- What are your investment criteria?
- Which sectors do you invest in?
- How much do you typically invest?
- What do you expect to see in the initial business plan?
- What else can I expect from Octopus in terms of support?
- Where do you invest?
- How soon can I expect a response from you?
- What happens after I’ve submitted an application?
- I have skills that might be helpful for your portfolio – can I get involved?
What are your investment criteria?
We look for the entrepreneurs who want to redefine the Future of Health, Money and Industry.
We have no minimum investment. However, over the last couple of years, the smallest investment we made was £350,000 and the largest was £25 million. Where appropriate, we will start investing at Seed stage with less than £1 million but, typically, our first investment tends to be between £2–5 million for Series A deals (those ventures receiving their first round of financing after Seed capital) and £5–15 million for Series B.
Our evergreen funds also allow us to follow our investment with additional funding rounds as a business grows. Ultimately, we are looking for unusually talented entrepreneurs intent on building big businesses that will positively impact the world.
Which sectors do you invest in?
Our investment team is dedicated to help pioneers in the three areas they will have the most impact: Health, Money and Industry.
Future of Health seeks the pioneers who are improving the way health systems work and ultimately saving lives in what will soon be the world’s biggest industry, through patient-driven medicine, clinical decision tools, digital health and disease prevention technologies.
Future of Money finds the businesses that will revolutionise the way society exchanges and allocates resources and risk, building the products that will transform payments, investments, markets and insurance.
Future of Industry is focused on the technologies that will drive the next industrial revolution through advanced manufacturing, materials, Internet of Things, robotics and artificial intelligence. Alongside these are the technologies which will keep a fully digitally connected society secure.
How much do you typically invest?
We have no minimum investment. However, over the last couple of years, the smallest investment we made was £350,000 and the largest was £25 million. Where appropriate, we will start investing at Seed stage with less than £1 million but, typically, our first investment tends to be between £2–5 million for Series A deals – those ventures receiving their first round of financing after Seed capital – and £5–15 million for Series B. Our intention is to then follow our investments, and continue supporting the entrepreneurs we’ve backed, for years to come.
What do you expect to see in the initial business plan?
A slide deck or executive summary is sufficient in the first instance, as long as you are happy that it gives a reasonable overview of the team, the business model, the competition and the market opportunity.
What else can I expect from Octopus in terms of support?
We know that being bold and generous with our time, our network and our knowledge works for everyone. We draw on the diversity of our experience to help the companies we back get better, faster, whether that involves building teams, developing their CEOs or scaling internationally.
For the majority of companies we’ll be an active participant on the board. Often the real value comes from the hundreds of interactions that occur outside the board room. Our role as a sounding board and partner can be invaluable during the roller coaster ride of scaling a business.
Our Venture Partners are constantly engaged with a large number of the companies in the portfolio and able to provide deep insight and practical support in sales strategy, hiring, product, leadership, CEO coaching and international expansion.
With an office in New York and Venture Partners in London, San Francisco, Singapore and China we are well placed to help companies scope, test and enter these territories. See our Insights page for a series of insights on these specific topics.
We have also been fortunate to back nearly 100 talented founders and their teams in recent years and we encourage this group to share and learn from each other’s expertise and experience through our events, e-mail threads and one-to-one connections.
Octopus also provides support in the issues of employment, recruitment, research and development, public relations and lobbying. We know that the needs of each start-up are different and that these needs will evolve over time.
Many of us understand first-hand how difficult it is to build a business, so we’ll be there when entrepreneurs need us – and get out of the way when they don’t. We’ve always said that the best test of an investor is whether an entrepreneur wants to work with them again. And in that regard, Octopus has a track record of backing serial entrepreneurs again and again – which includes those referred to us by our portfolio.
Where do you invest?
Our investment team is based in London and we invest throughout Europe with a bias to the UK. We find that proximity works best for everyone at the earlier stages of company building.
How soon can I expect a response from you?
We aim to get back to you with initial feedback within a week.
What happens after I’ve submitted an application?
Following the initial feedback, if we believe there is a good chance that Octopus Ventures will be a relevant and valuable investment partner to your business, we are likely to invite you in to our offices, to discuss your business in more detail and to introduce ourselves.
The next step requires one of our team to champion your business and make the case for why we should consider the investment. This is set in a wider context of other businesses seeking funding, the existing portfolio, our views on the market potential, and so on.
I have skills that might be helpful for your portfolio – can I get involved?
We are keen to find the best talent possible to support our portfolio and to help us with due diligence – for instance, when reviewing new businesses. Please send your CV or a bio to email@example.com if you would like to get involved.