Networking & Resources
Navigate the complex and opaque world of venture capital using our library of networking and resource tools
Use Networking and Resources to find your way in the innovation ecosystem. This section provides an index to the key Information Sources and News Letters which are a key starting point. Then use dedicated lists for Venture Funds and Incubators to source your first steps and capital. Additional pages give you detailed information on how to set up a company, legal documentation and share holder structures.
Use key industry information resources and online services to help you grow faster and make fewer mistakes.
Sourcing capital is a critical activity for most companies. Use this list of UK funds and our fund raising guides to accelerate the process.
Incubators, accelerators and co-working spaces are a great way to start a company and access the tech ecosystem.
Ask The Experts
FAQ from the community
Foundry X provides an extensive list of UK based venture funds and you can search for other sources through the providers listed on the information resources page.
Fundraising with new investors can take four to six months from decision to final close. This elapse time can be reduced by running and organised and efficient process with well prepared documentation and a clear proposition. Support from existing investors can be critical to bringing new investors on-board and also reduced the amount to be raised from new investors. Closing a round solely with existing investors is likely to take at least two months.
Incubators can be a great way to get a company started but it is important to see this as a part of a process. In particular, an incubator can be a good way to prepare a company for a larger fund raising round but to achieve this, the company must reach measurable milestones while being incubated. Additionally, it takes time and planning to access the better incubators so think through the fund raising strategy prior to applying.
See the following pages on using these tax efficient scheme to attract investors: SEIS/EIS summary, SEIS/EIS tax benefits, using SEIS and using EIS.
Many Angel Networks have a regional or industry focus and have a formal assessment process which takes time and planning to work through. Foundry X provides a list of a number of angel networks and smaller family offices and additional lists can be found on the UK Business Angels Association web site. In addition there are a number of online sites such as Gust and AngelList which can help to access individuals and networks.
See this set of documents for more details on sources of equity funds. Early Stage Funding Sources: a summary, early stage introduction, early stage sources.
Crowd funding is used by over 10% of early stage rounds and can be a very useful and quick way of filling out a round. Crowd Funding work best when there is an existing commitment for between one third and half of the round and the product or service is consumer centric. Also consider other online sites such as Angel List and Gust which provide a similar type of service.
By default new companies registering at companies house use a generic set of rules and regulation which govern the way the company is managed known as The Model Articles. This document does not give the full rule set since much is defined by company law. As companies mature and acquire external investors the board will usually adopt a custom version of the document known simply as The Articles. However, other documents such as a Subscription Agreement can also define additional terms as well as the subscription process and should be see as a set of governing documents. For more information see the following documents.
The following pages describe what to look for in investment documents. . Company documents summary, articles of association, subscription agreement.
Always take professional advice on legal issues
The board of directors has a legal obligation to represent the interests of shareholders in the efficient running of the company. Typically, the operation of the board is distinct to the operations of the company but it is usual to have the CEO on the board and to have the CFO present at board meetings. In addition major shareholders holding more than 10% of issued equity would typically have the right to appoint a director. The board is run by the chairman who is typically an industry expert and/or independent of management and shareholders and completes the normal configuration. Decisions are made through a simple majority vote so the balance of founders, management and shareholders can significantly impact the direction of the company.