Demystifying investment docs: What investors expect to see
Unless you've got a Scrooge McDuck money pit you can dive into and draw out a couple of million at will, your business will likely need to raise some...
So, you've identified the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) as fantastic ways to get funding for your business.
And you've applied for advance assurance to get the ball rolling. If you're not quite sure what we're talking about, we have a guide that you can download for free. It'll tell you everything you need to know.
In this blog, we're going to focus on how to find SEIS and EIS investors.
Providing they follow the rules, almost anyone can invest under the SEIS and EIS schemes. Emphasis on 'almost anyone'. The following categorically cannot:
Investors who frequently invest under SEIS and EIS are often angel investors, but there are also VC firms with SEIS/EIS-specific funds, including:
Unlike VCs, angels can be hard to find. They’re not all advertising themselves on LinkedIn! However, rest assured, there are thousands out there.
Acceptance here can take a few weeks but its confirmation (or at least confirmation your application is being processed) makes your pitch much more likely to be heard.
As it’s their way of ensuring they will receive the tax benefits, SEIS/EIS investors will ask for advance assurance more often than not.
Use the power of social media and other startup communities to announce your product and its progress, and attempt to entice potential investors there.
Before you get to the more direct cold outreach, do you have anyone in your own network or extended network who a) has the money to invest, and b) might be interested? This isn’t the time to be shy. You’ll get used to hearing "Thanks, But No Thanks", so you may as well start now!
Like the Angel Investment Network, Crunchbase and EU-Startups Database (the UK section), for example.
Reverse-engineering successful SEIS/EIS investments from companies in your sphere can throw up some great pointers you can follow. Then reach out to these investors on LinkedIn, Twitter etc.
Angels, in particular.
Now, this is by no means an exhaustive list, but it's a great place to start…
Andy is a product coach who helps companies set up their product management practices from scratch and also runs The Angel Investing School.
He prefers long-term investments in family-owned businesses where he can add value, optimising for dividend income over exits.
Gloria was one of the first employees at Uber, where her focus was on growth, product launch and strategy.
She is passionate about early-stage entrepreneurs, supporting them through Redbus, seeking to add the value of her experience and operational expertise.
Chris co-founded Metaswitch Networks in 1981 - eventually acquired by Microsoft in 2020 - and is now a prolific early-stage investor.
Chris looks for personal exceptionalism in founders, with the ability to explain the user experience elegantly and compellingly.
Sarah is a non-executive director (NED), as well as co-founder and CEO of Angel Acadame - an award-winning angel network that invests in female-founded tech startups.
Andy founded 10x10, a group of black founders and investors in the UK. He also recently launched the 10x10 Fund, a pre-seed fund for exceptional black founders in the UK.
Rosemary is MD of The Forsyth Group, a leading retained executive search firm, helping build senior management teams and boards, from startups to listed companies. She has also invested in a number of their clients either as an angel or a Limited Partner.
Michael co-founded Gumtree in 2000 (later acquired by eBay) and is one of the most active angel investors in London-based tech companies.
Deepali set up Alma Angels to empower and enable investment in other female founders. She will invest in any sector but has a keen interest in femtech, digital health and sustainability.
Ian’s background is in machine learning and he co-founded Songkick, the concert service that scaled to 12M unique monthly visitors and $100M in sales. He is drawn to visionary founders, ideally in markets relatively unaffected by the internet.
Chanelle heads Cornerstone Partners, an angel syndicate discovering and investing in founders from black and minority backgrounds. She is passionate about disrupting finance, helping launch two fintech banks in the UK.
Hopefully, this blog serves as a springboard to help you find SEIS and EIS investors for your startup. Best of luck!
By the way, once you've found your investor and received SEIS/EIS investment, you can issue shares directly to them via Vestd. Another reason to start your SEIS/EIS journey with us.
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