How we invest
Seedcamp IV: Our Investment Process
At Seedcamp we invest in pre-seed and seed stage companies and ask startups interested in joining the Seedcamp nation to submit details via our website for us to review. We believe speed to closing is a winning formula and something we endeavour to deliver to founders looking for investment from Seedcamp. For transparency, we’ve mapped out how our internal process works so you know when you might expect to hear from us along with our investment terms at both stages:
Pre-seed – We lead:
We’ll lead your pre-seed round with a cheque of £100k in exchange for 7.5% target ownership. You may have already raised a small amount of capital from friends and family but this will most likely be your first round of institutional investment. Whether you’re pre-product, in beta, or have some early revenue, we open you up to Seedcamp nation – the most powerful, collaborative, connected and experienced network you’ll find – and provide you with everything you need to get you off the ground. What’s more, if you are in need of additional capital, we can bring in leading angels and high net-worths to anchor your round up to £250k.
We’ve led pre-seed rounds into the likes of fintech unicorn, TransferWise, Revolut, Stupeflix, BridgeU and Divido.
Seed – We co-invest:
We co-invest alongside the best in the game in seed rounds up to £2M. We’ll invest up to £400k but look for another investor to lead this round. We’ve invested in the likes of Cuvva, wefox, Curve, Monese, Property Partner, Pointy, The WaveVR and UiPath at this stage and act as your strategic partner to get you to Series A and beyond.
We also reserve significant amounts for follow-on investment across both our Pre-seed and Seed strategies.
There are six stages to the Seedcamp pre-seed investment process:
Startups submit their details via our website. The short number of questions we ask are an important first step in our process as they allow us to get a quick overview of the business. We also request companies provide a link to their deck.
Once the form has been submitted, this creates a card in our internal dealflow management system. Each card is assigned to a member of the Seedcamp investment team for review. We aim to complete this initial review stage within two weeks with a view to getting to an answer as to whether your startup will be progressing to the next stage in our process or not.
Startups that are successful in reaching this stage are eligible for further internal review by additional members of the Seedcamp investment team and the investors in our fund. We use this stage to gather more information and dive deeper into reviewing the business in order to build further conviction around a possible fit for investment.
Startups that look like could be a fit, we invite for an initial meeting either in person or via Skype. This meeting is with at least one Seedcamp Partner. At this point we will be following up with questions that have arisen from our internal review and learning more about the business from the founders. Any startup that is not successful at progressing to the next and final stage of our decision process can expect feedback as to why.
The final stage in our process involves a presentation to the entire Seedcamp investment team. During this meeting, no more than one hour in length, we like to really follow-up on some of the key areas that we’ve identified.
We’re a small investing team experienced in building conviction at the earliest stages. Following the final step in our process we look to communicate swiftly to founders where we stand. If it’s a yes, then we’ll sign the termsheet and away we go! We’ll also work together to see if we should build a larger syndicate to invest alongside us (generally supplementing our investment of £100k with up to an additional £150k from investors in our fund).
We recognise how frustrating and time consuming the fundraising process can be and we want to remove as much friction as possible. We hope by being upfront and transparent with how our process works, this can be helpful in managing expectations. We strive as a team to get founders to a yes or a no as quickly and painlessly as possible so you can get on with the important part of building your business!