Bored of the adage 'If you fail to plan, you are planning to fail'? You're not alone. Sadly, truisms - much like a parent's advice - tend to be worth heeding. When it comes to funding, it's best to do it well in advance. Too many companies leave it until there's a cashflow crunch before acting. As trusted advisers, accountants need to play the role of parent, use their wisdom to identify future funding opportunities, model a couple of scenarios, and help clients find a source of finance that doesn't leave them with unfavourable terms.

Overall VC investments in 2020 are at par with previous years – but in Q3 2020, venture capital funding for all female founders is on pace for its worst year since 2017 (US data). In the week of Global Women's Entrepreneurship Day, four of Europe’s top early stage venture funds (Speedinvest, Amplifier, La Famiglia and Redstone) got together to look into the reasons behind the grim statistics and explore what changes need to take place for more female entrepreneurs to get to a term sheet.

One of the top ten reasons why startups fail is lack of financing and investor interest. That is why fundraising is an important part of a startup journey. There are some principles following which might increase your chances for success in closing your next investment round.

During lockdown, the UK Government awarded over £130m of grant funding for Research and Development (R&D) activity to innovative businesses and their collaborators in the United Kingdom. The awardees were from multiple sectors including creative, engineering, digital health, education and sustainable energy.

Historically, startups based in the regions have been 50% less likely to secure funding than those in London. This has created a situation where 72% of all venture capital deals in the UK involve London companies.

Since the launch of London’s Silicon Roundtable in 2008, UK tech startups have enjoyed more than a decade of strong interest from Venture Capitalists (VCs). Spurred on by the success of fast-growth consumer tech companies like Uber or Deliveroo, VCs have sought out startups that could break into the public zeitgeist to become the world’s next big thing. This culminated in more than $13bn being pumped into British technology startups in 2019. Then, the pandemic struck.

The year 2020 is a year like no other. While data shows the pandemic hasn’t affected the overall amount VC dollars invested in tech companies (on par with previous years; US), it has already had a disproportionate effect on the funds allocated to women-led businesses. Venture checks for female founders are at their lowest since 2017. The broader picture is even grimmer, with a real threat to roll back the last 30 years of economic progress for women (according to the International Monetary Fund).

“The grass is always greener…”, there are many catchphrases that describe life and business, but they always seem to be in the future tense and suggest some sort of heroic journey.

When it comes to equity crowdfunding, the go-to platform for any European investor, young company or growth stage business is either Crowdcube, Seedrs, or both. In the first half of 2020, the two platforms topped Beauhurst’s State of UK Crowdfunding report, with similar, impressive performances. Seedrs closed 95 deals and raised £49.7m, while Crowdcube secured 97 deals and generated £48.5m  – all throughout the COVID-19 pandemic.

Only one in five women in the UK hold investments... why? In the first of this three-part series I’ll be exploring this question and sharing some of my experience working in the male-dominated world of finance.

Fintech business lender, MarketFinance has secured an additional £50m from one of Israel’s largest asset managers, Viola Credit, to lend to UK SMEs under the HM Treasury and British Business Bank CBILS initiative. The announcement comes as MarketFinance launches a 'unified application' process in which SMEs will, through one application, be presented with a variety of finance options and be able to select those best suited to their needs.

For startups, the importance of quality professional advice cannot be overstated. While business owners are quick to seek advice from lawyers and accountants there is considerable resistance to seeking financial advice.  A survey conducted by OpenMoney earlier this year, which polled 2,080 adults, provides a worrying insight into how business owners view financial advisers and the advice that they provide. We spoke to Pradeep Oliver, Partner, Cripps Pemberton Greenish who gave us more insight on the topic.

European VC funds are raising a record amount of capital in recent years - $13B in 2018 with over 40% going into funds greater than €250M. Venture is not only a vital source for startup companies to achieve growth and create value through innovation - it is key for the overall economy. In essence, it is a two-sided business, where exceptional founders are matched with capital. While a lot has been said and written about the ‘front’ facing side of the venture industry, how do venture capital firms emerge and raise their funds?

