About Techcelerate Ventures
Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
Going Against the Trend
Startup Funding Summit 2021
16 March 2021
Manoj Ranaweera
manoj.ranaweera@techcelerate.ventures | +44 7769734491
https://deallite.uk | https://skilledup.life | https://progresshero.report | https://techcelerate.ventures
Early stage tech startups are building their
companies to satisfy investors instead of
delighting customers.
●
Investor focused: MVP
● Customer focused: V1
● Hybrid: Extensible MVP
The art of bootstrapping is still has a place.
Copyright: Techcelerate Ltd
2015-2018
UnifiedVU
(failed)
2007-2015
edocr.com
(acquired by Accusoft)
2006-2013
Techcelerate
Built Manchester’s Tech
Ecosystem
2004-2006
ebdex
(failed)
2018 - onwards
Techcelerate
Trusted Founder Network
My Background
Copyright: Techcelerate Ltd
There are many ways to
build a tech startup
Copyright: Techcelerate Ltd
To be lucky - Always be prepared!
← Higher level of persuasion
Increasing level of validation and evidence →
Idea
Can you charm?
Proven
Easier, but still no guarantee, as the
ability to scale now becomes the
challenge
Prove business potential:
£10k MRR / £100k annual revenues
Prove scaling potential:
£100k MRR / £1m revenues
Copyright: Techcelerate Ltd
Core of any tech startup
1
PR
OD
UC
T
2
CO
MM
ER
CIAL
ISA
TIO
N3
TE
AM
4
STRATEGY
Copyright: Techcelerate Ltd
Tech Startup: Key focus areas
(Techcelerate offer today - Product and commercialisation before investment)
G1. PRODUCT
3. TALENT
2. SALES
4. CAPITAL
5. OPERATIONS
6. GOVERNANCE
Can make or break a tech startup
Talent:
Copyright: Techcelerate Ltd
Lack of it, makes it difficult to move forward
Capital:
What comes first, product or sales?
Growth Options
Growth OptionsVenture-Backed
Bootstrapped
Hybrid
Copyright: Techcelerate Ltd
Venture Backed
- Help is at hand
Copyright: Techcelerate Ltd
Business Angel View
Copyright: Techcelerate Ltd
SEED
GROWTH
(Series A+)
ACQUISITIONS
(Series B+)
ACQUIRED
IPO
01
02
03
04
05
Copyright: Techcelerate Ltd
Demystifying
investment
rounds
Idea
Idea validation
FFF
(Friends, Family and Fools)
Early traction
Turn idea into product and gain initial revenue traction
Pre-Seed
Minimum Viable Business
£10k MRR/£100k annual revenues
Seed
Top up
Revenues aren’t coming fast enough to justify Series A
Seed Follow On/
Pre-Series A
Start of Scaling
Metrics works. Now need cash to trigger growth
Series A
Growth Capital
Not there yet for Series B but need cash to push through
Series A Follow On/
Pre-Series B
Copyright: Techcelerate Ltd
UK Tech Investment Landscape
Total investments (£)
Number of deals
Data Source: Deal Lite
Copyright: Techcelerate Ltd
UK Tech Investment Landscape
Data Source: Deal Lite
Copyright: Techcelerate Ltd
Are you building a £10m or £100m revenue business?
Idea
(FFF)
MVP & Early
Traction
(Pre-Seed)
£2k MRR
MVB
(Seed)
£10k MRR
Product/Market Fit
(Series A)
£100k MRR
/£1m ARR
Raise
Bootstrap
Bootstrap
Bootstrap
Yes
Bootstrap
Bootstrap
Yes
Yes
Bootstrap
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Founder Equity
90%
72%
57%
46%
Takeaway 1 - When to raise funding?
Copyright: Techcelerate Ltd
Bootstrapping
- Help is at hand
Copyright: Techcelerate Ltd
2. Business Survival
●
Idea Validation - Minimum Viable Product (MVP)
● Minimum Viable Business - Problem/Solution Fit
● Product/Market Fit - £1m revenues or £100k MRR
2
1. Founder Survival
●
Health
● Mind - Loved Ones
●
Finance - Living Expenses
1
4. Founder Exit
● MBO
● Trade Sale
●
IPO
4
3. Scaling
● Expansion - Geographical & multi
products
● Acquisitions
3
Tech Founders’ Hierarchy of Needs
Copyright: Techcelerate Ltd
SkilledUp Life
(free talent platform for tech startups)
● 250+ Volunteers
● 2 Partners
Copyright: Techcelerate Ltd
Building teams
PRODUCT TEAM
- Product Roadmap
- Product Development
- Architect
- Designers
- Developers
- Testers
- DevOps
- Product Marketing
MARKETING TEAM
- Strategy
- Brand development
- Social Media
- Content marketing
- Websites
SALES TEAM
- Strategy
- Inbound
- Outbound
- Upsell
- Channels
OPERATIONS TEAM
- Strategy
- Finance
- HR
- Legals
SERVICE TEAM
- Strategy
- Service Agents
- Health monitor
Copyright: Techcelerate Ltd
Takeaway 2 - Everything takes 3x than planned
Product - Reduce Technical Debt
●
Can you code? Should you learn to code?
●
Biggest cost
●
Be Product Champion
Capital - Founder Survival
●
Are you building a £1, 10 or 100 million tech
company?
●
How many rounds of investment would you need?
Sales - Early Revenues Matter
●
Early sales have to be made by the Founder(s)?
