Start-up accelerator Spark Up launches to generate 500 “super-businesses” by 2019

North West programme to provide entrepreneurs with free office space, equipment and mentoring
Written by Megan Dunsby
Published on 23 January 2014

A new business accelerator has launched to support entrepreneurs in the North West, with a goal to develop 500 “super businesses” in the region over the next five years.

Modelled on America’s “rigorous” four month accelerator MassChallenge, Liverpool-based Spark Up will initially offer 15 start-ups access to workspace, IT equipment, mentoring and master classes in order to help maximise their business growth.

Created with investment from Liverpool Chamber of Commerce and NatWest, along with several other leading organisations, the programme is open to entrepreneurs who have been trading for under two years and are “ambitious to grow”.

It intends to build on the success of MassChallenge which has supported 360 start-ups to date and claims to have generated $95m in revenue with $360m raised in funding.

The first accelerator round will begin in March and will culminate with a graduation event which will take place at the International Business Festival in July.

Spark Up programme director, Dr Nick Owen MBE, discussed the goals of the scheme: “A super business is defined as a start-up which, after completing the accelerator programme, demonstrates meaningful and sustainable long term growth. This will be measured in a number of ways including GVA, employment generation and inward investment.

“We want to support the creation of an environment whereby businesses from across the world begin to relocate to the region because of tangible economic, social and cultural advantages. We want to help create a market for generating, supporting and attracting successful businesses.”

Owen continued:  “Spark Up is a game changer for the Liverpool City Region. Never before have entrepreneurs had access to such a hands-on, switched-on programme of support – and all completely free of charge.”

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MMC Ventures re-launches fund aimed at investors under 35

Growth Generation fund ‘first of its kind’ to introduce young investors to high-growth companies
Written by Megan Dunsby
Published on 23 January 2014

Tech-focused fund manager MMC Ventures today announced the re-launch of its Growth Generation fund, uniquely targeted at investors under 35.

The fund, which was originally launched in January 2010, claims to be the first of its kind to specifically target a growing number of young investors in order to introduce them to venture capital and provide them with access to a host of high-growth small companies.

Investors aged 18-35 can participate in investments through the fund, which aims to remove barriers to entry by waiving the usual investor fees whilst keeping tax benefits such as Enterprise Investment Scheme (EIS) relief.

MMC said the re-launch of the fund would once again create an opening for young investors to back hard-to-access, fast-growing UK companies identified by MMC Ventures at very low cost – giving them the opportunity to reap the gains offered by investing in the fast-growing UK tech sector.

The firm re-launched the fund last night at an event held at Morton’s private members club in Mayfair, which brought together current and potential investors with entrepreneurs and the MMC Ventures team for an evening of discussion and networking.

The MMC Growth Generation Fund will be open-ended, subject to a minimum investment of £2,500 and a maximum of £10,000.

Subscriptions will be invested in the same deals and on the same terms as the MMC EIS parent fund.

Avid Larizadeh, co-founder and COO at fashion accessory e-commerce site Boticca.com, said at last night’s event: “I’ve been fortunate enough to have had experience as both an investor and an entrepreneur.

“For a young person it’s actually really hard to become an investor today – and so I’m really pleased that MMC has reopened the Growth Generation Fund.

“Participants will benefit from access to very low cost and tax efficient venture capital investing in the UK – and indeed the opening up of the hugely exciting world of high-growth business.”

Rory Stirling, partner at MMC Ventures, added: “Much of our high-growth economy is built on the hard-work and innovative thinking of 18-35 year olds, yet this cross-section of the investor community rarely gets to access to an opportunity such as the Growth Generation Fund that – in addition to the usual tax breaks – is distinguished from any other fund in the market by the fact that we do not charge investor fees.

“We also believe that Growth Generation investors could be an invaluable source of exciting, fast growing companies. They are a collection of talented individuals who could be great additions to the management teams of our portfolio companies – and a source of prime strategic input into emerging trends in the new economy.”

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Subway to expand franchise with 1,300 new UK outlets by 2020

Sandwich chain set to create approximately 13,000 jobs
Written by Megan Dunsby
Published on 23 January 2014

International sandwich franchise Subway has today unveiled major expansion plans to open 1,300 stores across the UK and Ireland by 2020, in response to “growing consumer demand”.

Predicted to generate around 13,000 jobs, the news will see the sandwich brand increase its franchise portfolio to over 3,000 outlets and will create hundreds of opportunities for prospective franchisees.

Founded in 1965, US-based Subway, famed for its quick-service rolls and baguettes, has grown to become a leader in the industry and currently has 1,734 sites across Britain.

It has franchise packages available for an initial fee of between £10,000 to £13,000 which includes mentoring from existing franchisees and the provision of essential start-up equipment.

The plans build on the chain’s recent growth having launched over 150 franchises in the last year following partnerships with several motorway service stations and forecourts such as Welcome Break and Applegreen.

Subway assistant regional director, Mike Charest, commented:

“In addition to our traditional store development we see new potential in settings such as universities, stations, convenience stores, hospitals, airports and petrol stations.”

To find out more about becoming a Subway franchisee, click here.

For more information on franchising, visit our dedicated channel here.


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Lloyds Bank encourages entrepreneurs to start a social enterprise

2014 Social Entrepreneurs Programme offers funding and training to bring charitable ideas “to life”
Written by Megan Dunsby
Published on 23 January 2014

Lloyds Bank has partnered with the School for Social Entrepreneurs to re-launch its social initiative offering entrepreneurs funding and mentoring in order to start and develop a social enterprise.

The year-long programme, which is running for its second time this year , is designed to support the growth of social enterprises in  communities and will give entrepreneurs access to “practical, facilitated learning” and financial grants from £4,000 to £15,000, depending on whether it is a new idea or scaling an existing social enterprise.

To showcase the opportunities on offer within the scheme, taster sessions will be running during February and March in 12 locations across the country including Bristol, London, Liverpool and Edinburgh.

The programme forms part of Lloyd’s “Help Britain Prosper” strategy which aims to stimulate economic growth and regeneration across the UK.

School for Social Entrepreneurs CEO, Alastair Wilson, commented:

“Working in partnership with Lloyds Bank has enabled us to support some of the most dynamic and promising social enterprises in the UK. This year we’re thrilled to be supporting almost 300 individuals with bright ideas for social change and look forward to seeing their enterprises develop over the course of the programme.”

Graham Lindsay, director of responsible business for Lloyds Bank, added: “We believe that social entrepreneurs have real potential to deliver a positive impact on society.”

To find out more about Lloyd’s Bank Social Entrepreneurs Programme and attend a taster session, click here.

For information on how to start a social enterprise or charity, read our start-up guide here.

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Long-standing Driver Hire employee steps into franchising

Amanda Jeffries new owner of Cambridgeshire franchise for transport and logistics chain
Written by Megan Dunsby
Published on 23 January 2014

Leading transport and logistics recruiter Driver Hire has announced that Amanda Jeffries (pictured right), a long-term employee for the chain, has become the new owner of its Wisbech franchise.

Jeffries, who has worked for the logistics company since 1997 across various offices, had been working for the previous franchisee at Wisbech but said that when “the opportunity came along to buy this one [the Wisbech franchise], it was perfect timing.”

With a territory which runs from Skegness to Hunstanton, Jeffries plans to develop the Cambridgeshire franchise and, alongside its core recruitment aspect, will be offering CPC training to drivers looking to hold a large goods vehicle licence.

Founded in 1983, Driver Hire provides temporary drivers and logistics staff to short-staffed local businesses and says it is the “UK largest specialist supplier” to this industry.

It has new franchise opportunities available from £30,000, with re-sales of existing franchises costing between £40,000 to £50,000.

