Advent Venture Partners

1. Accelerating and Financing
London’s Tech Sector Start-ups.
.
John Spindler CEO of Capital
Enterprise
@capenterprise
1

2. A start-up is…
“ an organisation in search
of a repeatable and
scalable business model”
– Eric Ries- Author of the
vLean Start-up.
@capenterprise
2

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
3

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
4

5. How!
Advance in Stages…
..using the Lean Start-up Method
@capenterprise
5

6. Idea to Tech Business- Three Chasms.

7. Help in Forming & Exploring Ideas
@capenterprise
7

8. Sources of Start-up Help for
Tech Entrepreneurs
Information:
•
•
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•
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Capital Enterprise; www.capitalenterprise.org
Meet-up - http://www.meetup.com
Mobile Academy- http://themobileacademy.org.uk/
Makers Academy- http://www.makersacademy.com/
GoGowo- http://www.gocowo.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 Campushttps://docs.google.com/spreadsheet/viewform?formkey=dEpuYlRFRFJ6SUVDdHVLRms3YmdBcmc6MQ
Hubventurelabs - http://hubwestminster.net/hubventurelabs
3 Beards- http://www.3-beards.com/
Tech Hub- http://www.techhub.com/events/
Dreamstake- http://www.dreamstake.net/events
Capital List Get Together- http://www.capitallistblog.co/our-monthly-monday-get-together/
@capenterprise
8

9. Forming Businesses.. ideas from???
@capenterprise
9

10. Developing the team & Product
• Hipster (Designer)
• Hacker (Developer)
• Hustler (Distributor)
@capenterprise
10

11. Minimum Viable Product (MVP):
Problem – Solution FIT
@capenterprise

12. Proof of Concept?
Does it work?
Does anyone care?
@capenterprise
12

13. Funding Product Development & Beta Testing
Grants & Awards General
•
•
•
•
•
•
•
•
•
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
13

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
14

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
15

16. Idea to Tech Business- Three Chasms.

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.

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

19. Accelerators
Accelerators : Training & Mentoring programmes that provide fast-track to seed funding for
Scalable new businesses
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Seed Camp: http://www.seedcamp.com
Tech Stars Europe -http://www.techstars.com/program/locations/london
Wayra- http://wayra.org/en/wayra
Microsoft Ventures - http://www.microsoft.com/en-in/accelerator/
Start-Up Bootcamp ( 3 new accelerators including Fintech in London)- http://www.startupbootcamp.org
Emerge Venture Labs- ( Education TECH) http://www.theemergelab.org
Oxygen Accelerator ( Now in London) - http://www.oxygenaccelerator.com/
BBC Worldwide Labs- http://www.bbcworldwide.com/digital/labs.aspx
Accelerator Academy ( Part-Time)- http://acceleratoracademy.com
Fintech Innovation Labs- https://www.fintechinnovationlablondon.co.uk
Entrepreneur First- http://www.entrepreneurfirst.org.uk
The Bakery ( Adtech) - http://thebakerylondon.com/#!/
Healthbox- http://www.healthboxaccelerator.com/
Level 39- http://level39.co ( More of an incubator)
Idea London ( Cisco, DC Thompson and UCL) – www.idea-london.co.uk
IC Start-up- ( Imperial) http://www.icstartup.com
Bethnal Green Ventures ( Social Impact)- http://bethnalgreenventures.com/
HUB Launchpad- (Social Impact)http://www.hublaunchpad.net/
True Start- (Retail Tech) – http://www.truecapital.co.uk/truestart/
Eco-Machines incubator (Hardware)- http://www.ecomachinesincubator.com
Capital’s Accelerator Programme Partners.
www.f6s.com
@capenterprise

20. Capital’s Accelerator
Programme Partners and CoInvestors
Pre-Acceleration Support/
Incubation
Acceleration Support
Connections to Investors

21. Accelerators want businesses who..…

22. Start- Up Funding road –map.
Hackathons/ Hatcheries/ Meet-ups.
Idea
Bootstrap- FFF
Problem/
Space
Exploration
MVP Factories
Start-up Loans
Innovation Awards
Design/
Prototype
Accelerators
SEIS
Super Angels/
Angel Groups
Crowdfunding i.e. Kickstarter
Beta Test
Adapt/
PivotX2
Seedrs/ Crowdcube
Accelerators
Launch
Early Stage VC’s
@capenterprise
22

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
23

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.
24

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 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
25

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
28

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
29

30. Airbnb pitch deck
http://www.businessinsider.com/airbnb-a-13billion-dollar-startups-first-ever-pitch-deck2011-9?0=sai#-1
@capenterprise
30

31. 7 Types of Early Stage Investors in
London Market
1.
2.
3.
4.
5.
6.
7.
Crowdfunders/ Platforms
Tax Relieve Seeking SEIS/EIS Funds
Government Backed ECF’s
Traditional Angel Syndicates
Super Angels
VC’s
Strategic Investors ( Corporate Venture)
@capenterprise
31

32. Seed/ Early stage Investment
Platforms
Crowdfunders.
www.crowdcube.com
www.seedrs.com
www.f6s.com
Angel Platforms
- www.angel.co
- www.syndicateroom.com
@capenterprise
32

33. Play & Pay Funds.
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
33

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
34

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
•
•
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
35

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
36

37. Corporate Players
@capenterprise
37

38. 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. Q &A
@capenterprise
39

40. If you want an introduction then
send a slide deck
Magdalena@capitallist.co
@capenterprise
40