BACKING
FOUNDERS
investing in
high-potential UK-based technology startups, from Pre-seed to Series A.
Backing Founders invests in early-stage UK-based technology startups, from Pre-Seed to Series A.
We believe that founders are the key to realizing a startup’s potential, and we invest in ambitious founding teams that have an unfair advantage, and demonstrate the characteristics and behaviour necessary to execute on it.
We invest at the early stage, from the first demonstration of this execution – of building real-world solutions on the basis of non-obvious insight.
We invest in the potential for disruption of large markets – in startups that can create or compete in them by delivering a world-leading 10x value proposition to customers.
“It’s more fun to build a business with someone you like, rather than alone. Try to find a co-founder who has complementary abilities and similar values to you”
“Trust your gut. It’s remarkable how often it steers you in the right direction. When you’re uncertain, take a moment, put your thoughts on paper, and watch as the clarity unfolds. The answer is always within you, waiting to be discovered.”
“Be firm on vision, and flexible on strategy. The Hometree vision has always been about wanting to play a major role in residential decarbonisation, but the strategy to achieve that has had to morph and change multiple times until we finally found a model that was really working…”
“Make sure you’re the right founder to solve and address the problem or opportunity. Founder-market fit precedes product- market fit.”
David Mott
Chris Payne
Richard Oakley
We are generalist investors, but intellectually curious and – with experience as founders and operators ourselves – not afraid of ‘getting our hands dirty’.
We are intentional about where and when we can add value and, as early stage investors, our mission is to help companies outgrow us.
We believe that if founders win, we win, and that informs how we operate.
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investing with oxford capital
Founded in 1999, Oxford Capital offers individuals and families access to some of the most innovative early-stage companies in the UK.
BACKING FOUNDERS
OXFORD CAPITAL EIS FUND
The Oxford Capital EIS Fund enables clients to build a discretionary managed portfolio of high-potential UK technology companies, while benefiting from EIS tax advantages.
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
- You could lose all the money you invest
- If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
- You are unlikely to be protected if something goes wrong
- Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
- Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
- You won’t get your money back quickly
- Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
- The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
- If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.
- Don’t put all your eggs in one basket
- Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments. https://www.fca.org.uk/investsmart/5-questions-ask-you-invest
- The value of your investment can be reduced
- The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
- These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.
If you are interested in learning more about how to protect yourself, visit the FCA’s website here.