Investment for early stage growth

Attracting investment for early growth is not easy for any business because of the shortage of risk capital in the UK. It is particularly challenging for those businesses which have high capital needs and high technological risk. Nevertheless a number of south west renewable energy and energy efficiency companies have been successful in attracting investment. In addition to conventional venture capital providers there are a number on non conventional providers of investment which may be worth considering:

1. South West Angel Investors Network (SWAIN):

SWAIN connects private investors, or 'Business Angels', with companies looking for investment. SWAIN specialises in helping small and medium sized companies to find equity finance, and assists private investors in the South West to search for investment opportunities in businesses with growth potential.

SWAIN is an independent not-for-profit company supported by the South West Regional Development Agency (SWRDA) and the South West Business Links which specifically addresses the shortage of risk capital available to small and medium sized companies which is known as the 'equity gap'. SWAIN is focussed on deal sizes ranging from £25,000 to £750,000, which are too small to be considered by the majority of venture capital institutions. To find out more click here.

Regen SW have teamed up with SWAIN to run Investment Readiness Workshops. These free events are a unique opportunity to learn more about how to attract private investment from leading industry experts and to meet potential investors.  Check our events section for upcoming workshops.

For useful background advice on business angel investment see: Business Link Advice on Business Angels

2. Carbon Trust Venture Capital Fund

The Carbon Trust is a co-investor in early stage technologies and companies with the ability to create and deliver 'low carbon' businesses. The Trust invests between £250k-£1.5m per deal as a minority stakeholder alongside private sector investors on the same terms. All proposals must clearly demonstrate how the Carbon Trust's investment will lead to material CO2 emissions savings. The application process has a number of stages and may include referral to a business incubator employed by Carbon Trust.

Click here for further information. 

3. South West Ventures Fund

The South West Ventures Fund is a £25 million regional venture capital fund which supports fast growing SME’s across the South West. It aims to provide "equity gap" capital to suitable SME’s located in the region, to address the difficulty in attracting equity funding at levels below £500,000 from purely commercial sources. It makes investments of between £50,000 and £250,000. A further £250,000 may be invested into businesses as second round funding to take the total amount invested to £500,000.

For useful background advice on venture capital see Business Link Advice on Venture Capital

Other sources of information