Investment capital provides long-term, committed, risk sharing equity capital, to help unquoted companies grow and compete. It seeks to increase a company’s value to its owners, without taking control.

Although lenders (e.g. banks) have a legal right to interest on a loan and its repayment, irrespective of the borrower’s success or failure, the investor’s returns are dependent on the growth and profitability of the business.Owners will need to sell some shares in their companies in exchange for funding (generally a minority stake, e.g. 10% - 49%) to the venture backer, who may seek a non-executive board position and attend monthly Board meetings.

In other words, investment capitalists invest in companies or venture with the investor participating in the shares and profits or losses. Investors not only provide equity capital, but experience, contacts and advice when required, which sets investment capital apart from other sources of business capital.

Do you have high growth ambitions for your company?
Are you willing to sell some of your company’s shares to an investor in order to be able to increase your stake’s value to more than that of your original holding within a few years? Investors only target companies with real growth prospects, driven by a skilled, ambitious management. So if you and your company fit this description and you answered ‘yes’ to the questions above, Investment capital certainly is worth considering.