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Update 13 Dec 2021
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
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