Here at Universal we have a tradition of investing in UK SMEs and have a tremendous track record in partnering with businesses at a very early stage, which then enables them to move up to the next level. We have invested in businesses which have subsequently grown into well known names, and we are looking to bring this kind of success to your company. At this present time many viable businesses are experiencing difficulty in raising funds, for either a start-up project, or funds which would enable them to expand their operations. We try to simplify the process so that businesses can plan ahead for the future growth with confidence.

 

Our commitment to potential companies which approach us for funding, is to be completely transparent. Where an investment proposal does not fit in with our aims we will communicate this as clearly and proactively as possible. We always aim to provide an initial view on a proposal within 10 business days.

 

When we accept a proposal and communicate that we would like to proceed with it we will always work closely with the company’s management and controllers in order to perform our initial due diligence, which would usually take place over several meetings. Once this stage has been completed we will negotiate a “deal in principle”. In total we would expect our investment process to take no longer than 3 months.

 

Looking for investment for the first time or indeed at any time can be a daunting task. Many of the entrepreneurs we back have never received external investment before and therefore we have provided this information which is designed to demystify the financing process. Here are a few things to consider when thinking about Private Equity Investment:

 

• Dilution:- Always a sticking point for an entrepreneur. If you believe that the business will only get to where it needs to be through an injection of capital and external assistance and have considered and failed with the less risky finance options then dilution is an inevitable consequence.

 

• Control:- You should also consider the level of control you would want to retain when partnering with us. We would usually require a minority stake in your company but with control around key decisions so that we can protect our investment as much as possible.

 

• Level of Capital Raised:- When deciding on how much money you need to raise, make sure that you allow some headroom to protect you from the unexpected. You should be looking to raise sufficient funding to enable you to reach a “landmark”. This landmark could be getting to a product launch, or to a stage where your company has reached profitability. Try to ensure that you reach the landmarks that you require the financing for otherwise it may make it significantly more difficult to raise additional finance.

 

• Don’t raise too much funding as this will likely mean that you have heavily diluted your share or control.

 

• Be Realistic:- If you are looking to justify a valuation based on anything other than operating profits, please ensure that you have very good rationale for the valuation.

 

 

For more information on procuring venture capital finance, speak to one of our specialists on  +44(0)207 175 6333.