Sources of Funding for Young Businesses Martin Manning.

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Presentation transcript:

Sources of Funding for Young Businesses Martin Manning

Early stage –seeking £50-100K Friends & family Asset Finance Business Angel Funding Crowdfunding Equity P2P Loans Venture Capital ( Invoice Discounting, Pension-led funding, EFG, NLGS)

Asset Finance Buy machinery, vehicles or borrow against existing assets Usually linked to asset life Requires regular payments- usually monthly From Asset Finance Companies, Banks, Asset Vendors Timescale 2-8 weeks

Business Angel Funding Comes From HNWI Investors Individuals, syndicates or associations Typically £50-500k Equity ( occasionally convertible loans) A form of money with management Timescale 2-4 months

Crowdfunding Equity Sourcing equity online from multiple investors

P2P Loans Collective lending to creditworthy businesses from other businesses/individuals by a web- broker £480Mn in 2013 or 79% of total alternative lending

Venture Capital Collective funds invested by VC businesses Seeking high growth, high potential businesses Looking for 10x investment after 3-5 years Equity or equity/loan mix Extensive documentation, board apt and 3-6months to do