Top 592 Seed Startups UK (Free List)
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At startupmag, we’ve decided that a seed startup is a company that has raised between £1M and £4M in outside funding.
But it’s actually quite difficult to explain what a seed startup really is, without talking about how it compares to a pre-seed startup.
Seed startups and pre-seed startups both refer to early-stage companies. But they are used to denote different phases in the startup funding lifecycle.
These differences can be put into 3 buckets:
- how developed is the seed startup?
- what will the seed funding be used for?
- what types of investors will invest in this seed round?
Here we will focus on seed startups.
What is a seed startup?
Seed startups come after pre-seed and usually have a more developed concept, possibly a minimum viable product (MVP), and some evidence of market potential or user interest.
Seed funding is aimed at helping the startup further develop its product, validate its business model, and achieve key milestones that will make it more attractive to larger investors in subsequent rounds.
And seed investors typically come from angel investors, venture capitalists, or early-stage investment firms.
Let’s have a look at the latest funded seed startups in the UK.
592 most active Seed startups
Startups (name, funding, founders, investors)
So that’s for startups that have already received funding, but what if you are a founder yourself and you are looking for seed investment for your own startup?
10 ways for seed startups to find funding
Seed startups can secure funding through various channels, and the process often involves convincing investors of the viability and potential success of their business. Here are some common ways that seed startups can raise funds:
1 - Angel Investors
Angel investors are individuals who invest their personal funds in startups in exchange for equity. They often provide not only capital but also mentorship and expertise.
2 - Venture Capital (VC) Firms
Some venture capital firms focus on early-stage investments, including seed funding. Startups can pitch their business ideas to these firms and, if successful, secure funding.
3 - Seed-Stage Venture Funds
Some venture funds specifically target seed-stage startups. These funds are designed to support companies in their early stages of development.
4 - Crowdfunding
Platforms like Kickstarter, Indiegogo, or equity crowdfunding platforms allow startups to raise funds directly from a large number of people. This can be an effective way to validate the market and attract early adopters.
5 - Government Grants and Competitions
Some government programs offer grants, subsidies, or competitions that seed startups can apply for. These can provide non-dilutive funding to support specific aspects of the business.
6 - Seed accelerators and Incubators
Joining an accelerator or incubator program can provide not only funding but also mentorship, networking opportunities, and access to resources. Many accelerators and incubators also culminate in a demo day where startups pitch to investors.
7 - Corporate Investors (Corporate Venture Capital)
Some established companies have venture capital arms that invest in startups aligned with their strategic interests. This can provide startups not only with funding but also potential strategic partnerships.
8 - Friends and Family
Seed-stage founders often seek initial funding from friends and family who believe in the startup's potential. This can be a source of early capital to get the business off the ground.
9 - Convertible Notes and SAFE Agreements
Seed startups can use financial instruments like convertible notes or Simple Agreement for Future Equity (SAFE) to secure initial funding. These instruments provide a way to raise money with less immediate focus on setting a valuation.
10 - Bootstrapping
While not a traditional form of external funding, many startups begin by bootstrapping, using personal savings or revenue generated by the business to fund initial development before seeking external investors.
Do seed startups need to actually show revenue?
While having revenue can certainly strengthen a seed-stage startup's position, it is not always a strict requirement.
Seed funding is typically sought in the early stages of a startup's development when it is working on building its initial product, validating its business model, and gaining traction in the market.
At this point, many startups may not have significant revenue, and investors understand that.