Frequently Asked Questions
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- How long will the process take?
- How much will it cost?
- Will you want a seat on the Board?
- What is an exit strategy?
- Do you provide grant funding?
Q. How long will the process take?
A. Typically from receipt of a business plan, investment into a business funding will take 6-12 weeks.
Q. How much will it cost?
A. There are three types of cost incurred when raising equity capital: -
- Fees to the equity provider - usually a percentage of the amount invested and an annual monitoring fee.
- Investigation costs - these can include the cost of accountants, lawyers, specialist due diligence reports and management referencing.
- Your own legal and corporate finance costs.
The total amount of these costs varies dependent on the transaction size but be prepared for the total fees to be between 5-10% of the funds requested.
Q. Will you want a seat on the Board?
A. We reserve the right to appoint a non-executive director to the Board of each company we invest in. This non-executive director will be selected for their ability to add value to the business.
Q. What is an exit strategy?
A. For the venture capitalist, understanding how they might sell their shares in the business is as important as buying them in the first place. The exit strategy defines the exit from the business for the venture capitalist. This requires careful planning.
Q. Do you provide grant funding?
A. No. The fund makes equity investments and is managed to produce a commercial level of return.