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

Step 1. Know what stage you are on the fundraising cycle StageStatus Pre seedGood Idea, Founder Team are developing a full business plan and completing market research, registering IP and confirming the business opportunity. SeedOpportunity demonstrated. Engage in set-up activities, developing product / service to ‘proof of concept’- market testing. Start up and Series ALaunched 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? TypeAmountPurposeProvider 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 CapitalVariesTo fund cashflow cycle (once you have orders) Customers & Suppliers Banks/ Factorers/ Invoice Discounters/ credit cards Scaling up/ Growth Series A Investment 200K- 2mCommercialisation 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.

Step 4: Check out you funding options? Information: Capital Enterprise What’s On in London- Business Link - Start- up Britain - British Library- HMRC Small Company Enterprise Centre- Source of advice and help HMRC R& D Tax Credits HMRC Guide & Support- British Business Angel Association: British Venture Capital Association: London Funding Conference: Guide to Early Stage Investment: British Franchise Ass- And if you have not checked them out please look at the latest schedule of advice and training events at :

Step 4: Check out you funding options? Networking & Accelerators London Technology Network: Knowledge Transfer Networks: Mini-Bar: Lean Camp : Seed Camp: Start-Up Weekend: Launch 48: Tech Hub : The Business Bootcamps- Innovation Warehouse- Hubventurelabs - Practical Help Gateway2Finance- business?/gateway2financehttp:// business?/gateway2finance Gateway to Investment business?/gateway2investmenthttp:// business?/gateway2investment UCL Advances-HELO Project ( Student Interns)- E-Innovate- Enternships- Enterprise Agencies & Incubators- Mentors Portal-

Step 4: Check out you funding options? Grants & Awards J4B- Portal for grant finding Technology Strategy Board ( R&D Funding) London European Enterprise Network- E Funding for SME R&D EU Funding for R&D collaborations: Knowledge Transfer Partnerships funding support- my-businesshttp:// my-business Translation/ Follow on research funds

Step 4: Check out you funding options? Debt Funding Initiatives Enterprise Finance Guarantee ( Government underwriting UK banks business loans- CDFA ( Soft Loans from Community Banks- Manufacturing Funding- Examples of New types of funding: Green/ Energy Efficiency loans: services/financing/pages/financing.aspxhttp:// services/financing/pages/financing.aspx Incubators ( Discounted accommodation & support) Camden Collective ( Creative) - Hatton Garden Jewellery Centre- CEME ( Science & Engineering) - LBIC (Bio-Tech) - Innovation Warehouse-

Step 4: Check out you funding options? Equity Finance NESTA - London Business Angels: London Seed Capital - Oxford Early Investments- Envestors- Paste & Wait Investment (USA only) Paste & Wait Investment. Crowd funding: Crowd Funding : Crowdfunding: Early Stage VC Amadeus- Balderton- DfJ Esprit - Doughty Hanson- Early Bird Ventures- Index Ventures- Octopus- Anthemis ( Finance & Technology): London Technology Fund:

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