Our target initial investment is £500,000 to £2,000,000 for equity investments. We also provide standby loans of up to £1,000,000.
However we invest, we always look for:
- Capable people we can trust.
- Exceptional customer service.
- A clear and defendable competitive advantage.
- A sizeable and clearly defined target market.
- A global perspective.
- Efficient operations.
- Engaged and motivated employees.
- An emphasis on growth and long term success.
- A profitable underlying business model.
We sum up what we look for in our initial assessment of a business using the acronym MIRACLES. Click on the link to find out more. We will expect businesses approaching us to be able to talk us through how their business addresses the MIRACLES criteria.
What we like in equity investments:
- Start-ups and early stage business with a game-changing product or strategy targeted at a substantial market sector.
- Businesses growing an established business model.
- Businesses acquiring key assets – premises, equipment, intellectual property.
- Businesses making acquisitions, but only logical integration of competitors or the supply chain. We do not finance diversification strategies.
What we are not looking for:
- Start-ups focussed on small niche sectors unable to support an early profit target of £1 million+.
- Businesses dependent on licences, franchises, brands, intellectual property or other business-critical resources owned by others and capable of revocation. We would consider assisting a business wishing to buy out those external interests.
- Businesses over-dependent on one or two customers or suppliers and with few realistic alternatives.
When might we provide a standby loan?:
We understand that sometimes cash runs low in growing businesses. Product trials and sales negotiations with large corporates can take far longer than anticipated, or businesses need to supply against orders with deferred cash terms.
If traditional bank loans are not available, and bringing in new investors or further shareholder money is not the right decision for the business in the circumstances, a standby loan may be suitable.
Typically businesses suitable for a standby loan will be a little more established, are likely to have investors and be on the path to success.
The business may or may not need to draw down funds, but a standby line of credit would provide a firmer footing to grow, secure orders or raise further investment.
What a standby loan is not for:
Providing funds to a business in a crisis situation where the business has underperformed.
Long term funding; a standby loan is a temporary facility to bridge the path to substantial cash flows or further fundraising which it needs to have a realistic expectation of achieving.