Launching a business involves more than just a good idea — it requires a solid legal foundation. From incorporating your company and allocating shares, to protecting intellectual property and structuring for future investment, decisions made in the early stages will shape your start-up’s ability to grow, raise funding, and retain control.

Here’s a straightforward guide for UK-based founders looking to set up their start-up properly from the outset.

1. Forming the Right Legal Entity

In the UK, the most common structure for a start-up is a Private Limited Company (Ltd) registered with Companies House. It offers limited liability to shareholders, enables equity investment, and is the expected structure for most venture-backed businesses.

Other options:

• Sole trader or partnership – Fast to set up, but offer no liability protection.
• LLP – Useful for professional services firms, but not equity-investment friendly.
• Overseas registration (e.g., US C-Corp) – Sometimes used if raising from US investors, but adds cost and complexity.

For most early-stage ventures, a UK Ltd company is the right place to start.

2. Drafting Bespoke Articles of Association

Most companies start with model articles, but serious investors expect a customised set. These govern how the company operates and protect both founders and investors in future funding rounds or exits.

Key provisions should include:

• Pre-emption rights on new share issues
• Drag-along and tag-along rights in a sale
• Board rights and decision-making protocols
• Founder vesting and treatment of leavers
• Reserved matters requiring investor consent

A good solicitor with venture experience can tailor these appropriately.

3. Issuing and Structuring Shares

Setting up the initial cap table (capitalisation table) properly avoids disputes later. All equity should be issued by the company and recorded at Companies House.

Suggested structure:

• Founders hold most of the equity but subject to vesting (e.g., over 3–4 years with a 1-year cliff)
• Set aside a 10–20% option pool for future hires
• Consider allocating small stakes (0.25–2%) to advisors in exchange for specific value

Avoid informal promises or “handshake” equity deals — formal agreements are essential.

4. Assigning Intellectual Property (IP)

All IP related to the product or technology must be assigned to the company, not held by individual founders, contractors, or third parties.

To protect the business:

• Have all contributors sign IP assignment agreements
• Register key trademarks and domains early
• If developing technology with patent potential, consider filing in the UK or EU to support future IP claims and tax relief

Failing to assign IP can prevent future funding or a sale.

5. Making Use of the Patent Box and R&D Relief

UK start-ups working on innovative products may be eligible for substantial tax relief.

Patent Box:

• Reduces corporation tax to 10% on profits attributable to patented inventions.
• You need to own or exclusively license the patent and actively exploit it.

R&D Tax Relief:

• Offers a cash rebate or tax reduction for qualifying R&D costs.
• Available to loss-making and profit-making companies.
• Best managed with a specialist accountant.

Both schemes can significantly reduce burn and extend runway.

6. Considering Offshore or Holding Structures

While most start-ups should stay simple, some may explore holding structures or offshore entities as they grow. Reasons might include:

• Global expansion
• IP holding and licensing
• International investor requirements

Options like Ireland, Luxembourg, or Jersey may be considered for tax or regulatory reasons — but they introduce added complexity and must be justifiable.

In most cases, it’s better to wait until your company has traction and funding before exploring these.

7. Getting Your Accounting and Admin in Place

From day one:

• Open a business bank account in the company name
• Use accounting software (e.g., Xero) with professional support
• Issue share certificates and maintain a cap table
• Apply for EMI scheme approval if you plan to issue employee options — this provides tax advantages and is popular with investors

Governance matters too — even early-stage companies should hold board meetings (minuted), maintain statutory registers, and keep filings up to date.

Final Word

Many early mistakes are avoidable with the right structure and advice. Setting up a company properly isn’t just about compliance — it’s about building trust with future investors, co-founders, and customers. It shows that you take your business — and their involvement — seriously.

Whether you’re pre-seed or scaling fast, taking the time to set things up correctly will pay dividends in the long run.

Need help assessing or structuring your start-up?

Feel free to get in touch. Whether you’re preparing for funding or want to make sure you’re legally and commercially sound, early advice can make all the difference.

In the noise of the startup world, where pitch decks fly and funding rounds make headlines, it’s easy to forget what really moves the needle: deep expertise, honest feedback, and relentless follow-through. That’s where Kognise comes in.

Kognise isn’t a flashy brand — and it doesn’t need to be. It’s known for rolling up its sleeves with founders, stepping in as a critical partner at the points that matter most: when growth needs a plan, when funding is on the line, and when the early momentum starts to wobble.

For Founders: Strategy That’s Grounded in Reality

Most founders already wear too many hats. From navigating customer needs and product delivery to raising capital and hiring a team, the early-stage journey can feel like running a marathon on a treadmill.

Kognise steps in with a clear head and a playbook built on experience. Its work with founders focuses on three core areas:

• Building effective growth plans that are ambitious but achievable — grounded in commercial sense, not just VC theatre.
• Troubleshooting real-world challenges across finance, ops, governance, and leadership — the things that don’t make the pitch deck, but can derail scale.
• Getting investment-ready with compelling narratives, robust financial models, and the kind of polish and depth that investors now expect.

