Yes. We do follow on in the subsequent rounds of existing portfolio companies. Usually we can follow-on in up to two rounds after our initial Seedcamp investment.
When we participate in an active round led by another investor, we aim to participate in Seed rounds that are on average around £3M or less with an investment of up to £500K. At a stretch we may invest in a larger round but that’s more an exception to the rule.
We will lead your pre-seed round with investment of around £200K, usually in exchange for an ownership stake between 6% – 7%. Traditionally, these pre-seed rounds range in size from £400-750K.
For pre-seed (where we usually lead the round), we like to use documents based largely on the standard Seedsummit terms that we helped co-ordinate with the help of many other investors in the eco-system. Please see here for an example of our current standard pre-seed investment document agreement. We’re comfortable using either a convertible or equity structure and work with the founders we invest in to figure out what’s best at the time we invest. For seed (where we co-invest), the terms of the round and legals are generally driven by the lead investor.
We are sector agnostic in our approach and focus on backing world-class founders creating valuable, tech businesses for sufficiently large addressable markets. We want you to be solving big problems for big markets. We aren’t afraid to take risks so you shouldn’t be afraid to be ambitious and far reaching.
Successful companies, in our experience, come in many different shapes and sizes, but have a few attributes in common at the early stage. These include: the quality of the founding team, how well they’ve considered their customer, the market size of their opportunity and their customers’ challenges, how this represents itself in the product they’ve created, and lastly how much funding is required to really demonstrate product market fit. The better articulated the above points are, the more comfort we feel in whether we can deliver value to the founding team.
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