Tech startups don’t always know where to begin when it comes to raising money for their product, be it a new mobile app or a niche enterprise cloud offering. After all, there are hundreds of venture capital houses out there, all investing in different technologies from different geographies. But help has arrived in the form of a new platform called Match Capital.
Match Capital, a startup itself based out of a WeWork coworking space in Central London, is aiming to make the process a lot easier for young companies.
The platform, which charges startups £30 a month, aims to help entrepreneurs find the investors that are best suited to them, be it Index Ventures, Accel Partners or a smaller, lesser-known VC.
“It’s a platform that uses data science to algorithmically match startups that are looking for funding with the right investors,” said Match Capital’s Daisy Blount, who takes care of the company’s operations, marketing and PR.
“One of the biggest problems that VCs have is they have a messy deal flow coming in," she told Techworld today. "They have to siphon through the rubbish as they get so many people that just fire a 100 emails out to any VC. The nice ones write back and the busy ones don’t have time.”
Getting investors to back a startup has often boiled down to who the co-founders know, according to Blount. “What we’re trying to do is give the opportunity to people that had a great idea but might not know the right people,” she said.
Match Capital's algorithm, developed by ex-Microsoft Research employee, Jagadeesh Gorla, is able to quickly scan investor websites and the sites of companies an investor has already backed. The platform also looks at how frequently each investor is funding companies.
After assessing each of these variables, it presents startups with a list of venture capital companies that are most likely to back their company.
So far, the Match Capital database has registered the details of 750 venture capitalists and investors, in addition to over 1,000 startups. However, many of those startups could be taking advantage of a one month free membership offer.
Bobby Pringle, founder the Style Eyes mobile app, which uses image recognition technology to match photos of clothes with retailers, said Match Capital has enabled him to target investment firms who "bring real value and will enable Style-Eyes to scale quickly".
But Match Capital isn't planning to take its foot off the gas anytime soon. “We want to be the first port of call for everyone who is raising money,” said Blount.
"In 2015, we’re also going to allow bi-directional browsing so that investors can also discover their most relevant investment opportunities," she added.
In the second half of last year, London-based venture capital firms raised investment funds worth a total of $1.4 billion (£850 million). It's more than likely that the majority of this money will end up being invested in tech startups across the UK and Europe.