We have extensive experience in the Seed/Early Stage market having invested in 4 companies and sponsored 10 others to raise finance as the Midlands representative of a national business angel network.
We can support you through the fundraising process. Planning your approach to finance providers, preparing your business plan and investment proposal and supporting you through any negotiation and investment process.
There are 3 clear sources of equity finance excluding self, friends and family.
Equity crowdfunding generally starts from £50,000 for start-up and early-stage companies but can go up to £4m and beyond, with businesses that already have some traction.
As a rule, if you want to raise equity this way you need the backing of an external investor and at least 30% committed investment before you go public.
This route to finance can benefit your business in more ways than just providing financial support.
Pitching your company to a crowd of investors provides valuable market validation and enables you to gain a large base of customers and brand advocates.
Angel investors, often known as high-net-worth individuals. They provide less finance than a VC might but have the potential to back riskier and less “trendy” prospects.
Angels can be found through personal introductions, but this is hit and miss. A more strategic approach would be to address Angel Investment Networks such as Minerva Business Angels or Start-Up Funding Club.
A well thought through plan to communicate your opportunity is a pre-requisite to talking to any potential investor.
VC’s mainly focus on fast-growing start-ups which appear to be stable and lower risk than less established new businesses.
A large amount of time-consuming work and effort often goes into acquiring the backing you require and may not be feasible for smaller, riskier businesses.
If you are based outside London or don’t have what may be described as a business with global scale.
Your best approach is to address funds with geography or sector-specific investment remits.
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