Raising Finance
The Entrepreneurs' Forum partners with organisations who have the funds to support your ambitions. We know that finding the right partner to match your ambitions is key and we can introduce you to fund managers and investors who can help.
In simple terms funding is divided into key rounds:
- Angel Investment: Early-stage funding from individual investors, often in exchange for equity which helps start-ups with initial development and market entry. Businesses registered under the Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS) are more attractive to investors due to the tax reliefs available. In the North East, a good starting point is UMi, who work with the UK British Angels Association and have a pool of over 50 angels. They also offer support to help get you investor ready.
- Seed Funding: Initial capital to develop a business idea, create a prototype, and conduct market research, seed funding typically comes from angel investors or seed venture capital firms.
- Growth Capital: This funding is for established businesses who need funds to develop products/services, expand team, and scale operations. Investors expect a clear business model and revenue generation and will look for ambitious management teams who want to grow shareholder value. It can be described in terms of Series A, Series B, Series C rounds of funding. Typically, the investor takes a minority stake in the business. Maven in the North East can help and welcome conversations with entrepreneurs seeking growth funding.
- Private Equity (PE): Investment from private equity firms to restructure, expand, or improve profitability. This often involves significant ownership investment in the business, including board representation and strategic guidance. The goal is often to scale, improve profitability and sell at a higher value.
- Initial Public Offering (IPO): The process of offering shares to the public for the first time. IPO provides substantial capital and liquidity but involves regulatory compliance and public scrutiny.