Jeffries discussed her new venture with Driver Hire: “I’ve worked for some other agencies during my career, that experience has confirmed that Driver Hire is the best in the business.

“I believe very passionately in the brand and am looking forward to providing a first rate service to local businesses and other organisations in and around my catchment area.”

For more information about franchising, visit our dedicated franchising channel here.

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Solar energy start-up Solarmass closes £120,000 Crowdcube pitch in record time

Exceeds funding target in less than 10 days to take “innovative” solar panels to market
Written by Megan Dunsby
Published on 23 January 2014

Sheffield-based solar energy business Solarmass has secured £120,000 in less than 10 days through Crowdcube, one of the fastest pitches to raise funds through the equity crowdfunding platform.

Over-funding its original target by £20,000, the solar energy start-up attracted backing from 96 investors in return for an equity share of 11.96%.

Solarmass specialises in solar roof tiles, “a brand new concept” in solar panels, which are alleged to be the lightest and most efficient solar panels available for mass production to domestic and commercial properties (pictured above), with a manufacturing carbon footprint 136 times lower than existing panels.

The investment will enable the energy company to develop their solar tile offering, purchase machinery and set up a factory in its Sheffield base in order to begin production later in the year.

The news demonstrates the rising opportunities within the renewables industry and the growing demand for cleantech businesses, a trend highlighted in Startups’ feature on What business to start in 2014.

Paul Cropper, co-founder of Solarmass, commented:

“[This funding] shows that the renewable energy sector is strong and that a simple idea, like a low cost, lightweight solar panel can make people sit up and take notice.  Our plan now is to take the tile into production and roll it out across the world where interest has been extremely positive.”

Crowdcube co-founder, Luke Lang, added:

“Solarmass not only hit and overachieved on it targets but in record time.  It’s a fascinating product and one that will go global as the demand for solar energy increases year on year, both domestically and in the commercial sector.  The renewables market is a great opportunity and we’re delighted to support a new entrant into the market.”


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Crowdfunding loans site Zopa raises £15m

Startups 100-listed company will use Arrowgrass Capital funding to expand and market leading platform
Zopa logo
Written by Megan Dunsby
Published on 23 January 2014

Leading European peer-to-peer loans site Zopa today announced it has raised £15m from asset manager Arrowgrass Capital, set to fund a new phase of growth for the company.

Listed at number three of the 2008 Startups 100, Zopa was founded in 2005 by Giles Andrews as one of the first online peer-to-peer lending and borrowing marketplaces.

The service, which allows members of the public to lend money to businesses, claims its service offers a transparent and low-cost alternative to traditional bank loans by offering better rates to both borrowers and savers.

Since launch it has grown into one of the leading companies in the European alternative finance sector, with more than £455m of loans facilitated by the platform.

The firm was recently listed as one of the 2014 FinTech 50, an independent index of the “hottest” companies in the European financial tech market.

Alternative asset manager Arrowgrass’ funding will be used to support the continued rapid growth of Zopa, in particular funding “increased awareness” of Zopa’s offering amongst UK consumers.

It follows a previous round of investment in December 2012, led by Augmentum Capital, a fund backed by the £2bn RIT Capital investment trust in which prominent investment banker Jacob Rothschild and family are investors.

Giles Andrews, co-founder and CEO of Zopa, commented on the latest investment: “As Zopa enables borrowers to dramatically cut their borrowing rates, and savers to see their money grow at market-leading rates and with the security they deserve, it’s win-win.

“This investment offers the opportunity to spread the benefits of Zopa further and faster.”

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Former Apprentice star launches £1m start-up fund

Serial entrepreneur Raj Dhonota to support ‘two businesses a week’ in 2014
Written by Megan Dunsby
Published on 23 January 2014

Serial entrepreneur and former Apprentice star Raj Dhonota has announced the launch of a new £1m start-up fund, set to support innovative new businesses in 2014.

Dhonota claims his new initiative will kick-start two businesses each week from now until the fixed fund is depleted, by providing assistance in the form of direct finance alongside resources expertise, contacts and a fixed growth plan.

Supported start-ups will also be assigned a dedicated mentor to oversee their growth.

The fund is set to provide average investment sums of around £20,000 per business, depending on the size and needs of the start-ups being supported.

Dhonota told Startups that his fund will support businesses across all sectors, although technology businesses are set to be a ‘particular strength’.

He said the fund will look to invest in businesses that offer a new approach to an existing sector, or those that target niche markets.

Dhonota will take a portion of equity in supported businesses in return for the investment.

Serial entrepreneur Raj Dhonota appeared as a contestant on the BBC’s first season of the Apprentice in 2005, shortly before founding software outsourcing business Global Proximity, which he exited in 2008.

Since then he has founded software development company Igniva Solutions, which now generates multi-million pound turnover and has been used to fund the current investment scheme.

Raj Dhonota said: “I’ve always wanted to do something significant to help startups because of my own background and experiences.

“I know too well how hard it is to establish a viable and profitable business without finance, support and experience, and I want to help entrepreneurs avoid similar setbacks that I encountered. I am passionate about startups and find it incredibly satisfying and exciting to help people achieve their dreams.”

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Setting up an eBay shop

How to use eBay to help your business
eBay logo
Written by Megan Dunsby
Published on 23 January 2014

When it comes to starting a business, the opportunities offered by eBay stretch way beyond the chance to sell unwanted bric-a-brac or discarded Christmas presents.

eBay has allowed millions of people to go into business who previously wouldn’t have considered it, while growing numbers are making healthy second incomes by buying and selling online for profit.

With hundreds of thousands of users currently running a business on eBay or using the online auction site as their primary or secondary source of income, an eBay store presents a promising start-up opportunity. Read our guide to find out how it works, how to get set up and what fees are associated to eBay shops:

How an eBay shop works

eBay users can set up online shop within the auction site. An eBay shop allows you to showcase all your auction listings in your own customisable ‘storefront’. You can also list your items for much longer than with a normal consumer eBay account and businesses registered with eBay receive discounts.

Getting Started

If you have a business already then move on to the ‘registering your business’ step. However if you want to start a business from scratch on eBay you will need to decide on your business proposition and what product you want to sell.

eBay customers are often searching for unique or hard-to-find items so the more niche your products are, the better.

If you are serious about selling your products on eBay then you will need to source a supplier to provide you with products on a wholesale basis.

Registering your business on eBay

To start trading under your business name, you need to set up a business account with eBay. All you need in order to do this is a UK address to receive a confirmation letter through the post, and bank account details to set up a direct debit.

To open an eBay shop, you need to have a PayPal account as well as a minimum feedback score of 10 positive feedback reviews. PayPal is eBay’s preferred payment system which allows for payment transactions to be made online but if you don’t have a PayPal account, you need a minimum feedback review score of five. You will also need an automatic payment method on file to pay seller fees (credit card, debit card, bank account).

Your customers will then be able to add your shop to their ‘Favourite Shops’ list in their eBay account page. You can also choose to set up and receive reports that analyse your sales.

Once registered, you will need to decide on a price for your items.

Setting up an eBay shop is just the same as starting a business so you will need to register as self-employed with HMRC and you may want to register the business as a limited liability company to prevent risks if the business fails. You will also need to register for VAT if you think your eBay shop will make over £68,000 a year.

Subscription fees for eBay shops

  • >Basic Shop – £19.99 per month. Suitable for sellers who are just starting out and want an affordable and easy-to-use platform to sell online.
  • Featured Shop – £59.99 per month. A more comprehensive package for small-to-medium sized sellers who want to grow their online business.
  • Anchor Shop – £349.99 per month. An advanced shop for higher-volume sellers who want maximum exposure on eBay.

