New funding venture to help early-stage internet ventures
Start-ups to get support for 'friends and family' round
Fledgling internet ventures will now be able to secure finance through a members-only funding club.
Launched by the team behind business start-up specialist Ortegra, the Startup Funding Club (SFC ) will provide part-finance to help internet start-ups get through the ‘friends and family round’ of financing – the primary stage of the funding process.
Members will be able to invest directly into businesses affiliated with the scheme – minimising the costs of going through an intermediary.
Investment through the SFC will carry all the benefits of conventional investment, including the tax reliefs provided by the Enterprise Investment Scheme.
Ortegra, which provides consultancy and incubation services for early-stage businesses in exchange for an equity share, has had success with several prospects, including uPad.co.uk and MissHighStreet.com. Its management team expects the new venture to deliver a range of similarly successful projects.
Jay Shah, chief executive of Ortegra, said that some firms fail to take off “not because of a bad idea or the inability to execute, but because of a lack of very early stage finance.
“We are very excited to welcome the Startup Funding Club to a unique position in the market alongside ourselves.”