UK based pre-seed startup accelerator Startup Giants has become the first of its kind to be admitted to the NEX Exchange Growth Market.
Startup Giant’s founder and CEO Jeb Buckler said:
‘It’s incredible to have reached this milestone. We’re excited about what this will mean for our investors – buying shares in Startup Giants should result in investors reaping the benefits across all of our investee companies, creating instant access to a portfolio of consumer startups.
‘This is preferable for investors looking for a degree of liquidity in their investments that they can scale up or down depending on their own needs. It’s fantastic for us to provide investors with a vehicle that represents an opportunity to spread risk and gain a pipeline with recurrent entry/exit points. It is more flexible than a single crowd fund or investing in an individual startup, where an investment may take five to ten years to mature.
‘With our business model, all of the investee businesses that we support have the potential to reach a £10m revenue or a £100m valuation within three years after a further expansion funding round. Investors in SUG can rely on our rigorous criteria to evaluate both product commerciality and the entrepreneurial ability to bring the product to market.’
Transitioning to the public markets
When asked about what the transition from private to public will mean for Startup Giants, Jeb said:
‘Transparency is a core tenet of Startup Giants. We are transparent about our processes to both investors and the entrepreneurs we back, which should in turn generate trust in our approach and how we operate. Being admitted to NEX Exchange provides a further level of discipline, with investors able to see that we are operating within a strong framework of accountability to shareholders.’
Startup Giants’ process works by accepting applications for accelerator rounds, at which point entrepreneurs are required to meet a specific criteria and skill-sets before being accepted onto an initial six week intensive course. The results of this course will determine whether the start-up can start to draw down on the first investment allocation, after presenting to an independent Investment Advisory Board.
‘Our entire process is overseen and monitored, a stark comparison to crowd funding or angel investments where the fledgling company might not even have access to a mentor.
‘The innovators we back are taught the skills they need in order to succeed directly by our advisory board members and ‘delivery’ crew, who together form a complimentary team of advisers. This means that each qualifying entrepreneur receives bespoke advice and access to talent in order to develop and implement their business plan.
‘By setting strict deadlines and specific goals against which investees must prove their product ideas in order to access the investment capital, Startup Giants can accurately gauge both the product’s potential and also the manager’s ability to meet future targets and thus trigger follow-on expansion rounds, where we may co-invest alongside other investors.’
No fear in being first…
Startup Giants became the first consumer startup accelerator in the UK to offer an allocation of up to £100,000 to successful applicants, recognising that the usual £25,000 is only enough to cover basic start-up costs but often too little to bring a verifiable product to market.
‘Our core aim is to become a significant supplier of early-stage successful startups to venture capital and private equity fund managers in the UK. Allowing investees to draw down pre-arranged funds at specific milestones keeps their focus on achieving their objectives on-time and provides discipline as well as reassuring our own investors that we’re serious about growing valuable UK based “tech-preneurs”.’
Investing in pre-seed, concept stage startups can generate attractive returns but only with due consideration and funding at correct stages.
‘We’re proud of the vast pool of talent here in the UK which we are well positioned to support with our next accelerator programme which launches on January 1st 2018.’
For more information about the NEX Exchange, and for key information on Startup Giants PLC, see the Startup Giants dashboard on the NEX Exchange website.
Cherry has worked in branding, copywriting, communications, and PR for over 14 years, and is Chief Wordsmith at Startup Giants and our main point of contact for journalists and editors.