Capital Enterprise

							     Capital Enterprise
Presentation on Funding For Start-
         ups in London .
              Step 1. Know what stage you are on the
                         fundraising cycle
Stage                   Status



Pre seed                Good Idea, Founder Team are developing a full business plan and
                        completing market research, registering IP and confirming the
                        business opportunity.


Seed                    Opportunity demonstrated. Engage in set-up activities, developing
                        product / service to ‘proof of concept’- market testing.


Start up and Series A   Launched company-entered market and rapidly approaching break-
                        even sales. Hiring key employees –ready to scale up.
             Step 2- Know the different Sources and
                        types of Finance
• Bootstrapping through Personal resources (time and money = sweat
  equity you are investing)
• FFF- Family Friends & Fools – People who will give you funds with little
  questions asked.
• Customers and Suppliers- “Build slowly at low risk by growing business
  through profits from supplying customers”
• Loan providers- “Increase business growth ambitions by incresing
  investment by taking out debt”
   – Banks ( Overdraft-unsecured and secured loans)
   – Specialist lenders (Factoring, invoice discounting etc.)
• Investors-
   – Private Investors- Business Angels
   – Venture capital
   – Government Backed Investment Funds
Matching the right mix of sources to the right stage and type of finance is the
                          key to successful fundraising
                        Step 3- What do you need Money for?
Type                 Amount         Purpose                    Provider

Set-Up-              Varies         Get the business set-up-   Founders ‘bootstrap’, - Sweat Capital, Family &
Pre-seed- before     Up to £100k    e.g. legal fees,           Friends, Personal Loans & Credit Cards.
trading                             Equipment, website,        Over 90% of new businesses start-up on less than
                                    accommodation              £10,000
Research &           Varies         Proof of Concept           Bootstrap- Finance whilst working elsewhere or as
Development          Up to £0.5m.   Funding.                   consultant.
Capital ( If doing                  Market testing             Private investors alone or in groups.
something new                       Intellectual Property      Government Grants/ Tax Incentives e.g. TSB
and innovative)                     Registration.              Open Innovation Collaborations with industry/ HEI
                                    Time                       Definitely not banks
Working Capital      Varies         To fund cashflow cycle     Customers & Suppliers
                                    (once you have orders)     Banks/ Factorers/ Invoice Discounters/ credit cards
Scaling up/          200K- 2m       Commercialisation of       Private investors alone or in groups/ dedicated seed
Growth                              “proven” technology.       funds, specialist VC’s alone or in syndicates.
Series A                            Roll out of growth plans   Government Backed funds.
Investment                                                     VC’s only if more than £1m- below more likely
                                                               angels.
               Step 4: Check out you funding options?
Information:

•   Capital Enterprise What’s On in London- www.capitalenterprise.org/whats-on
•   Business Link - www.businesslink.gov.uk
•   Start- up Britain - http://www.startupbritain.org
•   British Library- www.bl.uk/bipc
•   HMRC Small Company Enterprise Centre- Source of advice and help
    http://www.hmrc.gov.uk/manuals/vcmmanual/VCM10050.htm
•   HMRC R& D Tax Credits www.ucl.ac.uk/advances/advances-news/hmrc
•   HMRC Guide & Support- http://capitalenterprise.org/guide-to-rd-tax-credits
•   British Business Angel Association: www.bbaa.org.uk
•   British Venture Capital Association: www.bvca.co.uk/
•   London Funding Conference: http://www.londonfundingconference.com/about-funding
•   Guide to Early Stage Investment: http://www.paloalto.co.uk/about_us/Early_Stage_Investment_by_Alan_Gleeson.pdf
•   British Franchise Ass- http://www.thebfa.org