Just as small businesses are the lifeblood of our economy, cash is the beating heart of every SME. But getting cash flow wrong can have devastating consequences, so how can businesses use the fintech industry to protect themselves and create stability in the most uncertain of times?

It is often said that turnover is vanity and profit is sanity. But, even more importantly, do not forget that cash is king. Put simply, businesses fail because they do not have enough cash or other liquid assets to pay their bills or meet their immediate obligations. So, whilst increasing turnover and growing profitability are what every business owner is aiming to achieve, it is crucial to still have a very strong focus on cash flow and the levels of cash in the business.

A lot of startups require funding to gain momentum and sustainable growth. For many entrepreneurs, they might start by investing out of their own pockets, or some prefer to use a business loan, bank loan or through a venture capital firm to raise several millions.

Performance marketing agency, Journey Further, has teamed up with Europe’s first revenue-based finance provider, Uncapped, to offer performance marketing support to entrepreneurs, startups and scaleups across the continent.

Fintech companies offer innovative and much-needed financial services and products; however, they have not been heard and seen at the political level sufficiently. EFA aims to become the united voice of the Fintech companies in Europe.

The amount of information we are exposed to exceeds our ability to process it. Out of the about 70,000 thoughts we have per day, our short term memory can hold no more than seven for only about 20 to 30 seconds. How does this relate to branding? Our long-term memory stores our associations with specific brands which is also ultimately the desired effect of marketing campaigns or PR activities - for people to remember your company (or you as a person!) when in need of the products or services you provide.

The Future Fund is the UK Government’s funding scheme designed to assist early-stage, high growth firms across the UK meet the challenges posed by the Covid-19 pandemic.

The current financial climate is disturbing for technology founders. At the European level, we have over 300 VC funds continuing to actively invest and grant-making programmes in every country, yet founders face many hurdles accessing capital. 

I was asked very recently by a company to explain how I would approach their projected Intellectual Property (trademarks, patents, code of the platform) concerning their Balance Sheet or Statement of Financial Position. To make it even more complicated and they have asked me to consider both UK accounting rules as well as the US.

Asto Business Capital loans are now available on the Funding Options platform as part of a long term partnership with the business finance marketplace. The Santander-backed app joins Funding Options’ roster of more than 200 lender partners, offering loans of as little as £150 or as much as £150,000, to help small businesses plug urgent cash flow holes.

2019 was a record breaking year for VC investment in UK startups ($13.2bn, an increase of 44% compared to the previous year) and the amount of VC dry powder in Europe is higher than ever before(more last year’s raises here). Success stories of companies raising millions without a formal pitch deck (Hopin, an online events platform) or still in beta and during lockdown (Clubhouse, a voice-based social media app) do sound inspiring.

Conducting a regular business audit is a vital document that is needed to help monitor and inspect the financial situation of a company. To prevent losing track of assets and overheads a business has, audits help bring clarity to managers where their cash in-flows and out-flows are going to and from.

Since the Coronavirus outbreak, multiple concerns about the pandemic deepening social and economic inequalities have been raised. The latest ‘Ecoystem’ webinar session brought together leading investors and one of world’s largest engineering and manufacturing companies in a conversation on challenging industry perceptions to break down barriers to VC funding and innovation.

Raising funding for your startup can be a challenging task at the best of times. And then along came a pandemic, making it even harder. 

OurCrowd, a crowdfunded-venture investment platform, has announced the launch of its Pandemic Innovation Fund. The Fund plans to raise $100m for investment in urgent technological solutions for the medical, business, educational and social needs triggered by global pandemics and other health emergencies.

