London (PRWEB UK) 25 March 2011
The entrepreneurs behind business start-up specialist Ortegra have come together to launch an innovative, members only, funding club. Startup Funding Club will be focussed on part financing very early stage internet ventures. The Club will bring together a network of entrepreneurs and investors and collectively focus them on the initial financing of very early stage ventures, typically referred to as the friends and family round of financing.
The club is not designed to compete with existing funding sources such as business angel networks, EIS funds and venture capital. Instead it aims to prime the pump for subsequent sources of funding and compliment their place in the market. Club members will be able to invest directly into supported businesses, alongside other like-minded individuals. By investing directly, costs of investment will be minimised and the opportunity to take advantage of existing tax reliefs such as EIS will remain.
Stephen Page, co-founder of StartUp Funding Club said “Today’s budget aims to make Britain the best place to start, finance and grow a business. The launch of our Startup Funding Club is perfectly timed to coincide with this. Many fledgling businesses do not get onto the first rung of the ladder of success because of a lack of either early stage financing or appropriate assistance. Together with our partner Ortegra and the members of our club, the Startup funding club can provide both financing and appropriate assistance.”
The club will work closely, but not exclusively, together with early stage business development specialist Ortegra. Ortegra operates a business model that involves providing a range of services to early stage, typically online businesses. Ortegra invests in the start-up businesses by providing services at a substantial discount to open market rates in exchange for an equity share.
Jay Shah, chief executive of Ortegra said “We have had some great successes with Ortegra, assisting businesses such as uPad.co.uk and MissHighStreet.com get off the ground. But there are others that have not taken off, not because of a bad idea or the inability to execute, but because of a lack of very early stage finance. We are very excited to welcome the Startup Funding Club to a unique position in the market alongside ourselves.”
Ortegra was started by Jay Shah and Stephen Page in 2008. It provides services and support to very early stage businesses, primarily in the online/digital space. A core service is online application development and online marketing. However, additional services provided may include; strategy, mentoring, business planning, book-keeping and other practical inputs. Our typical approach is to work with business through a series of stages of evolution and to provide input at each stage. Services provided by Ortegra are initially discounted to the level of our cost and the discount is then paid back over time, either from operating cash-flow or as a result of securing external investment into the business. Our risk in providing services to such early stage businesses and especially at the discounted rate is paid for by the start-up agreeing to Ortegra taking a negotiated and nil cost equity position in the fledgling business.
About StartUp Funding Club
The Startup Funding Club has been started by the team behind Ortegra. Jay Shah, Stephen Page and Jonathan Robinson have come together to get this innovative, member owned club off the ground. The club is focussed on financing very early stage internet ventures within a very attractive framework. Members will have the opportunity to take advantage of the networking synergies offered by the club and to invest alongside one another. The Club will be organised such that members invest directly into businesses of their choosing and whilst taking advantage of any existing and appropriate tax reliefs. Annual membership fees are set at £250 per annum and members will have a share in the club and a say in how it is run.
Startup Funding Club
+44 (0)781 298 5121
+44 (0)759 529 2684