Where can I get investors for my start-up?
There has never been a better time to seek funding for your start-up. Last year was a record breaking year for both the value and volume of money invested in UK startups (well into the tens of billions).
More than 300 VC funds and angel syndicates are active in the UK market (check-out our full investor list).
Who will invest in my start-up?
There are a range of different types of investors active in the UK:
An angel investor is a private individual who makes a direct investment in a startup, usually in exchange for an equity stake (typically at seed stage).
Traditionally, an angel investor is a high net-wroth individual, and/or someone with industry expertise in the sectors they invest in. (i.e. entrepreneurs, founders, CEOs or investment bankers).
|Angel Syndicate (Angel Networks):||
An angel syndicate (or angel network) is a group of angel investors who pool their money to invest in startups, usually in exchange for an equity stake.
Some syndicates charge fees to startups, typically as a % of total funds raised via their syndicate or network.
Crowdfunding companies are digital platforms that enable startups to raise money from a wide network of small investors or supporters via 'crowdfunding campaigns.' These campaigns are typically promoted via social media.
|Venture Capital Firms:||
Venture capital firms are professionally managed pooled investment funds that invest in startups in exchange for an equity stake in start-ups.
VC funds usually have established investment criteria (cheque size, industry focus etc). They operate on a high risk / high reward basis. Their primary objective is to deliver the highest possible return for their LPs.
In the UK, VC funds invest in Seed, Series A or later investment opportunities.
Corporate venturing (or corporate venture capital) is funding invested in start-ups by a large company, typically in exchange for an equity stake. The main objective of corporate venturing is typically to drive innovation in their own businesses.
The investing company might provide the startup with management, marketing or other expertise or services.
Sources: Investopedia, Harvard Business School, Corporate Finance Institute