Small businesses are the backbone of the economy and we are here to help.
Many organisations have to make this difficult transition while being underfunded, because most of the investment industry isn’t interested. Private Equity investors look for more mature and profitable businesses that can be acquired with leverage. Venture Capital investors are looking for hypergrowth moonshots. So a decent business with revenues of £1-£10 million, growing at 10-25% per annum and reinvesting all its profits to fund the growth is going to struggle to raise money from either the PE or VC community. Many small businesses fall into this funding gap.
The challenge is further compounded by an experience and skills gap. Research by Crunchbase showed that 83% of founders are doing it for the first time. Many founders are subject matter experts who know their product and market inside-out, but have never scaled a business before. The same research shows that founders who have done it 3 or 4 times before are 2-4x more likely to succeed.
What can be done?
We believe that small businesses at the start of their scale-up phase need a new breed of investor, scale-up specialists like us. These new investors must bring a scale-up platform as well as funding, plugging the skills and funding gaps at the same time, and thereby helping more of these businesses scale up more quickly to critical mass, profitability and long-term success.
We love what we do: growing businesses. We love the positive impact this has on the community and economy. We love that so many of our companies make a real difference, have a purpose and are moving their industry forward. We love that so many are using technology to have a real impact in education, healthcare and many other areas. And we are proud that over the years our companies created over 6,000 brand new jobs.