Kognise works closely with founding teams — not just to “advise,” but to co-create solutions, connect dots, and help build businesses that last.

For Investors: A Trusted Filter and Growth Partner

Every investor is looking for that golden opportunity: a team with grit, a product with pull, and a model that can scale. But finding that in a crowded, noisy market isn’t easy.

Kognise works with a curated network of investors — including angels, funds, and family offices — to surface the “nuggets of gold” early. These are companies that may not shout the loudest, but are solving real problems with clarity, traction, and strategic potential.

Because Kognise works in-depth with its founders, investors know they’re not just seeing a glossy pitch — they’re engaging with businesses that have been stress-tested, strategically sharpened, and backed with the right data.

And post-investment? Kognise doesn’t disappear. It often stays involved to help ensure the roadmap is executed, the board dynamic is productive, and the inevitable bumps in the journey are navigated before they become problems.

The Real Value: Trust, Access, and Execution

What sets Kognise apart is its positioning at the intersection of startup strategy and investment insight. It understands what both sides need, and it earns trust by delivering on both.

For founders, it’s a partner who tells the truth, not just what you want to hear. For investors, it’s a sharp, street-smart signal that a company has done the work and is ready for prime time.

In a market where capital is tightening and expectations are rising, this kind of alignment is rare — and increasingly valuable.

Kognise isn’t trying to scale fast or grab headlines. It’s building a reputation for doing the real work that leads to real results. And in today’s startup economy, that’s exactly what both founders and funders are looking for.

The pitch is over. Slides are closed, thank-you’s exchanged, and the adrenaline is starting to wear off. But if you’re a founder, this isn’t the time to breathe easy — it’s time to get sharper. The weeks immediately following an investor pitch are among the most important in your fundraising journey. How you act now can determine whether that promising conversation turns into a term sheet — or a polite “not this time.”

Here’s what should be happening on both sides — the founding team and the potential investors — in the critical period post-pitch.

For Founders: The Real Work Begins

1. Follow Up Within 24 Hours

Send a concise, thoughtful follow-up. Reiterate your thanks, clarify anything that came up in the session, and attach any promised materials — such as a refined deck, cap table, or product demo link. Don’t ask if they want to invest just yet. Focus on keeping the conversation open and informative.

2. Be Ready With the Data Room

If you didn’t already share it, you’ll likely be asked to provide access to a data room. This should include:

• Financial model and projections
• Cap table and funding history
• Key contracts and legal docs
• Product roadmap
• Team bios and organisational chart
• Customer metrics (LTV/CAC, churn, pipeline)

Have it ready. A delay here can raise red flags or kill momentum.

3. Anticipate Due Diligence

Even at early stages, investors due diligence. Be prepared to:

• Defend assumptions in your financial model
• Provide clarity around intellectual property
• Discuss customer feedback or pilot results
• Explain team structure and equity splits

This phase is where discipline and transparency matter. Be honest, even if everything isn’t perfect.

4. Keep the Momentum Up

Silence is not necessarily rejection. But don’t just sit back and wait. If a week goes by without a reply, check in. Share a piece of news (new hire, customer win, partnership). Show that things are progressing — even if the round isn’t closed yet.

For Investors: Behind the Scenes

While you’re following up and prepping your data room, investors are doing their own work.

1. Internal Discussion and Filtering

Most funds operate with an investment committee or partner consensus model. After your pitch, your champion (the person who invited you to pitch) is likely making the internal case for you. That means:

• Summarising your pitch and traction
• Flagging concerns or areas for deeper analysis
• Comparing you against other deals in the pipeline

This stage is often slower than founders expect. Getting through internal approval is like a mini-pitch in itself — and it’s out of your hands.

2. Informal Reference Checks

Investors will often quietly ask around — calling mutual connections, checking reputations, and trying to validate your claims. It’s why integrity and consistency matter from day one.

3. Portfolio Fit and Timing Review

Sometimes a “maybe” is more about timing than your startup. Investors may consider:

• Does this fit with our fund’s current priorities?
• Do we have budget left for this stage?
• Will this conflict with an existing investment?

This is why understanding a fund’s strategy upfront is key. Smart founders tailor their pitch accordingly.

What Founders Often Miss

• No news doesn’t mean bad news. Investors are juggling many deals. Stay proactive, but patient.
• This is still relationship-building. Keep things personal, not transactional. Fundraising is a process, not a pitch.
• Momentum matters. If you’re speaking to multiple investors, show progress without giving ultimatums.
• Preparation wins. The founders who get investment are rarely just the most innovative — they’re the most ready.

When Investors Say “Yes”

If things go well, you’ll be invited to further discussions — sometimes with other partners, sometimes with lawyers and accountants. This is where deal terms are shaped. Be clear on your priorities:

• How much dilution are you comfortable with?
• What’s your ideal board structure?
• Are there non-financial asks (advice, intros, strategic help)?

Negotiation isn’t a conflict — it’s alignment. But don’t be afraid to stand your ground if terms don’t feel right.

And If They Say “No”?

Always ask why — respectfully. You won’t always get a full answer, but even a short insight can help you refine your approach.

The best founders treat every investor meeting as a chance to sharpen their story and strategy.

