Knowledge is power. This well-known phrase is often underplayed in the business arena, with the adage ‘cash is king’ taking primacy. While cash is, of course, fundamental to business, knowledge can often elevate a business to the next level – something I’ve come across at Connectd with a number of startups. 

Few numbers matter more to a founder than their company’s valuation. This is a fairly universal truth. But if you asked a focus group of founders which employees they valued the most, you’d probably get a few different answers.

Challau, the metaverse platform which enables users without a VR headset or high-end computer to enter immersive 3D environments, has raised a pre-seed round from 7percent Ventures, whose team first backed Oculus VR.

Fundraising is full time job, there is so much time and effort that goes into raising money, but it is worth it. We all know what the stats and figures show that there is a massive gender disparity when it comes to funding, and therefore although being a tough job – it’s even harder for women.

FourJaw, whose manufacturing data analytics platform is unlocking five-fold increases in shopfloor productivity, has secured a second round of angel investment and Innovate UK funding worth £1m, to accelerate its growth and support high-value-added manufacturers across the country. 

Flow Your Money (Flow), the money management app for freelancers and consumers has raised a €3.5m seed investment round led by Eleven Ventures. The round was joined by RockSalt, the venture arm of SaltPay, as well as Silverflow co-founder Robert Kraal (former COO Adyen), Hristo Borisov (founder and CEO of Payhawk), Marnix van der Ploeg (Booking.com) and Travel Health Group’s owner Arnoud Aalbersberg. The investment will enable Flow to scale up its platform, which makes it possible to automatically distribute incoming and outgoing money flows, taking the step towards 'self-driving money': smart, fully autonomous money management. Flow now also can expedite European expansion plans as it sets out to become the largest player in this fast-growth market. 

These days, entrepreneurs and business owners are actively dealing with a dynamic economy and this presents a unique problem for them. It means that they need to look for ways to raise enough capital for financing their business startup. But raising capital is not so easy and you have to be well aware of what you are stepping into before you start seeing any results.

The £12.09 million Digital Growth Grant will help tech start-ups and scale-ups tackle the challenges facing small firms and open up access to skills training and advice.

It has often been said that cash is king. This does not of course mean cash itself, but the phrase refers to a company’s cash flow and how it manages the flows of payments into and out of the business. Ultimately, turnover, and even profitability, are secondary in importance to cash flow.

European deeptech is enjoying a bit of a moment. Startups working in deeptech - translating new knowledge into tangible technology to address significant business and societal needs - account for close to a quarter of the continent’s startup ecosystem. And in 2021, that ecosystem invested a record $100B of capital.

Fumopay, known as ‘fumo’ is on a mission to demonstrate that technology innovation within the banking and financial services sector can have a direct impact on the lives of our young generation to help them become financially savvy, in a somewhat desperate attempt to help people avoid unnecessary personal debt.

– Amcor, who develop and produce responsible packaging solutions, announced the launch of Amcor Lift-Off, an open-call initiative aimed at supporting seed stage startups that are focused on innovative packaging solutions and related technologies. Amcor Lift-Off offers these startups a chance to secure an investment of $250,000, as well as operational guidance, to take their ideas to the next level.

Economies around the world are in the throes of sky-high inflation. Interest rates are creeping up. There is a historic crisis in Europe, energy prices are rocketing, and supply chains are clogged. It’s a scary time to start a business. 

R&D is a valuable relief the UK government offers in order to incentivise businesses to innovate and enhance productivity. The scheme is widely underutilised and over the course of several budgets the Chancellor of the Exchequer has sought to widen the scope for claiming this relief.  The most recent changes he made will be implemented from April 2023.

International Women’s Day may have taken place a few weeks ago on the 8th of March, but that doesn’t mean the conversation has to stop there. It is so important that although we highlight this day and all it stands for, we take this further and action all these thoughts and ideas.

