The principal criteria we look for are:
Location:
• Applicants must have their principal business in the
United Kingdom
Business:
• Must be a qualifying trade under EIS rules
• Substantial growth potential, scaleable business, as opposed
to ‘life-style’
• Attractive market drivers
• Protected and defensible IP, registered to, and owned
by the company
• Unique Selling Point and / or proprietary product
•
Must fit within European Commission’s definition of an SME:
fewer than 250 employees and either annual turnover not
exceeding €50m and/or an annual balance-sheet total not
exceeding €43m
People:
• Management who can demonstrate a significant commitment
to the venture, preferably through cash invested
Funding:
• Applicants seeking minimum of £500,000 to maximum of £2m
in the current round
• The total financing being sought should sustain operations at
least 12 months or until achievement of the next major
milestone eg. positive cash flow
• Seraphim can invest with any co-investor including
government backed funds
Stage:
The Fund is non-stage specific. Applications at all stages will be
considered subject to the following criteria:
Seed/Start-up:
• Significant sized market opportunity
• Evidence that at least one of the founders has previously built
a company
• Ideally with a significant investment committed in current
round from a blue chip strategic investor or business angel
that has built and exited a business in the sector who is joining
the board post funding
• Ideally with evidence through letters of intent, for a significant
near term purchase, from a blue chip customer
Early-Stage:
• The applicant has validated its product or service through
sales to two or more customers
• Some in-built advantage either through specialised knowledge
or IPR, relationships or a niche service with barriers to
subsequent entrants
• Strong routes to market
• Patents already applied
Development:
• Proven model generating growing revenues - though not
necessarily profitable
• Evidence of management’s ability to handle growth
Turnaround:
• New management, with requisite experience, who will be
investing in the current round
• Clear evidence as to why the business has failed to date
• Very attractive pre-money valuation
• Visibility of short term exit opportunity