Businesses that make use of this resource tend to have a good track record and have a turn-over of between £5 million to £100 million and are private or AIM-listed companies and all of them with entrepreneurs at the heart of the business with a proven track record and a strong strategy for growth.
What should businesses do to get investment?
The BGF is a long-term partner for businesses so on applications they look for businesses that have a long-term funding requirement thinking about growth plans for five to ten years as opposed to short-term development.
Additional support offered
The BGF was set up not only to provide long-term finance but also to provide support to businesses through practical advice, strategical input as well as networking opportunities.
The BGF has a ‘talent network’ which is a group of serious men and women who are actively looking to support the growth and development of business. They can join the company either as a chairman or on the board and bring their sector experience, and knowledge to the company of developing medium-sized companies.
Within the BGF team there is also a group of investors that will challenge management teams as they grow their company. The BGF will always take a seat on the board of the business and have a partner sitting around the table with the entrepreneurs to drive forward the growth plan, to minimise risk and to take on opportunities as they present themselves.
What makes an application successful?
Marion Bernard, the BGF’s London and South-East regional investment director, says: “At the BGF we look to assist businesses across the UK both with capital, but also with support such as access to talent and networks that could help businesses grow and develop as it reaches that next step of growth.
“For us it’s all about people. It’s about meeting the entrepreneurs, and the management team at the heart of the business. The management team need to be ready to spent time with the BGF team and we want to get to know the business and get to know the people and see how a partnership could really help that business.
“I think it’s less about the written plans and more about the conversation and the engagement that we can have with the people who are at the heart of the company we would be backing… In terms of the business itself it’s about looking at a good track record, a business model that is proven and looking ahead at how a BGF investment can really provide support.”
In tomorrow’s instalment of the alternative finance series, we take a look at angel investment…