Raising venture capital for a UK startup

Venture capital funds check the cash, the revenue and the share history before they invest. We prepare the accounts, forecast and records they ask for.

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Venture capital funds buy minority stakes in young, often pre-profit companies, usually at seed or Series A stage, and typically hold them for 5 to 7 years. UK smaller businesses raised £12.3bn of equity across 2,002 deals in 2025, according to the British Business Bank.

Before a fund invests, its advisers test the company's cash, revenue and costs against the records. We prepare those records so each figure can be checked against the bank and Companies House.

The stages of equity funding

Pre-seed: The earliest stage, usually before a minimum viable product exists. The money typically comes from the founders' savings, friends and family, or angels.
Seed: Turns the concept into a going concern through market research, product, prototypes and key hires. It typically comes from angels, early-stage venture capital funds, incubators and sometimes crowdfunding, and the British Business Bank says a seed round can be several hundred thousand pounds.
Series A: Comes after a minimum viable product and real market traction, to scale the business. It typically comes from venture capital firms, super angels or institutional investors, and is usually much larger than seed.

Sources: British Business Bank, equity funding stages and British Business Bank, venture capital.

The UK equity market in 2025

The British Business Bank's Small Business Equity Tracker 2026, published on 2 July 2026, covers investment in 2025:

UK smaller businesses raised £12.3bn across 2,002 deals. The value was down 4% on 2024 and the number of deals down 17%.
Companies working in artificial intelligence raised a record £5.4bn, which was 44% of the value and 26% of the deals.
The number of seed-stage deals fell 27%, while growth-stage investment rose 10% to £5.7bn.
London had 48% of the deals and 57% of the value.
In the first quarter of 2026, equity investment into smaller businesses fell 43%.

What a venture capital fund checks

Cash and burn: The current cash cost base and how quickly the company spends cash, which shows how long the money lasts.
Revenue growth: How fast revenue is growing, month by month.
Revenue recognition: When revenue is counted in the accounts, which matters for subscriptions, contracts and upfront payments.
Gross margin: Which costs sit above gross profit and which are operating costs, and whether that split is consistent.
Figures that trace back: Whether the numbers in the pitch materials agree with the accounting records.
Legal and tax structure: For smaller deals there is more emphasis on legal and tax checks, such as share scheme structures.

Source: ICAEW Corporate Finance Faculty, Financial Due Diligence, Guideline 71 (2024).

Prepare for due diligence

How we help with a venture capital round

1
Management accounts a fund can read
Monthly accounts to a recent month end, with revenue recognised consistently and costs split between gross profit and operating costs.
2
A forecast tied to the actual figures
Monthly cash and profit, with the burn and runway shown and each assumption written down.
3
The cap table and share history
Every issue, transfer and option grant, agreeing with Companies House, and the dilution of the round modelled. Our valuation and dilution page shows how that works.
4
The financial section of the data room
Statutory accounts, management accounts, forecasts, tax returns and R&D claims, named and in one place.
5
EIS, where it applies
Advance assurance before the round and the compliance statement after it. See EIS advance assurance.

Our fees for a funding round

Investor readiness

Quoted before we start

Books, filings and share records brought up to date
A forecast with its assumptions written down
The financial documents investors ask for

Business Pulse set-up

From £750 + VAT, one-off

Annual budget and 12-month cash flow forecast
The KPIs investors will ask about
A planning meeting to agree the assumptions

SEIS and EIS

£499 then £599 + VAT

Advance assurance before you pitch
The compliance statement after the round
A certificate for every investor

Other funding pages

Raising angel investment: Who angels are, what they invest and how to get a round ready.
Private equity investment: How private equity differs from venture capital, and the accounts work in a deal.
Investment due diligence: What investors check, how to prepare and what goes in the data room.
Startup valuation and dilution: Pre-money and post-money, a worked dilution example and EMI share valuations.
Term sheets explained: The terms in a UK term sheet and the model documents for Series A.
EIS advance assurance: The limits from 6 April 2026, the knowledge-intensive tests and the application.

Common questions

What is the difference between seed and Series A?

The British Business Bank describes seed funding as turning a concept into a going concern, through market research, product, prototypes and key hires. Series A comes after a minimum viable product and real market traction, to scale the business, and is usually much larger than seed (BBB guide to funding stages).

How long do venture capital funds hold an investment?

Usually 5 to 7 years, according to the British Business Bank (BBB, venture capital).

How much equity investment went into UK smaller businesses in 2025?

£12.3bn across 2,002 deals, according to the British Business Bank's Small Business Equity Tracker 2026. The value was down 4% on 2024 and the number of deals down 17% (Equity Tracker 2026).

What financial checks will a venture capital fund make?

The ICAEW's guideline on financial due diligence says checks for venture and start-up investors focus on the cash cost base and expected burn, revenue growth, revenue recognition, and how costs are split between gross profit and operating costs. Our due diligence page covers how to prepare.

Can a venture capital round use EIS?

Yes, if the company and the shares qualify. From 6 April 2026 a company can raise £10m a year under EIS, or £20m if it is knowledge-intensive. Our EIS advance assurance page sets out the limits.