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Mar 30, 2015 · 22m · 20vc

20 VC 023: The Recipe for a successful Crowdfunding campaign with Tom Britton

Tom Britton · 15m spoken Harry Stebbings · 4m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of The 20 Minute VC, host Harry Stebbings interviews Tom Britton, co-founder and CTO of Syndicate Room, to explore the platform's investor-led equity crowdfunding model, screening criteria, and position within the venture ecosystem.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Harry holds 20.7% of the talking time here. How this is scored →

Harry as informed peer 2.7 Guest teaching 2.7 Guest disagreement 1.2 Harry pushing back 1.8
05100:0010:0020:000:56–3:27 · Harry as informed peer 1/10 Tom Britton's Career Journey from Football to Crowdfunding Harry opens with a broad question about Tom's background, allowing him to share his transition from lower-league football to product management and business school. The conversation is entirely collaborative and conversational with no pushback.3:28–6:51 · Harry as informed peer 3/10 The Investor-Led Equity Crowdfunding Model Harry asks clarifying questions about Syndicate Room's lead-investor model and capital statistics. Tom explains how anchor investors reduce risk and cites the Nesta report to support his points.6:52–11:30 · Harry as informed peer 4/10 Crowdfunding's Role in the VC Ecosystem Harry pushes Tom on whether crowdfunding competes directly with traditional VC firms and steals deal flow. Tom reframes the question, explaining that crowdfunding fills an equity gap left behind as VCs target larger deal sizes.11:30–14:10 · Harry as informed peer 3/10 Startup Benefits and Investor Network Dynamics Harry probes into network dynamics and value add provided by angel investors. Tom explains how higher minimum investment thresholds lead to a cleaner cap table and more active industry expertise.14:12–18:23 · Harry as informed peer 3/10 Competitive Landscape and Market Share Harry brings up Crowdcube's market dominance to test Syndicate Room's positioning. Tom dismisses the competitive threat by putting total market numbers into context against the broader angel market.18:24–21:34 · Harry as informed peer 2/10 Top Three Standout Syndicate Room Portfolio Companies Harry initiates a quick discussion on favorite portfolio companies and jokingly holds Tom accountable to pick three. Tom highlights innovate companies ranging from light aircraft to Hollywood movie financing.0:56–3:27 · Guest teaching 2/10 Tom Britton's Career Journey from Football to Crowdfunding Harry opens with a broad question about Tom's background, allowing him to share his transition from lower-league football to product management and business school. The conversation is entirely collaborative and conversational with no pushback.3:28–6:51 · Guest teaching 3/10 The Investor-Led Equity Crowdfunding Model Harry asks clarifying questions about Syndicate Room's lead-investor model and capital statistics. Tom explains how anchor investors reduce risk and cites the Nesta report to support his points.6:52–11:30 · Guest teaching 4/10 Crowdfunding's Role in the VC Ecosystem Harry pushes Tom on whether crowdfunding competes directly with traditional VC firms and steals deal flow. Tom reframes the question, explaining that crowdfunding fills an equity gap left behind as VCs target larger deal sizes.11:30–14:10 · Guest teaching 2/10 Startup Benefits and Investor Network Dynamics Harry probes into network dynamics and value add provided by angel investors. Tom explains how higher minimum investment thresholds lead to a cleaner cap table and more active industry expertise.14:12–18:23 · Guest teaching 3/10 Competitive Landscape and Market Share Harry brings up Crowdcube's market dominance to test Syndicate Room's positioning. Tom dismisses the competitive threat by putting total market numbers into context against the broader angel market.18:24–21:34 · Guest teaching 2/10 Top Three Standout Syndicate Room Portfolio Companies Harry initiates a quick discussion on favorite portfolio companies and jokingly holds Tom accountable to pick three. Tom highlights innovate companies ranging from light aircraft to Hollywood movie financing.0:56–3:27 · Guest disagreement 0/10 Tom Britton's Career Journey from Football to Crowdfunding Harry opens with a broad question about Tom's background, allowing him to share his transition from lower-league football to product management and business school. The conversation is entirely collaborative and conversational with no pushback.3:28–6:51 · Guest disagreement 1/10 The Investor-Led Equity Crowdfunding Model Harry asks clarifying questions about Syndicate Room's lead-investor model and capital statistics. Tom explains how anchor investors reduce risk and cites the Nesta report to support his points.6:52–11:30 · Guest disagreement 2/10 Crowdfunding's Role in the VC Ecosystem Harry pushes Tom on whether crowdfunding competes directly with traditional VC firms and steals deal flow. Tom reframes the question, explaining that crowdfunding fills an equity gap left behind as VCs target larger deal sizes.11:30–14:10 · Guest disagreement 1/10 Startup Benefits and Investor Network Dynamics Harry probes into network dynamics and value add provided by angel investors. Tom explains how higher minimum investment thresholds lead to a cleaner cap table and more active industry expertise.14:12–18:23 · Guest disagreement 2/10 Competitive Landscape and Market Share Harry brings up Crowdcube's market dominance to test Syndicate Room's positioning. Tom dismisses the competitive threat by putting total market numbers into context against the broader angel market.18:24–21:34 · Guest disagreement 1/10 Top Three Standout Syndicate Room Portfolio Companies Harry initiates a quick discussion on favorite portfolio companies and jokingly holds Tom accountable to pick three. Tom highlights innovate companies ranging from light aircraft to Hollywood movie financing.0:56–3:27 · Harry pushing back 0/10 Tom Britton's Career Journey from Football to Crowdfunding Harry opens with a broad question about Tom's background, allowing him to share his transition from lower-league football to product management and business school. The conversation is entirely collaborative and conversational with no pushback.3:28–6:51 · Harry pushing back 2/10 The Investor-Led Equity Crowdfunding Model Harry asks clarifying questions about Syndicate Room's lead-investor model and capital statistics. Tom explains how anchor investors reduce risk and cites the Nesta report to support his points.6:52–11:30 · Harry pushing back 3/10 Crowdfunding's Role in the VC Ecosystem Harry pushes Tom on whether crowdfunding competes directly with traditional VC firms and steals deal flow. Tom reframes the question, explaining that crowdfunding fills an equity gap left behind as VCs target larger deal sizes.11:30–14:10 · Harry pushing back 1/10 Startup Benefits and Investor Network Dynamics Harry probes into network dynamics and value add provided by angel investors. Tom explains how higher minimum investment thresholds lead to a cleaner cap table and more active industry expertise.14:12–18:23 · Harry pushing back 3/10 Competitive Landscape and Market Share Harry brings up Crowdcube's market dominance to test Syndicate Room's positioning. Tom dismisses the competitive threat by putting total market numbers into context against the broader angel market.18:24–21:34 · Harry pushing back 2/10 Top Three Standout Syndicate Room Portfolio Companies Harry initiates a quick discussion on favorite portfolio companies and jokingly holds Tom accountable to pick three. Tom highlights innovate companies ranging from light aircraft to Hollywood movie financing.

