How to Get Series A Funding in the UK. Everything You Need to Know.

ByFelix Smith

Beyond any second thought, when it comes to learning to invest in a startup, a lot more goes into the process. This is because the concept demands much more than just a great vision. At the moment, it requests a lot of dedication, discipline, time, and, most importantly, the capital. Also known as funding, the concept has been all-time high among startups and scaleups. Consequently, Series A funding amidst all has been the most preferred across startup businesses.  

 

Global venture funding has scaled up from $284 billion in 2020 to hit $437 billion in Q3 of 2021. Startups around the globe profit from this influx of funding, with the moderate global deal altitude at $25 million. So, how do you fetch a portion of the funding pie? This post describes how to get Series A funding and initiate your business.

 

CEOs and founders generally have the right to choose the most appropriate investors. The reason behind this is that making a well-informed decision actually impacts the growth of a startup. Just assume your potential investors as partners; you would definitely wish the collaboration to go as smoothly as possible. So don’t waste your time pitching to investors who don’t seem that suitable for your startup. Only concentrate on having investors with values and interests align with your business. If you are relying on Series A start up funding in the UK, then here are the different ways to try.

  • Venture Capitalists 

 

Basically, this term refers to investors who belong to the private sector. They are generally engaged in investing in businesses that expand immediately, like tech and medical companies. Normally, with them, the investment opportunities in the UK may range from £7-£10 million. We have to cite that they play an important role in startups. Still, you need to know that these venture capital firms have a certain exit strategy once they meet the required criteria. 

  • Angel Investors 

 

Another popular aspect growing in the UK is the angel investors, just similar to the venture capitalists. They are also known to be a part of the private sector. However, they operate on an individual basis. On average, an angel investor may invest from £25,000- £100,000. Accordingly, they invest with an expectation of getting a high ROI. Angel investors typically seek to take a 20-50% ownership stake in early-stage startups. Hence, categorising the deal and arranging the terms start with the startup’s valuation.

  • Private Equity

 

Firms or individuals offering private equity invest in startups simply by purchasing shares for total or partial ownership. They literally can purchase out a public sector startup, which they can turn into a private business. Most likely, private equity firms invest in startups and third-party investors. It includes pension plan forms, insurance companies, universities, and charities. 

  • Crowdfunding 

 

In contrast with private investors, crowdfunding is way much different. Crowdfunding can open up investment opportunities to the entire public. In terms of business terminology, it is a hands off investment approach. The founder pitches their product/idea and then allows people from different worlds to contribute to donations. Even though crowdfunding is more of a grassroots approach, startups can actually raise millions of pounds in just a month or two. 

 

Wrapping Up 

 

Right after the initial funding, the next big step to winning Series A startup funding in the UK. Assuredly, it is the first significant round of entering into favorable investment opportunities in the UK. Series A funding has a considerable chance of continuing the growth of business and reaching success and supports the development of new products and attracting new talents. 

 

Got any questions? Feel free to leave in the comments section below. We’d be happy to answer them.

 

QUOTE END. 

 

 

 

0