Which types of funding opportunities are out there?

Before you get started on looking into various funding platforms and investment companies, we recommend you to check out alternativebusinessfunding.co.uk , a web portal that provides free and easy access to selecting alternative business funding for SME’s – especially those with an interest in alternatives to traditional bank loans or asset finance.

Crowdfunding

Crowdfunding allows entrepreneurs to raise (usually) small amounts of capital from a large group of individuals via the Internet to finance their business venture. The following crowdfunding opportunities exist for entrepreneurs in UK:

• CrowdingIn is a website that helps you find crowdfunding platforms that suit your fundraising needs. 
• Crowdcube is a UK-based investment crowdfunding platform. Crowdcube is Europe's largest network of angel investors backing British businesses. You can raise investment in exchange for an equity stake in your business  or by issuing mini-bonds and borrow from the crowds.
• Seedrs is an investment crowdfunding platform that allows investors to invest in your business via equity, fund and convertibles.
• Syndicate Room is an equity based crowdfunding platform, based in Cambridge. To raise investment via Syndicate Room, you need to seek minimum equity funding round of £150,000 and already committed 25% of the equity sought.
• Seedups is equity based- crowdfunding platform for technology startups in UK, Ireland and US.
• InvestingZone is an equity based crowdfunding platform that allows entrepreneurs to raise money and startup funding for small business. Available only to UK businesses.
• Crowdfunder is a reward based crowdfunding platform, based in UK but open to projects around the world.
• Kickstarter is a US-based global crowdfunding platform for creative projects. The platform is reward/donation based and offering financial incentives like equity or repayment is prohibited.
• Indiegogo is a US-based global crowdfunding platform that help individuals, businesses, and non-profits raise money online. The platform is reward/donation based and offering financial incentives like equity or repayment is currently prohibited.

Peer-to-Peer Lending

Peer-to-peer lending allows you to borrow money from individuals, or "peers", without going through a traditional financial intermediary such as a bank or other traditional financial institution. The Peer-to-Peer Finance Association (P2PFA) in UK is a self-regulatory body for the sector to promote high standards of conduct and consumer protection. It has a network of peer-to-peer lending platform members who are required to operate by a strict set of rules.

The full list of P2PFA members is available here.

Angel investments

Angel investments are typically the earliest equity investors in startup companies. Angel investors are usually wealthy individuals that band together in investor networks. The UK Business Angels Association gathers a pool of useful resources to help entrepreneurs understand angel investing and its investment process. For more information, you can access here.

• UK Angel Investment Network is a web-based matching service for angel investors seeking investment opportunities and entrepreneurs seeking capital. Angel Investment Network Ltd has the largest angel investment community in the world.

• Angels Den is an angel-led crowdfunding platform that matches entrepreneurs with experienced angel investors. Different from average crowdfunding platforms, Angels Den investors often play an active role in the business, providing expertise and contacts to drive growth.  You need to look for minimum £50,000 in order to register. It also runs monthly events that allow entrepreneurs to pitch to angel investors face-to-face.

• Venture Giant is an online platform that angel investors with entrepreneurs seeking investment to start-up their business or expand their existing company.

Venture capital

Venture capital refers to money invested in a project in which there is a substantial element at risk, typically a new or expanding business.

• Balderton Capital invests in the early stages of companies across Europe with an investment size ranging from US$100,000 to in excess of US$20m (typically around US$5m).

• Enterprise Ventures provides equity funding of £30,000 to £2 million to start-ups and young, growing companies located throughout the UK.

• Connect Ventures is a London-based venture capital firm that invests in early stage internet and mobile startups across Europe. Investment size ranges from £300K-£600k.

Here you can also find a list of Venture Capital, Seed & Early Stage Funds in the UK

Government schemes

• The UK government provides a range of finance support for business, including grants, finance and loans, and funding for small and medium-sized businesses and start-ups. For more information, you can visit here.

• UK Business Funding Centre can help you find government funding that’s suitable for your business. 

• smallbusiness.co.uk offers articles and advice on how UK small businesses can get a government grant. For more information, you can visit here.