Finance is Broken: Here’s What We’re Doing About It
The UK startup funding system is broken – and if you’re a founder, you already know it. Bias, bureaucracy and just plain B.S. (that’s “bank-speak”) have made raising capital far harder than it needs to be. Too many great businesses never get off the ground because the deck is stacked against them. At Founder Capital, we’re not having it. We’re a direct, sharp, founder-first, and human-focused inclusive investment firm on a mission to rewrite the rules of UK startup funding. Before we tell you how, let’s break down what’s wrong with the status quo.
What’s Wrong with UK Startup Funding?
Bias and exclusion: Venture capital has a serious diversity problem. Shockingly, Black founders received just 0.24% of UK venture funding in the past decade, and female founders around 11%british-business-bank.co.uk. In other words, vast talent pools are ignored due to bias. It doesn’t help that most investors come from the same circles – 71% of UK VC partners hail from affluent backgroundsdiversity.vc – which means they often fund people who look and think like themselves. If you don’t fit the mould, good luck getting a look-in.
Network gatekeeping: Ever heard the term “warm introduction”? It’s code for old boys’ network. Many investors won’t even take a meeting unless someone they know vouches for you. In fact, companies introduced via a mutual contact are 13× more likely to get to the investment stagecfauk.org. No wonder so many founders without the right connections get stranded. Funding isn’t supposed to be an exclusive club, but that’s what it feels like.
Geographic inequality: For all the talk of “Silicon Roundabout” and regional growth, the reality is grim. London sucks up 49% of all UK startup deals and a whopping 63% of total investment valuebritish-business-bank.co.uk, leaving other regions fighting over scraps. If you’re a brilliant founder in Belfast, Birmingham or Bradford, the odds are stacked against you simply because you’re not in the right postcode. Opportunity is unevenly distributed, even though talent isn’t.
Bureaucracy and poor access to finance: If you turn to traditional SME finance (UK) style, you hit another wall. Banks and old-school lenders wrap you in red tape. Since the 1980s, the proportion of small businesses even applying for external finance has plummeted from 65% to just 25% todaythefintechtimes.com – many have simply given up. And can you blame them? Nearly 40% of SME loan applications get rejected nowthefintechtimes.com, often because you lack property to secure the loan or a decades-long credit history. In fact, banks have shifted to collateral-based lending (mostly property), yet 80% of our economy is services with few tangible assetsthefintechtimes.com. The result: 77% of business owners would rather grow slowly than borrow to expandthefintechtimes.com. The system is literally discouraging entrepreneurs from seeking growth capital – a travesty for innovation.
Jargon and complexity: Try scrolling through a term sheet or a bank loan agreement – it’s a swamp of acronyms and legalese. The finance industry seems to speak a language designed to intimidate. It’s not just you feeling lost: nearly half of UK SMEs (47.8%) have been put off applying for finance due to confusing terminologytheprogenygroup.com. From “convertible loan notes” to “MEIP” and other jargon, the process is about as clear as mud. This kind of bureaucratic jargon doesn’t just slow founders down; it actively deters them from pursuing funding. Should raising money really require a dictionary and a law degree?
In short, the game has been rigged – favoring certain geographies, profiles, and those who can decode the secret handshake. This isn’t just bad news for founders; it’s bad for investors and the wider economy too, because great opportunities are being missed. Finance is broken. So, what are we doing about it?
A Radical, Founder-First Alternative
We started Founder Capital to flip the script and put founders back at the centre. Our approach is simple: focus on the founder, cut the nonsense, and provide the right kind of capital when it’s needed. To do this, we’ve built three complementary funding vehicles as a radical alternative to business-as-usual:
AD Group Fund (Private Equity) – Think of this as private equity for services in the UK. The AD Group Fund is focused on acquiring and scaling established financial and professional services firms (accountancy practices, law firms, fintech consultancies, etc.). If you’re a founder or owner of a profitable services business looking for growth capital or a supportive exit, we offer a founder-friendly route. Unlike traditional PE which can be brutal and purely profit-driven, our AD Group Fund takes a long-term partnership approach – providing capital and operational support to grow these businesses while preserving their legacy. It’s a win-win: founders get liquidity and support, and we help build stronger networks of service SMEs across the UK.
Found Credit (Private Credit) – A new lifeline for SMEs, this is our answer to the banking system’s retreat. The Private Credit Pool is a flexible lending fund that provides loans to growing businesses on fair terms. We’re cutting out the bureaucracy that plagues bank loans. That means no labyrinthine forms that take months, and we don’t automatically shut the door just because you lack property collateral. By leveraging private credit, we can finance companies that have solid cash flows and prospects but can’t tick the narrow boxes high-street banks demand. In short, we’re filling the £65 billion funding gap in SME finance with a more agile, founder-friendly approachthefintechtimes.com. Fast decisions, tailored repayment plans, and none of the patronising attitude – that’s the Private Credit Pool.
