This document provides information for startups on why London is a good location. It discusses that London has (1) size, with many investors in Europe, and over 25 incubators/accelerators. It also notes the Small Enterprise Investment scheme provides tax benefits. When approaching investors, VCs look for strong teams with empathy, energy, and proven products that scale. The document recommends joining accelerators for resources and proving traction before pitching London VCs. Risks include cautious investors in 2016, high housing costs, and expensive customer acquisition hurting finances. Resources for London startups are provided.

1. London for startups
Francisco van Zeller
Jan 2016

2. About me
Netsonda (2000/2014)
(Sold to Fullsix in 2009, exit in 2014)
Samsung Electronics (2009-
2014)
Rentify (2014 – Present)
Lived & worked in five countries
(Portugal, Singapore, France, Korea, UK)
Married, three boys
Loves: Bodyboarding, Skiing,
Football

3. Why London
1. Size
Map: # of investors in Europe

4. Why London
1. Size (II)
Source: Olswang

5. Why London
Other very good reasons
Large amount of incubators/accelerators (~25)
SEIS (Small Enterprise Investment scheme): Fiscal
scheme allowing angel investors to claim back
50% of the investment (more if the company
goes bankrupt)
Access to wide pool of talent, including from
non UK cities (Coders, Marketing, PR etc.)
Reliable & biz friendly legal system
It’s an incredible city

6. What VCs are looking for
In London and beyond
Team, team, team: while listening to the pitch
VCs are ALWAYS thinking “does he have what it
takes to grow the biz?”
Ability to articulate really well the idea/product
Great analytical/reasoning skills – answers all the questions!
Strong empathy among team members
Endless energy and enthusiasm
A ground breaking product or service (of course)
That scales really well
Ideally already proven - #users, customers growing fast
References: established chairman, advisors,
customers etc.

7. How to approach London
Join another accelerator after Startup Braga –
access to great mentors, talent, PR and of
course funding
Once you have a good product, reach out to
industry experts – to become advisors and give
you access to their network
Partner with existing Portuguese presence (ex:
Faber Ventures)
After all of the above, THEN you should reach a
London VC – you’ll be much more prepared!

8. Risks in 2016
Investors already more cautious
in terms of # of deals (see pic.)
House rents in London: currently
very high and rising (~2000
euros p/ month for one bedroom)
Higher salaries in a tight labour
market (tech/digital mkt)
High acquisition costs –
expensive marketing ruining
your figures!
Market crash: VCs raised a lot of
money in 2015, but they’ll be
more cautious

9. Resources
London & Europe
List of VCs and angel investors (Techstars)
https://docs.google.com/spreadsheets/d/10S7_jBpRoWuNMnOYpkjFJArt76dPhFw0tIR7E_nd
gnk/edit#gid=771548385
European startup resource page (Techstars)
https://medium.com/@dalynewspaper/european-startup-resource-page-
1cffd6626edb#.jdjnuv1xi

10. Thank you