Feedback ratings for eBay shops

In order to attract customers and ensure that they will buy from your eBay shop, you will need to attain a positive feedback rating as this a central deciding factor for eBay consumers. Ensure that you provide great customer service by having a clear returns policy, answer questions from customers promptly and provide a good post and package service.

Any negative feedback you receive cannot be removed and although eBay offer the right to reply to any feedback, it is important that you maintain a good relationship with your customers.

To set up an eBay shop for your business, visit http://www.ebay.co.uk/

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3D printing company Robox secures £280,000 seed funding on Kickstarter

Exceeds crowdfunding target with backing from 435 investors to support product launch
Written by Megan Dunsby
Published on 23 January 2014

3D printing specialist Robox has announced that it has raised £280,991 through equity crowdfunding platform Kickstarter, securing almost three times its original funding goal of £100,000.

435 investors backed the campaign with many signing up to its ‘Beta Supporter’ package in order to help take its printing product to market.

Designed by British-based product development company CEL, Robox offers 3D printers which use “cutting edge technology” and software to brings ideas to life and can be used in the home, school or office.

The print start-up claims its product will attract a “more mainstream audience” as it uses easy to set-up ‘plug and print’ high quality models that enable users to simply choose the design they would like to print and hit start.

It plans to utilise the finance to launch its printer “innovation” in the UK and overseas in the US early next year with a predicted retail price of approximately £849.

The announcement sees the 3D printing trend gain  momentum having featured in the Startups ‘what business to start in 2013” as an emerging technology which looked to provide exciting business opportunities in the year ahead.

CEO of Robox, Chris Elsworthy, commented:  “[This funding will enable] us to get Robox into the hands of real users that will share their experiences and help feed back into the development process.

“Reaching the initial £100,000 goal this early also means we can start work on some of the longer term developments we’d like to bring to our users and expanding the team here to help support this development.”

Elsworthy continued: “From creating new items like toys and jewellery, to fixing and enhancing existing ones, we believe that Robox will help 3D printing enter the mainstream.”


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Papa John’s ends year on a high with six more UK store openings

Pizza franchise on target to grow network to 300 outlets by December 2014
Written by Megan Dunsby
Published on 23 January 2014

Leading pizza chain Papa John’s has announced it has opened six new stores across the UK with outlets in Nottingham, Sheffield, Essex, Stockport, Chichester and Romford.

The latest additions to its network form part of an ongoing franchise recruitment drive to extend its UK reach to 300 stores by December 2014, with its current total standing at 250 outlets.

The announcement follows the pizza brands’ unveiling of its “biggest and best” franchise incentive scheme for 2014 which applies to new store openings in specific areas and includes access to free equipment, royalty holiday and £10,000 worth of marketing spend.

Founded in 1984, Papa John’s has grown to become of the largest pizza companies in the world with more than 4,300 stores worldwide.

It has franchise opportunities available throughout the UK in key locations including Manchester, the South West, Wales and Scotland with packages starting at £177,000.

Anthony Round, business development manager for Papa John’s, commented: “It has been such an exciting year for Papa John’s,

“Our focus is on continued growth and our target is to increase [our total] to 300 by the end of 2014.  To meet demand, we are actively recruiting new franchisees and particularly encouraging ambitious individuals who are keen to run multiple Papa John’s.”

Discussing its new franchise incentive scheme, Round added:

“The whole package could result in savings of £50,000 for your first Papa John’s store!  These fantastic deals are only available for 2014 and are limited, so first come first served!”

To find out more about becoming a Papa John’s franchisee, click here.

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Tech City to move east with Whitechapel office space and accelerator

Central Working to open 20,000 sq ft space in iconic Edwardian building
Written by Megan Dunsby
Published on 23 January 2014

Business venue operator Resolution Property today announced the upcoming opening of a new 80,000 sq ft venue, set to host a new accelerator programme for financial services start-ups.

Set to open in the first quarter of 2014, Resolution said Dept. W will serve as a multi-purpose ‘media hub’ for early stage creative and tech businesses, hosting office space, workshops, studios, galleries and co-working clubs.

Housed in the former Wickhams department store adjacent to Whitechapel tube station, it is hoped the venue will spark a wave of entrepreneurial activity in the East London location, which already hosts creative icons such as the Whitechapel Gallery, Genesis Cinema and the David Adjaye-designed Ideas Store.

Startups Awards-winning office venue operator Central Working – founded by 2006 Young Gun James Layfield – has been unveiled as Dept. W’s first tenant, occupying 20,000 sq ft of the new multi-purpose space from which it will host a new Fintech accelerator programme.

Delivered in collaboration with Microsoft Ventures and Barclays and run by accelerator specialists Techstars, the Barclays Accelerator will support ten companies set to ‘shape the future of financial services’ in a three-month programme providing seed funding, office space and dedicated mentoring.

Resolution said its long-term plan for the venue is to undertake a comprehensive restoration and redevelopment in around three years’ time, in order to create a new Grade A mixed-use development focused on the tech and creative industries.

Dept. W will form part of Resolution’s growing portfolio of office space targeted at creative companies, which also includes the Bonhill Building in Shoreditch, the Alphabeta project near Finsbury Square and the Ampersand development in Soho.

Juliette Morgan, property specialist at Tech City UK, said: “’Tech City were delighted to help connect Barclays/Techstars to Dept. W.

“Resolution has shown true leadership in providing affordable grow-on space close to Tech City, and we’re grateful for the investment they’ve made into the community on Bonhill St, Finsbury Square and in Mile End.

“The early demand for this building demonstrates the great need for flexible affordable space, and we’re glad to have helped bring some to market. The cluster is growing.”

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How to start a charity

Setting up a charity can change lives, but it takes time, planning and resources to get it right. If you want to start your own, this guide is for you.
Written by Megan Dunsby
Published on 23 January 2014

While starting a business often has the end goal of financial success for yourself, starting a charity puts others first.

Setting up a charity can be an incredibly rewarding experience, but it requires a strong work ethic and a desire to do good.

We hope the guide we’ve put together with six clear steps will help to get you started.

Need some inspiration? Listen to Ariana Alexander-Sefre’s journey and how her business is making a difference in men’s mental health on our Speaking of Startups podcast. 

💡Key takeaways

  • You must choose a legal structure for your charity, such as a charitable incorporated organisation (CIO) or a charitable company.
  • A governing document is a crucial legal document that publicly declares your charity’s aims and operational rules.
  • It is a legal requirement to register with the Charity Commission if your charity has an annual income of over £5,000.
  • You’ll need to have at least one trustee in place before you can officially register your charity.
  • The costs you’ll need to consider are for legal advice, insurance, and fees for professional services (e.g. website design and marketing).

This article will cover:

Step 1. Research existing organisations

Just like when starting a business, the first step to setting up a charity is research. 

You need to be sure that there’s a need for the charity you want to create and that it’s not already out there.

Raising money for good causes will always be popular, but you need to research existing charities to determine if you can achieve what you aspire to.

For example, everybody would love to find a cure for cancer, but not everybody can. Don’t start claiming your charity will find a cure for cancer if your science experience only goes as far as GCSE Biology. You must be able to substantiate any claim you make with evidence or data that supports them. 

Think about what your charity can realistically achieve, what the gaps in the market are and who would be inclined to support your cause.

Step 2. Choose a name and mission statement

The next step in our how to start a charity checklist is to choose a name and write your mission statement.

Choosing a name for your charity is much like choosing and registering a name for your business.

You need to select something unique, easy to remember and that is a reflection of the work your charity will do and the causes it will support.

Some people choose to name their charity in memory of a loved one directly impacted by the cause the charity will champion. In contrast, others opt for something more commercial and memorable.

Check online to make sure your chosen name isn’t already in use by another charity first.

