The problem however does not lay with identifying where to obtain funding but rather how to be eligible to attain it. So what is a suitable, fast and effective way of obtaining funding? Angel Investor News decided to find out
The problem however does not lay with identifying where to obtain funding but rather how to be eligible to attain it. So what is a suitable, fast and effective way of obtaining funding? Angel Investor News decided to find outA possible source of funding would be the ‘Regional Growth Fund’ (RGF). The Regional Growth Fund is a government led programme which is available to entrepreneurs across the UK which aims to support projects that are seeking to raise investment for both business and economic growth as well as sustainability.
This £3.2 billion Regional Growth Fund has been identified as being aimed at helping communities to transition to a more sustainable private sector led growth as opposed being dependent on the public sector
With the Regional Growth Fund in place, entrepreneurs across the UK are able to benefit from a reliable source of funding which brings upon the added incentive of promoting job creation. Quite recently we identified from an external source that the scheme has already provided over £56m to companies in the north east region of the UK.
However in a report earlier this year, it was identified by the BBC that ‘More than three quarters of a government fund set to boost regional economies remains unspent’. A close source who preferred to remain unnamed and is currently responsible for the application process, stated:
Angel investor News then decided to look at the offering available to the entrepreneur seeking to raise funding for their business via Private Equity or through Private investment. We found an Investor matching portal called Venture Giants and asked our source to comment on Venture Giants offering. They stated:
The entrepreneur that successfully raised the investment for his care home business, John Hughes, was able to benefit from the Venture Giants platform by posting a one page investment proposal on and having the investor matching platform send the proposal out to hundreds of, what they state are, vetted investors.
From a single investor contact made – the investor (not named for privacy reasons by Venture Giants) looked at the proposal and stated to Mr Hughes that £20,000 would not be enough capital for what he was trying to achieve. This is something the Regional Growth Fund fails on, as Mr. Hughes would have been immediately declined. Instead the private investor found through Venture Giants stated that ‘more like’ £200,000 of investment would be required to make the venture profitable – and the investor invested in the Care home.
When Angel Investor News looked at the deal structure, it was a refreshing change to find that Venture Giants did this all on a commission free basis. This serves as a real testament to the fact that online platforms such as Venture Giants are working and making a real social impact for the UK.
We called to question how a business model like Venture Giants could operate on a commission free basis, and Mr. M Beghoe, who is responsible for looking over the deals that Venture Giants receives, stated that they can receive over 15 to 20 deals a day to look over, and there revenue model is based upon a streamlined way of looking at proposals, which means that they can deal with a large quantity of proposals whilst maintain quantity throughout the site. It was also stated, that most proposals were referred to them via word of mouth or repeat customers, which was another way costs could be kept low.
Angel Investor News looked at other success stories on Venture Giants and another investment that had a Social impact was a Special needs Care Centre that was looking to raise £25,000 through Venture Giants
In accordance to the website, an entrepreneur by the name of Ms. Hale who had a vast amount of experience as a teacher featured a proposal on Venture Giants that sought to raise investment to create what was defined as a therapeutic interventions centre.
What resulted was an investment of £25,000 from a private investor, with what she described as a ‘dream investor’. In a personal message to Venture Giants, Mrs. Hale stated
Another success story with a social impact was from an entrepreneur that Venture Giants classed as a ‘Mumpreneur’ – a new wave of Female entrepreneurs that can balance parenthood with a working career -was seeking funding to start a nursery in Derbeyshire. Venture Giants was able to secure £50,000 of investment by introduction of an experienced investor that could mentor her on how to build and grow her business, something the Regional Growth Fund clearly needs to address if the businesses they invest in are to grow and thrive
In an interview with the Founder of Motivating Mum, a website dedicated to promoting Mumpreneurs in the UK, Alli Price (Founder) stated that Venture Giants was a recommended service because:
The ‘Autism Centre’ and ‘Care Home in Bournemouth’ as featured on Venture Giants may not have been able to secure the required investments with the Regional Growth Fund due to the extensive application processes and due diligence involved in the process of obtaining Government funding and business grants
Venture refers to itself as having the lowest pricing model in the industry, with the process working by entrepreneurs being able to submit their proposal for a review where once approved it is sent to a database of vetted investors which are matched based upon their investment range, location and industry
With so many alternative methods available for securing funding, it is definitely an upward struggle trying to obtain it. However, online services in the private sector like Venture Giants are making strides in bringing entrepreneurs and investors together both rapidly and effectively.
It seems possible to state that Venture Giants is certainly an easier and more accessible platform for entrepreneurs to obtain investment than through a government led programme such as the Regional Growth Funding scheme