500 Startups brings post-seed programme to London

Silicon Valley accelerator founded by angel investor Dave McClure is committed to bridging gap between seed and Series A funding

Silicon Valley’s 500 Startups is to launch in London with a new three-month programme to help post-seed start-ups grow, Tech Crunch has reported today.

Founded by Dave McClure in 2010, 500 Startups is a global seed investor and accelerator programme spanning 50 countries with more 1,000 companies involved, including over 15 British start-ups.

The London programme will be focused on bridging the gap between seed funding and the so called Series A “crunch” and will select around 20 start-ups in the first year which will receive funding of £100,000 to £200,000, but with an approximate £30,000 tuition fee. The equity taken will vary on a deal by deal basis but will most likely be between 3-7% based on each start-up’s valuation.

The London programme is expected to accept five companies at a time with the first to begin in September and eligible start-ups will need to evidence “demonstrable product-market-fit and measurable traction”.

The launch validates rumours that 500 Startups would be establishing an operation in London at an even in Tech City in June.

Speaking to Tech Crunch, McClure commented: “When we looked at the market, there’s a lot of early-stage angel and seed money in general, and good ‘smart money’, such as Techstars and Seedcamp, which offer great services, so we didn’t want to go in and be the 101st accelerator in London.

“That’s why we decided to focus on post-seed. There is a Series A crunch — these seed companies coming out really need to get their KPIs up before they can raise another round and growth is really our speciality. That’s where we think we can add the most value to the ecosystem.”

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