Advice on funding for a start up
Discussion
Hey guys,
I've been working on an innovative concept within the logistics/retail space for a number of years now.
I have pitched the idea to two major UK retailers who have both agreed to support a trial to test proof of concept, I have a meeting next week with a third major retailer.
The idea has massive potential to be scaled provided I can create a commercially viable business model.
The amount I need to raise to test proof of concept is £100-£150k.
I can raise a small amount personally and I am planning on applying for an Innovate UK SMART grant, although I have reservations about whether I will be able to demonstrate that I meet certain parts of the criteria for funding.
If anyone has any advice on alternative methods of funding that I should look into, it would be very much appreciated, thank you.
I've been working on an innovative concept within the logistics/retail space for a number of years now.
I have pitched the idea to two major UK retailers who have both agreed to support a trial to test proof of concept, I have a meeting next week with a third major retailer.
The idea has massive potential to be scaled provided I can create a commercially viable business model.
The amount I need to raise to test proof of concept is £100-£150k.
I can raise a small amount personally and I am planning on applying for an Innovate UK SMART grant, although I have reservations about whether I will be able to demonstrate that I meet certain parts of the criteria for funding.
If anyone has any advice on alternative methods of funding that I should look into, it would be very much appreciated, thank you.
Innovate UK are a useful resource but you need to be meticulous in your application. They run insight seminars on what they are looking for and how to apply. Attend one of these and follow their guidance. If successful you will be expected to report regularly to them. You can also consult with them on eligibility before you start the process.
Don't worry too much about eligibility though. The best approach is to apply and see what they say. If you get rejected, they will tell you why. This helps you to hone in on the more appropriate sources.
Next, dig around the economic development section of your local authorities' website. (District and County). They often have pots for local enterprise or at least can signpost you to others.
I have no direct experience of Funding Circle but may be wise to have a look there.
Local Chambers of Commerce can also be useful for fund searching.
Despite us leaving, the UK still has access to some EU enterprise funding. IIRC this is region-specific and your local authority will be able to tell you if there's anything available to you.
Do check the conditions on any funding you receive, particularly on reporting. Some carry obligations to levels that many start-ups struggle to find capacity for. If you're late on a report or the reports are incomplete, you can find yourself in a position of having rebate the funder.
If you're confident in the concept, avoid giving away any of your business in return for start-up capital if you can. If you need £100k but can only raise £20k and bring in an investor, then the business is no longer (fully) yours. That said, 20% of something is better than 100% of nothing so you need to weigh up what you want/need against the risk.
Sounds like you're onto something though so good luck.
HTH
Don't worry too much about eligibility though. The best approach is to apply and see what they say. If you get rejected, they will tell you why. This helps you to hone in on the more appropriate sources.
Next, dig around the economic development section of your local authorities' website. (District and County). They often have pots for local enterprise or at least can signpost you to others.
I have no direct experience of Funding Circle but may be wise to have a look there.
Local Chambers of Commerce can also be useful for fund searching.
Despite us leaving, the UK still has access to some EU enterprise funding. IIRC this is region-specific and your local authority will be able to tell you if there's anything available to you.
Do check the conditions on any funding you receive, particularly on reporting. Some carry obligations to levels that many start-ups struggle to find capacity for. If you're late on a report or the reports are incomplete, you can find yourself in a position of having rebate the funder.
If you're confident in the concept, avoid giving away any of your business in return for start-up capital if you can. If you need £100k but can only raise £20k and bring in an investor, then the business is no longer (fully) yours. That said, 20% of something is better than 100% of nothing so you need to weigh up what you want/need against the risk.
Sounds like you're onto something though so good luck.
HTH
Edited by StevieBee on Thursday 8th December 10:29
StevieBee said:
Innovate UK are a useful resource but you need to be meticulous in your application. They run insight seminars on what they are looking for and how to apply. Attend one of these and follow their guidance. If successful you will be expected to report regularly to them. You can also consult with them on eligibility before you start the process.
Don't worry too much about eligibility though. The best approach is to apply and see what they say. If you get rejected, they will tell you why. This helps you to hone in on the more appropriate sources.
Next, dig around the economic development section of your local authorities' website. (District and County). They often have pots for local enterprise or at least can signpost you to others.
I have no direct experience of Funding Circle but may be wise to have a look there.
Local Chambers of Commerce can also be useful for fund searching.
Despite us leaving, the UK still has access to some EU enterprise funding. IIRC this is region-specific and your local authority will be able to tell you if there's anything available to you.
