Accelerator funding
Accelerators can offer both equity and non-equity funding, usually alongside a programme of support.
Funding is the act of providing resources to finance a need, programme, or project. There’s lots of different funding options.
Having enough cash is a key aspect of your business’s financial health. Not having enough working capital can have a serious impact, for example, you might need funding to allow you to complete your business plans.
And because there are so many funding options out there, it’s often hard to know which one is best for your business at the time. If you’ve already watched the videos on our access to funding page then you’ll know a bit more about what’s available. There’s also a quick recap below.
Accelerators can offer both equity and non-equity funding, usually alongside a programme of support.
Floating your business on the stock market, and making shares available to buy in order to raise money.
Generally low-interest government-backed personal loans or grants available to individuals looking to start or grow a new business in the UK.
Borrowing from financial providers like banks or loan companies offering a range of borrowing services including:
The use of small amounts of capital from a number of individuals to finance a new business venture, including:
Investment for an equity stake in the business including:
This diagram shows the different types of funding available. It also gives you an idea which ones could be the most relevant at each stage of your business.
Looking for and finding funding isn’t easy. It can be a frustrating and time consuming way to grow your business. So, be prepared and do your research.
Think about the options that are:
Now you know about the different types of funding available and how they relate to your business stage, it’s time to think about what you’re looking for.
Ask yourself the following questions to explore the funding stage, needs and requirements for your own business. Once you’ve gone through them, you’ll definitely have a better idea of what you need and how you’re going to get there.
There are 10 key elements to get down for your funding one-pager, which are similar to the 60-second pitch idea that you might have already looked at. If you haven’t had a chance, don’t worry, there’s everything you need to know in the 60-second pitch article.
In the meantime, carry on thinking of your answers to each of these sections. Pull your thoughts together using these headings and you’ll have the basis of your funding one pager.
1. Business model
What’s different about yours? How do you distribute, who are your key partners, how do you make money?
2. Business summary and vision
A brief intro to your business and your overall vision for the long term.
3. Competitive advantage
What’s yours? What’s the innovation that makes you stand out?
4. Contact details
Don’t forget to include them!
5. Customer problem and your solution
Introduce the problem or painpoint. Explain how your solution addresses the painpoint for the customer.
6. Financial summary table
What are your projections for the next 3-5 years in terms of turnover, gross and net profit?
7. Management team
Who’s in your team – and what’s their experience? Do you have mentors, non-exec directors or advisors?
8. Target market
What’s your knowledge of it? Do you know the total addressable market and the size of the opportunity?
9. Traction
What have you done to date? What’s your proof of concept, and where are you with customers, sales and investment?
10. Your ask (mentor/funding)
What’s the amount of investment you’re looking for, and what will you use it for? What’s your exit strategy and the ROI?
Securing funding can be tough, so plan ahead if you can
Explore all the options available to you
Speak to peers, your bank manager and investors
Be realistic about how much you need and why
Pitch often and be resilient to knock-backs
Create clear and concise documentation that stands out from the crowd
It’s important to remember that most businesses go through the processes of looking for funding. So no matter how hard it seems at the time you’re not on your own, and there’s lots of support available.
You could:
For more insights on funding and managing your business finances check out this article Understanding your finances.
This material is published by NatWest Group plc (“NatWest Group”), for information purposes only and should not be regarded as providing any specific advice. Recipients should make their own independent evaluation of this information and no action should be taken, solely relying on it. This material should not be reproduced or disclosed without our consent. It is not intended for distribution in any jurisdiction in which this would be prohibited. Whilst this information is believed to be reliable, it has not been independently verified by NatWest Group and NatWest Group makes no representation or warranty (express or implied) of any kind, as regards the accuracy or completeness of this information, nor does it accept any responsibility or liability for any loss or damage arising in any way from any use made of or reliance placed on, this information. Unless otherwise stated, any views, forecasts, or estimates are solely those of the NatWest Group Economics Department, as of this date and are subject to change without notice.