speaking balance: gold is Harry, purple is the guest (3 minute bins)

0:00 · Harry 34.6% · guest 65.4%0:00 · Harry 34.6% · guest 65.4%3:00 · Harry 19.6% · guest 80.4%3:00 · Harry 19.6% · guest 80.4%6:00 · Harry 21.4% · guest 78.6%6:00 · Harry 21.4% · guest 78.6%9:00 · Harry 20.5% · guest 79.5%9:00 · Harry 20.5% · guest 79.5%12:00 · Harry 18.4% · guest 81.6%12:00 · Harry 18.4% · guest 81.6%15:00 · Harry 14.3% · guest 85.7%15:00 · Harry 14.3% · guest 85.7%18:00 · Harry 7.5% · guest 92.5%18:00 · Harry 7.5% · guest 92.5%21:00 · Harry 44% · guest 56%21:00 · Harry 44% · guest 56%
Sharpest disagreement ▶ 7:06 Reframing the VC competition premise

Tom directly counters Harry's suggestion that crowdfunding competes with traditional VC firms, arguing instead that VCs have moved up-market and left an equity gap for platforms like Syndicate Room to plug.

 Hardest push from Harry ▶ 7:46 Pressing guest on deal flow competition

Harry refuses to accept Tom's initial reframe about plugging an equity gap, immediately pressing whether Syndicate Room has specifically taken deals away from seed-stage VCs.

 Biggest teaching moment ▶ 14:20 Contextualizing market size vs traditional angel funding

Tom educates Harry on market dynamics, pointing out that equity crowdfunding at 84 million is a drop in the ocean compared to the 1 billion pound UK angel market, showing ample room for multiple platforms.