Found Fund (Venture Capital) – This is our early-stage VC arm for startups, from solo builders to breakout start-ups. The Found Fund invests in promising young companies at the pre-seed and seed stages – the kind of early-stage VC UK founders often struggle to access if they’re not in certain circles. We don’t care if you’re a first-time founder or you didn’t go to Oxford; we care about your vision and grit. As an inclusive investment firm, we actively seek out founders from all backgrounds. The Found Fund is designed to provide not just capital, but mentorship and connections without the usual geographic or demographic bias. Whether you’re in London or Leeds, whether you’re building a fintech app or a new food brand, if you have the potential to scale, we want to hear your pitch. And when we invest, we stick around – supporting you through the ups and downs, not breathing down your neck. It’s venture capital reimagined to be founder-first and human in how we operate.
These three vehicles address different needs but share a common ethos: make funding inclusive, accessible, and founder-friendly. No matter if you’re a startup needing equity, an SME needing a loan, or a services business ready to level up, Founder Capital has a pathway for you. But tools alone aren’t enough – it’s also about how we deliver funding. That’s where our tech and philosophy come in.
Found Funding and the Found App: Fixing the Pain Points
We know founders’ pain points first-hand, and we designed our model to solve them. At the heart of our approach is what we call Found Funding – a radically founder-centric way to get capital. Instead of forcing you to fit an investor’s narrow thesis or jump through endless hoops, we tailor the funding to fit you. How does that work in practice? It starts with the Found App – our digital platform that makes accessing funding simple, quick, and transparent.
No more gatekeepers or endless pitching. The Found App is an open door. Any founder can download it or log in and start their funding journey – no warm introduction needed, no old boys’ club approval required. This immediately knocks down that network barrier. Whether you’re a seasoned entrepreneur or a newcomer with a great idea, you get a fair shot. You fill out one straightforward application (in plain English, not consultant-speak), and our team reviews your business on its merits. We’ve ditched the jargon wherever possible – you won’t need a finance dictionary to work with us. The app guides you through what we do need (practical info about your business, product, revenue, etc.) without drowning you in acronyms.
Streamlined and transparent process. We can’t stand the typical drawn-out fundraising ordeal any more than you can. Found App keeps you in the loop at every step. You’ll know where you stand – no mysterious silence for months. Our internal processes leverage technology to speed up due diligence (for instance, secure data sharing so you don’t email 20 versions of your financials around). By having multiple funding options under one roof, we often find a way to say “yes” when others say “no”. Maybe equity isn’t right for you at this stage – but a credit line could be, or vice versa. With our model, you don’t have to knock on a dozen doors; you knock on one door and we figure out the best path together. It’s like a one-stop shop for funding: apply once, get considered for venture investment, loans, or even an acquisition offer if that makes the most sense. This saves you huge amounts of time and hassle, letting you focus on your business instead of full-time fundraising.
Nationwide and truly inclusive. Because the Found App is digital, it doesn’t matter if you’re based in a village or a capital city – if you have an internet connection, you have access. We’re actively sourcing deals from across the UK, not just the usual postcodes. And we evaluate opportunities with an open mind. We’re aware of the biases out there, so we consciously counteract them in our assessment. No more reading between the lines wondering what “fit” or “culture” means – we spell out what we’re looking for, and it’s all about the business potential. If your numbers and vision stack up, we’ll talk, whether or not you look like the typical founder in a Patagonia vest.
Human at every step. Founder Capital isn’t some faceless fintech app or a stuffy committee – it’s people who get it. We’ve been founders, operators, investors; we know building a business is hard. That’s why “founder-first and human” isn’t just a slogan for us. When you interact with us through the Found App, you’ll find real humans ready to listen and help, not just algorithms. We pair tech efficiency with personal support. Need clarity on a term in the term sheet? We’ll explain it. Facing a pivot or a tough quarter? We’re here to problem-solve, not punish. Our Found Funding approach means we succeed only when you do, so our incentives are aligned to help you thrive. We’re bringing empathy back into finance, one founder at a time.
Ready to Fix Finance? Get in Touch
The bottom line: the financial system may be broken, but we’re building something new in its place. At Founder Capital, we believe inclusive, founder-first funding isn’t just the right thing to do – it’s also smart business. By opening the doors to more founders and cutting out the nonsense, we’re uncovering opportunities that others miss and creating value for everyone involved (founders, investors, and communities alike).
If you’re a founder who’s fed up with the biases and bottlenecks of traditional funding, we want to hear from you. And if you’re an investor or partner interested in a better way to do things – a way that can power up the next generation of UK businesses and make SME finance UK a success story again – let’s talk. Early-stage VC UK, private equity for services, SME lending – however you label it, we simply call it Found Funding, and it’s changing the game.
It’s time to fix what’s broken in finance. Get in touch with us or explore our site to learn more. Together, let’s fund the future on fairer terms – and prove that when you put founders first, everyone wins.