Final Thought: The Pitch Isn’t a Moment — It’s a Process

What happens after the pitch is often more important than the pitch itself. It’s where momentum is either built or lost. Smart founders know this and stay close to the process, without being needy or passive.

Keep communication clear. Stay honest. Keep building.

And remember — investors back teams, not just products. What you do after the pitch is how they know you’re worth betting on.

In an era of shifting global economic tides, the Middle East has quietly—and in many sectors, dramatically—become one of the most dynamic regions for business growth and investment. Once considered primarily a source of hydrocarbons, today’s Middle East is repositioning itself as a hub for innovation, clean energy, finance, tourism, logistics, and digital transformation.

For UK businesses and investors looking for growth beyond mature Western markets, the Gulf Cooperation Council (GCC)—led by Saudi Arabia, the UAE, and Qatar—offers a compelling blend of market appetite, capital availability, government support, and scale.

Why the Middle East? A Snapshot of the Growth Story

The numbers speak for themselves:

• The GCC economies are expected to reach a combined GDP of over $2.3 trillion in 2025.
• Saudi Arabia’s Vision 2030 has earmarked more than $7 trillion in public and private sector investment to diversify away from oil, opening up sectors like entertainment, tourism, fintech, and logistics.
• Dubai remains a regional epicentre, with the UAE projected to grow by 4% annually through 2026, driven by finance, trade, and tech.
• Qatar, fresh off the success of the 2022 World Cup, is scaling up in logistics, clean energy, and health tech.

The region is no longer just about extractive industries—it’s about building cities, platforms, and ecosystems.

Key Growth Sectors

For both investors and UK enterprises, these are the opportunity areas drawing the most attention:

1. Clean Energy and Green Tech:
   Saudi Arabia and the UAE are investing heavily in hydrogen, solar, and carbon capture. NEOM, for example, includes one of the world’s largest green hydrogen projects.
2. Tourism & Entertainment:
   From giga-projects like The Red Sea and Qiddiya in Saudi Arabia to luxury hospitality in the UAE, there’s demand for everything from design to digital booking infrastructure.
3. Fintech & Financial Services:
   Regulators are rolling out sandboxes and fast-track licensing for global fintech firms. Dubai’s DIFC and Abu Dhabi’s ADGM are at the forefront.
4. Healthcare & Life Sciences:
   Governments are scaling local capability while seeking global expertise. Digital health, biotech, and medical devices are all in demand.
5. Logistics & Supply Chain Infrastructure:
   With global shipping routes being rebalanced, the GCC is doubling down on ports, free zones, and supply chain tech.

Setting Up: What UK Companies Need to Know

UK firms entering the Middle East typically start via one of these models:

• Free Zone Entity: 100% foreign ownership, tax incentives, and simplified setup. Ideal for services, trade, or regional HQs.
• Mainland LLC: Needed for doing business directly in the local market. In most GCC countries, this historically required a local partner. However, UAE and Saudi Arabia have reformed foreign ownership rules, now allowing up to 100% foreign ownership in most sectors.
• Branch Office or Representative Office: Useful for market entry or sales functions, but subject to greater regulatory oversight.

Control and Repatriation:
UK residents can retain full control and 100% profit repatriation in most free zones. Banking is well-developed, though account setup can be slow and requires good documentation.

Local Sponsorship?
While legacy rules often required a local sponsor or agent, this is changing. In Dubai and Riyadh, for example, many sectors no longer require a local shareholder, though some still do in sensitive industries like defence or media.

How to Establish a Presence

UK firms can start by:

1. Scoping the Market:
   A physical visit is still key. Major expos, like GITEX (Dubai) or FII (Riyadh), offer platforms for connections and insight.
2. Choosing the Right Jurisdiction:
   Dubai has over 30 free zones—some focused on finance, others on media or trade. Pick the one that aligns with your sector.
3. Navigating Regulation:
   Legal frameworks are increasingly transparent. Work with a local legal or corporate services provider who knows the ropes.
4. Building Relationships:
   In the Middle East, relationships precede transactions. Local partners, advisors, and even informal networks can be the difference between friction and success.

For Investors: Regional LPs, Startups, and VC Opportunities

The Middle East is not just a place to deploy capital—it’s a source of capital too.

• Sovereign Wealth Funds like ADQ, PIF (Saudi), and Mubadala are some of the most active global investors.
• A new wave of regional VC firms (e.g. BECO Capital, Shorooq Partners) are backing fast-growing startups.
• UK-based investors can partner with GCC firms looking to diversify their capital or co-invest in emerging market ventures.

Final Thoughts: Strategic, Long-Term, and Growing

The Middle East’s business landscape is evolving rapidly. For UK companies and investors, it offers scale, growth, and access—without the volatility of some other emerging markets. The key is to treat the region not as an opportunistic side-market, but as a strategic long-term geography, deserving of time, local insight, and presence.

The race to decarbonise transport has long promised a two-horse contest: battery-electric vehicles (EVs) and hydrogen fuel cell vehicles. A few years ago, you’d be forgiven for thinking the future was clear. Tesla’s meteoric rise, global net zero pledges, and tightening emissions regulations made it feel like EVs had already won. But fast forward to 2025, and the picture is murkier.