 Harry holds his own ▶ 5:02 Drilling into network participation breakdown

Harry shows sharp analytical focus by immediately following up on Syndicate Room's 19 million raised total to challenge how much came from retail investors versus lead angels.
the scores for every segment, with the reasoning behind each
ChapterTopicHarry as informed peerGuest teachingGuest disagreementHarry pushing backWhy
Tom Britton's Career Journey from Football to Crowdfunding 1200 Harry opens with a broad question about Tom's background, allowing him to share his transition from lower-league football to product management and business school. The conversation is entirely collaborative and conversational with no pushback.
The Investor-Led Equity Crowdfunding Model 3312 Harry asks clarifying questions about Syndicate Room's lead-investor model and capital statistics. Tom explains how anchor investors reduce risk and cites the Nesta report to support his points.
Crowdfunding's Role in the VC Ecosystem 4423 Harry pushes Tom on whether crowdfunding competes directly with traditional VC firms and steals deal flow. Tom reframes the question, explaining that crowdfunding fills an equity gap left behind as VCs target larger deal sizes.
Startup Benefits and Investor Network Dynamics 3211 Harry probes into network dynamics and value add provided by angel investors. Tom explains how higher minimum investment thresholds lead to a cleaner cap table and more active industry expertise.
Competitive Landscape and Market Share 3323 Harry brings up Crowdcube's market dominance to test Syndicate Room's positioning. Tom dismisses the competitive threat by putting total market numbers into context against the broader angel market.
Top Three Standout Syndicate Room Portfolio Companies 2212 Harry initiates a quick discussion on favorite portfolio companies and jokingly holds Tom accountable to pick three. Tom highlights innovate companies ranging from light aircraft to Hollywood movie financing.

Statements from this episode (13)

Assertion Supported
SyndicateRoom Has Raised £20 Million Across 30 Companies
“To date, Syndicate Room have raised an incredible twenty million pounds for 30 companies.”
Harry Stebbings Mar 30, 2015 ▶ 0:19
Assertion Supported
SyndicateRoom requires established lead investors before listing any crowdfunding campaigns
“We operate what we call an investor-led equity crowdfunding model, and what that means is that before any opportunity comes to us and is open to a wider network of investors, there has to be an established lead investor involved who's kicked the tires of the b…”
Tom Britton Mar 30, 2015 ▶ 3:40
Disclosure
Half of SyndicateRoom's raised capital comes from its network members
“Yeah it's about half”
Tom Britton Mar 30, 2015 ▶ 5:17
Assertion Supported
SyndicateRoom requires lead investors to fund at least 25% of every deal
“So our minimum is 25% of the deal must be funded by the lead investors, but we've also had deals that have come to us where only 10% of it is still available.”
Tom Britton Mar 30, 2015 ▶ 5:27
Assertion Supported
SyndicateRoom's average crowdfunding campaign raise size exceeds £600,000
“And the total average raise is over 600,000 pounds now.”
Tom Britton Mar 30, 2015 ▶ 5:43
Assertion Partly supported
VCs no longer invest in funding rounds below £5 million
“What we're seeing is that VCs aren't coming in into a round until it reaches a certain size, and that size is getting larger and larger. So, so what A VC would have done a few years ago, five or 10 even, you know, playing in a two million round. Now they won't…”
Tom Britton Mar 30, 2015 ▶ 7:23
Assertion Partly supported
Only a couple hundred UK startups received crowdfunding in 2014
“Over 500,000 new businesses were started last year, right? And how many of them are getting funding through crowdfunding? A couple hundred at most.”
Tom Britton Mar 30, 2015 ▶ 7:57
Assertion Supported
NESTA recommends angel investors spend 20 hours on due diligence per deal
“They recommend that Angel should really look at something for about 20 hours before investing.”
Tom Britton Mar 30, 2015 ▶ 9:24
Disclosure
SyndicateRoom accepts 2% or fewer of startup pitch applications
“Maybe one in one in 50 would be a best guess. We're able to actually list on the platform, if not more.”
Tom Britton Mar 30, 2015 ▶ 10:55
Assertion Supported
SyndicateRoom enforces a £1,000 minimum investment threshold for its platform
“Well, with our model, we have minimum investment level of a thousand pounds, right?”
Tom Britton Mar 30, 2015 ▶ 12:36
Assertion Supported
£84 million was raised through UK equity crowdfunding in 2014
“Last year, there was eighty-four million done through, through equity crowdfunding, right?”
Tom Britton Mar 30, 2015 ▶ 14:22
Assertion Supported
UK angel investment totals approximately £1 billion annually
“You know, you talk about angel investment being at about a billion pounds a year in the UK.”
Tom Britton Mar 30, 2015 ▶ 14:39
Disclosure
SyndicateRoom raised an equity crowdfunding round for a Simon West Hollywood movie
“Well, we recently raised for a movie, right? It was a Hollywood movie. Simon West is the director”
Tom Britton Mar 30, 2015 ▶ 20:17
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