Capital Pilot has launched its first £5m fund to make automated equity investments into UK startups with high-growth potential.
The investment ratings agency uses automation to assess the business model and team of a prospective startup.
It combines this with human analysis and identifies flaws to be fixed at early-stage startups, before deciding whether it’s suitable for investment.
Startups that meet the right criteria qualify for funding automatically, pending final due diligence checks. Its services are aimed at speeding up the investment process for potential investors.
But through its Boost Fund 1, Capital Pilot is making direct investments of £50,000 per startup, with the £5m pot funded by high-net-worth investors.
It aims to make 100 of these investments over the next six months, which Capital Pilot claims will make it the most active UK startup investment fund by volume.
Capital Pilot says its approach can help provide capital to founders typically underrepresented by investors.
The first five startups that the fund has invested in include two female entrepreneurs, one founder from a BAME background and two companies based outside of London.
The five startups Capital Pilot has invested in are:
- Bubbl, a mobile customer engagement platform
- DabbaDrop, a sustainable, zero-waste takeaway service
- Fanslide, an in-play fantasy football game
- ORB Innovations, a mouthguard that tracks sports performance
- YesRef, digital management and payment for sports officials
“I’m delighted that the first cohort of investments in the Boost Fund is reflective of Capital Pilot’s vision to ensure equal access to funding for companies and founders from all backgrounds,” said Richard Blakesley, founder and CEO of Capital Pilot.
“We are confident the Boost Fund will supercharge startups across the UK, and I encourage founders to explore the objective, transparent and rapid application process that we have helped design for the Boost Fund.”
Anshu Ahuja, co-Founder at DabbaDrop, added: “As a female founder from the BAME community, I’ve felt like an outsider in the world of investment and funding as the people I’ve come across are from a more traditional background.
“Capital Pilots Boost Fund 1 has allowed us (quick) access to investment based on the traction we have worked so hard to build within the business, rather than my background.”