John Spindler's Presentation from MoMoLo, 17th February 2014
Accelerating and Financing
London’s Tech Sector Start-ups.
John Spindler CEO of Capital
A start-up is…
“ an organisation in search
of a repeatable and
scalable business model”
– Eric Ries- Author of the
Scale focused start-ups are…different
• Ambitious: want to be worth
£20M+ minimum in 3 years.
• Solve a big problem for
potential customer in a “Game
Changing ” way.
• Build/leverage new
technology/ business model
• Acquire and leverage as many
“Unfair Advantages as
possible”- team, key partners,
• Move very FAST
“ An Investable Start-up Needs..
• Team, Tech & resources
that is FIT for the task of
creating an awesome
• Smart Ass Team
• Product that is the best
solution FIT for the target
• Disrupting a Big Ass
• with a Kick Ass Product
( Jeff Clavier 3 Ass-es rule)
• Business Model that is FIT
to be scaled.
+ Capital Efficient to Scale.
Advance in Stages…
..using the Lean Start-up Method
Developing the team & Product
• Hipster (Designer)
• Hacker (Developer)
• Hustler (Distributor)
Minimum Viable Product (MVP):
Problem – Solution FIT
Proof of Concept?
Does it work?
Does anyone care?
Funding Product Development & Beta Testing
Grants & Awards General
Technology Strategy Board ( R&D Funding) - http://www.innovateuk.org http://www.innovateuk.org/content/competition/grant-for-rd-single-business.ashx
Knowledge Transfer Networks- www.innovateuk.org
IC Tomorrow- https://connect.innovateuk.org/web/ictomorrow
London European Enterprise Network- http://www.een-london.co.uk
E Funding for SME R&D - http://www.eurostars-eureka.eu/what.do
EU Funding for R&D collaborations: http://ec.europa.eu/research/participants/portal/page/calls
Knowledge Transfer Partnerships funding support- http://www.ktponline.org.uk/ktp-what-will-it-costmy-business
J4B- Portal for grant finding http://www.j4b.co.uk
Translation/ Follow on research funds.
Crowdfunding ( Reward)
Crowd funding PlatformsReward based Crowdfunding platforms- will help you
to raise funding to build a proto-type and market
test a great idea or product.- Great for pre-selling
cool tech hardware.
Need less than £20K to get to Build and test MVP?
Need Less than
£10K to Launch a
Write a simple
Business Plan & 12
Sources of Grants- www.j4b.co.uk
Competition funding £1000 issued to 10+ businesses per month- http://www.shell-livewire.org
Princes Trust http://www.princes-trust.org.uk/need_help/enterprise_programme.aspx
£1000- £20,000 Enterprise Loans for Under 25’s- www.startuploanslondon.co.uk or www.startuploans.com
New Enterprise Allowance Scheme – Check who delivers the scheme in London by e-mailing Capital Enterprise.
Community Development Finance Associations- http://www.cdfa.org.uk - Also check out North London Community Finance
ELSBC Access to Finance – Business Plan support for those looking to raise up to £10K
Soft loans for Creative Businesses- http://www.creativeindustryfinance.org.uk/
Accelerators help by ..
Offering early Stage
• Fellow Community of
entrepreneurs & supporters
• Runway support & funding
(£15-£100K at standardised investment terms. )
( 3-6 months on average)
• Physical Space & Facilities
• Mentors ( 1st Industry- 2nd
• Help to Rapid Field Trail with
users & customers.
• Demo days- Introductions to
…so that they can test..
• Product- Assess Functional use/
improve design & UX
• Market Reaction- interest/
usage/revenue - AARRR
• Revenue/ profit Potentialpricing, market timing, LTV/CCA
• Business Model- “To Pivot or Not
• Investor reaction- interest and
• Team- ability to work together and deliver.
