An introduction to venture capital
Unlike a debt provider, who will benefit from both the interest on a loan and its repayment over a period of time, a venture capital investor will rely on an income yield, in the form of dividends, only if the company is profitable. The investor will share in the capital gain through the eventual sale of its shareholding.
The main sources of venture capital in the UK are venture capital firms and 'business angels'. HSBC Bank can provide support in both respects:
Montagu Capital is a subsidiary of Montagu Private Equity. Montagu capital manages the existing portfolio of investments developed by it’s predecessor company, HSBC Ventures , and is responsible for the HSBC Growth Capital Fund which invests between £1m – 10m equity per transaction.
HSBC UK Enterprise Funds are a series of independently managed regional venture capital funds covering England and Wales. They invest amounts of between £10,000 and £250,000 whilst focusing on smaller risk capital deals.
QTP invests between £25,000 and £500,000 in smaller high growth technology companies.
National Business Angels Network (NBAN) is a nationwide non-profit making organisation of private individuals or 'Business Angels' who make equity investments typically from £20,000 upwards. HSBC Bank is a sponsor of NBAN.
Scottish Equity Partnership is an independent fund covering Scotland, specialising in smaller technology companies, investing between £100,000 and £1.5 million.
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