Funding OptionsPresentation by Remi Solarin

1

1. Business Plan

2. Private Funding

3. Government Grants

4. Business Loans

5. Equity Finance

6. Idea to IPO

7. Crowd Funding

2Content

Business Plan• Product / Service

• Team

• Market

• Opportunity

• Implementation

2 Documents: 1. Selling idea 2. Figures & Projections

3

• Savings

• Family

• Friends

• Consulting

4Private Funding

*Consider future investment: are they Accredited Investors

• Rigorous application process

• Funding competitions (Innovate UK)

• University collaboration (KTP)

• Manufacturing (MAS)

• Tax breaks (R&D)

• Export (UKTI)

5Government Grants

• Secured loans (8%)

• Unsecured loans (12.5%)

• Good credit history

• Monthly repayments

• Rates of interest (3.5% - 89%)

6Business Loans

*Government, Banks, Building Societies, Online lenders

• Shares

• Valuations

• Exit strategies

• Seed funding

• Angel investors

• Venture capitalists

7Equity Finance

* Enterprise Investment Scheme

• 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

8Seed Funding

• 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

9Angel Investors

10Venture 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

Hypo

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11Idea to IPO

You

Idea Time Line

100%

Co Founder

Team

50% 50%

Family

£15,000Family & 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%

• Investment from the public

• Ready to manufacture

• Exciting video

• Pre-marketing push

• Can provide market validation

12Crowd Funding

*Kickstarter, Indegogo, Crowdfunder