Back to Blog
Ventur Guides 5 min read

How to Verify a UK Startup Before Investing

A practical guide for angels and syndicates to check founders and UK company records using verified public data.

How to Verify a UK Startup Before Investing

Early-stage investors waste hours checking fragmented startup data before investment decisions. This guide shows angels, syndicates, and micro VCs how to verify UK startups and founders in under 10 minutes using public records and free tools.

The 10-Minute UK Startup Verification Checklist

Step 1: Verify Companies House Registration (2 minutes)

Check official UK company records first.

  • Active status: Search Companies House to confirm the company is active, not dissolved
  • Incorporation date: Recent incorporation may indicate limited track record
  • Registered address: Check if using a virtual office or business address service
  • Filing history: Look for late or missing annual accounts and confirmation statements

Red flag: Late filings or frequent address changes suggest poor governance.

Step 2: Check Persons with Significant Control (2 minutes)

Review ownership and control structure.

  • PSC register: Verify who owns more than 25% of shares or voting rights
  • Nominee structures: Check for offshore entities or complex ownership chains
  • Director-shareholder alignment: Founders should typically hold significant equity

Red flag: Hidden ownership or PSCs registered to nominee services.

Step 3: Verify Founder Backgrounds (2 minutes)

Assess founding team credibility using public sources.

  • LinkedIn profiles: Check previous roles, education, and professional network
  • Director history: Search Companies House for other current or dissolved companies
  • Disqualifications: Confirm no directors are disqualified from managing UK companies

Red flag: Directors with history of dissolved companies or no relevant sector experience.

Step 4: Review Financial Filings (2 minutes)

Check available accounts and filing patterns.

  • Latest accounts: Review turnover, profit/loss, and cash position if filed
  • Micro-entity exemption: Many startups file minimal accounts—check Crunchbase for funding data
  • Filing consistency: Regular, on-time filings indicate good governance
  • Audit exemption: Most early-stage companies are exempt but check for qualified opinions if audited

Red flag: Growing turnover but increasing losses without clear funding runway.

Step 5: Check Market Signals and Risk Indicators (2 minutes)

Look for traction and warning signs.

  • Hiring activity: Check LinkedIn for team growth and active recruitment
  • News coverage: Search for recent press, funding announcements, or regulatory issues
  • Customer validation: Look for case studies, testimonials, or pilot customers on company website
  • Glassdoor reviews: Check employee sentiment if company has sufficient scale

Red flag: Hiring freeze, negative press, or employee complaints about unpaid wages.

What to Check at Each Investment Stage

Pre-Seed (£100k-£500k rounds)

Priority checks for angel investors:

  1. Founder background and director history (Companies House)
  2. Company incorporation date and structure
  3. Basic PSC verification
  4. LinkedIn validation of claims

Skip: Detailed financial analysis—most won't have filed accounts yet.

Seed (£500k-£2m rounds)

Additional verification for syndicates:

  1. First set of filed accounts (if available)
  2. Previous funding rounds and investor names
  3. Hiring patterns indicating product development
  4. Customer traction signals

Check: Whether founders draw salaries and burn rate vs. runway.

Series A+ (£2m+ rounds)

Due diligence for micro VCs and follow-on investors:

  1. Multiple years of accounts showing revenue trajectory
  2. Director changes and governance evolution
  3. Share structure changes and dilution patterns
  4. Market positioning and competitive signals

Verify: Unit economics, customer retention, and path to profitability.

Common Verification Mistakes Angels Make

Skipping Companies House Checks

Crunchbase data can be outdated or incomplete. Always verify against official UK filings.

Ignoring PSC Structures

Complex ownership can hide problems. Check who actually controls the company.

Missing Director Red Flags

A founder's history of dissolved companies is public record—check it before investing.

Not Tracking Filing Dates

Late or missing filings indicate poor financial discipline or cash flow problems.

Free Tools for UK Startup Verification

Essential resources for early-stage investors:

  • Companies House: Free company search, filings, PSC register, and director checks
  • GOV.UK Register: Check disqualified directors
  • LinkedIn: Verify founder claims and track team growth
  • Crunchbase: Cross-reference funding history and investor names
  • Google: Search "[company name] + UK" for news and regulatory issues

Manual checks take 10 minutes but don't scale for syndicate managers reviewing multiple deals.

When to Request Full Due Diligence

If initial screening raises concerns, commission detailed checks:

  • Full financial audit and cash flow projection
  • Legal review of cap table and shareholder agreements
  • Reference calls with previous investors or employees
  • Market analysis and competitive positioning study

But for pre-IC screening, this verification checklist identifies 80% of red flags.

How Syndicates Can Standardise Screening

For angel syndicates reviewing multiple deals:

  1. Create a verification template: Standard checklist covering Companies House, PSC, directors, and filings
  2. Set pass/fail criteria: Define clear red flags (e.g., dissolved companies, disqualified directors, late filings)
  3. Track verification history: Record what you checked and why you passed or declined
  4. Share findings: Circulate verification reports to syndicate members before IC meetings

Consistent pre-screening saves time and improves investment decisions.

Summary

Early-stage investors can verify UK startups faster by checking these filings and signals:

  • Companies House registration and active status
  • PSC register for ownership structure
  • Director backgrounds and company history
  • Financial filings and filing patterns
  • Market signals like hiring and news coverage

This 10-minute process helps angels and syndicates avoid obvious red flags before committing time to full due diligence.

Ventur compiles filings, sentiment, and market data into a single, evidence-linked report for angels and syndicates. View a sample company report.

Questions? Email hello@venturhq.co.uk