What is Venture Capital?

Venture Capital is a type of private equity capital typically provided by professional, institutionally backed outside investors to new or growth businesses.  It normally takes the form of cash made in exchange for shares in the investee company.

Whilst the VC's operate in a similar way to private investors, they will only consider larger sized investments.  Venture Capital houses are usually inundated with enquiries and tend to take a long time to conclude their transactions. There are, however, a handful of funds that will seriously consider recovery investments and can act quickly, although again it should be stressed that these funds only exist for larger transactions normally requiring £1 million upwards

How much money can be injected by means of Venture Capital?

Most Venture Capital funds prefer to invest in projects in excess of £1 million and only a handful will consider capital investment for recovery situations.

Does my business qualify for Venture Capital investment?

Venture Capital funds are usually most interested in ventures with exceptionally high growth potential, as only such opportunities are likely capable of providing the financial returns and successful exit event within the required timeframe (typically 3-7 years) that venture capitalists expect.

This makes it most suitable for businesses having large up-front capital requirements which cannot be financed by other cheaper alternatives. 

Venture Capital houses are usually inundated with enquiries. If a company has a solid business plan, a good management team, investment and passion from the founders and a good potential to exit the investment before the end of their funding cycle and target minimum returns in excess of 40% per year it will find it easier to raise venture capital.

What is the next step?

Venture Capital funds tend to take a long time to conclude their transactions. There are, however, a handful of funds that will seriously consider recovery investments and can act quickly.

Beer & Young have good contacts throughout this market place. Should your requirements fit the VC profile, we may either manage the fund raising process ourselves or pass you through to our sister company Beer & Partners Limited.

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Beer & Young are Corporate Associates with Beer & Partners.
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