We are in a state of an unprecedented global health crisis. Coronavirus has spread with similar speed and impact to an earthquake – with confirmed cases surpassing 5.5 million people in under six months’ time. Economically, according to IMF managing director Kristalina Georgieva, the world is facing the 'deepest recession since the 1930s Great Depression'.  A shock to the system, which has transformed the way we work, communicate and live. And fundraise. Last week a research by Plexal and Beauhurst revealed investment in UK tech startups has dropped by 50% year-on year. What should companies fundraising know, how to prepare and how has the VC landscape changed?

For many businesses, cash in the bank is often a concern especially during periods of uncertainty. Making sure you know exactly what’s going in and out and when has never been so important.

Over £7.25bn has now been paid to more than 40,500 businesses under the UK government’s Coronavirus Business Interruption Loan Scheme (CBILS). More than 130,000 applications were also received for the newer Bounce Bank Loan Scheme (BBLS) on the first day of launch alone, with SMEs able to apply for between £2,000-£50,000.

As we are all starting to hope that the end, or at least a temporary reprieve, is in sight, thoughts are starting to turn to how we and our businesses can bounce back. In fact, another week and another acronym. 

With most countries in some form of lockdown to slow the spread of CoVid-19, the business landscape for both startups and investors is almost unrecognisable to the start of 2020.

The UK government has taken a number of steps to support businesses and entrepreneurs during the Coronavirus pandemic. One of its flagship schemes is the Future Fund, a £250m package that provides a financial lifeline for innovative startups.

Money most certainly does not buy happiness, but it does make the world go round. And the lack of money can lead to hardship in many ways. A question that I keep overhearing recently is about whether it is still possible to raise finance during the coronavirus pandemic. The simple answer is yes… maybe!

We are now a few weeks into the UK’s ‘lockdown’, and the existence of many small – and large - businesses is under threat. An inability to operate cash flows as normal is undoubtedly a major concern and so many are seeking ways to cut costs and access cash, and fast.

A staggering 66% of startups have less than 12 months runway and 39% have less than six.  These bleak statistics paint a somewhat gloomy picture and yet, in the UK alone, we saw a steady 8.5% increase in the number of companies being registered last year, so these figures are certainly not deterring the business leaders of today. Here James Hyde, CEO and co-founder of James and James, explains more...

The COVID-19 pandemic has hit the economy hard, and small businesses in particular. The UK Government is moving at great pace to implement unprecedented economic assistance measures, but even with their best efforts, the dramatic drop in footfall over recent weeks has made it difficult for small businesses to survive even in the short interim period.

Smartlands has received the 'Best Crowdfunding Platform' award from the fintech breakthrough awards, which recognises the top companies and products in the financial services and technology industry today.

In February, digital bank Revolut became the UK's most valuable fintech startup after a funding round saw its value triple to £4.2bn. It has since announced that it’s set to launch in the US very soon, where no doubt it will continue its swift growth trajectory.

In any business, at any time, cash is king and cashflow is much more important than turnover, and in the short term it can often even be more important than profit. If turnover is vanity and profit is sanity, then cash flow should be regarded as stark reality.

The government backed Coronavirus Business Interruption Loan Scheme (CBILS) has been rolled out at unprecedented speed, and the size of the financial packages being made available to support businesses and employees are also unprecedented. But these are also, of course, unprecedented times.

We invest in people that are very similar to us. That in itself it can be a good thing, the problem is that men invest mostly in men! Having spent the last eight years in venture capital investments working with many entrepreneurs during their journey from early stages into growth, I realised that there are differences in the way the women entrepreneurs in my portfolios experienced the fundraising journey.

Not all investors are equal. They each have different expectations and require subtly different information to be able to make a decision. So how do you know what kind of investor is best for your company?

Let’s face it: if your business is growing fast, you’re likely to need capital. There are different ways of financing it (advanced or discounted sales, strategic partnerships, bartering, grants & loans, crowdfunding) with Venture Capital one that arguably poses the greatest risk for both founders and investors.