Accelerators In London
Accelerators : Training & Mentoring programmes that provide fast-track to seed funding for
Scalable new businesses
Seed Camp: http://www.seedcamp.com
Tech Stars Europe -http://www.techstars.com/program/locations/london
Microsoft Ventures - http://www.microsoft.com/en-in/accelerator/
Start-Up Bootcamp ( 3 new accelerators including Fintech in London)- http://www.startupbootcamp.org
Emerge Venture Labs- ( Education TECH) http://www.theemergelab.org
Oxygen Accelerator ( Now in London) - http://www.oxygenaccelerator.com/
BBC Worldwide Labs- http://www.bbcworldwide.com/digital/labs.aspx
Accelerator Academy ( Part-Time)- http://acceleratoracademy.com
Fintech Innovation Labs- https://www.fintechinnovationlablondon.co.uk
Entrepreneur First- http://www.entrepreneurfirst.org.uk
The Bakery ( Adtech) - http://thebakerylondon.com/#!/
Level 39- http://level39.co ( More of an incubator)
Idea London ( Cisco, DC Thompson and UCL) – www.idea-london.co.uk
IC Start-up- ( Imperial) http://www.icstartup.com
Bethnal Green Ventures ( Social Impact)- http://bethnalgreenventures.com/
HUB Launchpad- (Social Impact)http://www.hublaunchpad.net/
True Start- (Retail Tech) – http://www.truecapital.co.uk/truestart/
Eco-Machines incubator (Hardware)- http://www.ecomachinesincubator.com
Capital’s Accelerator Programme Partners.
Programme Partners and CoInvestors
Connections to Investors
Start- Up Funding road –map.
Hackathons/ Hatcheries/ Meet-ups.
Crowdfunding i.e. Kickstarter
Early Stage VC’s
round –Build &
Round (Angels +
- Prove Business
model & acquire
metrics to prove
Series A Round
(Angels, VC’s &
– Go for scale, build
(Average 7 years
and after many
rounds) – Trade
Sale or IPO
How Start-Up Funding Works ?Why 100% of Nothing is worth Less than 10% of something big
Assemble Team/ Build
Beta Test- Launch into
Series A (Small)
Proof of Market &
Scale - Build out Team/
Technology and Expand
Own Money/ FFF/
Seed VC's/ Angel
Syndicates/ CoInvestment Funds/
Venture Firms/ Family
SEIS is…… “a game changer”?
Seed Enterprise Investment Scheme-SEIS is a tax break launched in April 2012 for UK
tax payers to encourage them to buy shares in start-up companies registered in the
SEIS investors can input £100,000 in a single tax year rising to a maximum £150,000 over two
or more tax years in to a single company
Investors cannot control the company receiving their capital
Investors pick up 50% tax relief in the tax year the investment is made, regardless of their
In the 2013-14 tax year, tax payers can roll 50% of a chargeable gain in the tax year in to a
SEIS with a full capital gains tax exemption (another 14%)
The business must be a start-up company -registered in the UK within 2 years of claim.
The company must not employ more than 25 workers.
The company must have assets of less than £200,000.
The company has to trade in an approved sector – generally not in finance or investment, for
example, a property company raise capital as a SEIS.
Think like an Angel!
Why Do Angels Invest?
Where to find them?
Key to being s Successful
• Good Reputation – “Track
• Great Source – “Having good
• Good Selection – “ Sticking to
what you know”
• Adding Value- “ Offering
more than money to
increase the chance of
• Ability to Follow on
Successes/ Walk Away
• Getting Value – “ Getting a Good
deal at all stages”
Capital List –
The Minimum Viable Introducer
“ Showcasing and connecting
Entrepreneurs to champions and
Send a slide deck and get introduced
Ten slides. Ten is the optimal number of slides in a PowerPoint
presentation because a normal human being cannot comprehend
more than ten concepts in a meeting—and business angels are very
normal. If you must use more than ten slides to explain your
business, you probably don’t have a business. The ten topics that an
investors cares about are:
1. Summary and call to action/ what do you want?
3. Your solution
4. Business model
5. Underlying magic/technology
6. Marketing and sales
9. Projections and milestones
Status and timeline
Send to : firstname.lastname@example.org
Play & Pay Funds.
