UK start-up founders looking to secure crucial early-stage investment are being advised to fundamentally change their approach to fundraising. Experts speaking at the SCALE Summit on 22 April 2026, including leading investors in Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) funds, emphasised that securing capital is a continuous process rather than a transactional event with a clear start and end.
Jeffrey Faustin, managing partner of Jenson Ventures, highlighted that while domain expertise is important, it isn't the sole deciding factor for investment. His fund primarily backs founders who demonstrate a strong ability to listen and adapt to market feedback, especially at pre-product-market fit stages. This sentiment was echoed by Bernice Brooks, a VC Associate at Guinness Ventures, who stressed the critical importance of honesty and transparency regarding business risks. Brooks noted that a lack of candour during initial conversations can quickly unravel deals when investors conduct their due diligence, undermining confidence in the founder's preparedness.
A significant hurdle often faced by founders, according to Andrew Irwin of AI Venture Flows, is a lack of understanding of legal contracts. Irwin warned that overlooking the intricate details of agreements, beyond just headline terms, can lead to deals collapsing and necessitate costly external advisors. This can be a major impediment for early-stage companies, where resources are often stretched. The collective advice from the panel underscored that while expertise might open the door, honesty, adaptability, and contractual acumen are what ultimately secure and close investment rounds.
Investors also advised founders to treat every interaction as a potential fundraising opportunity, maintaining a pitch deck and data room constantly ready. Bernice Brooks recommended starting the fundraising process a year in advance, recognising the extended timelines involved. Jeffrey Faustin confirmed that even at a faster pace, founders should anticipate a minimum of six to twelve weeks from initial contact to investment through Jenson Ventures. He also offered encouragement, noting that an initial 'no' from an investor is not necessarily final, with some deals being revisited and funded years later, provided the relationship is maintained through regular updates.
Finally, Andrew Irwin cautioned against the temptation for founders to raise an excessively large 'war chest' too early, warning of the potential for significant equity dilution in subsequent funding rounds. While organic growth can be slow, giving away too much equity prematurely can severely impact a founder's stake and control in the long term. This delicate balance between securing sufficient capital and preserving equity is a key strategic consideration for any start-up seeking to scale.