Early stage funding. Corporate finance PRECISE. PROVEN. PERFORMANCE.

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1 Early stage funding Corporate finance PRECISE. PROVEN. PERFORMANCE.

2 Raising early stage finance Raising early stage finance today is far from simple. Early stage investors are more sophisticated than at any time in the past, aided by easy-access to an ever increasing amount of research. Start-up entrepreneurs, therefore, need to be fully prepared and investment ready when it comes to raising early stage capital. As well as preparing the relevant documents for marketing the opportunity, time and effort should made to ensure the business is investment ready. Dependent upon what stage of investment is being sought, investors will want to see certain milestones having been met in order to make the opportunity investable at the investment round being sought.

3 Early stage funding process Exit Areas of review Seed capital/seis Angel/EIS Series A Series B Series C & beyond Amount of funds Functions up to 150k Build prototype Market orientation 150k to 1m Obtain product traction Demographic targeting Team creation 1-5m Product optimisation Marketing Geographic expansion 5-10m Scale the business Team expansion Globalisation 10m+ Growth capital Acquisitions Product diversification IPO Investors Family and friends Business angels / crowdfunding Venture capital Venture capital Private equity Types of stock Ordinary with SEIS tax relief Ordinary with EIS tax relief Ordinary / preference Ordinary / preference Ordinary / preference What are investors looking for in an early stage company? Innovation New and innovative ideas to address both new and old problems. Scalability Evidence of market size and ability to scale in a timely manner. Strong management team A balanced team containing both technical and entrepreneurial skill sets. Realistic level of investment Fully costed funding requirement with an explanation of the benefits to the business. Sensible forecasts Financial forecasts using evidence based research rather than pure assumptions. How we can help Investing time and resources prior to launching an investment round can reduce potential risks and present a well-run business highlighting the scalable opportunity. Moore Stephens has the expertise and experience to: help you understand and prepare for the process; assess the areas of the business in need of pre-investment improvement and work with you to implement the necessary changes; assist in the preparation of your business plan, financial model and pitch deck; structure the opportunity to maximise its attractiveness to investors (SEIS / EIS); launch an investment round, introducing you to investors tailored to your requirements; provide support and advice throughout the process, including introducing you to experienced lawyers at the appropriate time.

4 About Moore Stephens Moore Stephens has been actively assisting entrepreneurs, owner managers and family businesses from the inception of their companies through to exit for over 100 years. With sector expertise across most industries, Moore Stephens can provide assistance to overcome the many different challenges that present themselves at each stage of a business s lifecycle. Moore Stephens provide a programme of seminars and workshops together with our suite of accounting and advisory services tailored specifically for early stage companies. We are well placed to support you as you embark on this exciting journey. Please contact us for further information.

5 Sector experience Financial services Insurance Manufacturing & engineering Real estate & construction Contact information If you would like further information, please contact: Damian Ryan Partner T +44 (0) Ish Alg Associate Director T +44 (0) Shipping & transport Technology Moore Stephens LLP, 150 Aldersgate Street, London EC1A 4AB T +44 (0) We believe the information contained herein to be correct at the time of going to press, but we cannot accept any responsibility for any loss occasioned to any person as a result of action or refraining from action as a result of any item herein. Printed and published by Moore Stephens LLP, a member firm of Moore Stephens International Limited, a worldwide network of independent firms. Moore Stephens LLP is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Authorised and regulated by the Financial Conduct Authority for investment business. DPS39792 March 2018