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Venture Capital Trust Financing

By Jon Gillespie-Brown | May 18, 2006

Interesting new insights in getting finance from UK Venture Capital Trusts (VCTs).

Currently (06) the have £1.3Bn in uninvested cash that needs to be invested or they will now be penalised under new rules.

Insights:

• If they get an OFEX IPO they tend to invest alot less, say max 10% of the raise
  
• Dealing direct they can go higher, say £500k to start with follow on funding
  
• They much prefer AIM and like to invest in a private co before it goes to AIM
  
• They prefer this because the OFEX market can move against you on valuation alot if theres not lots of good news
  
• There are 90 odd VCTs but only 25 any good for IT
  
• VCTs are prepared to support overseas expansion if the VCT rules can be met (by hook or by crook)
  
• VCTs can invest within 3 months and are happy to co-invest with others they like

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Last 3 posts by Jon Gillespie-Brown

• Choosing a "Stanford quality" startup idea–part 3 - October 11th, 2011
• Choosing a "Stanford quality" startup idea–part 2 - October 11th, 2011
• Choosing a "Stanford quality" startup idea - October 10th, 2011

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• The 10 Commandments of Raising Venture Capital
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• UK Hedge Fund Financing
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	Jon Gillespie-Brown is a published Author, Lecturer, Founder/CEO and Mentor on Entrepreneurship. He currently mentors at Stanford, UC Berkeley and the London Business School. Visit his site for tips by email/twitter, blog updates, detailed articles, worksheets, news, a free quiz and more! Go now to http://www.tobeanentrepreneur.com/

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