October 22nd, 2019 / Insight posted in Articles

Ensuring your business is ‘investment ready’

Following our recent presentations on the topic of growing your business, we have consolidated our top three tips for entrepreneurs considering raising capital for growth.

According to our research, a record-breaking £2.3 billion of growth equity capital was invested across 511 deals last year*, making this an opportune time to raise finance. But how do you maximise your chances of securing investment?

 

1. Have the right management in place

Investors will not invest unless both your management and proposition meet their criteria, with management often being the determining factor.

How we can help
We help business owners like you develop their investment proposition and present their business in the best possible light to potential investors. This ensures you find the right funding partner and secure the best available deal from them. We also project manage the transaction to conclusion, lead negotiations and work with lawyers on your behalf.

 

2. Consider all your fundraising options

Equity funding is not the only way to find financial backing. You should also consider debt and alternative financing, as they can be cheaper and less time-consuming as well as preserving your equity stake.

How we can help
We can advise you on your options and make introductions to lenders and alternative finance providers.

If, after consideration, the equity funding route is the best option for your tech business, we can help with that too. We raise growth capital funds for companies, typically with revenues of £1 million plus, via our network of institutions. This includes leading VCT and EIS fund managers and private equity and mezzanine providers with a focus on growth capital. It also includes associations of high net worth individuals with institutional backgrounds and investment criteria.

 

3. Start-ups can benefit from the UK’s entrepreneur-friendly tax environment

Tax reliefs such as SEIS, EIS and R&D tax relief can be very beneficial to early-stage businesses. Tech entrepreneurs like you should find out which reliefs are available to you.

How we can help
We can help you navigate the complex tax reliefs available to tech businesses and help you avoid making expensive mistakes. We can help ensure that you are ready to forge ahead by providing advice on R&D tax reliefs, reliefs for those of you with patents, EIS and SEIS relief for your investors and incentivisation schemes for your team.

Helping our clients achieve their growth objectives
We have helped many growth businesses identify and secure funding from investors such as Octopus Investments, Foresight Group and Puma Investments. This includes advising on the recent fundraise by health-tech company, Triumph Research Intelligence, which you can read more about here.

Businesses can call on our advice throughout their life cycle, from starting out to raising capital for growth through to exit. After working with our general practice and outsourcing teams since 2017, award-winning ed-tech company HegartyMaths appointed our corporate finance and tax specialists to advise on the sale of the business. The founder described our team as “fantastic to work with”. Read more about this transaction here.

Contact us for more information.

 

*Source: the Zephyr database of M&A transactions, published by Bureau van Dijk.