Of all the areas of starting and scaling a business that most founders are unsure of it is raising finance. For some, the questions are more basic, whilst for others the questions can be more detailed. Perhaps two of the reasons why there are always so many questions about raising finance is that it is so important for the future growth of the business and indeed that it is such a complex area.

Research and development (R&D) tax relief was introduced by the government in the year 2000 to encourage UK company investment into innovative projects. Serving as a lucrative tax incentive, the scheme is open to any UK company that’s registered for Corporation Tax, regardless of size or sector. However, there’s still a widely held and outdated assumption that R&D only happens in science labs or ‘techie companies’ which simply isn’t the case.

Chargebacks are a thorn in the side of merchants across all verticals. Here we take a look into the root causes of chargebacks, and how you can best defend your business against potential losses.

Wednesday 9th March sees the launch of the latest iteration of the UK Government G-Cloud.

International Women’s Day shines a light on the amazing work of women across multiple industries. However, it also serves as an important reminder that a lack of diversity remains an ongoing issue, especially within the venture capital industry.

AQRU, an incubator specialising in decentralised finance (DeFi), announced that it has acquired Bison Exchange UAB (Bison), a blockchain technology company registered in Lithuania, for a cash consideration of €30,000.

I always say that numbers speak for themselves. So it’s doubtful that these numbers will surprise female founders anywhere. Pitchbook data from earlier this year showed that, despite record levels of capital invested in Europe, female founders received just 0.7% of the total funding - €400m (about $473m). The picture isn’t much more encouraging in the US; last year, female-only founded companies garnered 2.2% of the total capital invested in venture-backed startups.

The launch of the Seed Enterprise Investment Scheme (SEIS) in 2012 was a game changer for startups across the UK. Launching a company from the ground up is a difficult endeavour but the new tax benefits, which encouraged investment in small and potentially riskier enterprises, were a boon for investors and business owners alike.

According to research, 38% of startups fail in the UK each year because they run out of cash or fail to raise new capital.

As our world becomes more interconnected, so too does the need for banking systems to follow suit. In the past, businesses and individuals were often restricted to banking in a single country, but the rise of borderless banking is enabling both to benefit from greater financial freedoms. In this article, we will examine why this trend is so important and explain how Fintech companies are helping to make it possible. 

We are entering a new phase of climate-aligned investing. At COP26 last month, green investment was a cornerstone of conversation and debate, with innovation and technology highlighted as crucial mechanisms for tackling climate change. Now - more than ever - investment communities of all shapes and sizes are expected to back startups that are not only committed to sustainability and a zero-carbon economy, but are also using innovation to actively solve the climate crisis.

Launching a startup is one of the most challenging steps you’re going to take in your professional life. But it will be worth it if you play your cards right. Without a doubt, the COVID-19 pandemic has had a major impact on the way SMBs operate, but as a startup you need to consider many other challenges that lie between you and long-term success.

In the new digital economy, the rapid growth of cloud software is hardly surprising. In the aftershock of the pandemic, as hybrid working practices remain as prevalent as ever, companies face a critical need to enable staff to access data safely, without necessarily needing to return to the office. Elsewhere, organisations will be looking to cut costs, and store information safely with additional flexibility.

Global VC funding broke new ground in the first half of 2021, with a staggering $288bn invested worldwide.

When it comes to considering how best to raise pre-seed or seed finance for your business, one of the most commonly asked questions is whether getting investment from business angels or crowdfunding would be better. It could be argued that business angels are just much wealthier versions of people that invest on crowdfunding platforms. As such, in reality it is more a case of a small number of angels can replace a much larger crowd.

Having decided that you want to scale your business and that you need more money to do this properly, you will then need to carefully consider all the different options available and make sure that you get the best funding and from the best source.

The post-mortem on Rishi Sunak’s Autumn Budget has focused on the politics of tax and spend, but I have heard very little discussion about an equally important question – where was the support for entrepreneurs?

