Our diverse portfolio covers themes from genomics to IoT, but we only invest in ventures that target enterprise customers (not consumers) and are relatively early in their maturity (typically between Seed and Series A). We look for transformative solutions, with strong recurring revenue potential and inherently scalable models. Only in exceptional circumstances will we consider investments outside our focus.
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 develop a deep understanding of your venture in order to give you early assurance that we’re likely to be the right investors for you.
- We often lead our rounds and help you bring other investors to the table.
- We know that being a founder can be lonely: the number of decisions per unit time is high as is the potential impact of each decision. We give all of our founders our time and expertise when they need it. That’s why most of our portfolio founders have us on “speed dial”.
Beacon invests between Seed and Series A. Some refer to this as “post-Seed or pre-Series A”. This typically means you will be raising between £1m and £3m. Beacon aims to provide up to 50% of the round.
Historic data suggest there is a so-called equity gap in enterprise tech, before Series A. The capital you raise usually lasts you about 18 months and building a robust minimum viable product ready for enterprise deployment usually takes longer than that if you expect long sales cycles. Enterprise tech founders need more than Seed capital to reach expected Series A milestones.
Yes, we aim to follow on and we reserve follow on funds for every new investment we make. We typically aim to follow on up until Series D.
Beacon is an experienced lead investor. We have led the majority of 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
We usually need 3-4 meaningful interactions with the founder and the CTO before we can decide on a term sheet. A founder’s time is a rare commodity that we respect and aim to use purposefully. When the time comes to issue a term sheet, we will have built the necessary conviction to lead your round.
Our term sheets are subject to completing our due diligence. This can take 2-5 weeks. The time varies greatly depending on the readiness of all parties but it is an opportunity for us to start working together and getting ready for the post-investment period.
The best way to understand how we work is to speak to one of our portfolio founders. We encourage you to do so before you accept our term sheet.
As the founder, you build a direct and, in time, hopefully trusting relationship with the Beacon partner. The intensity and frequency of your interactions is driven by you and the needs of your business. Regular Board meetings ensure structured, strategic discussions while calls and texts in between help with tactical matters.
The Beacon partner will be the single point of contact and the person who will draw the necessary resources from our network to help on aspects such hiring, lead generation, sales comp, pricing, budgeting or your tech stack. Think of your partner as your Single Sign-On (SSO) to a network of expertise configured to your needs.