The document discusses resources for supporting tech startups in London, including funding sources, accelerators, coworking spaces, and mentorship opportunities. It provides an overview of different types of funding for early-stage companies, such as grants, crowdfunding, angel investors, and venture capital. It also outlines what accelerators can offer startups, including funding, mentorship, networking opportunities, and help validating business models and market fit. Key milestones for startups to prove their business are also highlighted.

1. Incubating, Accelerating and
Financing London’s Tech Sector
Start-ups.
.
Presented by John Spindler CEO of
Capital Enterprise
1@capenterprise

2. Scale focused start-ups are…different
• Ambitious: want to be worth
£10M+ minimum in 3-5 years.
• Solve a big problem for potential
customer in a “Game Changing /
disruptive” way.
• Introduce new technology/
business model innovations
• Smart Team with Key Partners
buy -in.
• Ability to adapt and change as
they develop.
• At some stage will need
investment
• Expectation of success is
“radically uncertain”
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3. @capenterprise ‹#›

4. Lean Canvas Model
@capenterprise 4

5. Go Leanto prove concept and
market
“Lean Start-up is about
reducing market risk by
working out how to fail
fast”
5@capenterprise

6. Idea to Tech Business- Three Chasms.

7. @capenterprise 7
Idea
Problem/
Space
Exploration
Design/
Prototype
Beta Test
Adapt/
PivotX2
Launch
Bootstrap- FFF
Innovation Awards
Start-up Loans
Crowdfunding i.e. Kickstarter
Seedrs/ Crowdcube
SEIS
Super Angels/
Angel Groups
Early Stage VC’s
Start- Up Funding road –map.
MVP Factories
Hackathons/ Hatcheries/ Meet-ups.
Accelerators
Accelerators

8. More great places to
Form & Explore Ideas
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9. Developing the team & the tech
• Hipster (Designer)
• Hacker (Developer)
• Hustler (Distributor)
@capenterprise 9

10. Sources of Start-up Help for Tech
Entrepreneurs
Information:
• Capital Enterprise- www.capitalenterprise.org
• Meet-up - http://www.meetup.com
• Mobile Academy- http://themobileacademy.org.uk/
• Makers Academy- http://www.makersacademy.com/
• Skills Matter- http://skillsmatter.com/
• Start- up Britain - http://www.startupbritain.org
• British Library- www.bl.uk/bipc
• Google Campus- http://www.campuslondon.com
• General Assembly- https://generalassemb.ly/locations/london
• Innovation Warehouse- http://www.theiw.org
• IC Tomorrow - https://connect.innovateuk.org/web/ictomorrow
• UCL Decide- https://www.ucl.ac.uk/decide
• Start-ups on Air at Google Campus-
https://docs.google.com/spreadsheet/viewform?formkey=dEpuYlRFRFJ6SUVDdHVLRms3YmdBcmc6MQ
• Hubventurelabs - http://hubwestminster.net/hubventurelabs
• 3 Beards- http://www.3-beards.com/
• Founders Fit- http://foundersfit.com/
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11. Prototyping
@capenterprise 11

12. Funding Product Development
Grants & Awards General
• J4B- Portal for grant finding http://www.j4b.co.uk
• 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
• NESTA- http://www.nesta.org.uk/
• 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-cost-
my-business
Translation/ Follow on research funds.
• www.rdfunding.org.uk/bulletin/queries/Search.asp?TheCloseMonth=July&TheYear=2011.
• http://www.rcuk.ac.uk/kei/ktportal/Pages/Followon.aspx
• https://ktn.innovateuk.org/web/145175/overview
• http://www.ahrc.ac.uk/FundingOpportunities/Pages/BrowseOpportunitiesOld.aspx
• http://www.ahrc.ac.uk/Pages/default.aspx
• http://www.theculturecapitalexchange.co.uk/
@capenterprise 12

13. Crowdfunders
Crowd funding Platforms-
Reward 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.
• www.kickstarter.com
• www.indiegogo.com (USA)
• www.peoplefund.it
• www.sponsume.com
• https://www.buzzbnk.org
• www.pleasefund.us
• www.wefund.com
• www.pozible.com
• www.crowdfunder.co.uk
• http://spacehive.com
• https://www.banktothefuture.com
Seed/ Early stage Investment Platforms:
www.crowdcube.com
www.seedrs.com
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14. @capenterprise
Need less than £10K to start?
- 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- £15,000 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/
Need Less than
£10K to Launch a
business
No Funds
Grant-
www.j4b.co.uk
Unemployed?
New Enterprise
Allowance Scheme
Self Fund
Borrow
Write a simple
Business Plan & 12
month cashflow
Community
Development
Finance Institution
Start-Up Loan Bank
14