Do check the conditions on any funding you receive, particularly on reporting. Some carry obligations to levels that many start-ups struggle to find capacity for. If you're late on a report or the reports are incomplete, you can find yourself in a position of having rebate the funder.
If you're confident in the concept, avoid giving away any of your business in return for start-up capital if you can. If you need £100k but can only raise £20k and bring in an investor, then the business is no longer (fully) yours. That said, 20% of something is better than 100% of nothing so you need to weigh up what you want/need against the risk.
Sounds like you're onto something though so good luck.
HTH
Thanks Stevie for taking the time to send such a detailed reply, some really useful points, especially around reporting.Don't worry too much about eligibility though. The best approach is to apply and see what they say. If you get rejected, they will tell you why. This helps you to hone in on the more appropriate sources.
Next, dig around the economic development section of your local authorities' website. (District and County). They often have pots for local enterprise or at least can signpost you to others.
I have no direct experience of Funding Circle but may be wise to have a look there.
Local Chambers of Commerce can also be useful for fund searching.
Despite us leaving, the UK still has access to some EU enterprise funding. IIRC this is region-specific and your local authority will be able to tell you if there's anything available to you.
Do check the conditions on any funding you receive, particularly on reporting. Some carry obligations to levels that many start-ups struggle to find capacity for. If you're late on a report or the reports are incomplete, you can find yourself in a position of having rebate the funder.
If you're confident in the concept, avoid giving away any of your business in return for start-up capital if you can. If you need £100k but can only raise £20k and bring in an investor, then the business is no longer (fully) yours. That said, 20% of something is better than 100% of nothing so you need to weigh up what you want/need against the risk.
Sounds like you're onto something though so good luck.
HTH
Edited by StevieBee on Thursday 8th December 10:29
- Yes, I'm going to apply for the SMART grant to see what kind of response I get, I have got a meeting with someone senior within Innovate UK on the 22nd which hopefully should be a good opportunity to gain insight and overcome any hurdles I've come across by then.
- Have had a look around the economic development sections, nothing stands out right away but it's put me on to a few other people people/organisations that claim to offer support (this includes the European Innovation Council that you touched upon).
- Funding circle doesn't seem suitable at this stage as I'm pre-revenue.
- I have a contact at the chambers of commerce that I will reach out to.
Pete
r200mgr said:
Thanks Stevie for taking the time to send such a detailed reply, some really useful points, especially around reporting.
No probs. You're welcome.r200mgr said:
If you don't mind me asking, what field are you in?
I run a specialist comm's agency. Behaviour Change Communications promoting environmental and societal improvement - UK and Internationally in emerging economic regions working mainly for public sector institutions and international development agencies.We work alongside a technical NGO that develops various tools and insight methods for cities and municipalities that helps to improve environmental management and have used various grants and funding sources to scale these initiatives up - as well as help with more modest endeavours in the UK.
Currently in the process of setting up Film Production Company that will operate within the same space that will (it's hoped) benefit from the same sort of funding.
r200mgr said:
Do you have any experience with business angels?
Nope.... well, not enough to pass any meaningful insight on.r200mgr said:
And in your experience, is it worth the time and obligations required to secure public funding?
Yes. Providing you select carefully those you apply to.And you need to look beyond the immediate benefit of the money.
The institutions that provide the funding and grants want you to succeed. Your success is a key part of their KPIs so if you fail, it reflects badly upon them. This is why there's so many hoops to jump through. But..... it's also why, once you've successfully jumped through them, you will often (though not always) find that the funding will come with all manner of soft and hard support that you wouldn't have access to otherwise (or have to pay for).
r200mgr said:
*Have had a look around the economic development sections, nothing stands out right away but it's put me on to a few other people people/organisations that claim to offer support (this includes the European Innovation Council that you touched upon).
Quick example of how lateral things things can go.I used to be based in Basildon. Basildon Council are (or were) the UK lead delivery partner for an EU initiative called the European Business Technology Centre (EBTC) which existed to promote European skills and technology in the green cities sector to India. I and a group of five or six other businesses went on a fully funded mission to India; meetings, seminars, site visits and the like as well as getting funding for translating marketing material.
One of the companies landed a massive contract for train safety equipment.
I got nothing from India (not even a dose of DelhiBelly) - but one of the other companies on the mission was one that made semi-waterless toilets. Turns out they were based on the business park right next to us in Basildon. Ended up doing a huge amount of work for them. Had to be flown to India to secure a client who was based next door to us!