You’ll also need to write a mission statement. It should detail the services you provide, the vision for your organisation, and the charity’s core values. Your mission statement should be clear on what you want your charity to achieve and how you intend to do it.

Step 3. Find trustees

By law, you need to appoint at least one trustee before you can register your charity.

A trustee sits on a charity’s board and ensures it is fulfilling its aims and operating responsibility. Trustees are not usually paid.

In an ideal world, you would appoint three trustees for your charity, as per guidance from The Charity Commission, the government regulator of charities in England and Wales.

Many people who are wondering how to start a charity opt for a mixture of personal and professional connections as trustees.

Try to select trustees who can add something to the running and success of the organisation. For example, if you struggle to pitch and are worried about how you will attract donations, a trustee with sales experience could prove invaluable.

Step 4. Decide on a structure

A key part of how to start a charity in the UK is ensuring you have the right structure in place.

You can structure your charity in one of four ways:

Charitable company

This is one of the most common charity structures. It’s a limited liability company that is officially incorporated and registered with Companies House.

Pros and cons of a charitable company

Pros
  • Trustees and directors have limited liabilities
  • It has its own legal personality and can therefore enter into contracts with other organisations and own land
Cons
  • Must have over £5,000 annual income to register
  • Is regulated by two regulators, The Charity Commission and Companies House, resulting in more admin, fees and duplicate filings

Charitable incorporated organisation (CIO)

A CIO is the newest form of charity structure available and is regulated solely by The Charity Commission. 

Pros and cons of a CIO

Pros
  • No minimum income is required to register as a charity
  • Trustees have no or limited liabilities
  • Can enter into legal contracts with other organisations
Cons
  • Due to its infancy, this structure is often not recognised by financial organisations, making borrowing money difficult

Charitable trust

A trust is a simple and inexpensive way of setting up a charity. The charity is governed by a trust deed which can be flexible.

Pros and cons of a charitable trust

Pros
  • Simple and inexpensive to set up
  • Governed by one body, The Charity Commission
  • Can use simple receipts and payment accounts
Cons
  • No protection from liabilities for trustees
  • Must have over £5,000 annual income to register
  • No legal personality of its own meaning it cannot enter into contracts or own land

Unincorporated charitable organisation

Another straightforward and inexpensive way to set up a charity and a good option if you intend for your charity to stay small.

Pros and cons of an unincorporated charitable organisation

Pros
  • Simple and inexpensive to set up
  • One governing body, The Charity Commission
Cons
  • No liability protection for trustees
  • No individual legal status

Step 5. Create a governing document

When you start a charity organisation in the UK, you’ll also need to create a governing document.

A governing document is much like a business plan and will publicly declare how your charity will be run and what rules your trustees and team will follow.

When it comes to writing your governing document, you’ll need to follow the official guidance from The Charity Commission. Failure to do so will result in you being unable to register your charity.

The Charity Commission states that the structure you choose for your charity will determine the type of governing document you need to provide.

  • Charitable company: memorandum or articles of association
  • Charitable incorporated organisation: association constitution or foundation constitution
  • Charitable trust: deed or will
  • Unincorporated charitable organisation: constitution 

The good news is that you can find templates for all of these documents on The Charity Commission website, making it super simple to create your own and get it right from Day One.

Your governing document will also need to clearly state your charity’s aims. These have to fall within one of the commission’s stated charitable aims such as “conservation of environment”.

Step 6. Register your charity

Now you’ve completed all of the above steps, it’s time to register your charity. 

If your charity generates more than £5,000 per year then you legally have to be registered with The Charity Commission. 

Before you can register, you’ll need to have completed all of the previous steps, such as choosing a name and appointing trustees.

It’s not just a legal requirement either, being a registered charity will add trust and legitimacy to your charitable brand, making it easier to attract donations. 

Pro tip: marketing your charity

Once your charity is registered, you’ll need to start building an online and offline presence and marketing your organisation. Check out our guide to the best CRM systems for charities that will help you to keep costs low.

Who is suited to setting up a charity?

Setting up a charity takes time, hard work and resources. 

The most important thing to remember is that a charity has the aim of helping other people, not helping yourself.

If you’re looking for a way to make money then you would be better off setting up a business, not a charity. 

You also need to be dedicated to and passionate about your cause. If your heart isn’t in it, it’ll be clear, and you’ll struggle to get your charity off the ground and attract donors.

That being said, setting up a charity is incredibly rewarding and ideal for those who are willing to put their own financial aspirations aside to make a difference in the world.

If you’re unsure if setting up a charity is right for you, you could consider setting up a social enterprise instead.

Costs of setting up a charity 

Whilst The Charity Commission doesn’t charge a fee for registering a charity, there are costs that you’ll need to consider and budget for.

If you decide to set up an incorporated charity then there will be a Companies House fee which is usually around £50.

However, you can often keep your overheads pretty low, especially when starting out, as you may not need to splash out on premises or staff in the early stages.

You may want to seek legal advice to help you protect yourself and your trustees, plus it’s a good idea to pay for insurance too.

Once your charity is registered, you’ll also need to begin fundraising. Setting up a website and marketing your company can all be done in-house for free, but if you don’t have the skills or time required then you’ll need to pay an expert to help you.

Final thoughts

Setting up a charity is a rewarding endeavour, but it requires a lot of time and effort to ensure you’re legally and ethically compliant first.

You need to be willing to commit time, resources and money to making the process a success, and there’s little financial reward at the end. But people who set up charities aren’t usually in it for the money.

They do so to make the world a better place and make a difference to a cause close to their hearts.

If you’ve been wondering how to set up a charity then hopefully now you have the guidance and ideas needed to get started.

If you need more insight, listen to Ariana Alexander-Sefre’s journey on our Speaking of Startups podcast and how her business helps young men’s mental health through music and wellness tools.

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Lucy Nixon - content writer

With 10 years experience in the digital marketing industry, Lucy is a content writer specialising in ecommerce, website building and all things small business. Her passion is breaking down tricky topics into digestible and engaging content for readers. She's also committed to uncovering the best platforms, tools, and strategies, researching meticulously to providing hand-on tips and advice.

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Papa John’s launches franchise incentive scheme for 2014

Leading pizza chain to offer free equipment, £10,000 marketing spend and royalty holiday
Written by Megan Dunsby
Published on 23 January 2014

Global pizza franchise Papa John’s has unveiled its franchise incentive scheme for new stores opening in specific areas in 2014.

Labelled its ‘biggest and best’ franchise deal, the pizza company is offering new franchisees access to free oven and refrigerator equipment, royalty holiday and £10,000 worth of marketing spend.

Running for a limited time, the scheme will apply to franchisees opening new sites in Wales, the Midlands, North East, the North West and Scotland with 12 month royalty breaks available to those that open stores before July 2014 and a nine month royalty break for stores opened before the end of 2014.

The announcement forms part of the pizza chain’s plan to expand its UK franchise network, which currently stands at 250 outlets, to over 600 stores within the next ten years.

Anthony Round, Papa John’s business development manager, commented: “To help prospective franchisees bring our […] pizza to even more UK customers we are now excited to announce our ‘biggest and best’ incentive scheme to-date for 2014.

“The whole package could result in savings of £50,000 for your first Papa John’s store!”

Discussing additional franchise opportunities, Round continued:

“In the next year, we will actively be encouraging enthusiastic franchisees who are keen to become multiple site operators. For example, we are currently offering no additional franchise fee to open further outlets.”

To find out more about Papa John’s 2014 franchise scheme, click here.

To learn more about franchising, visit our dedicated franchising channel.