HMRC’s recently-released annual Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) statistics made for interesting reading. While the 2019/2020 numbers don’t offer a full account of Covid-19’s impact on the market, funding from EIS rose to £1.905bn - up from £1.867bn in 2018/2019 - with SEIS funding marginally down, from £171m in 2018/2019 to £170m in 2019/2020. Combined, EIS and SEIS have now helped over 45,000 startups receive over £25bn in funding. A testament not only to the two schemes, but to the UK’s entrepreneurial spirit.

The COVID-19 pandemic has steered the banking industry worldwide towards digital transformation. Traditional financial services became redundant overnight leading to a historic rise in the adoption of fintech platforms across the world. Cashless payments became more popular due to the need to lead our daily lives in a contactless manner.

Customer Acquisition Cost (CAC) is the cost of acquiring a customer to purchase products. It works along with the Customer Lifetime Value (CLV). CAC is an important term for growth businesses.

Although revenue-based financing has many benefits and in-built flexibility, founders should be assessing its suitability once they considered all the aspects of the product and the lender.

End of last year, I ran a session for founders on raising early-stage investment.  At the beginning of the session, I asked the audience to walk me through an outline of the stages involved when engaging an investor. One of the responses I received was, ‘you pitch the business…then if there is interest you present and discuss the financial model.’ I then asked a second question. When do you use ‘storytelling’? Several responses came in via messaging, ‘the pitch’. Which is correct, but it is not the only stage where it is used.

Even with a stand-out business idea, securing the funds to set your plans into motion is one of the biggest hurdles an emerging enterprise will face. Luckily, there are a number of ways in which your startup or SME can gain capital.

At a time when many people around the UK are making career changes and starting new enterprises, aspiring business owners will be looking for the right business loan to get their companies off the ground. Choosing the right loan partner is an important decision, and it’s crucial that people know what to look for before they commit. The important thing to remember is, it’s about much more than just the money.

We don’t often address mental health in male-domintated sectors, despite well-being becoming a more accepted topic in mainstream media. There is a lingering macho stoicism surrounding the conversation about the toll that raising capital can take on business leaders, which is perhaps no wonder in a field where the pursuit of work-life balance is seen as a weakness.

The UK startup is simplifying the world of podcasting and making it more accessible for the storytellers of tomorrow.

The values of tech companies are skyrocketing, and generally outperforming the rest of the market. With plenty of cash looking for a sound home in growing businesses, the time is now for tech companies. So, how can they bag the best investors to back their technology?

At St. James’s Place, we work with a large number of fund managers within the UK venture capital industry, notably in the tax-advantaged space, investing across many different sectors. This provides us with a unique insight into the small business ecosystem.

Early Stage investors can often seem like mythical animals hidden in parts of the city you have little access to. When you do finally catch yourself face to face in a crowded networking event, or on a brief phone call that you’ve been preparing for all week, it can often feel like an uncomfortably one-sided encounter.

One presumption about tech-for-good startups is that they generate less profit than traditional tech companies. This is a myth - they need to take care to prevent the nobility of the cause from getting in the way of their financial ambition, but there is no fundamental conflict between good business and business for good.

When my business partner, Jack, and I started UnderPinned in August 2018, we had countless images of what running a startup would look like. Time has shown that many of them were poorly conceived. Some, downright fanciful. It’s only been two and half years, but it feels like aeons ago now, and I’ve often thought back to that time, wondering what I would tell myself if I could hop into a time-machine and talk to a younger, bright-eyed and bushy-tailed Albert.

As part of the last budget, Chancellor Rishi Sunak announced that the limit for contactless payments is to be increased from £45 to £100. As a large portion of UK businesses have been closed for months, there’s an obvious reason to want to stimulate the economy by making larger purchases easier. While this increase in the contactless limit seems to be a good move on the surface, we must look at the impacts of this change and debate the case for alternative payment methods.