EV sales are growing, yes—but cracks are starting to show. Charging infrastructure lags behind consumer demand, grid pressures are mounting, and battery supply chains remain geopolitically fragile. Meanwhile, hydrogen, often dismissed as too expensive or impractical for cars, is quietly gathering momentum—especially in commercial transport and heavy-duty applications.

In other words: it’s not over yet.

And for entrepreneurs and investors alike, this ambiguity spells one thing—opportunity.

EVs: The Market Giant That’s Hitting Growing Pains

Let’s start with the basics. Globally, EVs made up about 18% of new car sales in 2024, according to the IEA, up from 14% in 2023. China leads the charge with over 30% EV penetration, followed by Europe at around 25%. The U.S. is catching up but remains below 10%.

In the UK, nearly 20% of new cars sold in 2024 were electric, with the government aiming for 100% zero-emission vehicles by 2035. But the road ahead isn’t without potholes:

• Range anxiety remains a sticking point.
• Charging infrastructure is uneven, especially outside major cities.
• EVs remain 10-20% more expensive than their combustion engine counterparts.

And then there’s battery production—dominated by China and reliant on lithium, cobalt, and nickel, all of which are subject to volatile pricing and environmental scrutiny.

Yet despite the friction, VC and private equity funding for EV-related startups continues to surge, particularly in areas like battery innovation, software for fleet optimisation, second-life battery use, and smart charging tech.

Hydrogen: The Underdog Making a Comeback

Hydrogen has been the “fuel of the future” for decades—but now, it’s actually happening. While the idea of a hydrogen-powered family car remains unlikely, hydrogen’s real advantage lies in heavy-duty, long-distance, and high-uptime applications: trucks, buses, trains, ships, and even aviation.

Governments are pouring money into hydrogen:

• The EU has pledged €45 billion for hydrogen projects through 2030.
• The UK’s Hydrogen Strategy includes £240 million for hydrogen production and aims for 10GW of hydrogen capacity by 2030.
• Japan and South Korea have been investing for years, with Hyundai and Toyota continuing to build fuel cell vehicles for niche markets.

The opportunities for entrepreneurs are often overlooked:

• Green hydrogen production (electrolysis startups)
• Storage and transportation innovations
• Hydrogen refuelling infrastructure
• Fuel cell tech for industrial and logistics use

There’s also an open runway for software and data companies building around hydrogen ecosystems—from usage analytics to carbon accounting.

Where the Smart Money’s Looking

Private capital is no longer just chasing the headline-grabbing EV unicorns. Investors are actively seeking less crowded niches where innovation still yields big upside:

• Battery recycling: A growing issue as the first generation of EVs reaches end-of-life
• Thermal management systems: Key to extending battery life and performance
• Alternative chemistries: Sodium-ion and solid-state batteries may leapfrog lithium tech
• Fleet electrification platforms: Especially for commercial transport and delivery networks

In the hydrogen space, early movers can still carve out major defensible territory in infrastructure and logistics. Hydrogen-as-a-service models and localised green hydrogen hubs are gaining attention. The capital expenditure is high, but so is the strategic value.

For Entrepreneurs: The Window Is Wide Open

The net zero transition is no longer a question of if—it’s how fast, and through which channels. Founders entering this space have the benefit of momentum, urgency, and policy support.

But it’s not just about hardware anymore. Software layers, user experience, predictive analytics, and supply chain resilience are now mission-critical in transport tech. Whether you’re building the next-gen charging network for remote communities or a hydrogen storage tech that beats current capacity norms, the opportunity is there.

Investors want to see:

• Scalable unit economics
• Strong IP
• Partnerships with OEMs or logistics firms
• A clear narrative that fits into the larger energy transition

What Comes Next?

EVs aren’t going anywhere—they’ll likely dominate light passenger transport for the next 20 years. But hydrogen will have a significant role in areas where batteries simply can’t compete. The market is splitting, not consolidating.

This is a moment where the infrastructure has not yet caught up with the ambition. That mismatch creates opportunity. It’s why we’re seeing sustained investment despite the macro headwinds—and why the next few years will be defining for founders and backers alike.

One thing is certain: If you’re waiting for the market to settle before getting involved, you’re already late.

Where numbers meet nerves, and grit meets the grind.

This is going to resonate with a lot of people…..

Monday, 7:12am. Your inbox is a battlefield. A polite “pass,” a vague “circle back in Q3,” and a request for your data room — urgently. The tone is familiar: friendly but transactional.

Welcome to pre-raise purgatory — that stretch of weeks (or months) where founders sell vision, market size, and momentum with unwavering confidence while privately wondering if it’s all enough.

This is a glimpse into the inner world of founders preparing for a fundraise. It’s not just pitch decks and charisma — it’s also late nights with financial models, repeated rejections, and the constant threat of running out of time.

Monday: Rebuilding the Deck, Again

You revisit your pitch deck. Slide 2 still isn’t quite right. Do investors care more about traction or team? Do they want TAM upfront or a narrative hook?

