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 standard cheque size of £150-180K usually in exchange for 6.5% ownership. The exact size of our ticket is dependent on several factors, including to what extent the round is being syndicated with others. 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 help bring in leading angels and high net-worths to anchor your round up to approximately £500K. We are also happy to syndicate with external investors where relevant.
We’ve led pre-seed rounds in fintech unicorns TransferWise and Revolut, as well as the likes of Pleo, Divido and Trussle.
There are six stages to the Seedcamp pre-seed investment process:
Step 1 – Submission
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.
Step 2 – Initial Review
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. After this initial review we will notify you on whether your startup will be progressing to the next stage in our process or not.
Step 3 – Deeper Look
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.
Step 4 – First Interaction
We invite startups that look like they could be a fit for an initial conversion (usually a call). 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.
Step 5 – Meeting
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. Any startup that is not successful at securing an investment from us can expect feedback as to why.
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 make a set of pre-seed commitments 6 times a year at regular intervals. As such, you can expect the process from submission through to receiving a decision from us taking a maximum of 2 months – though we aim to provide an answer on where we stand much earlier than this where possible.
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!