
Founders Factory
Description
Founders Factory is a prominent London-based venture builder and accelerator, distinguishing itself through a unique hybrid model that deeply integrates with large corporate partners. Established with the vision to build and scale startups alongside exceptional entrepreneurs, the firm operates both a Venture Studio, where new companies are co-founded from scratch with corporate backing, and an Accelerator program, which invests in and scales existing early-stage businesses. This distinctive approach provides portfolio companies with not only crucial capital but also invaluable access to corporate resources, distribution channels, and strategic guidance from industry leaders like Aviva, Reckitt, and L'Oréal.
The firm's investment focus spans a wide array of sectors, typically aligned with the strategic interests of its corporate partners, including FinTech, Health, Beauty, Retail, Media, and AI. Founders Factory targets pre-seed and seed-stage companies, offering a comprehensive support system that extends beyond mere funding. This includes hands-on operational support from a dedicated team of experts, mentorship, and a structured program designed to accelerate product development, market fit, and overall business growth. Their model aims to de-risk early-stage ventures by leveraging established corporate assets and deep market insights, fostering a higher probability of success.
Regarding investment specifics, Founders Factory provides varying levels of initial capital depending on the program. For startups accepted into their Accelerator, the typical first cheque is a cash investment of approximately £150,000 (around $187,500 USD), supplemented by an additional £50,000 in services and support. Companies emerging from their Venture Studio model, where new businesses are built from the ground up, can receive initial cash injections of up to £250,000 (approximately $312,500 USD), alongside significant in-kind contributions. Since its inception, Founders Factory has reportedly built or invested in over 200 companies, demonstrating a substantial impact on the global startup ecosystem by bridging the gap between innovative startups and established corporations.
Investor Profile
Founders Factory has backed more than 135 startups, with 1 new investments in the last 12 months alone. The firm has led 46 rounds, about 34% of its total and boasts 16 exits across its portfolio.
Investment Focus Highlights
- Concentrates on Seed, Pre Seed, Convertible Note rounds (top funding stages).
- Majority of deals are located in United Kingdom, United States, Germany.
- Strong thematic focus on Software, Artificial Intelligence (AI), Information Technology.
- Typical check size: $187.5K – $312.5K.
Stage Focus
- Seed (67%)
- Pre Seed (22%)
- Convertible Note (3%)
- Series A (2%)
- Series Unknown (2%)
- Grant (1%)
- Angel (1%)
- Non Equity Assistance (1%)
Country Focus
- United Kingdom (67%)
- United States (11%)
- Germany (4%)
- Canada (4%)
- Ireland (2%)
- Israel (2%)
- Kenya (1%)
- Finland (1%)
- Norway (1%)
- Spain (1%)
Industry Focus
- Software
- Artificial Intelligence (Ai)
- Information Technology
- Health Care
- Machine Learning
- Internet
- Analytics
- Travel
- E-commerce
- Education
Frequently Asked Questions
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