Entrepreneurship in Yorkshire: Securing funding
ENTREPRENEURS have been urged to think creatively when it comes to searching for funding to back their ideas.
With finance an issue for businesses of all sizes, people trying to start a new enterprise can face a real challenge finding people willing to risk investing in an untried venture.
Nigel Owens, portfolio director at YFM Equity Partners, believes seedcorn investment remains an under developed market.
“There is a gap –– it is harder to raise £500,000 than to raise £5m. Seed money is typically where you see angel activity and not many people invest at that level.
““There is a big opportunity for people with successful business sales to get involved with a new business. We have facilitated that and people we have backed in the past have gone on to invest with us in other new ventures.””
Changes to tax allowances through the Enterprise Investment Scheme are helping to encourage more people holding cash to invest in new ventures.
“Andrew Burton, chairman of the Yorkshire Association of Business Angels, says: “That is driving appetite because they are getting nothing with money in the bank and the stock market is very volatile. Most people are a bit long on property and don’’t want to get into commercial property.
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“A small successful business can give phenomenal return if you gofor a long investment and pick the right ones.””
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