

Ask YC: UK VC and Mentoring  - pkill

(Posted under a new account for anonymity)<p>A friend and I have been working on a side project for over a year, and based on what we have so far, have been contacted about working on a similar project for a company in SF.<p>Although no actual offer has been made yet, they've suggested they'd like us to relocate from the UK to work on a specific project at a very reasonable salary.<p>There is a lot of interest in the sector we're working in, and the company that has contacted us has just received $30M in funding (to cover several projects - all similar, but the majority is earmarked for this.)<p>We know we can do a better job of development and marketing ourselves and already have a working model that's been well received, but to be honest we know it won't ever get to the level we want while it's just a side project.<p>Which brings me onto the main point of this question:
What is VC funding like in UK? Does location matter, should we be looking at US funding as well?<p>Neither of us have any experience in getting funding and would be interested in finding an experienced mentor (ideally in the UK) to help us plan for and get funding.<p>Is there any other good UK centric advice?<p>Thanks in advance
======
babul
Come to the HN/news.yc meetup in London this Thursday as there will be many
hackers and entrepreneurs there who have/had the same problem(s) and can offer
detailed first-hand advice and guidance and possibly more e.g. introductions
and practical help and finding mentors.

    
    
      Hacker Meetups London
      02 Cotober 2008
      Flat 1,
      103 Commercial Street,
      London
      E1 6BG
      (Five minutes walk from Liverpool St tube)
      (Google map: http://is.gd/4zZ)

~~~
pkill
Hi and thanks for the info - what time is the meetup?

Depending on when it is I/and or we will try and make it up there.

Cheers

~~~
danw
Starts at 7pm, info is on <http://www.facebook.com/event.php?eid=35609456822>

If you're in London on Thurs it might be worth attending opencoffee in the
morning too. I haven't been for a year but it used to be a good place to meet
investors and get advice, should still be the case.

Also next week is FOWA, a good event full of European developers,
entrepreneurs and VCs (4% of attendees are VCs). Tickets are cheap if you're a
student too.

------
notauser
Living and working in the US is a blast, and it is something that is very
tough to do without company backing (even for educated Brits). Opportunities
like this are pretty rare. The contacts you make will last a lifetime, so if
you ever want to go back later in life you can do so with less risk and
uncertainty.

You would be giving up control of your idea. Probably that isn't a huge
problem provided you are compensated in equity - there are always more ideas.
The other area of compensation that shouldn't be overlooked is that you will
be working with and hopefully learning from people who do have experience in
acquiring funding, which would be very useful for the next thing.

If you do decide to work in the UK then depending on the sector I might know
some people who would be worth talking to (mail in profile). Most activity
seems to originate in London, but it's a small country and even from as far as
Manchester coming down once a week for meetings is not hard or expensive
provided you live on a train line.

~~~
pkill
At the moment we're kind of keen on working in SF, but neither of us are
totally sold on it yet, we both have a lot of ties to the UK. We'd be giving
our idea up, for a while at least, it would be easy to start again - but if we
could find funding to stay in the UK I think it would be a better fit for now.

>>isn't a huge problem provided you are compensated in equity As far as we're
aware, there's no equity - just fixed salaries.

I'll drop you an email as well, to see if it's worth talking further...

(South coast based and in London fairly regularly anyway)

Thanks

------
MandeepKhera
How much are you looking to raise? If it's only a small amount initially (up
to £250k)it's probably best to go with UK angels; who are actually quite good.
They can also use their network to gain further financing and VC can be used
at a later stage.

If you have a good revenue model then it will be easier to get angel interest.

Where in the UK are you from?

~~~
pkill
Yeah we'd be looking to raise in that region - mostly for development costs,
with only marginal marketing finance required.

Other, non-competing, players in the industry are already earning well in
excess of £50k profit per month. We realise this will require lots of hard
work to reach but the market is definitely there.

We're located on the south coast about an hour from London so regular trips up
to the city happen anyway...

~~~
MandeepKhera
I'm also located in the UK and I am in contact with a few angels. I can
introduce you to them if you wish, I am based in the midlands.

~~~
pkill
Hi - your email isn't listed in your profile can you drop me a line at:
pkill123@googlemail.com

Thanks

~~~
MandeepKhera
Sorry I thought it was visible, I'll email you this evening.

------
puzzle-out
Could you move to the Valley and do your own thing there? If they've just
received $30M for a similar project then it suggests there will be more
interested investors. VC and angel funding in the UK is improving, but still
far short of the valley. Plus there are general 'ecosystem' benefits - more
technical people to bounce ideas off and find synergies with, and more
potential acquirers. If you had rather stay in the UK, there is a new breed of
British consumer tech entrepreneur who are looking to invest back in the UK
tech scene - perhaps a good way of crossing the UK - valley divide. Check out
the Nesta events in London.

------
jblondon
You will want to find an angel investor that knows you, and is willing to back
you and the team. Doesn't desparately matter where that is, but a prior
relationship / trust is very important.

There are more angels like that in the US, but there are also some excellent
ones in the UK.

VC (and there's plenty of that in the UK) comes later -- after you're full
time on the project, have built (at least some of) the product, proven its
value (to some extent) and need a lot more cash (millions of dollars' worth).

Check out seedcamp.com. Watch all the videos, and start to connect up with the
UK/Euro start-up community.

------
adamt
I'm a UK-based entrepreneur that has raised over 10 rounds of VC from £100k
angel rounds to $25M VC rounds for 3 different companies. I've gone through
the entire 'should we move to the US?' scenario, and raised money from both
European & American investors. I'd be happy to provide some advice - drop me
an email (address should be visible in profile) if you're interested.

To answer your question generically, I think it depends a lot about the amount
of money you're looking to raise, the sector you are in, and where your key
customers/partners are located.

~~~
pkill
Hi Adam - you sound like exactly the sort of person we're looking to talk to
and provide advice.

Unfortunately your email isn't showing in your profile - can you drop me a
line at: pkill123@googlemail.com

Thanks

------
maxklein
The independent road is tough, really tough, particularly at the beginning of
the road. As you progress, things get easier, more people want to talk to you,
you have more contacts, etc.

Join these people, and keep your eyes and ears open for opportunity. Let these
people pay for the tough part of your journey, and when the time is right,
jump ship and start by yourself. You're more likely to succeed because you
have the contacts, you know the industry and you are already in the U.S.

------
siong1987
Read this book: The Art of Start <http://www.guykawasaki.com/books/art-of-the-
start.shtml>

This might be useful if you want to raise fund from VC.

