Really? I mean, that represents astonishingly bad value for a bunch of reasons. The first is that that's not SEIS covered, because it vastly reduces (by 70%) the risk exposure of the capital, and consequently the %. Especially if you'll include video games tax credits on thus back end that let you stretch that runway. Beyond that, you've also not used the full SEIS value -£150k, so again, shot yourself in there foot. This wouldn't be typical of valuations that I see working with startups, it's far more in the order of 10-17.5% for £150k (with SEIS coverage). Gaming is obviously it's own beast, but the same rules on making the investment tax efficient for the investor apply, and I'm surprised anyone gets any investment with ought SEIS any more.
With that in mind - advice is always to raise as high as you can on angel, because it's covered for the investor, and you can only do it once.
London based too - what exactly was that 40 percent of? Would be interested to find out, as a colleague of mine can reveal the following details for comparison:
20 percent of equity in a B2B company (not even live yet; but customers already signed up), five developers plus owner, central London based, amount invested £1.4MM.
I am not sure how much haggling was involved but he was happy as the investor has a proven record with B2B in the UK, and can probably help it in the mid to long term.
