8 Jun 2005

For businesses requiring additional finance, which are unable or unwilling to increase their level of borrowing, bank finance — in the form of secured loans and overdrafts — is not an option. If you cannot provide further capital from your own resources, venture capital (also known as private equity finance) may be the answer.

Venture capital (VC) firms provide financing in return for a proportion of your shares. They take a higher risk than banks do in the expectation of receiving higher returns.

For your part, you have to decide whether the involvement of a venture capital firm is worth a smaller slice of a larger pie.

This briefing outlines:

• Whether venture capital will suit you.
• How to obtain it.

Download article