And if you have not checked them out please look at the latest schedule of advice and training events at :
www.thebusinessbootcamp.org.
             Step 4: Check out you funding options?
Networking & Accelerators
•   London Technology Network: http://www.ltnetwork.org/
•   Knowledge Transfer Networks: https://ktn.innovateuk.org/web/guest/home
•   Mini-Bar: http://www.openbusiness.cc/
•   Lean Camp : http://leanca.mp
•   Seed Camp: http://www.seedcamp.com
•   Start-Up Weekend: http://london.startupweekend.org
•   Launch 48: http://launch48.com
•   Tech Hub : http://www.techhub.com
•   The Business Bootcamps- www.thebusinessbootcamp.org
•   Innovation Warehouse- http://www.theiw.org
•   Hubventurelabs - http://hubwestminster.net/hubventurelabs
Practical Help
•   Gateway2Finance- http://www.ufblondon.org/what-is-understanding-finance-for-
    business?/gateway2finance
•   Gateway to Investment http://www.ufblondon.org/what-is-understanding-finance-for-
    business?/gateway2investment
•   UCL Advances-HELO Project ( Student Interns)- http://www.ucl.ac.uk/advances/business/support/helo
•   E-Innovate- http://www.gle.co.uk/advice/developing-innovation.php
•   Enternships- http://www.enternships.com
•   Enterprise Agencies & Incubators- www.capitalenterprise.org/members
•   Mentors Portal- www.mentorsme.co.uk
              Step 4: Check out you funding options?
Grants & Awards
•   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
•   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.wellcome.ac.uk/Funding/Technology-transfer/Awards/Translation-Awards/index.htm
•   http://www.bbsrc.ac.uk/business/commercialisation/follow-on-pathfinder.aspx
•   http://www.epsrc.ac.uk/funding/grants/business/schemes/Pages/followonfund.aspx
•   http://www.nerc.ac.uk/research/programmes/bess/events/ao3.asp
•   http://www.nerc.ac.uk/using/schemes/followonfund.asp
             Step 4: Check out you funding options?
Debt Funding Initiatives
•   Enterprise Finance Guarantee ( Government underwriting UK banks business loans-
    http://www.rbs.co.uk/business/borrowing/g1/firms.ashx
•   CDFA ( Soft Loans from Community Banks- http://www.cdfa.org.uk
•   Manufacturing Funding- http://www.rbs.co.uk/business/borrowing/g1/manufacturingfund.ashx
•   Examples of New types of funding:
•   http://www.marketinvoice.com
•   http://www.fundingcircle.com
•   http://www.thincats.com
•    http://www.firstfunding.org
•   Green/ Energy Efficiency loans: http://www.carbontrust.co.uk/cut-carbon-reduce-costs/products-
    services/financing/pages/financing.aspx
Incubators ( Discounted accommodation & support)
•   Camden Collective ( Creative) - http://camdencollective.co.uk
•   Hatton Garden Jewellery Centre- http://www.centa.co.uk/hattonjc.html
•   CEME ( Science & Engineering) - http://www.ceme.co.uk
•   LBIC (Bio-Tech) - http://www.lbic.com
•   Innovation Warehouse- http://www.theiw.org
             Step 4: Check out you funding options?
Equity Finance
•   NESTA - www.nesta.org.uk/investments
•   London Business Angels: http://www.lbangels.co.uk
•   London Seed Capital - http://www.londonseedcapital.com/
•   Oxford Early Investments- http://www.oxei.co.uk/about.php
•   Envestors- www.envestors.co.uk
•    Paste & Wait Investment (USA only) www.kickstarter.com
•   Paste & Wait Investment. www.indiegogo.com
•   Crowd funding: http://www.pozible.com
•   Crowd Funding : http://www.crowdfunder.co.uk
•   Crowdfunding: http://www.crowdcube.com

Early Stage VC
• Amadeus- http://www.amadeuscapital.com/about-seed.php
• Balderton- http://www.balderton.com
• DfJ Esprit - http://www.dfjesprit.com
• Doughty Hanson- http://www.doughtyhanson.com/technology-ventures.aspx
• Early Bird Ventures- http://www.earlybird.com
• Index Ventures- http://www.indexventures.com
• Octopus- www.octopusventures.com
• Anthemis ( Finance & Technology): http://www.anthemis.com
• London Technology Fund: www.londontechnologyfund.com
       Step 5: So remember –What’s important when seeking finance



•   The quality and “connections” of the management team
•   The size of the business opportunity/ funding need
•   The scope for building a sustainable competitive advantage
•   The level of risk/ security.
•   And the timeliness of the proposal
       Will determine the attractiveness of your business to investors,
                                lenders and funders

• The ability of the entrepreneur to negotiate well and of the team to
  execute the business plan convincingly
      Will determine the type, price and quality of the deal that can be
                                   achieved