According to DocSend, investors spend an average of 3 minutes and 44 seconds reviewing a seed-stage deck — often deciding in under a minute whether they’ll keep reading. It’s ruthless.

You reframe your market slide. Re-cut the go-to-market plan. You know the data:

• Only 0.9% of startups that pitch to VCs actually receive funding.
• The average seed-stage raise involves 40–60 investor meetings.
• 70% of founders report spending more than three months on fundraising.

You tweak your one-liner. Again. Because if you don’t say it perfectly, someone else will.

Tuesday: Beyond the Deck – The Real Due Diligence

You survive your first investor intro of the week. The partner is sharp, polite, and slides in a question you didn’t expect:
“What are your unit economics at scale?”
You blink. The model doesn’t show scale yet — but you improvise.

The pitch is just the start. Once VCs are interested, the real process begins. They ask for:

• Data room access: forecasts, pipeline, cap table, IP rights, customer contracts.
• References: past colleagues, early customers, sometimes even competitors.
• Team dynamics: who’s essential? Who’s replaceable?

Founders often mistake the pitch as the finish line. In reality, it’s just the flag drop. The race is the follow-up.

Wednesday: Silence is Loud

You send five follow-ups to warm intros. You stalk email open rates. You replay yesterday’s pitch in your head. Did you talk too much? Did they get it?

The average time it takes to hear back from an investor after a first meeting is 10–14 days, but it feels longer. And most responses fall into one of three categories:

• The ghost.
• The soft “no.”
• The “let’s see more traction.”

Meanwhile, you stay in motion. You do a dry run of the next pitch. You keep refining your “use of funds” slide. You try to believe your own optimism.

Thursday: The Numbers Game

Today is about the funnel. If you want one term sheet, you need at least 10–15 strong leads, which means pitching at least 30–40 firms. It’s not personal — it’s statistics.

You update your CRM. You’re managing:

• 6 investor calls this week
• 2 ongoing “maybe” conversations
• 1 live due diligence
• 21 unanswered intros

And still, you have a business to run.

The paradox of fundraising: you’re asking people to believe in your momentum… while fundraising slows your momentum.

Friday: The Weight of Aspiration

You make time for a founder circle. Someone just raised £1.5m. Another just shut down. The contrast is brutal — a reminder of what’s at stake.

You reflect on why you’re doing this. The idea still excites you. The opportunity is still real. But the risk? It’s louder now. The runway says 83 days. Your gut says keep going.

At 4:43pm, a reply lands in your inbox:

“We’re intrigued. Can we see the latest metrics and some customer feedback?”

You forward the deck. Send a link to your data room. Your hands are shaking. You take a deep breath and open a new tab.

There’s another intro to send.

What This Means

Raising capital is part sales, part storytelling, and part survival. It demands clarity, composure, and unshakeable belief — in a world that constantly tells you to prove yourself.

Yes, founders need solid market fundamentals and scalable models. But they also need resilience, pacing, and community. Because for every founder who makes it, there are dozens who almost did.

And what separates them often isn’t the idea — it’s the ability to keep showing up.

Key Stats for Founders Preparing to Raise

• 3m 44s — average pitch deck review time (DocSend)
• <1% — of startups that pitch VCs get funded (Crunchbase)
• 40–60 — average investor meetings per seed round
• 10–14 days — average investor response time
• £1.4 billion — raised in UK seed/early-stage VC in Q1 2024 (Beauhurst)

I’m very fortunate to have worked all sides, including as CEO of a Seed Fund and running various start-ups, and I often compare founders and funders to that adage ‘Men Are from Mars; Women Are from Venus’ adage as it’s fairly accurate. The first thing I do with new investors and clients is to explain a bit about how each work to help break these barriers down so lets start with a Seed Fund.

There’s a certain mystique around venture capital — especially at the seed stage. The public image is all optimism, founder coffees, and tweeting about “conviction.” And while that’s partly true, the job is far more operational (and emotionally nuanced) than it looks.

Beyond just the day-to-day, many people don’t quite understand how a seed fund itself works. How does it start? Who puts in the money? How do fund managers actually get paid?

Here’s a look behind the curtain — not just into the typical week, but also into how this machine runs.

First, What Is a Seed Fund?

At its core, a seed fund pools capital from outside investors — known as LPs (Limited Partners) — and uses that money to invest in very early-stage startups. These are the “pre-everything” businesses: no revenue, maybe no product yet, just an idea and a founding team.

A typical seed fund needs a minimum of £10 million to be profitable and can run up to £100 million in size, designed to back 20 to 50 companies over a 3–4 year period. The idea is to take small, calculated risks now and hold on to the best ones as they scale — sometimes following up in later rounds, sometimes not.

How a Fund Gets Off the Ground

Starting a fund is part venture, part hustle. A prospective fund manager (or team) first develops a thesis: the type of companies they want to back, why now, what edge they have. Then they pitch that vision to prospective LPs.

LPs can be wealthy individuals, family offices, pension funds, institutions — even corporates. They want returns, of course, but also tend to back managers with a strong story, good founder access, or proven track records (even if informal).

