Skip to content
FinOps handbook
Share
Explore
Update 13 Dec 2021
Major changes happening in this Coda document which will soon be retired
This page has been copied to the Handbook (Fundraising)
Equity Investors
Type
Description
Round
Stage of business
Approx size
Admin
Example investor
Expected return
Key metrics for investors
1
Accelerator/ Incubator
Will provide mentorship and advice (cash may come in)
Pre-seed - Seed
New. Concept under development.
£0
Limited expectations
The idea
The team
2
Friends and Family (pre-seed)
Initial cash injections to get you started in return for shares in the business
Pre-seed - Seed
New. Concept under development.
<£50k
Issue Share Certificates, maintain a Share Cap Table and submit SH01 forms to HMRC
Limited expectations
The idea
The team
3
Angel Investors
Initial cash injections to get you started in return for shares in the business
Pre seed - Series A
Concept is under development or has been just proven
<£1m
Issue Share Certificates, maintain a Share Cap Table and submit SH01 forms to HMRC
Return on investment <10x
The idea
The team
4
Crowdfunding (equity)
Initial cash injections to get you started in return for shares in the business
Pre seed - Series A
Concept is under development or has been just proven
<£1m
Issue Share Certificates, maintain a Share Cap Table and submit SH01 forms to HMRC
Limited expectations
Return on investment <10x
The idea
The team
5
Venture Capital - pre-profit
Large cash investment in return for shares. Aiming for a return on investment
All
Pre-Profit
Business plan in place
Growth potential
<£5m
Issue Share Certificates, maintain a Share Cap Table and submit SH01 forms to HMRC
Due Diligence work by investor
Return on investment >10x in 5 years
The idea
The team
Cash runway
Plan to profitability
6
Venture Capital - post-profit
Large cash investment in return for shares. Aiming for a return on investment
Profitable business
Profitable with proven growth potential
<£50m
Issue Share Certificates, maintain a Share Cap Table and submit SH01 forms to HMRC
Due Diligence work by investor
Return on investment >10x in 5 years
Gross Profit Margin
Rate of Growth
CLV (especially SaaS)
CAC (especially SaaS)
7
Private Equity
Large cash investment in return for shares. Aiming for a return on investment
Seed B+
Proven business with recurring profits
£50m+
Issue Share Certificates, maintain a Share Cap Table and submit SH01 forms to HMRC
Due Diligence work by investor
Return on investment: smaller and slower.
Looking for recurring profit.
Gross Profit Margin
8
Going public/ IPO
Huge cash investment and liquidity for shares on an open market. Founder exit possible.
Seed B+
Proven business with recurring profits
£50m+
Vast due diligence and legal enquiries
There are no rows in this table
Want to print your doc?
This is not the way.
This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
CtrlP
) instead.