A common question from startup founders looking to bring advisors on board is how to compensate them. What framework can you use to design a suitable package for your advisors?

Whilst the UK is home to a large number of innovative startups, and has even been proclaimed the ‘unicorn’ capital of Europe, it also has a disappointingly high gender funding gap. According to a report commissioned by the British Business Bank, for every £1 of VC investment, less than 1p went to all-female teams and only 10p to mixed-gender teams. The initial reaction may be to point fingers at the VC industry, however interestingly the report also noted that in fact only 5% of all pitchdecks received are from all-female teams.

On April 6th 2021 a new Government loan scheme has come into force to help those businesses with the next steps after they have been affected by the economic difficulties and uncertainties caused by the Covid lockdowns. 

Pre-pandemic, the economy was expanding. We’d come out of the global economic crisis wounded but wiser, and looking for change. With startups everywhere and SMEs acknowledged for their serious contribution to the economy, things were pretty good. But no one was prepared for COVID-19.

Asides from having a great idea, one of the most important things you need to do as a startup, is consider your budget. It’s important to have a clear understanding of what you can spend, what you can expect to make, and how the two balance out. Without undertaking this process, you risk ending up in a situation where your finances are out of sync, causing significant issues for your business.

A recent study cited by a leading Fintech publication found that whilst 30% of the fintech workforce is female, only 17% of senior fintech roles are held by women and just over 5% of founders are women. These statistics are pretty shocking as Fintech is such a dynamic world of discovery and innovation.

One of the most common questions that entrepreneurs ask at the early stage of a company is - how do you secure funding? After all, it’s one the most crucial steps in developing a company and will give entrepreneurs the ability to hire employees, develop their product and take the company to new heights. And as the company matures, the process can be slightly different along the way – there are different objectives when raising seed funds, versus Round A, B, and C because at each stage the company itself is at a new level. 

Matthew Singleton, Investment Director at Throgmorton Capital Management has spent most of his career advising his clients on how to manage their wealth and plan their financial futures. From time to time Matt advises clients on strategies that may involve investing in startups. He is also a passionate champion of startup businesses and has been involved in early-stage businesses himself. Here, he shares his financial and investment advice for any early-stage business looking to grow quickly without exposing themselves to unnecessary financial risks in his six top tips.

Salary finance is the fast-growing concept that helps employees earn wages in real-time from their employers, defeating the need for high cost loans.

After another record-breaking year, in which VC investment surpassed more than €38bn in Europe, Dealroom has released its annual ranking of the Most Prominent Venture Capital Investors for 2021 - and this time, it’s gone global. 

A growing number of people are showing interest in investing. This has been evidenced by an increase in the number of trading and investment accounts opened over the last 18 months and the interest is expected to continue for the foreseeable future. Additionally, more and more business and startup entrepreneurs are getting involved as well. This is due to an interest in becoming more financially literate as well as the desire to benefit from investment yield. But how to go about it?

The world is undergoing huge changes at the moment. Between coronavirus pushing the economy to the limit and a group of Redditors challenging the financial market hegemony, people are questioning the role of established institutions. If finance doesn’t work to enable the economy, businesses or individuals, then who is it for?

Entering a flash recession, with signals the UK economy is already on the recovery following the financial difficulties of the coronavirus pandemic, there’s never been a more important time to secure additional investment for SMEs to help continue growth for their business.

You don’t need investment to start a business. However, you do need money and, depending on the nature of the business, probably more than you think. Even the smallest start-up businesses need money for marketing and to buy the equipment.

Any startup that’s raised venture funding knows it can be a gruelling process. It can take hundreds of meetings, calls, and pitches to land the capital you need to grow. However, VCs provide more than just capital and this can be a huge enabler for startups as they grow and scale. It’s therefore vital to look beyond the cash and ensure any VC you’re looking to work with is able to offer you more than just money.

The challenges presented by COVID-19 have been a force for good in some organisations where it has accelerated a digital-first mindset and driven some positive developments.