Top SEIS Funding Syndicates
Top Traditional Angel Syndicates
1. London Business Angels:
Start-up Funding Clubhttp://www.startupfundingcl
Ascot SEIS –
2. E100 (LBS)
3. Oxford Angels:
5. Envestors- www.envestors.co.uk
6. Angels Den- www.angelsden.com
Super Seed Investors
• Playfair Capital- http://playfaircapital.com
• Angel Pad/ Avonmore http://www.avonmoredevelopments.com/
• Kima Ventures- http://www.kimaventures.com
• Boundary Capital - www.boundarycapital.com
• Venerex ( Fashion Tech- see Capital List)
• Jam Jar Investments- http://jamjarinvestments.com
• No 1 Seed - www.number1seed.co.uk
• Warner Yard Associates - http://www.warneryard.com/
• Angel List – www.angel.co
Active VC’s in London.
Accel Partners: Stage agnostic, see their portfolio here.
Balderton- Stage Agnostic- See there portfolio here
DN Capital : Early and mid-stage, see their portfolio here
DFJ Esprit: Early to mid-stage, see their portfolio
Spark Ventures : Stage Agnostic- See there portfolio here
Octopus Ventures: Early to mid-stage, see their portfolio here.
Piton Capital: Early and mid-stage specialize in market
M8 Capital : Mobile Specialists, see their portfolio here
Wellington Partners: Stage Agnostic, see there portfolio here
Amadeus Capital: Early and mid-stage- just launched
Index Ventures: Stage agnostic, see their portfolio here.
Profounders: Early and mid-stage, see their portfolio
ECF’s/ Public funded.
Notion Capital – SAAS and Cloud specialist- See portfolio here
Passion Capital: Early Stage, see their portfolio here.
Episode1: Early Stage Software Companies
Arts Alliance: Minimum investment £500K in Media
related tech- see portfolio here
Longwall – Oxford Based – Science backed Start-ups focus
EC1 Capital: Early stage, see their portfolio here
MMC Ventures - Series A Fund- Co-Investment fund with Mayor of
Connect Ventures- Early stage and very cool.
Hoxton Ventures – New and focus on seed with next mobe
Social/ Tech for Good
NESTA - www.nesta.org.uk/investments
Unltd – www.ubltd.org.uk
Big Society Capital- http://www.bigsocietycapital.com
Sources of Social Finance- http://www.bigsocietycapital.com/finding-the-right-investment
Bridges Venture Fund http://www.bridgesventures.com/social-entrepreneurs-fund
Big Issue Investment- http://www.bigissueinvest.com
Social Finance- http://www.socialfinance.org.uk
Social Investment Fund- http://www.thesocialinvestmentbusiness.org
Stargate Capital- Trapezia- http://www.stargatecapital.co.uk/trapezia_1.aspx
FSE- Incito- http://thefsegroup.com/investors/business-angels/incito-ventures/
Aspire Fund - http://www.capitalforenterprise.gov.uk/files/Aspire%20Information%20Leaflet%20(v%202)%20Flyer%20brochure.pdf
Bridges Sustainable Fund- http://www.bridgesventures.com/sustainable-growth-funds
Ingenious Media- Cleantech Fund http://www.ingeniousmedia.co.uk/investments/investmentopportunities/clean-energy
Carbon Trust- http://www.carbontrust.com/about-us/our-investments
Low Carbon Accelerator- http://www.lowcarbonaccelerator.com
CT Investment Partners- http://www.ctip.co.uk
Wellington Partners- http://www.wellington-partners.com/wp/index.html
Investment State of Play 2013
Deals Under £0.5M
Deals Over £0.5m
• SEIS Deals £5-6m per month
- 82 Deals - £72K Average
• EIS & SEIS - £600M in New
Companies in 2012-13.
- Estimated 1,116 New
Courtesy of Stuart McKnight at