Investment funding
Investment funding can take the form of either venture capital or a business angel.
Venture capital
Venture capital investments generally are high risk investments but offer the potential for above average returns. A ‘venture capitalist’ is a person who makes such investments. A ‘venture capital fund’ is a pooled investment vehicle (often a partnership) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans.
Business angel
A business angel, or simply an angel, is an affluent individual who provides capital for a business start-up, usually in exchange for ownership equity. Unlike venture capitalists, angels typically do not manage the pooled money of others in a professionally-managed fund. However, angel investors often organise themselves into angel networks or angel groups to share research and pool their own investment capital.
Our favourite links
bbaa.org.uk Find out more about business angels on the website of the British Business Angels Association.
dti.gov.uk The DTI's Regional Venture Capital Funds (RVCFs) are an England-wide programme to provide risk capital finance in amounts up to £500,000 to SMEs who demonstrate growth potential. Find the relevant contact for your region on The Capital Fund website
dti.gov.uk The DTI's Early Growth Fund was developed to encourage risk funding for start-ups and growth firms. The objective: to increase the availability of small amounts of risk capital of on average £50,000 for innovative and knowledge intensive businesses, as well as for other growth businesses.
freshbusinessthinking.comAn online resouce for entrepreneurs where can source information and advice to help you run your business more effectively and efficientlynesta.org.uk NESTA invests directly in early-stage companies that use innovative technologies. As well as financial investment, NESTA offers mentors, part-time managers or specialist support.
Other useful links
angelinvestmentnetwork.co.uk The Angel Investment Network offers an online database that matches angel investors to suitable investment opportunities. If your idea's at the stage where you're looking for funding, you could use their service for a small fee.
angel-investors.co.uk Angel Investors provides an online matching service for entrepreneurs and angel investors. It's free to register and submit your proposals for review - you only pay a referral fee if you decide to speak with an investor who has expressed an interest in speaking with you.
bvca.co.uk The BVCA is the industry body for the UK private equity and venture capital industry. It promotes the industry to entrepreneurs and investors, as well as provide services and best practice standards to its members.
libraryhouse.net Library House helps professionals discover, compare, and monitor private high-growth companies. Entrepreneurs can nominate their venture to be added to their online database of investment opportunities.
Regional links
England
East Midlands
ginem.co.uk Growth Investment Network East Midlands (GINEM) assists entrepreneurs in locating advisers and sources of finance through this website and regional networking events.
North west
http://www.nwbusinessangels.co.uk Northwest Business Angels is the business angels network for the north west of England.
South east
financesoutheast.com/businessangels Finance South East offers business angel funding from £25,000 to £150,000 from a single investor, and up to £500,000 from syndicates of investors.
South west
southwestventures.co.uk The South West Ventures Fund is a £25 million Regional Venture Capital Fund which supports fast growing SMEs across the region.
swain.org.uk The South West Angel and Investor Network connects business angels with companies looking for investment in the region.
West Midlands
advantagecreativefund.co.uk Advantage Creative Fund is a £5 million venture capital fund set up specifically to assist the growth of the creative industries in the West Midlands by investing in creative businesses.
minerva.uk.net Minerva is the Midlands Network of Entrepreneurs, Venturers and Angels. It's provided by the University of Warwick Science Park to help entrepreneurs to generate wealth and additional employment throughout the West Midlands.
westmidlandsfinance.com West Midlands Access to Finance offers a comprehensive regional database of financing for West Midlands SMEs.
Yorkshire
yaba.org.uk The Yorkshire Association of Business Angels is a regional forum which brings together the finance and business expertise of business angels with entrepreneurs and their new business ideas.