Ask YC: UK VC and Mentoring

(Posted under a new account for anonymity)

A friend and I have been working on a side project for over a year, and based on what we have so far, have been contacted about working on a similar project for a company in SF.

Although no actual offer has been made yet, they've suggested they'd like us to relocate from the UK to work on a specific project at a very reasonable salary.

There is a lot of interest in the sector we're working in, and the company that has contacted us has just received $30M in funding (to cover several projects - all similar, but the majority is earmarked for this.)

We know we can do a better job of development and marketing ourselves and already have a working model that's been well received, but to be honest we know it won't ever get to the level we want while it's just a side project.

Which brings me onto the main point of this question: What is VC funding like in UK? Does location matter, should we be looking at US funding as well?

Neither of us have any experience in getting funding and would be interested in finding an experienced mentor (ideally in the UK) to help us plan for and get funding.

Is there any other good UK centric advice?

Thanks in advance

Could you move to the Valley and do your own thing there? If they've just received $30M for a similar project then it suggests there will be more interested investors. VC and angel funding in the UK is improving, but still far short of the valley. Plus there are general 'ecosystem' benefits - more technical people to bounce ideas off and find synergies with, and more potential acquirers. If you had rather stay in the UK, there is a new breed of British consumer tech entrepreneur who are looking to invest back in the UK tech scene - perhaps a good way of crossing the UK - valley divide. Check out the Nesta events in London.

The independent road is tough, really tough, particularly at the beginning of the road. As you progress, things get easier, more people want to talk to you, you have more contacts, etc.

Join these people, and keep your eyes and ears open for opportunity. Let these people pay for the tough part of your journey, and when the time is right, jump ship and start by yourself. You're more likely to succeed because you have the contacts, you know the industry and you are already in the U.S.

How much are you looking to raise? If it's only a small amount initially (up to £250k)it's probably best to go with UK angels; who are actually quite good. They can also use their network to gain further financing and VC can be used at a later stage.

If you have a good revenue model then it will be easier to get angel interest.

Where in the UK are you from?

Yeah we'd be looking to raise in that region - mostly for development costs, with only marginal marketing finance required.

Other, non-competing, players in the industry are already earning well in excess of £50k profit per month. We realise this will require lots of hard work to reach but the market is definitely there.

We're located on the south coast about an hour from London so regular trips up to the city happen anyway...