We have a laser-sharp focus in European tech ventures that solve significant problems for the enterprise customer and help them succeed globally . We do not invest in ventures that target or serve directly the interests of consumers (B2C). We look for transformative enterprise solutions which can grow to billion-size businesses on the basis of strong recurring revenue potential and inherently scalable models.
In exceptional circumstances, we may consider investments outside our focus.
Beacon exists to serve founders in Europe better. At pre-Series A we believe that founders deserve the level of support reserved for later stages. We strive to be the founder’s partner for life the support we offer to every founder (with most of our portfolio founders having us on speed dial). Post-Series A, we aim to provide founders with the liquidity typically reserved for later-stage ventures. Beacon understands that small partial exits early allow founders the financial freedom to thrive in their personal lives.
We solve this through investing growth capital into the companies we back, as well as offering liquidity to founders (in our portfolio and beyond). We don’t think liquidity means you won’t be invested in building your company, quite the opposite! We are strong believers that the earlier you reach a comfortable level of liquidity that allows you to put a down payment for a home, the more long-term you will start thinking when it comes to building your company. Knowing that liquidity is a possibility at every round after a certain stage will align incentives with investors further and not have you chase exit opportunities that may be much smaller than your ambitions.
Beacon targets initial cheques of £0.5m – £2m and aims to at least double that amount in subsequent rounds. This includes primary investments pre-Series A and secondary at post A.
Data suggests there is an equity gap in enterprise tech in Europe that is prominent before Series A. The capital raised at Seed typically lasts 18 months, and building a robust minimum viable product ready for enterprise deployment takes longer than that, especially considering the long sales cycles in some sectors. Enterprise tech founders need more than the typical Seed capital to reach the expected Series A milestones. Trying to make it while being undercapitalised can jeopardise their future success. Beacon provides capital at this stage to ensure future success.
Yes, capital is reserved for follow-on for every new investment we make. We typically aim to follow-on up until Series D.
Beacon has a breadth of experience as the lead investor. We have either led our investments or had a significant role in helping the founder bring the round together.
We assess opportunities based on our 7 T’s:
- Tenability of advantage
For pre-Series A investments, we typically need 3-4 meaningful interactions with the founders, including the CTO, before issuing a term sheet. A founder’s time is a rare commodity. We respect this and aim to use it with purpose. When the time arises to issue a term sheet, we will have built the necessary conviction to lead the round.
For secondaries, we typically do most of our due diligence with just access to a data room and/or monthly investor updates. When running these on the back of a round, it’s easier to work with existing materials. However, we’re equally happy to consider the investment outside of a fundraise and find that this comes, sometimes, at a more useful time for founders.
In both cases, respect for the founders’ time is a priority.
Our term sheets are subject to completing our due diligence which can take 2-5 weeks. The time varies greatly depending on the readiness of all parties, but it is an opportunity to start working in tandem and get ready for the post-investment period.
For secondaries, it can take us 1-2 weeks to close the transaction and most work is down to our legal team to review the documentation and get things ready for signing.
No, we can do a secondary anytime. We have experience structuring these before, during (where we also participate in the round) or after an institutional round.
Founders’ liquidity may sometimes be a difficult topic to bring up with existing investors. At Beacon, on the other hand, we welcome the opportunity to discuss it with you. We strongly believe that the founder’s needs are just as important as the company’s.
The opportunity to discuss our approach to founders’ liquidity is always available and we encourage you to reach out if you’re interested in learning how it could work or simply chat about the topic.
We deliver effective post-investment support that matches what your company needs at pre-Series A. There is one thing that we understand better than most investors: the goal of your post-Seed round is to find your Ideal Customer Persona – a single definition of an ideal customer cohort for whom you are solving the same pain via the same proposition. Once you achieve this, financing the next stage of growth will be considerably less dilutive for you. We will help you get there.
Founders build a direct and trusting relationship with the Beacon team. The intensity and frequency of interactions are driven by and the needs of the business. Regular board meetings ensure structured, strategic discussions while calls and texts in between help with tactical matters.
The Beacon team is the single point of contact. We draw the necessary resources from our network to aid on aspects such as hiring, lead generation, sales comp, pricing, budgeting or the tech stack. The Beacon team is the Single Sign-On (SSO) to a network of expertise configured to the founder’s needs. The Beacon team is not just an investor — they are everything and more.
In any case, the best way to understand how we work is to speak to one of our portfolio founders. We strongly encourage interested founders to do so before accepting our term sheet