Tom Britton

techUK recently asked me to share views on #scaleup #investment challenges, which are condensed into a 3 minute blog post below. Hopefully an interesting read for UK tech entrepreneurs, VCs and policy makers... The opportunity to improve the landscape is clear. 🇬🇧

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As part of Manchester City Council's strategy around investment in Digital and Technology, I'm working with Manchester Digital to get input from founders, investors and accelerators in Greater Manchester (or those supporting businesses in Great Manchester). This piece of work is intended to document where each of the major pieces within the eco-system sit, identify any gaps and make recommendations to public sector stakeholders as to how they can support Manchester in its ambition to becoming a major force for UK startups. Your views are key to getting this right, so we would highly appreciate it if you could take a few moments to complete the short Founder survey whether you have received investment or not, and ensure we get the best outcomes for the tech startup scene. 🔥 Founders - https://lnkd.in/ewGHbxPM 💰 Investors - https://lnkd.in/e7yadFH8 🚀 Accelerators - https://lnkd.in/eTpGUsKf

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Our latest data on equity fundraising activity by UK startups and scaleups is out in advance of my chat with Mark Beaumont of Eos on Thursday (register here if interested: https://lnkd.in/ehD_kVvE) 💷 £1.7 billion raised in equity finance in the quarter (rounds over £250k, equity only, excluding companies that do not meet our definition of startup or scaleup). I expect this to grow to £2bn+ as late submissions come in. 🌱 the most resilient stage relative to Q1 2023 was Pre-Seed, which we define as £250k - £1 million cheque sizes.......but the weakest was Seed (our definition: £1-3 million rounds). 📈 valuations saw some improvement versus Q1 2023 at Series A and Series B+ stage relative to Q1 2023. Full report available on platform to customers. Otherwise, please let me know if you would like a summary. #startup #scaleup #seed #seriesa #seriesb #venture #growth #eis #seis Enterprise Investment Scheme Association (EISA) George O'Connor Myles Bax Mark Hogarth Cahal Dowds Ian Gray Aidan MacMillan Oliver Johnston-Watt Marc Mullen Shane Corstorphine

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🎉 Exciting News! ThirdRetail has secured SEIS advance assurance within 24 hours of self-application! 🚀 🔍 What is SEIS? The Seed Enterprise Investment Scheme (SEIS) is a UK government initiative designed to encourage investment in early-stage startups. It offers tax reliefs to investors, making it easier for young companies like ours to raise capital. 👋 Who are we? ThirdRetail is revolutionizing offline distribution for D2C brands! 🏪 We're the Airbnb of retail shelves, making it affordable and accessible for direct-to-consumer brands to scale their physical presence. Our AI-powered platform removes cross-channel blindspots, providing seamless integration between online and offline retail. 💡 Our mission: - Empower D2C brands to expand offline - Optimize retail space utilization - Bridge the gap between digital and physical retail 🤝 Calling SEIS Funds! Are you interested in being part of the third channel of retail sales? We're currently raising our pre-seed round and would love to chat with SEIS funds looking for exciting investment opportunities. Let's connect and explore how we can shape the future of retail together! 📈 Anil Junagal #RetailTech #SEIS #SEISFUNDS #Startup #D2C #Retail #Marketplace #B2B #SaaS

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7 of the most active seed stage funds in the UK. 💸💸💸 These are the funds that have been the most recommended to me for the B2B software space. SFC Capital - An SEIS fund that typically invests at Pre-Seed, Seed and Series A. From what I could see funding is usually between £100k and £300k at pre-seed. Octopus Ventures - Typically invests up to £1m for Seed funding rounds. Ascension - Typically invests between £500K and £5m. Fuel Ventures 🚀 - Check size of £1-3M at Seed stage LocalGlobe - Seed and Series A fund. Mercia Asset Management PLC - Mercia manages a number of different funds and can invest from Pre-Seed through to Series A with ticket sizes of up to £10m. Haatch - Invests between £300 - 800K at Seed stage. If there's any other seed stage funds you'd recommend please let me know in the comments 