Closing a fund often takes months — or longer — and usually happens in “closes.” That means the manager raises an initial chunk, starts investing, and then brings in more capital over time. It’s a grind. Very few first-time fund managers have it easy.

How Fund Managers Make Money

There are two main revenue streams:
1. Management Fees — typically 2% of the fund size, paid annually over a set period (usually 10 years). This covers salaries, rent, tech, legal, travel — all the ops.
2. Carry (Carried Interest) — this is the upside. If the fund returns more than the original investment (after a “hurdle rate”), the fund manager typically keeps 20% of the profits. This is where real wealth is made — but only if a few startups in the portfolio break out.

Seed investing is long-tail. Funds may not return anything for years. The carry only kicks in after investors have been paid back. So while management fees provide stability, carry is where the ambition lives.

A Typical Week in the Job

Monday: Pipeline & Portfolio Priorities

The team kicks off the week by scanning the deal pipeline — dozens of decks and founder intros. Which ones passed the sniff test? Which ones are getting attention from other VCs? It’s worth bearing in mind that each deck at this stage is going to get just over 3 mins of attention…

Then there’s time with existing portfolio companies. Some are flying; others are struggling. These check-ins can range from celebratory to crisis-management, often in the same morning. You’re a coach, therapist, and strategic partner, all in one.

Tuesday: Founder Chemistry & Diligence

Tuesdays are usually founder-heavy. Coffee shop meetings, Zooms, office visits — it’s all about reading between the lines. You’re asking: Is this a founding team I’d want to bet a decade on?

Meanwhile, if something’s already in diligence, you’re chasing customer calls, diving into metrics (if they exist), and checking references. It’s detective work, intuition, and risk calculus rolled into one.

Wednesday: LPs, Fund Ops & Strategy

Midweek often shifts to the business side of the fund. That means investor relations — updates to LPs, narrative building, maybe prepping a quarterly report. Some weeks it’s also budgeting, reviewing fund performance, or preparing for a future raise (either a new fund or SPV).

This is the less glamorous stuff, but absolutely mission-critical. LPs don’t want to just write a cheque and vanish — they want transparency and progress.

Thursday: Events, Ecosystem, and Intel

Thursdays are more outward-facing. Conferences, demo days, panels, networking dinners — this is where reputations are made, intelligence is gathered, and emerging trends get spotted.

More importantly, these events are where you see the ecosystem breathe. You find out which founder is pivoting, who’s quietly raising, who just lost their CTO, or who’s on the verge of something big.

Friday: Strategic Deep Work (In Theory)

Ideally, Fridays are for thinking — memo writing, exploring thesis areas, or reflecting on what’s working (and what’s not). But let’s be honest: fires still come up. A founder needs a quick bridge loan. A term sheet needs reviewing. A competitor just announced a raise, and your portfolio company’s board call just got a lot more complicated.

Still, carving out time to zoom out is critical. VC is a long game. Strategy drift is real. Staying clear-headed matters.

Why People Do It

For all its intensity, this role is a magnet for a certain type of person. People who love ideas, risk, relationships, and the chaos of the earliest stages of company-building. They want to bet on people — not spreadsheets. They thrive on pattern recognition and instinct, but also embrace structure and rigour.

Final Word

Seed investing isn’t a shortcut to fast returns. It’s a long-term commitment to helping founders build the future, one shaky pitch deck at a time. Every week is different. Every company is a gamble. And every decision echoes years into the future.

For fund managers, the job is a balancing act — between intuition and discipline, between service and selection, between being the first believer and knowing when to walk away.

Despite signs of recovery across the global economy, the UK investment landscape in early 2025 remains a paradox. There is no shortage of ambition among startups or sophistication among funds — yet capital feels harder to come by than it should. And while the US, Middle East, and parts of Europe surge ahead with record investment rounds, UK founders often find themselves caught between potential and policy.

So where exactly does the UK stand — and what should founders do to stay ahead?

A Shifting Global Context

In the US, markets are showing renewed confidence. After a volatile 2022–23, the past year has seen a rebound in IPOs, large VC rounds, and a new wave of AI, healthtech, and climate-focused investment. PitchBook data shows US VC investment hit $170 billion in 2024, up 15% from the previous year, with mega-rounds (over $100m) back in fashion.

Meanwhile, the Middle East continues to flex its sovereign wealth muscles, with funds like Mubadala and PIF increasing allocations to tech, infrastructure, and sustainability sectors. In Europe, Germany and France have doubled down on industrial innovation, channeling public funds into cleantech, automation, and deep science.

Against this backdrop, the UK has shown mixed signals. While total VC investment in 2024 stood at £21 billion — making it the leading destination in Europe — that figure masks a slowdown in late-stage activity and a growing reliance on foreign capital to close growth rounds.

Headwinds at Home

Several issues are dragging on UK investment momentum:

• Policy Uncertainty: From changes to R&D tax credits to wavering net-zero commitments, policy shifts have left founders and investors second-guessing the long-term direction of government support.
• Exit Environment: The London Stock Exchange continues to underperform as an exit venue. Many tech firms are eyeing NASDAQ or exploring M&A instead of domestic IPOs.
• Productivity and Talent Concerns: UK productivity growth remains below pre-2010 levels, and while talent is abundant, it’s often concentrated in London and a handful of regional hubs.

