EV experiences profit and turnover growth
VENTURE capital firm EV is reporting a record first quarter in 2012 amid rising demand for equity funding from ambitious SMEs.
The firm, which has an operation in Birmingham, invested more than £8m in 49 deals in the three months to the end of March 2012, up 70% on the same period last year.
EV – which stands for Enterprise Ventures – has recently filed accounts for 2011 which showed turnover rising from £2.7m to £3.9m and profits more than doubling from £222, 582 to £518,274.
Commenting on the promising start to 2012, chief executive Jonathan Diggines said: “Perhaps the penny has dropped – that now is a good time to invest and build a business.
“We find that companies founded in a downturn have to be leaner and stronger than those built during easier times. This means that in current conditions smaller enterprises are frequently quicker to react to any opportunity to grow – and can make real strides, while bigger more mature companies are sitting on their hands.”
EV now has £130m in funds under management and is one of a small number of providers of early-stage equity funding to SMEs.
Diggines added: “There is a lot of talk about the availability of funding for SMEs. Yes, there is money for SMEs – but it is generally not aimed at small businesses. Lenders reckon it is easier and safer to invest in bigger SMEs.
“Small enterprises – and the vast majority of UK businesses fall into this category, with less than £10m turnover and fewer than 50 employees – still struggle to raise capital and start-ups are notoriously difficult to fund.
“EV is one of a severely limited number of sources of growth and venture funding for smaller firms and entrepreneurs who need to raise finance. The small company funding gap must be resolved if the UK economy is to grow – and once growth materialises the funding requirement will only increase.”