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Dell launches ‘Start-Up In Residence’ competition

Two UK businesses to be given a year’s office space and dedicated support to accelerate growth
Written by Megan Dunsby
Published on 23 January 2014

Global computing firm Dell today announced the launch of its UK ‘Start-Up In Residence’ award, set to give two businesses with high potential a comprehensive package of growth support.

Announced last month as part of its new UK Centre for Entrepreneurs initiative, applicants have from now until 15 February to submit a brief business plan and short two-minute video to Dell explaining why technology is integral to their business growth and success.

The first and second-place winners will receive a package of support to accelerate growth, including up to two years’ worth of dedicated work space at Dell’s Bracknell Campus, access to ‘essential technology’, and mentoring from senior members at Dell.

The prize also includes a networking element: Dell said winners would have access to ‘key’ in-house customer and networking events.

Winners will also become members of the new Dell UK Entrepreneur Advisory Council, which acts as a steering committee for the UK Centre for Entrepreneurs, as well as gaining membership of the Dell Founder’s Club, which executive director and UK and Ireland general manager of Dell Sarah Shields described as “taking mentorship to a new level.”

Tim Griffin, vice president and managing director of Dell UK, said: “With office space costing upwards of £18K a year alone and most entrepreneurs not making it past the first three years, the ‘Start-up in Residence’ competition has the opportunity to make a genuine impact on the winners’ business.

“We want to help remove the burden of the costly investments a business must make when starting out so that they can focus on growth in the critical early stages of their business.”

Following the initial round of video applications, five shortlisted businesses will be selected by the Advisory Council to pitch in person to a panel of judges including Tim Griffin, Sarah Shields, newly-appointed ‘Entrepreneur-in-Residence’ Ingrid Vanderveldt and an as-yet unnamed UK entrepreneur.

To find out more and apply for the competition visit the Dell entrepreneurs website.

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Ripples franchisee Chris O’Halloran marks growth with second showroom opening

Startups Awards finalist expands territory for leading bathroom franchise
Written by Megan Dunsby
Published on 23 January 2014

The UK’s premier bathroom chain Ripples has announced that existing franchisee Chris O’Halloran has extended its reach with the opening of a second showroom.

Shortlisted for Franchisee of the Year at the Startups Awards 2013, O’Halloran joined the bathroom franchise in September 2010 and claims “his consistent hard work and high performance” at his Chelmsford site has allowed him to open a second site earlier than he had originally anticipated.

He intends for the new showroom, based in Colchester, to build on his success and expects it to achieve £500,000 turnover by year two, with an overall sales increase to £1.5m within his territory.

The announcement also sees staff members promoted to new roles to help support the running of the Colchester site.

Operating in a market with a projected worth of £1bn by 2016, Ripples designs and supplies high-end bespoke bathrooms for residential and commercial clients and currently has 15 franchised showrooms across the UK.

Franchise packages are available for £40,000 + VAT and include a training and launch programme and regular support with national marketing and PR campaigns.

Discussing the opening, O’Halloran commented:

“Opening a second showroom had always been in my plans but to be able to do it so soon after buying my franchise is something I’m very proud of. It just goes to show that hard work and dedication to your business really does pay off.”

To find out more about becoming a franchisee for Ripples, click here.

For more information on franchising visit our dedicated franchising channel.

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Peter Andre launches Kung-Fu Schools franchise operation

Reality TV star backs BFA-certified martial arts tuition business
Written by Megan Dunsby
Published on 23 January 2014

Musician and reality TV star Peter Andre today launched the new franchise operation of London-based martial arts tuition Kung Fu Schools, calling on potential franchisees to get involved.

Established in 2007 by Paul Hawkes and Alan Paterson, London-based Kung Fu Schools has been officially endorsed by the Chinese government and specialises in teaching children from the ages of 4 to 12.

After expanding their operation to encompass a number of schools across the South-East of England, the pair have announced an intention to rapidly grow through a franchise model, bringing Peter Andre in as a co-owner in order to leverage his profile and social media following.

Kung Fu Schools’ franchise operation was recently awarded membership status by national accreditation body the British Franchise Association (BFA).

The franchise was officially launched in an opening ceremony in Croydon today in which Andre and some of the young students demonstrated their kung-fu skills.

Speaking at the ceremony, Paul Hawkes, co-founder and managing director of Kung Fu Schools said: “Obtaining bfa accreditation really was the icing on the cake and the perfect end to the day.  We were delighted that Peter could take time out of his busy schedule to officially launch the franchise.

“It was also great to see so many local politicians and dignitaries support our event.  We now look forward to growing the business and welcoming on board our first franchisees.”

Kung Fu Schools is offering franchise packages across the UK which it says will include the cost of full training, meaning no previous martial arts experience is required.

Franchise fees are from £10,995 and will include the cost of equipment, merchandising, advertising and marketing materials plus ongoing support, although the company says further working capital will be required to grow and develop the business.

Further details can be found on the Kung Fu Schools franchise website.

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SimplySwitch founder Karen Darby launches socially-focused crowdfunding platform

Crowdmission will allow social, environmental and health-related businesses to raise money from the crowd
Written by Megan Dunsby
Published on 23 January 2014

Serial entrepreneur Karen Darby has announced the launch of a new crowdfunding platform, aimed at socially, environmentally and health-focused start-ups.

Launched this month, CrowdMission claims to be unique amongst equity crowdfunding sites by requiring that every business listed on its platform must provide an obvious benefit to society, health or the environment.

This social impact must be above and beyond the normal social benefits of enterprise, such as job creation or stimulation of the local economy; Crowdmission said it was particularly keen to work with social entrepreneurs, green energy businesses and bioscience companies.

A number of businesses are already raising funds on the Crowdmission platform, including renewable energy ‘potential predictor’ Power Predictor, which is looking to raise £250,000 on the site.

Pitches will work on the standard crowdfunding model in which private investors can back listed businesses from as little as £10 in exchange for a proportionate amount of equity.

Crowdmission founder Karen Darby is a serial entrepreneur, best known for her success in founding energy tariff comparison site Simply Switch. Announcing the launch, Darby said: “We believe there’s not only a new breed of social entrepreneur emerging, but there’s a new breed of investor – ordinary people who want to back good businesses.

“Ultimately, we would love to help bring to market a cure for cancer or some new technology that radically reduces pollution. Innovators in bioscience and green technology don’t necessarily see themselves as social entrepreneurs, but to us they’re heroes.”

Darby also expressed caution about the incoming FCA regulation on crowdfunding, warning that the City watchdog may try to restrict such services to investment funds and high net-worth individuals. “This fledgling industry needs to stand firm and not accept every rule proposed by the regulator,” Darby said. “While crowdfunding is quickly being embraced by both investors and businesses, the ‘nanny state’ stance being taken by the FCA may well smother the crowdfunding model in its infancy. This is something that can’t be allowed to happen.”

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Crowdfunding platforms: An A-Z directory

We take a closer look at the main players in the UK crowdfunding space
Written by Megan Dunsby
Published on 23 January 2014

With crowdfunding becoming an increasingly popular source of alternative finance for start-ups, new platforms are emerging almost daily.

Probably the biggest decision for most start-ups is deciding between reward and equity-based platforms, but there are a number of other options to consider, including what type of platform is best suited to your business and how much the commission fees are.

To help you sift through the essential information you need to know about each platform, we’ve created a comprehensive A-Z directory of what services are available right now, including a succinct description and key statistics for each option.

Crowdfunding platforms in the UK:

BankToTheFuture.com

Model: Reward and equity-based

Website: https://banktothefuture.com/

Good for: Any business or entrepreneur bringing new products to market

Suitable for investments: Of any amount (no minimum or maximum required)

Commission: 5% of money raised (reward or equity) and 1750 legal fees (equity only) if successful.

