Investing in startups involves risks, including loss of capital, illiquidity, lack of dividends and dilution, it should be done only as part of a diversified portfolio. These investments are targeted solely at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions.
close X
sign in with Linkedin

For Entrepreneurs

HM Treasury sanctions check and checking against the politically exposed persons database. These will be undertaken by a third party www.complianceassist.co.uk. 
 
In the unlikely event that this raises issues you will be notified and given the opportunity to rectify any anomalies. You can also upload photos or a video in support of your pitch. Once we're happy with your listing, it will go before our Investment committee each one of whom will need to approve the application - see ‘’how the investment committee works’’ section below after which if approved your business idea and offer will be published for investors to review.
 
Keeping it simple and what we need from you
 
We have tried to keep the fund raising process as painless as possible.  We are not an on-line Venture Capitalist looking for large amounts of documentation and due diligence.  However the business needs to ‘sell itself ’ as the crowd needs good reasons to part with their money and this should be borne in mind when preparing materials.

Businesses requiring funding will be asked to

1) Sign up to the site and Agree to our terms and conditions on line

2) Before funding completes adopt a recommended set of articles of association.  To make the necessary modifications you will need to hold a meeting of the directors and pass a Special Resolution, a copy of which needs to be sent to Ice Dragons.

Alternatively, you can send us your existing articles in electronic format, which will be checked by our Lawyers who will approve or request some additional clauses to give a degree of protection to the new shareholders.    See FAQ’s later (There is an additional fee for checking and amending Articles of Association in the region of £750 plus VAT.  A firm fee will be agreed before we proceed)

3) Provide on line the basic details of your business and Directors so that we can undertake Identity Verification.

4) Up load a short business plan.  This should cover :-

Business idea and value proposition

How much you want to raise and how much equity is on sale for that sum

How the money will be used

Possible exit plans, how shareholders will see a return on their investment if the business is a success

Your differentiation from any competitors

Financials projections, again, keep them clear and simple.  No investor will invest without having a clear picture of your financial plan allowing them to understand your business model and make their own judgement about your chances of success. We strongly recommend 3 years P&L cash flow and balance sheet.

5) We suggest a short video pitch describing the business idea and showing the enthusiasm of the team.  It is a powerful tool for you to demonstrate your investment potential.  Make it succinct and compelling. It will help bring your business to life, show that you are serious and add credibility to your pitch, which will have a significant impact on investing.

Let us know in the business plan if you qualify for EIS or SEIS tax relief, which is a great incentive for investors.  You will need to have applied and be approved by HMRC before your pitch goes live so you can have the EIS or SEIS logo displayed. 

In preparing this material it must be remembered that everything you upload will eventually all be shown to our membership so the communication must be fair, clear and not misleading.  Do not include any trade secrets, (we cant stop your competition being members) or information that could jeopardise an imminent patent application.  Transparency is key, if there is vital information you can’t put on the web site, we can’t put you forward for crowd funding.  Everything we know about your business we must share with the crowd of potential investors.

Warranties" are true and accurate as at the date of this letter and on each date that  the Listing remains on the Website.

The Investment Committee will then review and may contribute ideas to your ‘pitch’.  If approved your information is uploaded to the “crowd facing” section of the website for an agreed period of time.

The Crowd then ‘vote’ by choosing to invest.

Reasons for the crowd investing (in order of importance)

They like the idea, especially if it has a socially positive impact

They feel involved, contributing ideas to the business and watching progress

They like the team and can see job creation possibilities

They can see the possibility of a financial return

The process

When funding has been secured,

We prepare the shareholder register, check adoption of articles etc.

Go Cardless deduct our fee of 6% before you receive the investment

We prompt the payment of money via Go Cardless which is sent directly to your bank account (we never hold client money)

We send the investors their share certificates based on the information above, (combined register and payment information)

Quarterly ongoing commitments to Ice Dragons

For display in the private section where only your investors can see a short report confirming progress against some agreed KPI’s any significant break through or problems and Management accounts including a basic cash flow.
 
The Investment Committee is made up of executive members, Anthony Record MBE -Chairman of Ice Dragons Ltd., the CEO, Adrian Walker along with four membes forming an advisory panel.  Their experience is outlined on the front page under 'investment panel'
 
How the investment committee works
 
There are a number of potential channels directing start up businesses to Ice Dragons, where each business will be requested to up-load a business plan, video introducing the team and financial projections.  All businesses irrespective of source are subject to an identical vetting process which is as follows: -

 Does it score fully on our initial basic criteria?
 

