What is equity finance?

Equity finance is a way of raising capital by selling shares in your business. Unlike loans, you don't have to worry about making repayments, so all the finance you raise can be put towards achieving your growth plans.

For a more detailed explanation of equity, please read our blog post, What is equity finance and how does it work?
 

 

Why should your business consider equity?

  • Allows you to quickly take advantage of opportunities which you might otherwise miss by self-funding your business
  • Can be an effective way of enabling faster growth and long-term value creation
  • Carries no repayment obligation 
  • Investors will bring added value in the form of expertise, knowledge and contacts

 

Finding the right equity investors

With years of experience and a track record of delivery, we back companies in all sectors and at all stages of development. We're a funding partner who can provide follow-on investment as your business grows, and will work with you to help your company succeed. 

We can combine equity and loans to deliver a bespoke funding package for your business. We also co-invest and work closely with a range of intermediaries including banks, other funders, and company advisers, to ensure that you get the complete funding you need. 

 

What can equity finance support?

An effective way of growing your business can be to sell more in your current market. To achieve this, you may need to:

  • Increase marketing and advertising
  • Expand distribution channels 
  • Improve operational efficiency 

Equity finance can help you to develop your infrastructure and expand resources, helping you to gain a bigger piece of an existing market.

If you want to expand your business by selling into new geographic areas or targeting new customer segments, you'll need capital to cover the costs. These can include:

  • Marketing and sales resources 
  • Production and distribution 
  • Modifying or updating products

We can give the financial support and know-how to help you develop and implement your expansion strategy successfully. 

Product development can help you to stay current and drive your business forwards. It may involve:

  • Improving your products for existing markets
  • Developing new product lines for existing markets
  • Introducing new products to enter new markets
  • Updating products to meet new legislation or regulations

Equity investment can be the ideal funding option in these cases, giving you capital and expertise to pursue your product development strategy. 

Ready for equity?

We invest in businesses with the potential to grow, who can demonstrate the following:

  • Ambitious management teams
  • Operating in a growing market
  • Have a competitive advantage
  • Have a strong business plan and clear business model 

We provide equity for businesses at all stages of growth - so whether you're a start-up, early stage or established company, we can support you with the funding your business needs.

For pre-revenue tech start-ups based in Wales, we have specific funds and a dedicated Technology Venture Investments (TVI) team. 

What's next?

Want to discuss equity further? Make an enquiry through our contact us form.

Contact us