Maximum investment period: 180 days

Formed in 2012 BankToTheFuture have already gained recognition from the UK’s leading business leaders including Richard Branson and won the British Innovation of the Year award 2012. The company has put three forms of crowdfunding into one to enable you to have more choice; crowdlending, crowdfunding and crowdinvesting. The company is the only site which enables you to see exactly who has viewed your pitch.

If you don’t hit your funding goal the company provides a flexible funding offer to make the most out of the money you raised.

Bloom VC

Model: Reward-based

Website: http://bloomvc.com/

Good for: Arts and creative projects, businesses and start-ups and those creating a prototype

Suitable for investments: Around £10,000 or more

Commission: 5% fee from project funding total

Maximum investment period: 60 days.

Formed in 2012 the company aims to ‘buck the trend of twenty-somethings at the heart of the revolution’ and give you 100% ownership of your project.

Projects in the arts and creative industry do particularly well as do smaller projects.

Buzzbnk

Model: Reward-based

Website: www.buzzbnk.org

Good for: Social enterprises and other ventures pursuing social change

Suitable for investments: Of between £5,000 and £30,000

Commission: £25 registration fee, plus 5% of successful investments

Maximum investment period: Unlimited, but 90-180 days advised

Unlike other crowdfunding platforms, Buzzbnk allows backers to pledge their time and support, as well as their money – such as by pledging to write a blog, share your campaign via their social networks, or run a banner on their website. In fact, Buzzbnk straddles the gap between equity and reward-based platforms, as you have the option to offer interest payments, as well as non-monetary rewards, depending on the size of the pledge. Buzzbnk campaigns are commonly funded by a large number of small (£10-£20) pledges, but each campaign can be split into achievable milestones. For example, if £5,000 would allow you to lease a space, that could be your first milestone. When you hit this, the money will be released and you can reset the timeframe with another milestone – for example, £3,000 to buy the stock for that space. Buzzbnk donates more than 73% of its profits to charity.

CrowdBnk

Model: Reward and equity

Website: www.CrowdBnk.com

Good for: Pre-revenue and early-stage UK start-ups

Suitable for investments: From £10 (no maximum)

Commission: 5% of money raised + 3% processing fee + 1% legal fee (capped at £10,000)

Maximum investment period: 90 days

The only crowdfunding platform granted permission from the Financial Conduct Authority (FCA) to offer direct equity investments to all types of investor, CrowdBnk says it provides the best environment for business ideas to get off the ground. Calling itself “adventure capital”, the site operates both a reward and equity model and offers those that list as an equity project extra support to form a PLC once the funding target has been met.

As well as facilitating funding, CrowdBnk also provides businesses registered on the site with help to formulate business plans and templates for legal contracts.

Operating on an all-or-nothing basis, the platform runs identity checks on both potential investors and businesses looking to raise investment and has measures in place to combat money laundering.

Crowdcube

Model: Equity-based

Website: www.crowdcube.com/partner/startups

Good for: Raising large investments and building a community with a vested interest in your business’ success Suitable for investments: Of £5,000 or more

Commission: £250 listing fee + 5% of successful investments and £1750 legal fees if successful

Maximum investment period: 90 days (60 days if you use Crowdcube directly)

The world’s first equity-based crowdfunding platform – and the first to host a £1m investment through crowdfunding – Crowdcube provides the structure of traditional angel investment, but with the power of the crowd from which to seek it. Investments start from just £10, empowering ordinary people to invest, and helping start-up and growing businesses meet their targets through power in numbers. Ideal if you need to raise large sums of finance, investors receive greater equity stakes in your business the more they invest. For example, if you offer 10% of your business for a £100,000 investment, someone investing £10,000 will receive 1% equity. You can also offer prospective backers exclusive rewards, including tax relief, as an added incentive to invest.

The first Financial Conduct Authority (FCA) regulated crowdfunding platform to enable investors to become direct shareholders in UK companies, Crowdcube provides investors with access to advice from independent experts from the Financial Ombudsman Service (FOS). Investors can also benefit from the option of claiming compensation through the Financial Services Compensation Scheme (FSCS).

Startups has partnered with Crowdcube to allow entrepreneurs access to a large community of start-up support, from Startups.co.uk’s audience of more than 300,000 unique visitors a month.

Crowdfunder

Model: Reward-based

Website: www.crowdfunder.co.uk

Good for: Creative, ingenious or humorous ideas and start-ups that are a bit of a ‘wildcard’

Suitable for investments: Of £100 or more

Commission: 5% of successful investments

Maximum investment period: 60 days

The sister site to Crowdcube, Crowdfunder uses the same structure as its equity-based relation but is tailored to entrepreneurs looking for backers rather than investors. Without the need for businesses to deliver financial returns, Crowdfunder is focused on being a creative forum for dynamic, original and meaningful projects. The targets of pitches successfully funded through the platform since June 2011 have averaged £1,500 (but rising) and businesses pitching the kind of products people want to own, or games they want to download, have enjoyed particular success. The platform is also well-suited to start-ups with an unconventional, tongue-in-cheek or innovative but untested idea.

CrowdMission

Model: Equity-based

Website:  www.crowdmission.com

Good for: Social impact businesses looking to raise over £10,000

Suitable for investments: From £10

Commission:  No listing fee, 5% success fee and legal fees of £1,750 + VAT

Maximum investment period: 90 days

Founded in 2013 by Karen Darby, serial entrepreneur and founder of energy tariff comparison SimplySwitch, CrowdMission claims to be unique amongst equity crowdfunding platforms by requiring that every business listed on its site must have a social mission at its core.

Start-ups looking to pitch need to provide an obvious benefit to society, health or the environment, which must go above-and-beyond the common social benefits of running a business, such as job creation or stimulating the local economy.

Seeking to support the “next generation of social entrepreneurs”, the platform is particularly keen to work with green energy businesses and bioscience companies.

Crowdrooster

Model: Reward-based

Website: www.crowdrooster.com

Good for: Product and design-driven businesses looking to take their ideas to market

Suitable for investments: Of any amount, no maximum or minimum

Commission: 7% + VAT

Maximum investment period: Yet to be confirmed

Crowdrooster is a product-led crowdfunding platform with an “e-commerce twist”. Open to businesses from across the world, you can raise finance through the site by allowing the ‘crowd’ to pre-purchase your products at a competitive price. Once the funding target has been reached, these products then have to be manufactured and distributed to each of the investors.

The “crowdcommerce” site works on an all-or-nothing basis and businesses looking to use the platform will be vetted for their feasibility internally and via online payment service MangoPay and will have to demonstrate a clear business plan.

Crowd for Angels

Model: Debt and equity-based

Website: https://crowdforangels.com/

Good for: Seed-stage companies through to listed

Commission: 5% fee on successful equity pitches + £1,750 legal fees. Debt commission can be found here.

Maximum investment period: 90 days for equity

A “first” for the crowdfunding industry, Crowd for Angels provides funding for businesses at seed stage through to listed which it says offers benefits to both investors and companies looking to raise investment.

Established in May 2014, the platform gives investors access to firms that would usually be reserved for institutional clients, and also offers up to 50% tax relief on investments made through the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS).

In July 2014, the site expanded its offering to include convertible loan notes for listed businesses; another “first” for crowdfunding.

Funding Tree

Model: Equity and debt-based

Website: https://www.fundingtree.co.uk/

Good for: Seed-stage businesses through to established

Suitable for investments: £50-£1m

Commission: NA

Maximum investment period: NA

Launched in August 2014, Funding Tree is a UK equity and debt crowdfunding platform which aims to support small and medium-sized businesses through “every stage of their life cycle”; from seed capital to Series A and B rounds.

