Sources of Funding for Young Businesses

Martin Manning

Early stage –seeking £50-100KFriends & familyAsset FinanceBusiness Angel FundingCrowdfunding EquityP2P LoansVenture 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• WWW.UKCFA.ORG.UK

P2P Loans

• Collective lending to creditworthy businesses from other businesses/individuals by a web-broker

• www.p2pfinanceorganisation.org.uk• £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

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