Startup Series #25 – Venture Capital / Investment for Startups

Startup Series, Startups | 0 comments | by Erin Quilliam

Vanture capital for startups might be the key to taking the next step in your business.

We know that managing a startup is no easy task. Developing your own business and launching it into the world is an achievement to be proud of. But now that you’ve found your feet, and some success, you want to turn your business into a growing success.

Venture capital and investment is one way to fund the growth of your business. Venture capital is a form of financing for small or starting organisations that have shown good growth potential or expected to. The investments are usually given on the basis of receiving shares in the business’s profits.

This kind of investment has provided organisations with huge amounts of money over the years, and provided the funds to launch some big names. (Facebook, Uber, and Brewdog to name a few.) It’s a great means of funding a small, newly emerging business. Whether they become the next worldwide sensation or not.

If you’re looking to earn investment for your startup, here are some platforms and tools to help you access and raise your company’s funding.

Features

What We Like

Pricing / Conditions

CrowdCube

Easy to set-up and use.

Resources, templates, tips, and help provided to maximise the effectiveness of your pitch.

No fees if you don’t reach your target.

Launch privately to your network. Public launch once you reach 20% of your funding target.

Once live, your pitch stays live for 30 days.

In-house legal team to conduct all necessary checks.

CrowdCube takes care of capturing payments, issuing share certificates, and conducting anti money-laundering checks.

Exclusive alumni club for those successful in their funding.

CrowdCube is crowdfunding with a difference. Including their prestigious alumni club, featuring some pretty big names. 

One of the great factors of CrowdCube is the work they do on the legal and payment side, which makes life a lot easier for you.

Like most crowdfunding platforms, there are fees attached to successful rounds of funding. So take these into account when planning your target.

Another benefit is that, subject to certain criteria and checks by CrowdCube, you can draw investment from outside of the UK. Meaning you can gain funding from businesses headquartered in Europe.

Minimum raise: £50,000.

7% commission fee (excluding VAT)  on completion of successful funding.

There’s also a 0.5% payment processing fee for UK businesses. (Taken by the payment provider, Stripe.)

Angel Investment Network

Template, resources and tips provided for creating your pitch.

Access a pre-existing network of thousands of investors for you to pitch to and contact.

Access your funds invested at any time. There’s no need to wait until you reach a target.

No commission fees, as investors transfer directly to you.

Email your pitch to private investors. And send personalised messages to individuals when your pitch is published.

The clue is in the name in terms of what Angel Investment Network provides. Their aim is not only to help you raise the funds you’re looking for but to help you create and expand your network.

When an investor is interested in your company or product, you get a message to connect with them. And when you do, you share contact details. It’s a great way to build relationships.

No commission fee.

Contact them directly for their pricing.

Gust

Legal, financial, and accounting tools are all included on the platform.

Equity management tools to help you manage your company ownership and tax compliance.

Apply to accelerator programs to build your network and your investments.

Tips and resources provided to guide you to hone your pitch and connect with the right investors.

The world’s largest startup network.

Being the world’s largest startup network, Gust has some huge potential to offer your company. With thousands of investors and networks across 190 countries, the funding and networking opportunities are vast.

Gust has a series of platforms available. From Gust Launch to help you start your business and move on to securing investment.

Meanwhile, their equity management platform provides a host of tools for your cap table management. From waterfall analysis to vesting tracking.  

Gust Launch pricing is as follows:

$175 per year – Basic plan.

$875 per year – Premium plan.

Gust Equity Management pricing is as follows:

Free – Basic plan

$290 per year – plus plan

$990 per year – 409A valuations & plus plan.

Seedrs

Dedicated investment associate.

Marketing and PR toolkits provided. As well as tools and guides for a successful campaign.

Launch privately to your network. Public launch once your private launch gains traction.

Once live your pitch remains live for 60 days.

If you hit your target, the campaign remains open allowing you to take advantage of overfunding.

In-house legal team to conduct all necessary checks. Including due diligence on the company.

Their legal team prepares all necessary paperwork you need to close the round of funding. Including all necessary legal and tax documentation.

Full payment processing.

Exclusive alumni club for those successful in their funding.

Seedrs is another funding platform available. You pay them a commission upon completion of successful funding and a completion fee. But that’s all. There’s no ongoing or start-up fee.

One of the benefits of using Seedrs is their alumni club. It isn’t just a community of Seedr-funded businesses, but the gateway to accessing exclusive partners, resources and events. Giving you opportunities to network and learn.

Seedrs also takes care of all of the legal side and documentation side.

They are also responsible for capturing and processing payments.

One of the key draws of Seedrs is the lifetime investment associate. Meaning you get help from a dedicated professional to maximise the chance of a successful funding campaign.

6% commission fee and 0.5% payment processing fee.

£2,500 completion fee (excluding VAT.)

 

Venture capital is no easy process, but it can offer huge rewards for your business. The average payoff is high. So if you are successful, you can gain the investment you need to grow your business. Not to mention, access and build your own network of investors.

Applying for venture capital can be daunting, but incredibly rewarding. The process of pitching to investors, and refining your product can itself be invaluable. The potential to build a broad network of other professionals and investors to support you can be as important as the investments they share with you.

If you are about to seek further funding for your business and want to develop your site and services to their best and attract investment, or simply starting out, IT Enterprise can help.

We are the one-stop IT hub to help with your web, app and software development and needs. We can turn your ideas into a viable product. Contact us today to take advantage of our expertise and services, and set your startup on the road to success.

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