The FCA-regulated platform enables individual investors to back businesses across Europe and specifies that all crowdfunding campaigns listed on its platform must achieve 90% of their funding target in order to proceed.

The site also enables entrepreneurs to run both joint equity and debt pitches; a move which it claims enables the development of “long-term relationships with companies” as opposed to just facilitating one-off transactions.

Hubbub

Model: Reward-based

Website: https://hubbub.net

Good for: Entrepreneurial students or projects for social good

Suitable for investments: Of any amount

Commission: None

Maximum investment period:  3 Months

The company actively supports the education sector and projects that are creative or for social good. The project must have a clear goal and the amount of funding you require has to be fully evidenced and reasoned.

Hubbub also build universities their own branded crowdfunding platforms, such as https://yustart.hubbub.net/ for the University of York.

Indiegogo

Model: Reward-based

Website: www.indiegogo.com

Good for: Product-based businesses with a bit of a gimmick factor and start-ups with a story  

Suitable for investments: Of any amount (no maximum limit)

Commission: 4% of successful investments or 9% of flexible funding campaigns

Maximum investment period: 60 days for fixed funding and 120 days for flexible funding campaigns

Indiegogo somewhat bucks the trend of crowdfunding. For, as well as offering the all-or nothing (‘fixed funding’) model, the US-based business also allows you to host a flexible funding campaign, through which you keep all funds raised even if you don’t hit your target. This may suit if you can make progress with even a small amount of funding. However, it should be approached with caution, for if you raise too small an amount of money to deliver on your pitch, your backers aren’t going to be happy. Projects on Indiegogo range from fundraising for cancer treatment to community projects, but the most successful start-up campaigns are those with a mass-appeal product, such as a ‘salt gun’ to kill flies and a multi-functional iPhone case.

As well as these platforms, there is Funding Circle – which provides swift access to low-cost loans from investors – and you can also find business backers through the UK Angel Investment Network.

Kickstarter

Model: Reward-based

Website: www.kickstarter.com

Good for: Creative projects with a clear ambition (such as to get a product to market)

Suitable for investments: Of any amount (no minimum or maximum limit)

Commission: 5% of successful investments

Maximum investment period: 60 days

Recently launched in the UK, Kickstarter has already become revered in the States. Its biggest success stories include the Pebble “smartphone watch”, which raised more than $10m (£6.4m) of a $10,000 (£6,247) goal, and the Double Fine Adventure game, which raised nearly 10 times its $400,000 (£250,000) goal. Well-suited to product-based businesses, the platform favours projects relating to art, design, fashion, film, food, games, music, photography, theatre and technology, rather than those with a social cause. Unlike some of the equity-based platforms, Kickstarter requires projects to have a clear goal, such as to make a book or produce a product, rather than simply requiring funding to start up.

kriticalmass

Model: Donation and reward-based

Website: https://kriticalmass.com/

Good for: Social impact businesses or charity projects that “power good”

Suitable for investments: Of any amount

Commission: 5% fee on successfully completed projects. For not-for-profit projects you will not need to reach your goal to receive the amount raised but will be charged 5%.

Maximum investment period: Undisclosed

Launched in March 2014, kriticalmass is setting out to create a new form of crowdfunding. Dubbed as ‘Crowd+’, it gives backers the chance to offer their skills, time or business network, alongside, or instead of, finance, to help a campaign succeed.

The new platform is targeted at positive impact projects and charities who are looking to secure funding, as well as support from volunteers and corporate sponsorship. Operating an ‘all-or-nothing’ business model, organisations and brands are able to champion a project by offering their products or services to give entrepreneurs pitching on the site the opportunity to “make an idea into a reality”.

Once the round has closed,‘project creators’ then offer rewards for different types of support which can be anything from a branded t-shirt in exchange for a £20 contribution, a movie credit for expert legal advice, or dinner with a supermodel spokesperson in return for £10,000 sponsorship.

Leading technology investor Tom Teichman, early investor in Moshi Monsters, lastminute.com and notonthehighstreet.com, has already backed the platform with other entrepreneurs showing interest.

Seedrs

Model: Equity-based

Website: www.seedrs.com

Good for: Welcomes all ambitious seed, growth-focused early-stage and later-stage businesses.

Suitable for investments: Investments of up to €5m

Commission: 6% of the first £150,000, 4% of the next £350,000 and 2% of everything over £500,000

Maximum investment period: 60 days

An online platform for investing in the equity of start-ups and other growth companies, Seedrs allows all types of investors to invest as little or as much as they like (from £10) in businesses. Over £160m has been invested on the platform, with over 400 deals funded since the site’s launch in 2012.

Under FCA regulation, Seedrs is authorised to act as a nominee and sole shareholder, managing the investment made by crowdfunders and distributing profits to them, with a 7.5% carry fee from any future profits the investor makes from their investment. All investments made through Seedrs offer voting shares and use professional-grade subscription agreements. This ensures investors get the same level of protections that larger angel investors and venture capitalists enjoy.

The company headquarters is in London, with offices in Lisbon, Amsterdam, Berlin and New York. Backed by high-profile fund manager Neil Woodford, Lord Rothschild’s Augmentum Capital and Faber Ventures, the platform is open to entrepreneurs and investors in 68 countries and will be launching in the United States to US-accredited investors in 2017.

SeedUps

Model: Equity-based

Website: www.seedups.com

Good for: Tech start-ups with no previous experience of raising investment, and sourcing high net worth investors

Suitable for investments: Of under £500,000

Commission: 2% of successful investments (+ another 2% taken from investors)

Maximum investment period: 180 days

Where crowdsourcing meets crowdfunding, SeedUps is suited to tech entrepreneurs who are uncertain of a suitable valuation for their start-up. Each pitch owner must first introduce their business and outline their finance target, then await feedback from sector-relevant members of the crowd. Investors’ bids are used to create a valuation for the business, with only the best bids presented to the entrepreneur. SeedUps only allows sophisticated investors and high net-worth individuals in the US, UK and Ireland to invest through the site, meaning entrepreneurs who have never raised investment before could benefit from investors’ insights and experience. The pitch owner can then use this feedback to tweak their offering before going live with their crowdfunding page.

ShareIn

Model: Equity-based

Website:  www.sharein.com

Good for: Technology and health start-ups looking to raise anything between £40,000 and £1m

Suitable for investments: Of £10 or more

Commission: Five different pricing options ranging from £200 listing fee with 5% success fee to £1,000 listing fee and 1% success fee. £1750 + VAT for legal fees.

Maximum investment period: 60 days

Launched officially in February 2014, ShareIn is the newest equity crowdfunding platform to join the market and ‘sets itself apart’ from competitor sites by focusing exclusively on British tech and health start-ups.

Targeted at UK businesses that look to change the economic landscape through innovation, engineering and science, it is as much concerned with protecting companies looking to raise funding as it is investors by operating a “best-of-breed share structure”.

This structure, claimed to be unlike any other equity platform, means that every share brought in a pitch carries voting, drag along and tag along rights in order to facilitate “professional and fair” legal arrangements between the crowd investor and the investee company.

Start-ups looking to pitch on the site also have to justify their valuation to potential investors by providing data on money spent to date and estimated future costs.

In addition, the platform also provides investors with a secondary market for their shares via a bulletin board to enable investors to sell their shares.

SpaceHive

Model: Reward-based

Website: http://spacehive.com/

Good for: Social projects that help local communities and public areas

Suitable for investments: Of any amount

Commission: 5% fee if successful

Maximum investment period: 1 Year

Spacehive’s crowdfunding model focuses on giving something back to the community. If you have a business idea which can benefit local areas such as a new theatre, stadium etc. then this site enable you access to and funding from likeminded people who want to develop and support their community.

