TLDRVC - Venture capital is private equity financing that investors provide to startups companies and small businesses.VCs - Venture capitalists (VCs) are individuals or firms who manage a pool of money in a professionally-managed fund to invest in companies.Angel - Angel investors are individual investors who use their
Governmental grantsIf your business operates in a certain industry, is of a certain size or engages in certain forms of research & development it may qualify for governmental grants and funding. These grants can sometimes be combined with other forms of funding. Grants come in different shapes or sizes. For
TLDRThe Seed Enterprise Investment Scheme and the Enterprise Investment Scheme aim to encourage innovation and help businesses raise funds through the provision of tax reliefs on investments.SEIS - To qualify, companies must have fewer than 25 employees, their gross assets must total less than £200,000 at the time
TLDRShort-term debt instruments - CLNs are short-term debt instruments that have the option or requirement to be converted into equity in the future, typically in the form of shares.Early stage - CLNs are typically used by angel investors to invest in companies at an early stage of their growth.
Revenue-based investing (RBI), also known as revenue-based financing, is one of the more prominent new investment models and financing instruments appearing in the startup fundraising ecosystem. It allows businesses to raise capital from investors by giving them a percentage of the company’s ongoing gross revenues in return for the
TLDRWhat - Dilution is the decrease in ownership of a company for existing shareholders that occurs when new shares are issued for that company.Value - In order for a shareholder to retain the value of their stake in the company, they would need to purchase new shares or need
TLDRDon't overlook it - Setting up an easy to navigate, informative data room is an important part of ensuring you are ready to fundraise and is something you should do before fundraising. This is particularly the case in a world which has moved more to remote work. Personalise - Though
It is likely that at various points throughout your entrepreneurial journey, maybe even at all points, you will work formally and/or informally with advisors. When the time investment of the advisor is relatively small, this relationship is typically informal. However, there might be a time when you want to