Fluidly, which is changing the cashflow management game through automated forecasts, is launching a funding service to aid the million-plus small businesses that have fallen into overdraft or that need funds to grow.

Whatever any of us care to call it - funding, finance, getting investors, or any other variation on the theme – obtaining finance remains one of the biggest areas of both concern, and lack of detailed knowledge, for many startups.

Getting accountancy advice and assistance is a natural and important step for all most businesses, especially those starting out. When you hire an accountant, the last thing you anticipate is that they will be negligent. Unfortunately, accountants and other professionals do not always get it right.

Angel investment is one of the best ways early stage startups can raise investment. Therefore the behavioural trends of investors will be closely followed by savvy businesses looking to ensure they have what it takes to raise finance.

As a three-time entrepreneur, I’ve been on the difficult journey of scaling from founder to big-company CEO. In one of my ventures I went from an idea on a whiteboard to a publicly trading entity in eight years, and it isn’t just one big celebration – it is hard to keep up with your company.

You've rehearsed your pitch within an inch of your life. Your slides are well designed, hit all the relevant points and your timing was spot on at three minutes.

When choosing to ‘go it alone’ as entrepreneur, there are numerous financial, operational hurdles in the way. Starting a new business from scratch is not easy, often requiring huge amounts of time and personal investment.

Give yourself a well-deserved clap. You’ve done it! You’ve come up with a revolutionary new idea, quit your day job and launched your own business. But to really get this off the ground, you’re going to need funding.

I've heard thousands of pitches from hopeful CEOs of startups in a vast array of formats. Many investors have strong views on what to include or not include in a pitch deck.

Brexit is dominating the news and has created a lot of uncertainty for all of us in the UK. In this politically neutral article, I’m going to explore how I think Brexit will affect R&D tax credits in the UK. 

The process of raising investment differs for every startup according to numerous factors, including the stage of development of your product, how much money your business requires and the type of investors you target.

Many companies think the only way to grow is through Venture Capital (VC) investment. Most companies who seek VC investment, however, fail to get it.

A survey of 200 startups and scale-ups – commissioned by Envestors in 2019 – has uncovered a number of misconceptions which are ultimately impacting the ability of companies to successfully raise funds using the crowdfunding model. Furthermore, the results show the approach - which hasn’t changed since its genesis in 2011 - is ripe for disruption.

Beauhurst, the provider of data on growing British companies, has released a report mapping out the UK’s ‘herd’ of unicorns. Coined in 2013 by Aileen Lee, Founder of Cowboy Ventures, the term 'unicorn' refers to a young, private company whose valuation has reached £1bn or more.

If your business has investors – then the importance of investor relations cannot be overstated - in Brazil, Egypt and Bulgaria, companies are mandated by law to have an IR function. That’s not the case in the UK – but it doesn’t mean you should ignore it.

In the last two articles in this series I have looked at various aspects of finance and this time I am going to stay with the financial theme but from a very different angle – tax. But tax is a very broad topic and I wanted to focus on one unusual aspect of the UK tax system, and that is R&D (research and development) tax credits, and it is unusual in the fact that this time it is HMRC giving you money rather than taking it.

In this, the second part of looking at the different forms of finance available to a startup, I look specifically at the different types of equity finance and try to summarise the benefits and drawbacks of each. The March edition of the magazine looks at the question of finance in full detail.

Sachin Dutta, Growth Hacker and Founder of Tractionic, shares a growth hacker's perspective on why humans fail and how to succeed at crowdfunding.

So far in the series I have looked at some of the different types of assistance that is available to a startup and also about what benefits working with a Mentor can bring and how you should be trying to maximise those benefits. 

Anyone who has received a PPI call in the past will know only too well the scepticism felt when the person on the other end of the line tells you that you’re entitled to thousands of pounds that you didn’t know about.

A creative consultancy that helps people who make products to get them into the hands of people who will love them.