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As we wind down the year, let us take stock of what is happening in the UK tech investment landscape. Deal Lite just reported the weekly stats. If you have not received it in your inbox, please subscribe at https://lnkd.in/efmz5xBP UK Tech Investment News by Deal Lite - Week 337 A total of £200 Million was raised by 21 UK technology companies during the period ending 8th December 2024. Total raised this year so far is: £9.069 billion. Last year, it was £9.749 billion. 2021 was the mega year with £21.292 billion. Would 2025 be the turnaround year? With Syria falling and the conflicts accelerate, no one can predict the future. One thing is sure though. There would be more investment going into DefenceTech as alluded by Steve Blank - Steve is calling for private sector to get involved. I prefer no wars altogether but humans are complex beings who cannot live in harmony. Let's take a quick look at some of the companies who announced investment rounds last week: - Wexler raised £1.1 million Pre-Seed round led by Myriad Venture Partners. Wexler is incubated by Entrepreneur First. Gregory Mostyn is the CEO. - Jove Insurance raised £3.6 million Seed round led by Explorer. Want access to data? Subscribe https://lnkd.in/dcBH9kx Join us on 18th https://lu.ma/5se8gmqs to learn more and meet other tech founders. #DealLite #TechInvestment #funding #investment #venturecapital #seed #seriesA #preseed

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Battery and energy storage innovation is key to reaching climate and sustainability goals 👏 so with that in mind - looking forward to supporting the Faraday Battery Challenge and the 18 founders participating on everything #fundraising and #investor related.

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Exciting News: Introducing Manchester Angels as a Key Supporter of the Wired for Growth Project   Manchester Angels, a key cog in the Manchester investment ecosystem, is joining forces with our Wired for Growth mission. To unlock increased access to education and capital for our region’s founders in a bid to build companies of true venture scale out of our region.   Manchester Angels – led by David Levine, is a network of > 45 exited, tech entrepreneurs that actively invests, nurtures and mentors ambitious, high-growth potential and game-changing technology businesses based in the North. Their tagline of ‘Unlocking Ambition’ is completely aligned with our mission at Wired for Growth and their role in the Manchester ecosystem is crucial.    You can probably tell I am excited to announce this one! Especially after working together on the recent HACE: Data Changing Child Labour deal.    Why Manchester Angels?   The team at Manchester Angels brings to the table a rich heritage of technology expertise and successful ventures, including multiple tech exits and significant IPO experiences. This depth of knowledge grants them a distinct perspective on the vital metrics and strategies that help burgeoning tech firms scale successfully. In the north-west, access to capital at the early-stage is difficult – especially if you are a new founder with limited access to networks. Manchester Angels visibility in the ecosystem but also their direct experience as successful founders creates a perfect blend of access to investment, mentorship and support.    What is Wired for Growth:   Our Vision: The North-West is on the brink of becoming a global powerhouse in the tech industry, supported by world-class universities, a wealth of diverse talent, and a vibrant startup ecosystem. Despite these advantages, the region's full potential is yet to be fully realised.   🤝 Key Actions for a Thriving Tech Ecosystem:   Collaboration: Build a cohesive ecosystem that uplifts venture-scale startups with a focus on founder-centric programs and early-stage support. Founder Success: Create an environment tailored to the unique needs of founders, increasing the success rates of regional enterprises. Capital Access and Education: Improve transparency and education in the funding available and provide education to avoid common hurdles, promoting a sustainable culture of investment within our local economy.   Please reach out if you would like to get involved and read the launch in the link in the first comment… #WiredForGrowth #TechInnovation #ManchesterTech #ScaleUpSuccess #ManchesterAngels

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📣 CALL FOR INVESTORS 📣 DEADLINE: 20 NOVEMBER 📣 £1.2bn in private investment unlocked / 150+ curated investor partners📣 The Innovate UK Investor Partnerships programme is open again for investor selection. The programme is specifically seeking funds that align with the mission to channel private capital into innovative UK companies, particularly in regions outside of London. There is a focus on sectors that will shape the future economy: healthy living & agriculture, net zero, digital technologies, and ED&I. The opportunity is open to foreign investors, and there is a particular interest in late-state investors (Series B+). I am especially interested in finding investors who are interested in joining this pool who have an interest in spatial computing, which falls under the digital technologies remit. FOV Ventures has already joined and made a successful investment through the programme. Further details can be found here: https://lnkd.in/gP2TySkc The recording from the investor briefing event can be found here: https://lnkd.in/g8R77zrF If you would like to discuss your suitability for the programme, please reach out. #investors #funding #investment #VC #venturecapital #angelinvestors #investornetworks #angelnetworks #grantfunding #businessgrowth #innovation #researchanddevelopment #seedfunding #preseedfunding #seriesA #seriesB #InnovateUK #spatialcomputing #digitaltechnologies