Recent global developments aren’t helping. The US’s move to impose higher tariffs on Chinese EVs and other goods has added uncertainty to trade flows and the global supply chain. At the same time, geopolitical tensions and fluctuating interest rates are making some investors more risk-averse — especially in sectors like sustainable energy, where BP and other large players are retreating from long-term climate targets to refocus on near-term returns.

Why Founders Must Adapt

For UK founders, these dynamics can be frustrating — especially those building globally relevant, high-growth businesses. Seed funding is still available, especially through EIS and SEIS-backed angels and microfunds. But the leap from early traction to scale is growing harder, with less domestic capital available for Series B and beyond.

So what can founders do?

1. Build for Global from Day One

UK startups are increasingly looking abroad earlier — incorporating in the US, exploring funding from Middle East-based VCs, or partnering with multinational corporates to unlock scale. The lesson is clear: international proof points carry weight, and your funding strategy should reflect the global nature of your ambition.

2. De-risk the Story

Whether you’re pitching to a London family office or a California VC, investors want clarity. That means strong financial controls, a well-articulated path to profitability, and credible plans for scaling without burning too hot. Founders who present a “de-risked” narrative — across team, tech, and traction — will have an edge.

3. Engage with Policy

Too many early-stage founders see public policy as irrelevant. But whether it’s green subsidies, digital trade agreements, or changes to employee share scheme taxation, the rules are changing fast — and often create competitive advantages for those who understand them.

4. Focus on Resilience, Not Hype

While AI continues to dominate headlines, the best investors are looking for fundamentals: strong customer retention, gross margin discipline, and real-world defensibility. This applies across sectors — from manufacturing to fintech to renewables.

UK Still Has Core Advantages

The UK is not in decline. It still ranks first in Europe for venture capital raised. London remains a magnet for international capital, and regional cities like Manchester, Bristol, and Edinburgh are producing genuinely world-class companies.

The country’s university spinout ecosystem is thriving, with over £2.5 billion raised in 2024 alone. Sectors like advanced materials, biotech, and quantum computing offer deep technical moats — exactly the kind of complexity long-term investors seek.

Moreover, UK VCs are becoming more founder-focused, more operationally savvy, and better capitalized than ever before. New funds like Phoenix Court’s £500m vehicle and impact-driven investors like Future Planet Capital are proving that there’s room for ambition and scale on home soil.

Conclusion: Founders Must Navigate — and Shape — the Market

Founders today face a paradox: they’re building in a country with extraordinary talent, rich networks, and a mature financial sector — but one that isn’t always keeping pace with global capital trends. The onus is on entrepreneurs to both adapt to these conditions and shape them.

That means working with strategic investors, pushing for policy alignment, and not being afraid to go global. It means embracing scale but never losing sight of substance. And it means treating the first 100 days after funding not as a breather — but as a launchpad.

In this new era of capital discipline and cross-border competition, the winners will be those who combine British ingenuity with global ambition.

Over the past decade, sustainable investment has grown from a niche trend to a defining force in global finance. Today, more than $35 trillion is allocated across funds and products labelled as ESG, climate-focused, or socially responsible — a staggering figure representing over a third of total global assets under management. But in 2025, the story has taken a more complex turn.

This is no longer just a growth market. It’s a maturing one — and the cracks are starting to show.

Still Big, Still Bold

There’s no doubt that sustainability remains one of the dominant investment themes of our time. In 2023 alone, climate tech investment surpassed $60 billion globally. Sectors like battery storage, carbon removal, regenerative agriculture, and circular economy platforms have attracted capital at a pace rarely seen outside of AI or fintech booms.

Private equity and venture firms have responded in kind. Funds like Breakthrough Energy Ventures, Lowercarbon Capital, World Fund, and the UK-based Climate VC have been aggressively backing early-stage companies with clear sustainability impact. Meanwhile, institutional investors — from pension funds to sovereign wealth players — continue to ramp up mandates around ESG, net zero alignment, and nature-based solutions.

A Changing Tide

And yet, for all the growth, 2025 has brought a shift in tone. A few years ago, it seemed like the entire corporate world was on a one-way track toward decarbonisation. Today, the headlines tell a more nuanced story.

One of the clearest signals came from BP, which in 2024 announced it would scale back its green transition strategy in favour of more profitable oil and gas projects. The company had previously committed to reducing fossil fuel output by 40% by 2030 — a pledge now softened under pressure from shareholders and rising energy demand. Similar recalibrations have followed across other European energy majors.

It’s not just about energy. In a high-interest rate environment, long-dated infrastructure projects — the kind often required for net zero transitions — are facing rising costs and tighter financing. And in the U.S., the ESG backlash from some corners of the political spectrum has led to funds rebranding or soft-pedalling climate commitments altogether.

All of this has cooled sentiment somewhat, especially among more cautious or returns-driven investors.

