Guide to sources of finance support for startups

1. Capital Enterprise Presentation on Funding For Start-ups in London .

2. 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.

4. Step 3- What do you need Money for? Type Amount Purpose Provider Set-Up- Pre-seed- before trading Varies Up to £100k Get the business set-up- e.g. legal fees, Equipment, website, accommodation Founders ‘bootstrap’, - Sweat Capital, Family & Friends, Personal Loans & Credit Cards. Over 90% of new businesses start-up on less than £10,000 Research & Development Capital ( If doing something new and innovative) Varies Up to £0.5m. Proof of Concept Funding. Market testing Intellectual Property Registration. Time Bootstrap- Finance whilst working elsewhere or as consultant. Private investors alone or in groups. Government Grants/ Tax Incentives e.g. TSB Open Innovation Collaborations with industry/ HEI Definitely not banks Working Capital Varies To fund cashflow cycle (once you have orders) Customers & Suppliers Banks/ Factorers/ Invoice Discounters/ credit cards Scaling up/ Growth Series A Investment 200K- 2m Commercialisation of “proven” technology. Roll out of growth plans Private investors alone or in groups/ dedicated seed funds, specialist VC’s alone or in syndicates. Government Backed funds. VC’s only if more than £1m- below more likely angels.