15. Idea to Tech Business- Three Chasms.

16. Accelerators In London
http://www.f6s.com/
https://capitallist.co

17. Accelerators help by ..
Offering early Stage
Entrepreneurs…
• Fellow Community of
entrepreneurs & supporters
• Runway support & funding
(£15-£100K at standardised investment terms. )
( 3-6 months on average)
• Physical Space & Facilities
• Mentors ( 1st Alumni/
Industry- 2nd Investors)
• Help to Rapid Field Trail with
users & customers.
• Demo days- Introductions to
Investors/ customers
…so that they can test..
• Product- Assess Functional use/
improve design & UX
• Market Reaction- interest/
usage/revenue - AARRR
• Revenue/ profit Potential-
pricing, market timing, LTV/CCA
• Business Model- “To Pivot or Not
To Pivot”
• Investor reaction- interest and
valuations
• Team- ability to work together and deliver.

18. Accelerators want businesses who..…

19. Accelerators
Pre- Accelerators
• Angel Hack- http://angelhack.com/
• Start-Up Weekend: http://london.startupweekend.org
• Launch 48: http://launch48.com
USA
• Y-combinator- http://ycombinator.com/
• Tech Stars- http://www.techstars.com/
• 500 start-ups- http://500.co/
London
• Seed Camp: http://www.seedcamp.com
• Hackfwd: http://hackfwd.com
• Bethnal Green Ventures - http://bethnalgreenventures.com/
• BBC Worldwide Labs- http://www.bbcworldwide.com/digital/labs.aspx
• Tech Stars London -http://www.techstars.com/program/locations/london/
• Accelerator Academy- http://acceleratoracademy.com
• Entrepreneur First- http://www.entrepreneurfirst.org.uk
• Fintech Innovation Labs- https://www.fintechinnovationlablondon.co.uk/about.html#4
• Wayra- http://wayra.org/en/wayra
• The Bakery - http://thebakerylondon.com
• Healthbox- http://www.healthboxaccelerator.com/
• Collider12- http://collider12.com/
• Red Bull Amplifier- http://www.redbullamplifier.com/
Check out – www.f6s.com and http://www.seed-db.com/accelerators
@capenterprise 19

20. Proving the Business Model Key
Milestones
• Human Resources - Hiring key people that will make a huge impact on your organization (not just
employees for workload purposes, but like a shit-hot marketing person, for example).
• Product – MVP- Beta- First Pivot-Full Launch- On-going Iterations
• Market – Market validation. As in, first customers, or first paying customers, etc
• Funding – Maybe some money being committed to a round that the investor in question can lead
or participate in.
Other examples of milestones include*:
• Proof that you can work together as a team, usually historical evidence
• Proof that you can build something, i.e. working prototype
• Proof that it’s useful to someone – first users and clients
• Proof that you can talk to investors – every financing round, even small ones
• Proof that you can talk to audiences – 100k users or 1M users or 10M users…
• Proof that the initial team is able to attract talent –
• Proof that ecosystem agrees with your ideas – bringing respected industry advisors partners on board
• Proof that there is market – £1M annually/ Proof that the market is big! – £25M annually and beyond
• Proof that you can manage your finances – cash-flow positive operation
• Proof that you can scale – £10M annually
20@capenterprise

21. Metrics
@capenterprise 21http://leananalyticsbook.com/ LTV/ CCA = $$$$

22. Investment Essentials
@capenterprise 22
Type Amount Purpose Source See
Seed Under £50K Proof Of Conept FFF
Crowdfunding
www.crowdcube.com
www.seedrs.com
Seed £50K-£500K Launch to "Beachhead" Angels/ Seed
Investors
Note Average valuation for a
pre-revenue company in
London is between £350-
£600K
Super Seed £500-£2m
Launch to "Beachhead" +
Build scalability
Syndicates of
Investors
Not as common in the UK as US
Series A
(Small) £1m-3M Scale
VC's/ Family
Trust/ Supper
Angels
Traditionally where UK
investor money enters the
market

23. @capenterprise
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
UK
The Facts:
• 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
marginal rate.
• In the 2012-13 tax year, tax payers can roll any chargeable gain in the tax year in to a SEIS
with a full capital gains tax exemption (another 28%)
• 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.
SEIS is…… “a game changer”?
23

24. …A potentially “Scalable” businesses
will …
• Solve a relevant Problem
for a Large Addressable
Market.
• Have a Credible Founders
Team.
• Have a Semi-Proven
Business Model.
• Large Returns on initial
capital- i.e. Capital
Efficient to scale.
@capenterprise 24

25. Seed Investors want …. Winners!
Investors want to find..
1. Skilled and credible management
team
2. BIG Market Opportunity- a big
problem for a potential large set of
customers that you can solve?
3. The Idea/ Prototype to be semi-
proven and semi-market validated.
4. No Technical Risk
5. Evidence that the Business Model
is both repeatable and scalable.
6. Business Model ready to execute
7. Road Map & Forecasts based on
semi- proven assumptions
8. Metrics
9. Adequate financial returns ( 10X
within 3 years?)
10. People they can trust/ work with
11. A clear exit route- How will they
claim there reward??
@capenterprise 25

