Last year, there were some 15,000 start-ups looking for money in London, which was a record number for that city. Most of them found the money to get started and begin making their dreams come true. However, whether they got their money from family members, trustworthy friends or angel investors, at some point the money will be used up and the hi-tech entrepreneur will need to consider moving on to the next step. According to a report published by Deloitte, London’s tech industry is worth £125bn, but many investors prefer to put their money into technology companies based in the Silicon Valley. The market for money is very competitive, making it very difficult to find Series A investment, which can range from £500,000 to £4m.
There are many established companies that are in need of digital solutions to streamline their particular industries. Those businesses are desperate for new technologies to help them meet today’s demands. By partnering with hi-tech entrepreneurs who are trying to get their products or services off the ground, both parties can benefit. When suitable candidates partner with established businesses, it is a win-win situation. Business owners receive value through supporting and working to perfect an idea or service that will benefit their own specific industry. By becoming partners, a good idea can be developed into an excellent product with a good potential for viability. And what does the entrepreneur get? Besides the knowledge and experience gained from working hand in hand with an established business, the hi-tech start-up can actually gain credibility in the market, which will make it easier to attract investors. It also provides an opportunity for the new product or service to be used and perfected in a real time scenario. Prototypes can be created to prove the proof of concept and its relevance in the marketplace.
Finding Supportive Partners
There is a limited amount of funding out there, and new companies are springing up everyday that want their cut of the investment pie. Finding a partner is one way of building business experience, making important connections and increasing chances for further investment.