Do you have standard legal documents that you like to use?
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 convertible note 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.
When is the right time to approach Seedcamp for investment?
We are generally the first capital into the majority of our companies to date. These companies have ranged from prototype to pre-launch to launch and even post revenue. We appreciate different businesses are at different stages when they learn about us. But from the point you have a prototype (pre-revenue) through to when you have early revenue, we are happy to learn more about what you do and consider you for investment.
If you think you are at a point in the business at which Seedcamp’s platform of support can really help you step up your plans, then it’s likely the time we should invest. This is really our sweet spot for providing rocket fuel for startups on their journey ahead.
Does Seedcamp only invest in certain areas/sectors?
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.
What is the main thing Seedcamp looks for when investing in a company?
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.
How do you help companies raise money?
Raising additional capital for growth is one of the key concerns founders have at the early stage of their businesses. At Seedcamp we appreciate that the process of raising more growth funds can be a draining due to the opaqueness of communications from new investors, the web of relationships necessary to navigate, the time it takes to raise, and the negotiation of terms that best align interests with existing and future shareholders. Our time and commitment to founders is to maximize choice for them while reducing all of the above in order to fast-track the whole process. As part of our platform offering, we expose you to leading global investors both in Europe and the US, ensuring you're meeting the right people and have a solid understanding of the investment landscape to identify who the right future partners for your startup will be.
What is your investment process and how long does it take?
We've broken down all the stages of our pre-seed investment process here so you can see exactly how it works. From initial submission, we'll aim to get back to you within 14 days if we are interested in taking you through to the next round of our investment process.
How much does Seedcamp typically invest?
We will lead your first investment with a cheque of £100K for 7.5% equity. We will co-invest in seed rounds of up to £2M as long as you have a lead investor.
What’s the average size of a seed round Seedcamp participates in?
When we participate in an active round led by another investor, we aim to participate in Seed rounds that are on average around £2m or less. At a stretch we may invest in a larger round but that’s more an exception to the rule.
Does Seedcamp like to lead or invest as part of a syndicate?
At pre-seed we like to lead your round and will set the terms. We can bring in other angels at this stage if you need additional capital to get you off the ground. At seed stage, we look to another investor to lead the round and will naturally follow their terms.
Do you invest in companies outside of Europe?
We believe global fast-growing companies can be born anywhere in the world. Whilst we tend to focus on European founders, we are happy to consider founders from other geographies if we can both agree on how we can best deliver value and they can leverage our platform.
Will Seedcamp agree to sign an NDA?
It is typical for investors to not sign NDAs. There are plenty of resources on the web on why this is the case (see below). As we want to make sure we can expedite your fundraise from us, we don’t sign NDAs.
Does Seedcamp invest alongside other VCs and Angels?
Arguably, Seedcamp has the best network and access to Angels and VCs in Europe and we are backed ourselves by tier 1 corporates, VCs, angels and funds of funds. At pre-seed we can help bring in other angels to anchor your round and at seed stage we invest as part of a syndicate alongside other leading angels and seed investors.
Does Seedcamp insist on always taking board seats?
The best way for us to be able to help you is to have access to the same level of information and conversations as your other investors. In that spirit, we do not take board seats but generally like to take an Observer role. We expect to stay on as an Observer for the first six months after we invest, and are happy to discuss whether we can continue to add value thereafter.
I’m interested in working for one of your startups? How can I get in touch?
Check out our jobs page Seedcamp.com/Jobs
How much have Seedcamp companies raised in follow on funding?
As of August 2017, Seedcamp-backed companies have gone on to raise over $900M in follow-on funding
How many companies that Seedcamp has invested in are still operational?
As of August 2017, 161 companies are still operational