Equity investment for faster growth

  • Are you looking at equity funding to support your strategic growth plan ?

  • Are you in technology, software or other niche sectors with high levels of R and D ?

  • Is your route to market clear, achievable, and expected to offer high levels of sustainable growth ?

The Equity investment route

Attractive to companies which are unsuitable for debt finance or cannot cover high borrowing costs.

The key is demonstrating an experienced, well balanced and ambitious management team committed to delivering fast growth and high levels of profit over the medium term.

Equity is usually more expensive than debt as loan interest is tax deductible whilst dividends are paid from post tax profits.

Types of investor

Individuals / Business Angels

  • Typically invest over 3-6 years

  • May offer complimentary skills and strategic contacts

  • EIS and SEIS offer tax relief on income tax and CGT if investments held for minimum period

  • May be appointed as non-executive directors and / or business consultants – but not essential

  • Funding range £75k to £250k but may fund more in syndicates

  • Crowd funding offers an alternative managed investment route with much smaller individual investments

Regional Investment Funds

  • Typically seek to offer investment to fast growth companies in their geographic region

  • Time frame – typically 2-5 years

  • Lower set up / support costs than Private Equity

  • Typically seek passive board representation

  • Attractive to companies offering employment growth

  • Funding typically £50 - £500k

Private Equity / Family Offices

  • Typically invest in significantly larger transactions from £1m to £10m plus

  • More expensive / aggressive in terms than regional funds

  • Strongest in London and South East but growing regional presence

  • Typical investment term 3 – 7 years

  • Will seek active board representation

  • P/E houses invest for exceptional returns balancing risk and reward – typically seek returns of 3 -5 * the original investment

  • Best suited to companies in niche markets offering high growth and strong barriers to market entry 

How we can help

  • We can support your company with a comprehensive risk based review of suitability for equity funding and your detailed business plan / forecasts

  • Product development – objective assessment of market readiness with 3rd party commercial due diligence as appropriate

  • Board appraisal looking objectively at gaps in the management team

  • Cost benefit analysis of debt vs. equity

  • Support with search and selection of investors

  • Funding round support / hosting meetings and deal negotiations