How we invest

Seedcamp V: Our Pre-Seed Investment Process

At Seedcamp we invest in pre-seed and seed-stage companies and ask pre-seed 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 will lead your pre-seed round with investment of around £200K,  usually in exchange for an ownership stake between 6% – 7%. 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. Traditionally, these pre-seed rounds range in size from £400-750K. We are also happy to syndicate with external investors where relevant.

We have led pre-seed rounds in unicorn businesses, TransferWise, Revolut, and Hopin along with the likes of Pleo and Sorare. You can see all stages of the Seedcamp pre-seed investment process below:

Step 1 – Submission

Pre-seed 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 – First Conversation with Investment Team

We invite startups that look like they could be a fit for an initial conversation (usually a call). This will include one or more members of the Seedcamp Investment Team. At this point, we will be following up with questions that have arisen from our internal review and are keen to learn more about the business and the founders. 

Step 4 – Partner Pitch

The final stage in our process involves a presentation to the entire Seedcamp Investment Team. During this meeting, usually 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.   

Closing

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 move swiftly to legals and getting the round closed as soon as possible. We’ll also work together to see if we should build a larger syndicate to invest alongside us (generally supplementing our contribution with up to £500k of additional investment from our Seedcamp LP base).

Timing

As is evident from this post, we have a structured decision-making process for making new pre-seed investments. Like any firm, we have an Investment Committee which meets new companies at regular intervals. In order to keep our pre-seed process as efficient as possible, we tend to schedule these final stage meetings with our partnership over a three-day period every couple of weeks. To keep expectations with founders aligned, we like to stick to this process as much as possible. However, as early-stage investors, we recognise fundraising can move quickly and we are also set up to adapt our processes where necessary.

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!