  • A limited company registered in England & Wales
  • Company and Directors passing appropriate credit checks & Money Laundering investigation by Compliance Assist
  • A company not in the Financial services sector, property or real estate
  • The investment is for early stage growth or strategic acquisition

 
Does it score highly (70% or above) on our secondary criteria?

  • A Director / Management team with a significant equity stake
  • The business is based on a novel or unique proposition in a technology, bio- tech, software, manufacturing, electronics, renewable energy or ‘cleantech’, healthcare or digital sector.
  • A vision of market position & a revenue generating model
  • Using the Internet to deliver a significant part of the business process
  • Significant growth potential in value
  • Significant growth potential in jobs or Job preservation
  • Visibility of income giving a degree of predictability of financial performance.
  • Enterprise will generate positive cash flow within 12 to 18 months
  • That the Business has growth potential to double in value thus providing a return that is fair and reasonable, over a 3 to 5 year period with an exit plan.
  • That the business is interested in developing a strong partnership with Ice Dragons, agreeing shared goals and objectives from the outset.
  • The business is based in a disadvantaged area as defined by HMRC
  • The Company has a capital need of not more than £1 million and preferably an amount in the Ice dragons target range of £50,000 to £500,000.
  • Investment is for Early-stage growth or expansion capital, or Strategic acquisitions of existing business,
  • The following uses of investment would not be considered
  • Management or leveraged buyouts,
  • Recapitalisation to create liquidity for founders, management teams or family members
  • Purchasing of property, real estate or starting a financial organisation
  • When a business scores fully on stage 1 and highly on stage 2 then a financial summary and short report is prepared for the finance committee
  • The committee will consider the application, further information can be requested and when all members have considered this, the committee votes. The Full committee must give a unanimous vote of 3 exectuive members and the business is then accepted for promotion on the Ice Dragons web site.
     
    Investment
     
    If the crowd like what they see and choose to become your advocates and investors they can invest from £100. If you reach the full amount within the time frame we have agreed (usually three months), we go to the final stage; if not, we do not take money from investors. You are still free to use any ideas that have been contributed during the fund raising process and if we have learnt how better to present the idea it can be represented, although we will be transparent as to the number of times you have sought previous fundraising.

    Final stages
     
    We'll conduct a final check that the ameded articles of association are in place, we have the appropriate directors declarations on file and then we'll subscribe for your shares on behalf of the investors. A fee of 6% of the money you've raised through us then becomes due.  We will work with you to prepare the appropriate share certificates and then prompt the transfer of the money via Go Cardless from the Investor to your business account, during which transfer, our fee will be deducted.  
     
    Post-Investment
     
    Build and develop your business idea whilst getting support and connections from your investors and the Ice Dragons support team. The shares are held by each investor so you will need to communicate with with us so we can communicate with each member on shareholder and legal issues, through our own team or third party provider such as David Venus & Company Ltd to maintain the shareholder register to aid in this process´╗┐. We are keen for you to succeed so for 1.25% of the sum raised per annum we deliver the following services:-
     
  • Monthly review of company finances and feed-back from the investment committee.
  • Help set and review Key Performance Indicators
  • Prepare report for investment committee and summary for the investors to keep them informed as to progress
  • Provide reminders on the many vital statutory returns and assist in preparing Companies House returns
  • Signposting to other sources of information on legal, accounting and governance and venture capital (these are independent suppliers with whom we have worked over the years and have found to be excellent, we do not receive any commissions from them)
  • Introduction to Lawyers, Insurance and PI providers (again no commissions or charges for their appearance on our web site)
  • Help line on company secretarial matters during normal office hours
  • Virtual membership of ICE 

    You can opt out of these services and the 1.25% charge after the first 12 months although you must always adhere to the good discipline of providing us with your monthly accounts and a monthly business summary.
     
    Payments to shareholders through Dividends & Exiting
     
    We have stressed to investors that in the early days, surplus funds will usually be reinvested into the business, thus the payment of dividends will be rare. However whenever you pay dividends, the full amount is passed on to the shareholders with no fee from Ice Dragons. When you float or sell the company, we shall charge the Investors an amount equal to 10% of any profit they have made  (e.g. if they invest £10,000 and they go on to sell their shares for £15,000 (being a profit of £5,000), the fee we shall charge them is £500, being an amount equal to 10% of the £5,000 profit they made on their investment).
     
    If despite your and our best efforts the company doesn't succeed, you don't owe Ice Dragons or the Investors anything – it's a shareholding, so your investors share in both the upside and downside risks with you.