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.
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.
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.
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.