●
No Skills? Get them before you start
Copyright: Techcelerate Ltd
Going Against the Trend
Startup Funding Summit 2021
16 March 2021
Manoj Ranaweera
manoj.ranaweera@techcelerate.ventures | +44 7769734491
https://deallite.uk | https://skilledup.life | https://progresshero.report | https://techcelerate.ventures
Startup Funding Summit 2021
16 March 2021
Manoj Ranaweera
manoj.ranaweera@techcelerate.ventures | +44 7769734491
https://deallite.uk | https://skilledup.life | https://progresshero.report | https://techcelerate.ventures
Early stage tech startups are building their
companies to satisfy investors instead of
delighting customers.
●
Investor focused: MVP
● Customer focused: V1
● Hybrid: Extensible MVP
The art of bootstrapping is still has a place.
Copyright: Techcelerate Ltd
2015-2018
UnifiedVU
(failed)
2007-2015
edocr.com
(acquired by Accusoft)
2006-2013
Techcelerate
Built Manchester’s Tech
Ecosystem
2004-2006
ebdex
(failed)
2018 - onwards
Techcelerate
Trusted Founder Network
My Background
Copyright: Techcelerate Ltd
There are many ways to
build a tech startup
Copyright: Techcelerate Ltd
To be lucky - Always be prepared!
← Higher level of persuasion
Increasing level of validation and evidence →
Idea
Can you charm?
Proven
Easier, but still no guarantee, as the
ability to scale now becomes the
challenge
Prove business potential:
£10k MRR / £100k annual revenues
Prove scaling potential:
£100k MRR / £1m revenues
Copyright: Techcelerate Ltd
Core of any tech startup
1
PR
OD
UC
T
2
CO
MM
ER
CIAL
ISA
TIO
N3
TE
AM
4
STRATEGY
Copyright: Techcelerate Ltd
Tech Startup: Key focus areas
(Techcelerate offer today - Product and commercialisation before investment)
G1. PRODUCT
3. TALENT
2. SALES
4. CAPITAL
5. OPERATIONS
6. GOVERNANCE
Can make or break a tech startup
Talent:
Copyright: Techcelerate Ltd
Lack of it, makes it difficult to move forward
Capital:
What comes first, product or sales?
Growth Options
Growth OptionsVenture-Backed
Bootstrapped
Hybrid
Copyright: Techcelerate Ltd
Venture Backed
- Help is at hand
Copyright: Techcelerate Ltd
Business Angel View
Copyright: Techcelerate Ltd
SEED
GROWTH
(Series A+)
ACQUISITIONS
(Series B+)
ACQUIRED
IPO
01
02
03
04
05
Copyright: Techcelerate Ltd
Demystifying
investment
rounds
Idea
Idea validation
FFF
(Friends, Family and Fools)
Early traction
Turn idea into product and gain initial revenue traction
Pre-Seed
Minimum Viable Business
£10k MRR/£100k annual revenues
Seed
Top up
Revenues aren’t coming fast enough to justify Series A
Seed Follow On/
Pre-Series A
Start of Scaling
Metrics works. Now need cash to trigger growth
Series A
Growth Capital
Not there yet for Series B but need cash to push through
Series A Follow On/
Pre-Series B
Copyright: Techcelerate Ltd
UK Tech Investment Landscape
Total investments (£)
Number of deals
Data Source: Deal Lite
Copyright: Techcelerate Ltd
UK Tech Investment Landscape
Data Source: Deal Lite
Copyright: Techcelerate Ltd
Are you building a £10m or £100m revenue business?
Idea
(FFF)
MVP & Early
Traction
(Pre-Seed)
£2k MRR
MVB
(Seed)
£10k MRR
Product/Market Fit
(Series A)
£100k MRR
/£1m ARR
Raise
Bootstrap
Bootstrap
Bootstrap
Yes
Bootstrap
Bootstrap
Yes
Yes
Bootstrap
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Founder Equity
90%
72%
57%
46%
Takeaway 1 - When to raise funding?
Copyright: Techcelerate Ltd
Bootstrapping
- Help is at hand
Copyright: Techcelerate Ltd
2. Business Survival
●
Idea Validation - Minimum Viable Product (MVP)
● Minimum Viable Business - Problem/Solution Fit
● Product/Market Fit - £1m revenues or £100k MRR
2
1. Founder Survival
●
Health
● Mind - Loved Ones
●
Finance - Living Expenses
1
4. Founder Exit
● MBO
● Trade Sale
●
IPO
4
3. Scaling
● Expansion - Geographical & multi
products
● Acquisitions
3
Tech Founders’ Hierarchy of Needs
Copyright: Techcelerate Ltd
SkilledUp Life
(free talent platform for tech startups)
● 250+ Volunteers
● 2 Partners
Copyright: Techcelerate Ltd
Building teams
PRODUCT TEAM
- Product Roadmap
- Product Development
- Architect
- Designers
- Developers
- Testers
- DevOps
- Product Marketing
MARKETING TEAM
- Strategy
- Brand development
- Social Media
- Content marketing
- Websites
SALES TEAM
- Strategy
- Inbound
- Outbound
- Upsell
- Channels
OPERATIONS TEAM
- Strategy
- Finance
- HR
- Legals
SERVICE TEAM
- Strategy
- Service Agents
- Health monitor
Copyright: Techcelerate Ltd
Takeaway 2 - Everything takes 3x than planned
Product - Reduce Technical Debt
●
Can you code? Should you learn to code?
●
Biggest cost
●
Be Product Champion
Capital - Founder Survival
●
Are you building a £1, 10 or 100 million tech
company?
●
How many rounds of investment would you need?
Sales - Early Revenues Matter
●
Early sales have to be made by the Founder(s)?
●
No Skills? Get them before you start
Copyright: Techcelerate Ltd
Going Against the Trend
Startup Funding Summit 2021
16 March 2021
Manoj Ranaweera
manoj.ranaweera@techcelerate.ventures | +44 7769734491
https://deallite.uk | https://skilledup.life | https://progresshero.report | https://techcelerate.ventures