What Investors Are Focusing On Now

Despite these headwinds, smart capital isn’t leaving the space — it’s just getting more focused. Investors are increasingly distinguishing between “greenwashing” and genuinely impactful, scalable solutions.

Key areas of continued focus in 2025 include:

• Grid flexibility and energy storage: As renewables continue to surge, solving the intermittency problem remains urgent.
• Sustainable materials and circular economy models: From low-carbon concrete to textile recycling startups, investors are backing the supply chains of the future.
• Nature-based solutions: Interest in biodiversity credits, habitat banking, and regenerative land use is rising, particularly in Europe and the Global South.
• Climate adaptation: Not just mitigation — investors are backing startups and infrastructure aimed at dealing with a warming world: fireproof building materials, resilient agriculture, flood-proof infrastructure.

There’s also growing investor appetite for real performance metrics, not just ESG checkboxes. Funds like Regeneration.VC, 2150, and Systemiq Capital are placing deeper emphasis on lifecycle analysis, emissions accounting, and transparent impact reporting.

What Comes Next

Sustainable investment in 2025 is entering a new phase — one that blends ambition with a more grounded sense of reality. Investors are still drawn to the macro story: climate change isn’t going away, consumers are demanding better, and regulation continues to tighten. But the gold rush mentality is fading. What’s emerging is a tougher, more professionalised market — and in many ways, that’s a good thing.

The winners in this next chapter will be the founders who can deliver real returns alongside real impact, and the investors who know how to separate the noise from the signal.

For many founders, closing an investment round feels like the end of a marathon. But in truth, it’s just the beginning of a much more complex race. The first 100 days after securing capital are among the most critical in a company’s lifecycle. It’s the window where expectations are set, foundations are laid, and momentum is either captured—or lost.

With the average seed round in the UK now exceeding £1.2 million (Beauhurst, 2024) and venture capital investors expecting visible traction within 6–12 months post-funding, founders are under increasing pressure to turn capital into measurable progress—fast.

Here’s what every founder should focus on in that crucial first stretch.

1. Get Ruthlessly Clear on the Plan

Post-funding, ambiguity is the enemy. Whether it’s a 12-month roadmap or a more agile quarter-by-quarter strategy, investors want clarity on how their capital will be deployed and what milestones will be hit.

• Rebuild the operating plan around newly available capital.
• Set monthly KPIs that align with your next funding round or key commercial inflection point.
• Hold a strategy offsite—even if it’s just you and a few key hires—to align on goals.

Stat to Note: Startups that fail to hit investor-aligned milestones in the first 6 months post-seed are 58% less likely to raise a follow-on round (PitchBook, 2023).

2. Build the Right Team—Fast, but Not Carelessly

Hiring decisions made in the first 100 days can make or break a startup’s trajectory. The temptation to rush and fill roles is real, especially when investor cash has just landed, but mis-hires at this stage are costly.

• Focus on “founder multipliers”: early hires who unlock bandwidth, not just fill gaps.
• Don’t hire for vanity. Prioritise revenue-generating and product-critical roles.
• Build a recruitment process that reflects your values from Day 1.

Market Insight: 70% of startups cite hiring as their #1 challenge post-raise (Atomico State of European Tech, 2024).

3. Operationalise Like You Mean It

Seed and Series A investors are now paying far more attention to operational maturity. Founders who get ahead of the curve with clean processes, lean reporting, and data discipline are already outperforming the rest.

• Implement monthly reporting. It doesn’t have to be heavy, but it should be real.
• Automate wherever possible—especially in finance, CRM, and product analytics.
• Set up board rhythms early. The best founders treat board meetings as strategic levers, not admin headaches.

Tool Adoption: Over 80% of successful seed-funded companies now implement core finance stack tools (e.g. Xero, Capdesk, or Float) within the first 3 months post-funding.

4. Get Closer to Your Customer Than Ever Before

Funding brings focus, and focus should be on customers. Whether you’re still validating product-market fit or doubling down on go-to-market, nothing matters more than your proximity to users.

• Block out founder time each week for direct customer interaction.
• Track leading indicators: engagement, retention, and qualitative feedback.
• If in doubt, ship smaller, faster, and listen harder.

Retention Reality: Companies with strong early user feedback loops see 2.4x higher retention rates in their first year (Accel’s Seed to Scale Report, 2024).

5. Manage the Narrative (Internally and Externally)

The first 100 days are when you shape the tone—culture, ambition, and the broader story you’re telling to talent, partners, and future investors.

• Reintroduce the company with a post-raise narrative: what’s next, what matters.
• Keep communication high inside the team; silence breeds uncertainty.
• Begin tracking metrics that matter for the next raise (not just today’s reality).

Strategic Note: The best founders use their first investor update post-raise as a tone-setting moment for the journey ahead.

Final Thought: Momentum is Everything

The data is clear: startups that fail to act decisively in their first 100 days post-funding struggle to recover. Those that treat this period as a launchpad—not a cooldown—are the ones that go on to lead markets, raise further rounds, and build durable companies.

This is the window where clarity, pace, and strategic intent set the tone for everything that follows.

Because funding isn’t the finish line. It’s the starting gun.