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Understanding SEIS and EIS: Boosting Startup Investments What are SEIS and EIS? ➡ SEIS stands for Seed Enterprise Investment Scheme and EIS stands for Enterprise Investment Scheme. These UK government initiatives incentivize investment in startups by offering significant tax breaks to investors. Benefits for Investors: 1️⃣ SEIS: Investors get 50% of their investment back in tax breaks. For example, if they invest £10,000, they'll get £5,000 back. Additionally, all returns from SEIS are exempt from capital gains tax if the shares are sold after at least 3 years. If the startup fails, investors are eligible for loss relief, which could be almost 50% of the loss depending on their tax bracket. 2️⃣ For a £10,000 investment, the net investment is £5,000 after immediate tax relief. With loss relief, capital at risk is further reduced. If an investor pays income tax at a rate of 35%, they can claim up to 35% of their net loss in income tax relief, which would be £1,750 in this example. Therefore, the capital at risk would be about £3,250. 3️⃣ EIS: Similar to SEIS, but with 30% initial tax relief. For a £10,000 investment, investors get £3,000 back instead of £5,000. ⏩ Conclusion: These schemes are fantastic initiatives by the UK government to encourage investment in technology startups. However, many people are unaware of them. To address this, the FCA should relax regulations around private equity investments, and there should be more awareness of SEIS and EIS among UK residents. Despite the existence of these schemes, early-stage capital remains extremely scarce in the UK. #SEIS #EIS #StartupInvestment #UKGovernment #TaxBreaks #EarlyStageFunding #TechStartups #InvestmentIncentives #CapitalGainsTax #LossRelief #PrivateEquity #FCA #Innovation #Entrepreneurship

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A heartfelt thank you to Three UK and Rebecca Nelson at Be the Business for inviting us to join the government roundtable on connectivity and SME productivity! As the founder of Aveea, I see daily how vital connectivity is—not just in our office, but in every classroom and every community we reach. For us, connectivity is essential. From our Student Educators catching up on lectures whilst traveling, to us having to quickly adapt in schools with limited or no Wi-Fi. Reliable internet is a must to keep our STEM workshops running smoothly. Nearly all SMEs (97%) depend on reliable internet, yet I can vouch that most of us have some connectivity challenges that impact our growth. Imagine the potential if these barriers were removed—Three’s report suggests that improved connectivity could boost the UK economy by £79 billion in just one year This roundtable is a chance to explore how better connectivity, government support, and tech adoption can drive growth and impact. Thank you, Three UK and Be the Business, for shining a light on these crucial issues, and for including us in this important conversation. https://lnkd.in/egbycPe6 #ThreeMobile #BeTheBusiness #ConnectivityMatters #SMEProductivity #DigitalTransformation #STEMEducation

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Before the government calls founders asking why 🇬🇧 tech isn’t listing in #London, they should focus on risk capital availability and diversity in earlier stages. “Over the long-term average, only about 40 per cent of capital raised by UK funds come from domestic venture capital (VC) investors, the report found, compared with over 70 per cent in both France and Germany.” The VC investors who have tried hard and were unable to find enough local investors will be, understandably, pushing their portfolio companies to make their companies available to a much wider pool of investors in the US. In addition, having more foreign capital invested than UK based one mean foreign LPs might influence VCs to push for US listing. It all starts at the beginning. #UK #VentureCapital #VC #Investments #IPO https://lnkd.in/evufbcYH

