Equity

Equity finance is money put into the project at the risk of the investor in return for a stake in the business in the form of shares. The investor will want dividends, and will look to make a substantial capital gain on the eventual sale of the shares.

Outside equity finance comes from three main sources:

• Business Angels
• Venture Capital
• Public Listing

Business Angels

These are individuals who are actively looking to invest in growing businesses. Business Angels frequently become involved in the business, and almost always hold equity. Although this means that you may have to give up some degree of control, this is not for ever; Angels generally want to have an exit strategy that allows them to leave a company - with their profits.

Typically Business Angels will invest sums of between £10,000 and £50,000 in individual companies, although some invest more. Through syndication it is possible to achieve investment of up to £1 million, although this is relatively rare.

Ralph Bettany Associates will help you identify suitable Angels, prepare the necessary paperwork, and will guide you through the best possible exit procedure.

Venture Capital

To raise larger amounts of equity finance you will probably need Venture Capital. There are hundreds of Venture Capital companies in the UK and Europe and each has its own specialisation. Their interest is focused on the business stage of development and the market sector the company is in. Ralph Bettany Associates will guide you through the entire process.

Like Business Angels Venture Capital companies make their money primarily on the sale of their shares to another organisation or group of individuals, and so look for a guaranteed exit route, usually within a 3-7 year time horizon.

Ralph Bettany Associates will assess whether your business is suitable for this type of investment, work with you to prepare a high quality Business Plan, help you find Venture Capital, prepare the necessary paperwork, and will guide you through the best possible exit procedure.

Public Listing

A company listed on a recognised stock exchange can raise an almost unlimited amount of equity finance from individuals and institutional investors. Gaining a listing however is a complex and demanding process. Ralph Bettany Associates will assess whether your business is ready to apply for a listing, and if so will work together with partner organisations in order to achieve this goal.