An individual who invests their own money into early-stage startups, typically in exchange for equity. Angel investors often bring sector expertise and networks alongside capital.
A formal group of angel investors who pool resources, share deal flow, and co-invest in startups. Networks typically have a structured application and review process.
A group of investors led by a lead who sources deals and coordinates the round. Members invest on a deal-by-deal basis rather than through a pooled fund.
Contacting investors with no prior relationship or introduction. Generally far less effective than warm introductions, with significantly lower response and conversion rates.
A secure, organised collection of documents including financials, cap table, legal files and contracts, often shared with investors during due diligence.
A group within an angel network or VC fund responsible for evaluating and approving investment decisions before capital is deployed.
The pipeline of investment opportunities that an investor or platform receives. High-quality deal flow refers to a steady stream of well-matched, relevant startups.
The process investors undertake to verify a startup's claims before committing capital, covering financials, legal structure, team, market size and traction.
The phase of a startup's journey before significant revenue or product-market fit, typically covering pre-seed and seed rounds.
A UK government scheme offering tax reliefs to investors who back qualifying early-stage companies. EIS typically applies to companies slightly beyond the earliest stage, with higher investment limits than SEIS.
A structured process in which a startup raises a defined amount of capital from investors in exchange for equity. Common rounds include pre-seed, seed, and Series A.
An individual with significant personal wealth, typically £1m+ in investable assets, who qualifies to invest in unregulated investment products such as early-stage startups.
A presentation, typically 10 to 15 slides, summarising a startup's business model, team, market opportunity, traction and funding ask. The primary document used to attract investor interest.
The preparation phase before formally launching a fundraising round. Getting your deck, data room, financials and narrative investor-ready so you can hit the ground running.
The earliest formal funding stage, typically raised to build an MVP or validate a concept. Usually involves smaller cheque sizes, higher risk, and investors backing the team and idea more than proven metrics.
The funding stage following pre-seed, typically used to scale a proven concept, hire a team, or expand into new markets. Usually involves higher cheque sizes and investors looking for early traction signals.
A UK government scheme offering generous tax reliefs to investors backing very early-stage startups. SEIS is commonly used at pre-seed stage and has lower investment limits than EIS.
A market sizing framework used in pitches. TAM is the full opportunity, SAM is the portion you can realistically target, SOM is what you can capture in the near term.
Evidence that a startup is gaining momentum, measured through revenue, user growth, partnerships or other quantifiable signals. One of the most important indicators investors assess at early stage.
A professionally managed fund that pools capital from institutional and high-net-worth investors to back high-growth startups, typically in exchange for equity. VC funds usually invest larger cheques than angel investors.
A UK-listed investment vehicle that invests in small, early-stage businesses and offers tax advantages to investors. VCTs are regulated by HMRC and must meet certain investment criteria.
An introduction to an investor made through a trusted mutual connection or platform. Warm intros significantly increase the likelihood of a response and a meeting compared to cold outreach.