8. • Firms that invest in the early stages
• More interested in people v idea
• Invest relatively small amounts
• Incubators exert more control
• Contact, email or their website
• Can provide introductions to VCs
8
Seed Funding
9. • Best way to find angels is introductions
• Some angels join together in groups
• Individual angels reputations
• Times at the angels mercy
• Deals vary considerably
• Delays & closing deals
9
Angel Investors
10. 10
Venture Capitalists
• Companies that investing peoples money
• VCs only invest in people recommended
• Reputation of the venture capitalist
• With investment comes restrictions
• Vesting ensuring founders have to stay
• Large investment affects founders control
11. Hypotheticalscenariobyfoundersandfounders.com
11
Idea to IPO
You
Idea Time Line
100%
Co Founder
Team
50% 50%
Family
£15,000
Family & Friends
37.5% 37.5%
5%
20%
37.5%
£1 m valuation
£200,000
Angel Investor
Seed Round
31.2% 31.2%
16.7%4.2%
16.7%
CEO = £312,000
31.2%
£235,000,000
£2.6 b valuation
Inv. Banker Anyone
Initial Public Offering
17.6%
CEO = £457m
17.6%
9.5%2.4%
30.5% 1.7%
8.3% (-7%)
7% of
IPO
12.45%
17.6%
1st EmployeeVCs
£2,000,000
£4 m valuation
VCs Round
19.2% 19.2%
1.8%33.3%
13.5%
CEO = £768,000
19.2%
10.3%2.6%
12. • Investment from the public
• Ready to manufacture
• Exciting video
• Pre-marketing push
• Can provide market validation
12
Crowd Funding
*Kickstarter, Indegogo, Crowdfunder