Fundraising Myths Busted: What UK Investors Do Not Tell You

UK startup fundraising has more myths than any other part of building a business. Some come from well-meaning but outdated advice. Some come from founders who got lucky and extrapolated. Some come from investors who benefit from you believing certain things.

This candid free webinar with Michael Buckworth pulls back the curtain on UK fundraising myths, based on hundreds of successful (and unsuccessful) raises Buckworths has advised on. No spin, no filler.

Why fundraising advice is often wrong (or partially wrong)

There are three main sources of misleading UK fundraising advice. First, well-meaning advice from mentors and peers whose fundraising context has moved on. Second, advice from founders who got lucky and extrapolated their idiosyncratic experience. Third, advice from investors who benefit from you believing things.

The result is that founders often act on advice that costs them money, time, dilution or entire rounds. This webinar busts the biggest myths so you can raise smarter in 2028. If you want a candid, one-to-one review of your fundraising strategy, get in touch after the session.

The five biggest UK fundraising myths of 2027

First: “You must have warm intros.” Sometimes true, often not. Cold outreach done well can outperform poor warm intros.

Second: “Valuation is objective.” No. UK valuations are heavily negotiated, and preparation dramatically affects outcome.

Third: “Standard term sheets are safe.” Some “standard” clauses are aggressively founder-unfriendly. Others sound scary but are truly market.

Fourth: “SEIS/EIS is straightforward.” Full of pitfalls: excluded activities, share structure requirements, timing rules.

Fifth: “When a round is closed, it is closed.” Sometimes investors are still writing cheques weeks after “closing”.

Frequently Asked Questions

Do I really need warm intros to get UK angel funding?

Warm intros help but are not required. Cold outreach done well (personalised, thoughtful, with clear traction) can outperform poor warm intros.

How much can I negotiate a UK term sheet?

More than most founders think, on more clauses than most founders realise. Valuation, option pool structure, board composition, information rights, drag rights, protective provisions and warranties are all typically negotiable.

Is a full-ratchet anti-dilution clause always bad?

Yes, from a founder perspective. Full-ratchet anti-dilution can dramatically dilute founders if the company raises a down round. UK market is typically broad-based weighted average.

Is a 3x liquidation preference always aggressive?

Yes. UK market is typically 1x non-participating. Anything above that is unusually aggressive and should trigger careful review.

Should I hire an M&A advisor or use my regular lawyer?

For anything above a modest trade sale, most UK founders use an M&A advisor alongside their startup lawyer. The advisor manages process and negotiation; the lawyer manages contracts and legal risk.

What does ‘we are not doing X right now’ really mean?

It usually means one of three things: genuine sector focus, internal politics, or polite way of saying no to your specific business.

When is a round really closed?

Sometimes not until months after founders announce closing. Investors may extend rounds if they see high demand.

Are all UK VCs the same?

No. Even within the UK, VCs vary dramatically in stage focus, sector focus, cheque size, decision speed, founder-friendliness and portfolio support.

For a candid review of your fundraising strategy ahead of 2028, book a candid one-to-one review.

About the speaker

Michael Buckworth is a solicitor of the Supreme Court of England and Wales and one of the UK’s most experienced lawyers working with founders. Over 20+ years he has advised hundreds of UK start-ups and scale-ups on the legal decisions that shape their growth, from first incorporation through to exit.

He is the author of Built on Rock: The busy entrepreneur’s legal guide to start-up success, an Amazon Best Seller written for UK founders. Michael has served as “entrepreneur in residence” at London South Bank University and University College London, is a regular speaker at UK start-up and scale-up events, and has been quoted on start-up law in The Telegraph, The Daily Mail, The Independent and City AM.

About the host

Buckworths is the UK’s only law firm working exclusively with start-ups and scale-ups. From incorporation and SEIS/EIS advance assurance to seed and Series A rounds, EMI share option schemes, commercial contracts, employment law and successful exits, we support UK founders at every stage of the start-up and scale-up journey.

In the heart of London’s tech quarter, we work with UK founders across every sector, from AI and deep-tech to SaaS, consumer, healthtech and fintech. Book a free consultation with our start-up lawyers at buckworths.com.

Practical info

— Format: Free live webinar on Zoom for UK start-up and scale-up founders

— Duration: 60 minutes including live Q&A with Michael Buckworth

— Cost: Free

— Places: Limited to 100 UK founders. Register early to secure your seat.

— Attendees will receive a recording after the event.