What is venture capital, and how can it help my business?
A quick guide to venture capital
You can download a detailed guide about how venture capital can help your business as an Adobe PDF at the bottom of this page.
- Venture capital is a form of finance that is committed, long term and risk sharing.
- We will invest in your business by buying a share of your business.
- Advantage Creative Fund never takes a majority share holding.
- We don't take day to day management control of the business.
- As a venture capital fund the Advantage Creative Fund shares the risks and the profits of the business.
- Because our return is reliant on the success and growth of your business we will work with you to help you achieve success.
- We understand the creative industries sector.
- Venture capital will suit your business if you are ambitious for growth and your business will sustain high growth and profits in the medium term.
- Venture capital is a patient form of finance. You do not make regular repayments as you do with a loan. Instead you pay dividends when your business is making a profit. This means that venture capital provides you with a secure base to grow and develop your business. Returns to the venture capital fund are dependent on the growth and profitability of your business.
- It may seem daunting to give away a share of your business, but by receiving an investment from a specialised fund such as the Advantage Creative Fund you are greatly increasing your chances of achieving success and high profitability. The British Venture Capital Association explains it as: "Although you may have a smaller “slice of cake”, within a few years your “slice” should be worth considerably more than the whole “cake” was to you before”. For example if we invest £100,000 for a 25% share of your business and this helps your business to achieve a dramatically higher turnover and profit in a shorter period of time, then you receive more financial rewards from the business than you might have done without our investment.
- The investment made by a venture capital fund is not secured on any assets. If your business fails, then, like other shareholders, we lose our share of the business. We work with you to avoid failure and to achieve success.
- Equity backed businesses have been shown to grow faster than other types of businesses. This is due to the combination of capital and experienced input from the equity investor. Advantage Creative Fund has an executive team and board that understands the creative sector and we work closely with you post-investment to develop your business.
If you think venture capital could help you to grow your business then register a statement of interest with us now. Alternatively call the office on 01543 473035 if you would like to discuss your proposition prior to submitting a statement of interest.