This document provides information on financing a tech startup, including advice on raising funds. It discusses the different stages of startup funding, from using personal funds to seed rounds to later rounds. It lists sources of funding at different stages, such as grants, angel investors, crowdfunding platforms, SEIS funds, venture capital firms, and strategic investors. It also provides tips on determining when a startup is ready to raise funds and on creating an effective pitch deck.

1. Financing a Tech Startup
.
.
John Spindler CEO of Capital
Enterprise
1@capenterprise

2. …to start you need..
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3. No 1 source of Finance…
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Your Money, the money you can borrow, your family
and friends money…

4. Sound advice is…
Don’t Raise… …unless
• Can’t launch a product into
market without external
funds..
• Need to get big fast to
compete.
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5. “There is an opportunity gap when the scope
for growing income at a very fast rate is
limited for those who have too little to invest ,
but expands dramatically for those who can
invest a bit more.”- i.e. to win requires scale
Banjaree &Duflo- Poor Economics
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..only raise to SCALE..

6. … and the world is changing…

7. ..So a Start-up in want of
investment needs..
• Team, Tech & resources that is
FIT for the task of creating an
awesome company
• Product that is the best
solution FIT for the target
customers problems.
• Business Model that is FIT to
be scaled.
• Smart Ass Team
• with a Kick Ass Product
• With a Business model that
can “capture” a Big Ass Market
( Jeff Clavier 3 Ass-es rule)
+ Capital Efficient to create a
repeatable and scalable business.
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8. Idea to Tech Business- Three Chasms.

9. 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
• EU 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
• J4B- Portal for grant finding http://www.j4b.co.uk
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10. Are you Investment Ready?
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11. @capenterprise 11
1
Idea
Stage
2
Commitment
Stage- Secure
Co-Founders
3
FFF funding
round –Build &
Beta Test
Minimum Viable
Product
4
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,
technology-
EXECUTE
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

12. Investment Essentials
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Round Amount Purpose London Pre-Money
Valuation Guideline
Source of Investment What investors
like to see
Pre Seed £25K-£150K
(SEIS eligible)
Assemble Team/ Build & Test
MVP/ Proof of Concept R&D
Zero- £500K Own Money/ FFF/
Crowdfunding/ SEIS Funds/
TSB
Unfair Advantages
Seed £150-£350K BETA Test/ Launch into
Beachhead/ Proof of Product
Solution Fit
£500K-£1.5m Business Angels/
Crowdfunders/Seed VC's/
Co-Investment Funds
SMART Team- Early
Evidence of Product/
Solution Fit- Validating
customers/ users
Super Seed
(Bridging
round)
£500K- £1m Working Business
Model/Proof of Product/
Market Fit/ Demonstration of
Growth
£1.5M-£4m Super Angels/ Seed VC's Product Solution FIT
Proved- Early
Indications of Product-
Market Fit ( i.e.
revenues)
Series A £2m-£15M+ Scale £8m- £50m VC's/ Family offices and
Corporate Ventures
Revenues & METRICS
proving scalability.

13. @capenterprise
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.
SEIS is…… “a game changer”?
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14. POC P/S Fit P/M Fit
SEIS LCIF VC
What stage is your
business at?
FF
Investors tend to invest for
transitions..

15. Send a slide deck and get introduced
http://www.slideshare.net/slidesthatrock/how-to-pitch-a-vc-redesigned
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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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Send to : magdalena@capitallist.co

16. 7 Types of Early Stage Investors in
London Market
1. Crowdfunders/ Platforms
2. Tax Relieve Seeking SEIS/EIS Funds
3. Government Backed ECF’s
4. Traditional Angel Syndicates
5. Super Angels
6. VC’s
7. Strategic Investors ( Corporate Venture)
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17. Seed/ Early stage Investment
Platforms
Crowdfunders.
www.crowdcube.com
www.seedrs.com
www.crowdbnk.com
https://www.crowd2fund.com
Angel Platforms
- www.angel.co
- www.syndicateroom.com
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18. “Pay to Play” Funds.
Top SEIS Funding Syndicates
1. Jenson Solutions-
www.jensonsolutions.com
2. Ingenious Media-
www.ingeniousmedia.co.uk
3. Ascension Ventures-
http://www.ascensionmedia.
com/ascension-ventures.php
4. Start-up Funding Club-
http://www.startupfundingcl
ub.com/
5. Ascot SEIS –
www.ascotwm.com
Top Traditional Angel Syndicates
1. London Business Angels:
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
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19. Super Seed Investors
• Playfair Capital- http://playfaircapital.com
• Angel Lab- http://angellab.co.uk/
• Firestartr- www.firestartr.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
• Angel List Syndicates – www.angel.co
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20. Enterprise Capital Funds.
ECF’s
• Notion Capital – SAAS specialist- See portfolio here
• Passion Capital: Early Stage, see their portfolio here.
• Sussex Place Ventures- Early stage ( linked to LBS)
• Amadeus Capital: Early and mid-stage- just launched new fund.
• Episode1: Early Stage Software Companies
• Longwall – Oxford Based – Science backed Start-ups focus
• Dawn Capital - Fintech and SAAS
• IQ Capital – Seed and Series A
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21. Active Seed VC’s in London.
Big 7
Accel Partners: Stage agnostic, see their portfolio
here.
Balderton- Stage Agnostic- See there portfolio here
Index Ventures: Stage agnostic, see their
portfolio here.
Wellington Partners: Stage Agnostic, see there
portfolio here
Octopus Ventures: Early to mid-stage, see their
portfolio here.
DN Capital : Early and mid-stage, see their
portfolio here
DFJ Esprit: Early to mid-stage, see their
portfolio here.
Cool Cats
• Profounders: Early and mid-stage, see their
portfolio here.
• MMC Ventures - Series A Fund- Co-
Investment fund with Mayor of London
• Piton Capital: Early and mid-stage specialize
in market places.
• White Star Capital- Early stage – See portfolio
here
• EC1 Capital: Early stage, see their portfolio
here
• Connect Ventures- Early stage and very cool.
• Hoxton Ventures – New and focus on seed with
next move to USA.
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22. 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-- 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
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23. Who can Capitallist introduce a
start-up to..
http://capitallist.co/our-investors
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24. www.lcif.co
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25. Thank You
Contact: sia@capitallist.co
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