This document provides guidance on funding options for IoT projects versus businesses. It notes that projects are discrete with ROI unimportant, and should seek customers, grants or crowdfunding. Businesses require a sustainable organization with clear ROI focus, and could pursue customers, grants or equity investment from friends/family, angels or venture capital. The golden rule of funding is to obtain £1 of customer cash for every £10 of investor funding. Venture funding is a last resort that requires understanding investor behaviors and pitching business lines over individual ideas or products. Useful sources of grants, crowdfunding and other funding information are provided.

1. Funding the Internet of Things
• So, you want to get your IoT idea funded?
• Mark Littlewood, The BLN,
• @marklittlewood, @The_BLN
• Run IoT Forum, Cambridge, June 27th
internetofthings.thebln.com

2. Are You Project or Business?
• Project
– Discrete
– Desirable product for consumer
– ROI unimportant
– Plan to deliver product to user
• Business
– Build sustainable organisation
– Clear focus on ROI
– Plan to build business – processes for
people, cash, global distribution, blah, blah...
internetofthings.thebln.com
MVP or
‘scratch an
itch’
Make £££
for
shareholders

3. Project vs Business – Funding Options
• Project
– Customers
– Grants – TSB, R&D Tax Credits, SMART Grants – 23rd May DEADLINE
– Kickstarter
– Don’t waste time with investors
• Business
– Customers
– Grants – TSB, R&D Tax Credits, SMART Grants – 23rd May DEADLINE
– Equity Investment
• Friends and Family
• Angels
• Crowdcube etc
• Venture Capital
• Public Markets
internetofthings.thebln.com

4. The Golden Rule of Funding
£1 of customer cash
≥
£10 of investor funding
internetofthings.thebln.com

6. Venture Funding – the Last Resort
• Only suitable for a very small percentage of ideas
• Be prepared to kiss a lot of frogs
• Make sure you understand how VCs behave and
what motivates them
• If you want money from investors, understand
their language
• Investors invest in lines, not dots
internetofthings.thebln.com

7. Useful sources of information
• Grants & competitions - TSB
• http://bit.ly/TSBGrants
• Crowdfunding
• http://bit.ly/UKCrowdsources
• Other sources of funding – VC & Grants
• http://bit.ly/UKGrantSources
internetofthings.thebln.com

8. IoT 13: 1 day on the Business of IoT
Conference |Exhibition|Networking
27th June, 2013, Cambridge
One to Watch Showcase: Entries by 27th May
SPECIAL OFFER FOR IOT MEET UP:
50% OFF REGISTRATION TO MIDNIGHT TONIGHT (USE IOT50PER)
OR
£50 OFF REGISTRATION THIS WEEK (USE IOT50POUND)
http://internetofthings.thebln.com/
mark@thebln.com