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🍂 IMP Software: Monthly Round-Up 🍂 📊 Sector Insights: MAT Finance Sector Report We’re thrilled to have launched the first-of-its-kind MAT Finance Sector Report, in support with the Confederation of School Trusts! This forward-looking report reveals key insights that guide MATs towards more strategic decision-making. What’s Inside? - The sector’s financial trajectory and reserve levels - Impact of the teacher pay award and related grants - Managing resources in primary and secondary trusts with a surplus - How deprivation influences financial sustainability 📥 Download your copy here: https://loom.ly/oZeln_o We also continued the conversation, holding a webinar diving deeper into the data from over 250 trusts, discussing key trends and also highlighting our personalised MAT finance benchmarking reports. 🎥 Watch it here: https://loom.ly/8N53UBI --- 📰 IMP in the News Our work on the Sector Insight Report has been featured in: - Tes: https://loom.ly/iLWPs84 - The Educator Magazine: https://loom.ly/RCnP6-4 --- 🎤 Events It’s been a busy month which has seen the team present at... - Confederation of School Trusts Annual Conference: We officially launched the IMP MAT Finance Insight Report 2024, with highlights shared by Leora Cruddas CBE during the Welcome Keynote. Our Co-Founder, Will Jordan, delved into sector trends, budget challenges, and ‘lost income’ from declining pupil numbers. - The Schools & Academies Show: Will Jordan spoke alongside Samuel Skerritt from CST on building financial visibility through MAT finance data. - MAT Partnership Network (MATPN): Warren Porter ACMA, IMP Head of Education Strategy shared highlights of sector's key financial trends and provided invaluable insights to support more informed, strategic decision-making. - ISBL National Conference: Rounded off the month connecting with MAT leaders to chat about all things MAT Finance. Coming up... 💻 Webinar | 10th December | 10am | Consolidate budgets across your MAT and standardise processes within your finance team - Join here: https://loom.ly/OHhNReE --- 🎉 Major Milestone 5,000 schools are now using IMP Planner! When we launched in 2019, our vision was simple: to provide MATs with smarter, more efficient financial tools. Fast forward to today, and we’re proud to see our software supporting over 5,000 schools, helping them eliminate the faff from MAT Finance. --- 🌟 Company Updates - We’re proud to maintain our 5-star Trustpilot reviews, a 4.8 Glassdoor rating and thrilled to announce that IMP Software has once again been Certified™ by Great Place To Work UK for the second year in a row! - We’re hiring! Ready to join an incredible team of legends? View positions: https://loom.ly/K55SGYo --- 📆 See IMP Planner in action If you'd like to explore how IMP Software can help your multi-academy trust move towards smarter MAT Finance, just pop a date in the diary: https://loom.ly/n4bKSP8 #Education #Finance #Schools #team

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Well worth reading the latest annual ‘Equity Investments into Spinouts’ report from our award-winning EIS fund manager, Parkwalk Advisors. The report highlights the opportunities and some of the issues facing industries across the university spinout sector in the UK. It is extremely encouraging to see evidence of an investment recovery and further projected growth for spinouts. Government support for this vital growth engine must continue – helping to build a thriving ecosystem to create more billion-pound spinouts here in the UK, delivering investment returns, a strong economy and positive impact.

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Pension funds enjoy a very material tax exemption privilege. I wonder if some element of that privilege should be linked to commitment to the sector, increased over time to stop a wall of money, where for example a vehicle like Adam proposes and/or direct investment would qualify. Pension funds free not to participate, might have a size threshold, but if they do not they pay some tax. Link that to whatever regulatory tweaks needed to ensure funds are not penalized for investing a portion in growth - rationally 4% has to be a perverse allocation, someone has got the rules wrong. It feels like it is not in their investors' interests, aside from the societal point of the need to support growth, the no.1 claimed objective of the incoming government.

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Just bringing this back up to the top for Musa Capital If you fit the description founders, Venture Builders and Accelerators alike I would love to help you. Please book time with me here (thesis fit only please): https://lnkd.in/gfsw3a-u #venturecapital #dealflow #startups

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167 out of the 184 UK FinTechs that gained (VC) investment in H1 were at seed to series A. But in the last 10 years, staggeringly, 2 in 3 UK FinTechs failed to get beyond seed. Despite the proliferation of the ‘founder support model’ - accelerators, content, platforms, investor communities etc. - there is still a deep-rooted issue with scaling. The issue is not due to availability of capital. So why aren’t we producing more companies that fit a venture model? #fintech #ukfintech #financialservices #founders #innovation

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Sorry - establishing a regional investment fund is fixing the wrong problem. I spend my days out and about in the Manchester tech eco-system; meeting founders, teams, investors etc. There is no dearth of capital. In fact, we probably have too much of it. Praetura Ventures have just been handed a £100m fund to deploy; we have high net-worths (hello Manchester Angels), VCs, debt-funders and other entities actively investing. Very often businesses are not getting funded because they will never deliver venture-level returns. They're simply not ambitious enough, not disrupting large-enough markets and not articulating how to capture decent market share to deliver power-law type returns. Investing in skills is super important; but so is leverage expertise of exited founders and operators. Founders need to know *how* to build large, scalable and repeatable sales playbooks. They get that through clustering effects; exited and experienced founders and operators who have been there, done it before and want to help others do it again. If we want to fix this - let's fix the transport that makes it a pain in the neck to get to London and back. Let's fix this attitude of only raising locally. And let's support the true buildings such as Baltic Ventures Turing Innovation Catalyst Manchester and others who are leveraging the right types of support. Let's #unlockambition.

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