We see an opportunity for a follow on fund, The Accelerator Fund, to fill the “equity gap” which we believe is instrumental to the growth of early stage tech businesses.
Currently, high growth startups have access to very early funding (angels driven by SEIS and EIS tax breaks) and Series A investment (led by VCs)
However, most require access to investment at late seed stage to fuel growth and ensure they are attractive and suitable for VC investment. This stage of investment (£400k – £1m) is not yet being catered for adequately to match the demand from high growth startups. The Accelerator Fund will be launched to fill this equity gap, reduce investment risk through a range of support services and improve investor returns.