Startups in Cambridge
Cambridge has strengths in biotech, deep tech and university spinouts. The Cambridgeshire & Peterborough Combined Authority can help with local grants and advice, and our funding page explains how we help you get ready for a loan, a grant or investment.
What do Cambridge spinouts need in place before they raise?
Many of Cambridge's biotech, deep tech and spinout companies raise money from investors early. SEIS allows a company to raise up to £250,000, and EIS allows considerably more. Both require the company to qualify at the time of investment and the shares to be ordinary, full-risk shares with no preferential rights, and investors usually expect HMRC advance assurance first. If the share class is wrong, investors lose the relief, which can stop the round. Spinouts also need to settle the university's stake, the founders' shares and the shares set aside for employee options before an investor reviews the list of who owns what (the cap table). EMI options for the first employees and R&D relief on the science add further paperwork.
