Looking for Investment

[Dave-PG]

We have been running our own company for two years now and decided we would need to go out for investment a couple of months ago. We have scraped and penny-pinched for two years while building the backbone of the company and have got to where we are now at a fraction of the cost of our competitors. Our philosophy has always been that with so little money there would be no wastage.

We calculated we required over £100,000 to move the business forward and started scouring the best routes to do this. It quickly became apparant that this is a bit of a difficult area and that business angels could be the best route.

I just want to report my experience to date:

• We contacted lots of Business Angel companies but the vast majority charges large upfront fees to mail their Business Angel database on your behalf.
• We entered a brief overview on an angel website for about £100 and all we got was introductions to potential fraudsters, dodgy people and other angel companies charging big upfront fees again.
• The first company quicklty accepted us and wanted £5,000 upfront plus a percentage of any investment. When asked of their success rate they told us they get investment for 50% of their clients and their next best competitor got 6%. They also told us they do more Business Angel finance than the rest of the market put together. It was a quick 'no thank you' for £5,000 for a 50/50 chance of success.
• The second company I contacted wanted about £500 upfront and they claimed they got finance for 40% of their clients and they did more Business Angel finance than the rest of the market put together???? Again they then wanted a percentage share too.
• I have then contacted the regional government development agency and they have been really useful. They claim to get 40% of their clients money and don't charge any upfront money, although we'll have to wait for their next meeting in a couple of months.

Sorry to drag on, but my whole point about this is that, surely, if these companies were so good at finding investment, they would not charge huge upfront fees and would attract more quality companies to put to their Business Angels by being paid on results. If they all claim to have about 40% success rate, and more than the rest of the market put together, then somebody has got to be lying somewhere.

I have decided I am going to go it alone and find the right investor myself without paying huge fees with no guarantee of success. Afterall what is the ncentive when you've already been paid?

 

[Business News]

Have you tried talking with your local business link to see if their are any regional development grants available that could go towards supporting your investment.

I'd only recommend angels if you want an exit route as they usually require to sell on within a few years. So if you want a long term involvement this may not be your best recourse to resources.

 

[Dave-PG]

Thanks for your advice. We have really good exit scenatios so I don't mid that. My own idea is to have moved the business on within 3/5 years.

 

[aras12]

Well! You could always send this project to ivoireconsultancy.org and find freelancers to work on it based on commissions. You will be amazed how many financial institutions some freelancers could bring to your door.

Its free and cost you nothing at all. Just sit back and relax and receive proposals in your inbox within 1 hr.

 

[TotallySport]

Zopa might be able to offer you some financial help but I don't think if goes as far as £100K

 

[aras12]

I could point you to a financial institution- You do not pay any upfront fees. I give the phone number and you discuss everything with them.