26. Send a slide deck and get introduced
http://www.slideshare.net/slidesthatrock/how-to-pitch-a-vc-redesigned
26
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?
2. Problem
3. Your solution
4. Business model
5. Underlying magic/technology
6. Marketing and sales
7. Competition
8. Team
9. Projections and milestones
10. Status and timeline
@capenterprise

27. Business Angels
Public Supported Co-Investment Schemes
• NESTA - www.nesta.org.uk/investments
• Capital 4 Enterprise- http://www.capitalforenterprise.gov.uk/portfolio
• Angel Co-Fund- http://www.angelcofund.co.uk/
• Mayor Of London Co-Investment Fund- http://www.mmcventures.com/
• Enterprise Capital Fund- http://www.capitalforenterprise.gov.uk/ecfp
Seed/ Early stage Investment Platforms:
- www.crowdcube.com
- www.seedrs.com
Capital Enterprise top 10 Angel Network in London
1. London Business Angels: http://www.lbangels.co.uk
2. Oxford Early Investments- http://www.oxei.co.uk/about.php
3. Envestors- www.envestors.co.uk
4. Finance South East- www.thefsegroup.com
5. Angels Den- www.angelsden.com
6. Venture Director- www.venturedirector.com-www.boundarycapital.com
7. Start-up Funding Club- http://www.startupfundingclub.com/
8. E100- London Business School -
http://www.london.edu/facultyandresearch/subjectareas/strategyandentrepreneurship/enterprise100.html
9. #1 seed- www.number1seed.co.uk
10. Ascension Ventures- http://www.ascensionmedia.com/ascension-ventures.php
For an alternative list check out-http://www.designcity.co.uk/angelnews/edition_94.htm#article1 or check out
www.angel.co
@capenterprise 27

28. Need a hot introduction!
Capital Enterprise and/or its
partners will find you a
champion to get your business
“fit for investment” and then
introduce you to Angels and
Investors.
E-mail :
john@capitalenterprise.org
28@capenterprise

29. Early Stage VC’s & Investors
Accel Partners: Stage agnostic, see their portfolio here.
Anthemis Investment- Stage Agnostic, see portfolio here
Balderton- Stage Agnostic- See there portfolio here
Eden Ventures- Early- mid stage – see there portfolio here
Index Ventures: Stage agnostic, see their portfolio here.
Passion Capital: Early Stage, see their portfolio here.
Delta Partners: Early to mid-stage, see their portfolio
here.
Imperial Innovations: Restricted entry requirements but
the largest Series investor in the UK in 2012-13 , see their
portfolio here
Atomico: Stage agnostic, see their portfolio here.
Profounders: Early and mid-stage, see their portfolio
here.
AIB Seed Capital Fund: Managed by two funds which
invest under-€250k and over-€250k, see their
portfolio here.
• ACT: Early to mid-stage, see their portfolio here.
• Bloom Equity: Early to mid-stage angel syndicate, see their
portfolio here.
• DFJ Esprit: Early to mid-stage, see their portfolio here.
• Charlotte St: Early to Mid Stage, see there portfolio here
• Dawn Capital: Early to mid-stage, see their portfolio here.
• MMC - Series A Fund- Co-Investment fund with Mayor of
London
• Notion Capital – SAAS and Cloud specialist- See portfolio here
• Seraphim Capital – Early-mid stage see there portfolio here.
• Kernel Capital: Early stage, see their portfolio here.
• Octopus Ventures: Early to mid-stage, see their portfolio here.
• M8 Capital : Mobile Specialists, see their portfolio here
• Episode1: Early Stage Software Companies
• Arts Alliance: Minimum investment £500K in Media related
tech- see portfolio here
• EC1 Capital: Early stage, see their portfolio here
• Connect Ventures- Early stage and very cool.
• Ballpark Ventures – Early stage Super Angel investors
• Pen Tech Ventures- Early Stage to mid- See portfolio Here
Alternatively you can check out Crunch Base / Angel List
http://www.crunchbase.com/financial-organizations
@capenterprise
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30. Specialist Funds
Women
- 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
Green
- Bridges Sustainable Fund- http://www.bridgesventures.com/sustainable-growth-funds
- Ingenious Media- Cleantech Fund http://www.ingeniousmedia.co.uk/investments/investment-
opportunities/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
Social
- MEWE360: £1m fund set up by Ingenious Media
- 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
@capenterprise 30

31. If you want an introduction then
send me a slide deck
www.capitalenterprise.org
john@capitalenterprise.org
31@capenterprise