I have the impression that there are many web2.0 contributors here that want more support for their technology artistry.

Perhaps early start-up thinking should be to efficiently bring buyers and sellers together.

At Musetopia, we have many “artistic” technology ideas, but are initially focused on making low cost, long tail markets to enable financial leverage.

J.

I guess any & all sources of funds are welcome, and it’s good to know which ones are attuned to innovative technical business investments.

Two observations:
- Favorit is incredible technology, with a real business model attached. I can’t believe that Nick isn’t fighting off investors with a large stick, even in this climate.
That probably says as much about the investment *culture* in Europe as it does about the current climate. Even with great technology it’s tough to find backers who see the potential value.

- Pre-crunch, I’m told the banks didn’t lend 100% of SFLG’s allocated funding.
Even if recessions are acknowledged to stimulate innovation, can a Bank’s risk assessment model ever look favourably on innovation?
So is there any benefit in putting more funds into SFLG without changing the risk assessment model – and the mindset of the people running it?

Great stuff. I wish a lot more entrepreneurs who do business via web/mobile would understand that physical location does not have to be in ‘the fashionable’ places but in a location that serves the business well strategically and financially (as you have found for your company).

I get a feeling that some web companies still have a bricks and mortar attitude and want to be seen in the best position in the best high street.

BTW, I am welsh, living in Europe at the moment, but I could certainly entertain upping sticks with my businesses to be nearer the millenium stadium for match days :0)

Re ECFs investing into post-revenue only, we operate one of the 2006 ones, IQ Capital Fund, and continue invest in pre – (as well as post-) revenue start-ups, including web 2.0 – eg iDezine, Phonetic, Shortfuze, Imsense..

It would be neat though if NESTA were actually able to distinguish such bubblesque initiatives from real good ideas that have a chance to actually turn a profit.

It looks like the amount of paperwork and legwork would require many hours a week, something that can’t be done whilst holding down a day job (vital in the current climate). I wouldn’t be surprised to see many start ups bootstrapping until money becomes easier to come by in a few years time.

I’m part of a start-up currently actively seeking funding, and the process is slow, but progress is slowly being made for us.

If you want the money from government, VC or elsewhere, you really have to work hard for it.

You have to keep arranging meetings, building connections, winning influential people over with your idea and get them to actively assist in the funding search.

You don’t even have to stick to traditional outlets for funding such as Government, VC’s, loans and grants etc.

If you can find the right angle and have a solid business plan to back it up, you can pitch for anyone to back your business: companies, wealthy individuals etc.

The point is, leave no stone unturned when it comes to hunting for funding. Go for multiple lines of attack, don’t be afraid to try speculative applications to absolutely anyone for funding. If you can arrange a meeting, at the very least you have a foot in the door.

Best of luck for anyone looking for funding, would love to see a real flourish of new and exciting UK web start-ups over the coming year.

If you’re in London then the GLE (Greater London Enterprise) is the economic development arm of the London RDA (London Development Agency) – so I guess they’re the London equivalent of Finance South East (an extension of SEEDA), which Nick mentions.

Still getting to grips with what they can actually do for you (and us in the web space), but here are some links:

*About GLE http://www.gle.co.uk/about.htm
* GLE funding & financial support info http://www.gle.co.uk/commercial_finance/growthcapital.php

They don’t seem to offer the ‘enterprise hubs’ that SEEDA do and which got mentioned (http://www.enterprisehubnetwork.co.uk/), which seems strange. Or maybe they’re well hidden.

And if you’re not in London, then here’s the RDA map for the country so you can find yours http://www.englandsrdas.com/visit_rdas/ (Nick linked to this site in his piece, but this map is handy)

And if you’re a grant hunter then here’s the Business Link page on grants and other government support http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073866776

Any other useful links to share?

—

http://www.twitter.com/chrsoz

If VCs are pulling out of early-stage start-up funding, why should we expect government agencies to.

If the support funding goes to revenue generating businesses and helps secure jobs, then in the short term I think that’s a good call.

You have NESTA Ventures which is meant to direct investment into companies, and my (and others) experience is that they won’t invest in this area full stop. And this not just from a phone call, I have met NESTA representatives.

Additionally, as NESTA funding currently originates from the public purse (technically, from lottery proceeds) as taxpayers we should be pleased that they are investing their resources on areas in which they have solid expertise (an accordingly, can make more intelligent investments and provide meaningful support to their portfolio), rather than pouring money into whatever technology seems ‘hot’ at the moment.

Furthermore, as can be seen by the popularity of they myriad web 2.0 networking events, there are a number of other investors, both angels and institutional players, now active in the Web 2.0 space. While there is certainly room for additional investment in this realm, it seems entirely appropriate to me that NESTA spend its limited resources on areas where there are fewer private sector players (and accordingly, a more significant equity gap). Don’t get me wrong – I’d be overjoyed if they launched a web 2.0 fund – but I do understand their rationale for not having done so yet.

Finally, just because NESTA Investments is not active in Web 2.0 work, does not mean that NESTA is not involved in the social media space. Indeed, they have an entire programmatic stream, called Web Connect, devoted to investigation and support of highly innovative applications of web 2.0 concepts.

I do see ‘green shoots’ appearing amongst some of the agencies, but the burden of paperwork is WAY more than even going to a VC.

Scott, hiding behind ’strict commercial basis’ doesnt help anyone, we are talking about early stage startups for the most part who need investment for ‘innovation’ and innovation comes at a risk, you CANNOT create new ideas/technologies when you are spending your whole time trying to prove a commercial point. Agencies like FSE understand this and have created a range of policies that cover early stage through to revenue generating companies.