Sponsume

Model: Reward-based

Website: www.sponsume.com

Good for: Fun, artistic ideas and start-ups requiring funding for a specific project

Suitable for investments: More than £200

Commission: 4% of successful investments, 9% of unsuccessful investments but you get to keep all funding.

Maximum investment period: 90 days

Well suited to fun, radical and social start-ups, Sponsume has a large artistic community ready to back one-of-a-kind ideas. With pitch targets averaging between £5,000 and £7,000, this platform is especially useful for funding one-off creative projects, such as producing a short film, festival or exhibition. Ideas relating to the arts, start-ups in the music or film industry ,and projects with a political, charitable or community element may be particularly well-received; as may entrepreneurs seeking funding to launch an innovative new product.

Squareknot

Model: Equity, reward and loan-based

Website: https://www.squareknot.co.uk/

Good for: Start-ups looking for both equity and loan funding

Suitable for investments: £100 up to £10,000

Commission: £500 listing fee and equity 5% of total funding raised. For loans repaid within one year; 2% of total raised, repaid within three years; 3% of total raised and within five years; 4% of total raised. (For loans there is a 1% additional charge for businesses less than two years old)

Maximum investment period: Three months

Said to be the “first” crowdfunding platform to offer equity and loan funding on the same platform, Scotland-based Squareknot are looking to disrupt the market with their mixed-funding investment option.

Claiming its offering allows for pitches to attract all types of investors – “those who prefer investing in shares as well those who would rather lend money and get a fixed rate of return”- the site also facilitates reward-based projects, enabling businesses to offer products or goods in return for investment.

For its loan-based funding operation, investee companies have to state their target interest rate and a business plan which shows cash flow projections, detailing the likelihood of being able to make interest and loan repayments to investors within the agreed timescales. Investors will then analyse the level of risk involved and offer an interest rate to match this perceived risk.

Unbound

Model: Reward-based

Website: www.unbound.co.uk

Good for: Authors and publishers looking for financial backing

Suitable for investments: Of any amount

Commission: 50% royalty on all profits

Maximum investment period:  Not disclosed

London-based niche crowdfunding platform Unbound allows readers to pledge financial backing to authors in return for “books and goodies”. Once the funding target has been reached, the books are then written and distributed.

The platform recently announced that it has extended its offering to publishers so now publishing houses and independent publishers are able to host their own ‘channel’ on the site and offer their own projects for funding.

With the tagline that it “puts books in your hands”, the alternative publishing house claims authors receive more favourable terms than if they used traditional publishing houses where they receive 50% royalty on all profits compared to the industry standard of 5 to 10%.

Volpit

Model: Equity-based

Website: https://www.volpit.com/

Good for: Early-stage start-ups

Commission: £250 listing fee + 6% (+VAT) on successful pitches. No legal fees.

Maximum investment period: Not disclosed

Launched in June 2014, Volpit is designed to “bring interested investors and unique businesses together” and says it is the “youngest-owned” equity site to gain full authorisation from the Financial Conduct Authority (FCA).

Open to businesses across the UK, the platform seeks to differentiate from competitors by offering a ‘Pitch Builder’ service. This service allows early-stage entrepreneurs to build pitch simply by answering a series of questions; the finalised pitch will then be generated and presented in a standardised and interactive format.

The crowdfunding site bringing a “fresh approach to the marketplace” is looking to facilitate £4.5m funding for small and medium-sized businesses over the next year.

WeFund

Model: Reward-based

Website: http://wefund.com/

Good for: Creative entrepreneurs and small arts related business ideas and projects

Suitable for investments: Of £100 to £1000

Commission: 5% fee on successful projects

Maximum investment period: There isn’t a limit; you create your own ‘timeframe’

WeFund aims to transform the arts sector and its business model requires you to provide a short video explaining your idea on the site.

Good for small projects that are looking to get off the ground.

Zequs

Model: Reward-based

Website: www.zequs.com

Good for: Small-scale, extraordinary and creative projects

Suitable for investments: Of any amount (no minimum or maximum limit)

Commission: 5% of successful investments

Maximum investment period: 55 days

Very much the people’s platform, Pleasefund.us attracts a large variety of project-based pitches, from philanthropic filmmakers to creative innovators. Particularly suited to entrepreneurs with an ethical objective, the platform may also suit start-ups seeking finance for a particular project, such as to pay for presence at an international event. Although there is no ceiling for investments on this platform, the average successfully-met target is between £3,000 and £4,000. Pleasefund.us plans to introduce the option to release equity soon.

If you have had a successful experience on another UK crowdfunding platform, get in touch and share your recommendations.

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Regus announces launch of 10 regional ‘Regus Connect’ enterprise hubs

Regus CEO Mark Dixon talks to Startups and Growing Business about the company’s students and freelancers initiative
Written by Megan Dunsby
Published on 23 January 2014

Global workspace provider Regus has announced ‘Regus Connect’, a new scheme to provide dedicated co-working space for freelancers and free workspace to students.

Labelled “enterprise hubs”, the scheme intends to enable freelancers and students to connect with local businesses and existing Regus clients.

Planned for launch early next year, 10 pilot hubs will be rolled-out within existing UK sites with small businesses, students and freelancers able to vote for their desired location.

It is envisaged that the hubs will serve as an “in-house talent pool” for Regus customers to have access to freelancers and will allow students to gain work experience under the same roof as local businesses who will be encouraged to offer work placements.

With London, Manchester and Birmingham already chosen for the first three hubs, Regus founder and CEO Mark Dixon tells Startups and Growing Business why he is championing the initiative and why the hubs will be much “more than a workspace”…

Supporting students and interns

How is the scheme looking to support students?

Mark Dixon: “We’re looking to provide students, interns and jobseekers with co-working space free of charge. They will have full access to Regus services to help them study with the offer to work and collaborate with businesses.

“This will be more than a workspace, it will be a place for students and interns to learn and grow and it opens up opportunities for them to work and network with businesses, both small and established.

“They will be able to use all our services; telephones, IT and resources within an informal setting”

What is the motive behind it?

Dixon: “This isn’t a commercial exercise […] it’s driven by the need to provide something more for students. Internships nowadays are hard to come across and I know that first-hand. I have five children and even with the list of contacts I have it’s a struggle [to find placements and internships], so it’s our aim to fill this gap.”

Will you be working closely with local communities to advertise the scheme?

“We’re already working with local and regional communities and are hosting open days for interns with 500 fairs across the country.”

Helping small businesses

How will Regus Connect benefit businesses?

“Small companies can affectively get access to young, smart people. It’s beneficial for both sides; the business and the student. We think it will be a 50/50 split between existing Regus customers utilising the scheme and new clients.”

“It’s a collaboration between companies and young people looking for work – an end-to-end cycle.”

Boosting the freelance community

Why is Regus Connect focusing on freelancers?

“We’ve noticed that freelancers want something different so we’re providing private areas for them. For many freelancers it can be isolating to work from home and with more and more people working online and in the cloud, freelancers can work instead from our dedicated spaces in a professional environment.

“They can network with other freelancers and meet other local businesses and potential clients and it comes at a reasonable price of £35 a month on a rolling contract.”

The future of ‘Regus Connect’

Can we expect to see the initiative rolled-out nationally?

“This is a pilot scheme so we will be testing its popularity, if successful it will be deployed across the UK and globally, in our existing sites across the word.”

Regus’ third place workspace strategy for 2014

What have you got planned for your third place workspaces over the next year?

“In 2014 we will be expanding to locations across the world and we will be working closely with railways and motorway services.

“We’re seeing a great demand for flexible working and as a business model its worked really well, for example in Holland we converted an old police building to a co-working office and it’s been very well received.”

To find out more about ‘Regus Connect’, click here.

 

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