In the final part of this series, I’m looking right in the eyes of the elephant in the room: risk.

There are many joys that come from starting life as a freelancer or small business owner – the empowering feeling of striking out on your own, the freedom to set your schedule, the sense of accomplishment when your ideas come to life. But one of the biggest headaches is suddenly being in charge of your own finances, from payroll to budgeting to taxes, especially if you have limited experience in these areas.

If you’re growing a business that has a purpose beyond making profit the world of investment might feel daunting. But there is a breed of investors who are looking to see their investments making a social and environmental impact and they are on the look out to back the leaders of the future. This is an opportunity you can’t miss.

The great idea has started to come to fruition. You are excited about the future for your business and yourself. You have a team in place, and you have got the startup started. The investment market has predetermined that you should go and look for investment to drive your business forward. A good majority of startups follow this route without question.

New data from SeedLegals has revealed a surge in investment from family and friends over the last year, which has helped to prop-up new and existing startups.

Included VC, the first-of-its-kind global initiative building diversity within venture capital, has in a collaborative partnership with 11 funds from around the world, kicked off its Fellowship II. It is the only offering on the market that offers a nine-month, fully funded Fellowship to diverse individuals globally who are looking to enter the VC ecosystem.

Workspace accelerator, Huckletree has launched a new quarterly series, Huckletree VC Connect, which sees them partner with leading VC firms to help founders who are looking to raise in the near future with informal and personalised advice. 

It’s official – London is Europe’s global tech city, with London based technology firms having raised more than $10.5bn in new investment from venture capital firms in 2020. As good as that is, the good news just keeps on coming, as 2021 looks to be even more promising given that London based VC firms have raised record amounts of fresh funds ready to deploy this year.

The online world has often been difficult for inventive startups that want to make a living from their passion. You have an idea that you believe consumers want, but getting it to them is hard. Your strength is in the idea, but to get it out there you have to create a website, decide on ecommerce or charging capabilities, plan a marketing strategy, resolve accounting issues and even organise customer service. So before you even get started you are defeated by too many obstacles. However, for the creative person there are a great many platforms and technology solutions that will do all of this for you.

As high street lenders back down amidst the COVID crisis, more and more startups are turning to online banks and startups funds. We caught up with Jeb Buckler, CEO and Founder of Startups Giants on the current situation. 

Staying on track financially can be one of the most challenging aspects of creating and managing a startup. If it wasn’t hard enough, the global pandemic has added another dimension of difficulty which even the most robust of businesses have struggled to navigate. However, there are a few key things that startups can do to stay on top of their finances. Below are five tips for startups aiming to become a thriving and profitable business.

As we enter a new year, and unfortunately another lockdown lets get down to business. Our lastest issue out at the end of January focuses on the different ways to fund your startup.  

One of the advice I always give to founders before they go to investors – make sure you are fundable. But what is a fundable business idea? Having been working with startups for more than ten years and supporting them in the fundraising process I summed up these seven questions that could help you understand whether you are ready to raise funds

Can we blame COVID entirely for startups failing or is it the investor system failing them? Stats from Beauhurst show that maybe now isn’t the worst time to be a startup?

This is a question we ponder often at Seed, the readers of Startups Magazine no doubt question and every new Entrepreneur needs to consider. How the hell do you fund this great idea of yours.

In the first part of this series I looked specifically at why women aren’t investing. This time, I’m exploring what’s stopping everyone else.

All hope abandon ye who enter here. If 2020 had a tagline, that would be it. It's been a rotten year for the startup community. The Coronavirus pandemic has caused unprecedented economic damage, imperilled revenues, and poured cold water on investor confidence.

How much do you know about the Kickstart Scheme that was introduced by the Government in September 2020? If you are a startup or early stage business, my guess would probably be, not very much, but perhaps you are missing out on something that could be very good for your business.

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.