Plus, I spent a week in India with some of the Council's top brass from the Environmental Management dept, which, in a round about way, led to us securing them as a client on a couple of very nice projects.
So think laterally!
Edited by StevieBee on Friday 9th December 12:19
StevieBee said:
Quick example of how lateral things things can go.
I used to be based in Basildon. Basildon Council are (or were) the UK lead delivery partner for an EU initiative called the European Business Technology Centre (EBTC) which existed to promote European skills and technology in the green cities sector to India. I and a group of five or six other businesses went on a fully funded mission to India; meetings, seminars, site visits and the like as well as getting funding for translating marketing material.
One of the companies landed a massive contract for train safety equipment.
I got nothing from India (not even a dose of DelhiBelly) - but one of the other companies on the mission was one that made semi-waterless toilets. Turns out they were based on the business park right next to us in Basildon. Ended up doing a huge amount of work for them. Had to be flown to India to secure a client who was based next door to us!
Plus, I spent a week in India with some of the Council's top brass from the Environmental Management dept, which, in a round about way, led to us securing them as a client on a couple of very nice projects.
So think laterally!
That's all really interesting stuff, it's funny how things work isn't it?I used to be based in Basildon. Basildon Council are (or were) the UK lead delivery partner for an EU initiative called the European Business Technology Centre (EBTC) which existed to promote European skills and technology in the green cities sector to India. I and a group of five or six other businesses went on a fully funded mission to India; meetings, seminars, site visits and the like as well as getting funding for translating marketing material.
One of the companies landed a massive contract for train safety equipment.
I got nothing from India (not even a dose of DelhiBelly) - but one of the other companies on the mission was one that made semi-waterless toilets. Turns out they were based on the business park right next to us in Basildon. Ended up doing a huge amount of work for them. Had to be flown to India to secure a client who was based next door to us!
Plus, I spent a week in India with some of the Council's top brass from the Environmental Management dept, which, in a round about way, led to us securing them as a client on a couple of very nice projects.
So think laterally!
Edited by StevieBee on Friday 9th December 12:19
The journey feels like a scavenger hunt, constantly trying to navigate the way to the goal whilst looking for clues and opportunities for guidance. Luckily I think I'm pretty good at scavenging, definitely helps to know where to look though!
r200mgr said:
Hey guys,
I've been working on an innovative concept within the logistics/retail space for a number of years now.
Maybe you should ask over in the finance section, see if there's anyone looking for an investment opportunity - there's often questions of 'what can I do with this 100k from a business sale' or whatever.I've been working on an innovative concept within the logistics/retail space for a number of years now.
Possibly a little early, but possibly not - what about a chat with a Dept. Int. Trade rep local to you, because if your concept is appropriate for them, I think the US retail market could obviously be f'in massive?
Maybe DIT would want to get in as early as possible to see if they can help tout your product to the overseas retail industries - they might be able to point you to some funding, given the existing interest you've already got.
ReverendCounter said:
Maybe you should ask over in the finance section, see if there's anyone looking for an investment opportunity - there's often questions of 'what can I do with this 100k from a business sale' or whatever.
Possibly a little early, but possibly not - what about a chat with a Dept. Int. Trade rep local to you, because if your concept is appropriate for them, I think the US retail market could obviously be f'in massive?
Maybe DIT would want to get in as early as possible to see if they can help tout your product to the overseas retail industries - they might be able to point you to some funding, given the existing interest you've already got.
Thanks Reverend, will check out both of those options!Possibly a little early, but possibly not - what about a chat with a Dept. Int. Trade rep local to you, because if your concept is appropriate for them, I think the US retail market could obviously be f'in massive?
Maybe DIT would want to get in as early as possible to see if they can help tout your product to the overseas retail industries - they might be able to point you to some funding, given the existing interest you've already got.
Sorry to be back late in answering this. Yes, I do assess these too. No assessors are employed by Innovate UK of course, but we are independent, attend their briefings, and scoring is moderated.
I also write full applications or help applicants with improving their submissions, but then cannot assess those of course due to conflict of interest.
There is a lot of hard work in putting am application together. It is not a 5 minute job. You can tell the difference when an applicant has really put the effort in.
I also write full applications or help applicants with improving their submissions, but then cannot assess those of course due to conflict of interest.
There is a lot of hard work in putting am application together. It is not a 5 minute job. You can tell the difference when an applicant has really put the effort in.
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