MSIF Liverpool Seed Fund - FAQ
1. When might Seed Funding be appropriate?
Seed funding is a source of finance for very early stage businesses that find it extremely difficult to get investment from traditional lenders because they are seen as high risk.
The Liverpool Seed Fund invests in ideas, concepts, Intellectual Property, technology and innovations that show genuine commercial potential but need finance and support to develop further
The Seed Fund can invest in three different stages:-
- Proof of Concept: £50,000 - £100,000
- Commercialisation: up to £350,000
- First Round Venture Capital: up to £750,000
2. What does the Liverpool Seed Fund look for prior to making an investment?
As a an early stage, technology investor, the Liverpool Seed Fund has an approach that is accepting of a high level of risk and an acknowledgement that it is often impossible to carry out the levels of commercial investigation (due diligence) that traditional venture capital investors would typically employ.
However, there are some basic areas in which we would seek comfort prior to investment:
- Intellectual property
- Current/future management resource requirements
- Potential market appetite
- Size of market opportunity
- Current/future funding requirements
3. Does the Liverpool Seed Fund have any investment restrictions?
The business must be early stage and have significant intellectual property. Companies we invest in must be located in or expanding into Merseyside, or committed to relocating a significant proportion of the business to Merseyside within an agreed timescale following our investment.
4. What other benefits come alongside funding from the Liverpool Seed Fund?
Because our businesses are early stage we recognise the need for them to have access to quality advice and support. Liverpool Ventures, an MSIF subsidiary, was set up specifically to help businesses applying to and invested in by the Liverpool Seed Fund.
Alongside all our investment comes tailored management support. Our focus is entirely on North West SMEs and we are committed to putting in the time and effort to help them succeed. We will introduce experienced non-executive directors and all of our investee busineses will receive the benefit of our experience and extensive contact base.
The LSF Network, is a web-based network which enables Seed Fund investee businesses to communicate with each other and access our support network. The LSF Network also runs a variety of networking events and seminars.
5. Does MSIF funding work alongside other funding providers?
Yes. Funding from the Liverpool Seed Fund is often part of a package working alongside other debt or equity providers, and sometimes with grant providers. Equally we can provide all the funding required in a transaction if necessary.
