What Type of Fundraising Service is Right for Your Startup?

For early-stage startups in the UK, raising capital often feels like navigating a maze blindfolded. The fundraising ecosystem is fragmented, opaque, and riddled with time-wasting dead ends. With no central route to follow, founders are left juggling dozens of platforms, investor lists, warm intros, and cold outreach. The good news? Choosing the right type of fundraising service can eliminate much of that chaos.

But which one is right for you — and when?

In this guide, we break down the key types of fundraising services available to UK startups and offer guidance on how to match them to your stage, strategy, and sector.

The Fragmented Landscape of Fundraising

Unlike mature sectors like insurance or property — where platforms like Moneysupermarket and Rightmove have streamlined discovery — startup fundraising in the UK remains siloed. There’s no single source of truth (until ThatRound anyway), and many services compete without clear differentiation. If you're wondering whether any of these services are FCA regulated, it's worth reading up before committing.

Here’s what you’re likely to encounter:

• Online Investment Platforms
• Crowdfunding Platforms
• Investor Syndicates & Angel Networks
• Fundraising Services & Consultants
• Institutional Brokers

Each has its strengths — and its trade-offs.

1. Online Investment Platforms

What they are:

Digital marketplaces that connect founders to pools of global or UK-based investors. Typically self-service.

Pros:

• Wide reach and easy setup
• Low cost or commission-based
• Useful for smaller, early rounds

Cons:

• Minimal support or investor curation
• Often noisy or low-conversion channels

Best for:

Tech-savvy founders raising <£250k, especially pre-seed or friends-and-family extensions. (If you're not sure what kind of investors you’re likely to meet here, check out this guide to investor types.)

2. Crowdfunding Platforms

What they are:

Equity crowdfunding services allowing large numbers of retail investors to buy shares in your business.

Pros:

• Community engagement and marketing visibility
• Match funding (some investors won’t commit unless others do)
• SEIS/EIS eligibility maximises appeal
• See our full SEIS and EIS guide for details

Cons:

• Costly campaign preparation
• Regulatory complexity and public failure risk
• Success often hinges on your own network or traction
• Usually require significant proportion (50%+ of your round pre-committed)

Best for:

Consumer-facing startups with a strong brand, audience, or early traction.

3. Investor Syndicates & Angel Networks

What they are:

Groups of angels who co-invest based on shared theses or regions.

Pros:

• Access to experienced investors
• Possibility of mentorship and hands-on involvement
• Often SEIS/EIS friendly

Cons:

• Slower decision-making process
• Difficult to find and access without warm intros
• Variable in quality and commitment

Best for:

Startups with strong founders or tech differentiation, especially at pre-seed and seed stages.

For more on how to speak their language, see our piece on demonstrating traction to investors.

4. Fundraising Services & Consultants

What they are:

Professional intermediaries who manage or support the raise—pitch deck development, investor outreach, etc.

Pros:

• Saves founder time
• Brings structure and strategy
• Often comes with investor connections

Cons:

• Can be expensive (upfront, retainers or success fees)
• Varying quality and alignment
• No guaranteed outcomes

Best for:

Busy or first-time founders who need support managing the process — especially in a crowded round or tough market. If you're preparing your deck, our Ultimate Guide to Pitch Decks is a must-read.

5. Institutional Brokers

What they are:

Corporate finance advisors, often ex-investment bankers, focused on larger rounds (£1m+).

Pros:

• Access to VCs, family offices, and corporates
• Strong deal presentation and legal support
• Ideal for Series A+

Cons:

• High fees and exclusivity contracts
• Requires traction and metrics
• Not suitable for earlier stages

Best for:

Growth-stage startups raising larger Series A+ rounds with investor readiness already in place. If you're preparing for a raise at this level, it helps to understand how valuation works and what kind of metrics VCs expect at Series A.

How to Choose the Right Fit

Choosing the right fundraising service type means mapping your startup stage, funding amount, and resources against your available options. Here’s a simplified guide:

Key considerations:

• Time: Can you dedicate 2–6 months full-time to fundraising?
• Budget: Can you afford expert support, or do you need DIY tools?
• Traction: Do you have the metrics investors expect at your stage?

Most founders don’t fail to raise because their startup isn’t investible — they fail because they’re targeting the wrong type of service or investor, or they’re spending time on the wrong platform. That’s why aggregators like ThatRound matter.

Instead of choosing between 30 tabs, 4 inboxes, and 12 intro requests, you can compare fundraising services side-by-side across cost, credibility, service type, and investor reach. It’s faster, more transparent, and much more founder-friendly.

The question isn’t just how to raise — it’s who should help you do it. Choosing the right fundraising service type can save you months of wasted time, missed investors, and avoidable mistakes.

Understand your stage. Match your service. Then optimise the process — not just the pitch.

‍