Octopus Ventures has closed a $12.3 million pre-seed funding round that the company plans to use to continue the expansion of its B2B FinTech platform across the EMEA region, according to a Thursday (June 23) blog post.
“The story of every great technology startup often starts with an idea, most times a crazy and ambitious idea that becomes a solution to address a large market gap using innovative technology,” Principal Maria Rotilu wrote in the company blog post.
“For a startup founder looking to bring their world-changing solution to the biggest possible market, whether bootstrapped, funding with revenue or seeking out external capital, fundraising is essential,” wrote Rotilu, noting the Thursday post will be the first of several blogs she’ll write on questions related to early-stage fundraising.
Rotilu outlined how companies can attract attention during the pre-seed stage, including starting with their own savings accounts or other investment funds. She mentioned that Innovate UK offers grants that help build a startup without any dilution to ownership and grants present another viable option.
“Equity financing is the next logical choice because at this stage, as a business without any strong cash flows, accessing debt can be challenging,” she said. “While venture debt is an option, it is generally considered later. But there are other avenues it’s well worth considering.”
The blog post also mentioned calling on family members, friends, angel investors and venture capitalists for help in the pre-seed stage.
Related: VCs Say EU Firms Can Still Win Big Without US Expansion
In Europe, there’s an increasing willingness among established entrepreneurs to support younger startups by acting as advisers or angel investors, creating a VC climate that is ripe with opportunity today, Thomas Cuvelier, partner at venture capital (VC) firm Alven, told PYMNTS in a recent interview.
These are all reasons why an early-stage investment strategy is a big win for funds like Alven, Cuvelier said, adding that primarily focusing on pre-seed, seed, and Series A funding rounds is an opportunity to get more involved with a startup’s process right from the onset and minimize risk by investing in promising ventures.
