As an entrepreneur unfamiliar with venture capital financing, what do I need to know?
- Venture capital provides patient, committed, risk sharing equity capital to help unquoted companies grow and compete
- It is generally regarded as expansion capital and aims to increase a company's value through the growth of revenues and profits
- In accepting venture capital financing, a company's owners are effectively selling some shares in their company to the venture capitalist, who may further seek a Board position and attend monthly Board meetings
- Venture capitalists will also look to leverage their knowledge networks and connections to assist with the growth of a company they have invested in (see the way we work)
- Venture capitalists will look to exit their investment in a given time period, either through sale-back, sale to another investor, sale of the company, or through listing the company on a publicly traded exchange

What are the principal differences between debt and equity capital?
Equity capital :
- Long term in nature
- Means the venture capitalist becomes a partner in your business and shares in your success
- Flexible/tailored in its structure
- Doesn't usually require collateral
- Supported by the provision of experience, advice and connections to its recipients
- Focused on growth
Debt capital :
- Often shorter term in nature.
- Provided by an outside party - i.e. the lender does not become a shareholder in your business
- Usually follows a fixed structure based on repayment of interest and principal
- Usually requires collateral
- Focused on repayment out of your business's cash flow· Not necessarily focused on growth appropriate for companies with stable revenues

What are the principal differences between grants and equity capital?
Equity capital :
- Take high degree of business risk and seek commensurately high financial returns
- Means the venture capitalist becomes a partner in your business and shares in your success
- Funded by investors who seek a financial return – out of their commercial funds

Grants :
- Are usually made for social, economic or charitable purposes and do not have to be repaid
- Grant-provider will want reports on the impact of the grant but is not directly involved and does not seek a financial return
- Come out of the “philanthropic” pocket or from government

Is venture capital appropriate for my company?
- Yes, if you have high growth ambitions for your company or are engaging in a transfer of ownership such as an MBO or MBI.
- Yes, if you are willing to sell a stake in your company in order to be able to increase your stake's value to more than that of your original holding within a few years
- No, if you prefer to maintain the current level of your business or grow it slowly and wish to retain full ownership

What kinds of companies will you invest in?
- Companies with high growth potential, driven by skilled and ambitious management, and based in the most deprived 25% of England as defined by the Index of Multiple Deprivation (IMD), published by the Office of the Deputy Prime Minister (ODPM) in 2000
- Companies must be connected with the local economy by at least one of the following means:
1. employing staff from our target areas
2. providing products/services to the local economy
3. purchasing significant amounts of products/services from the local economy
- To see our detailed qualifying criteria, please go to investment criteria

What sectors do you invest in?
- We are generalists and interested in all industry sectors exhibiting high growth potential in our target areas

What stage of company are you interested in?
- Early, growth and management buy-outs or buy-ins
- Some start-ups will also be considered, where management have strong experience in the sector

What is your investment range?
- We invest up to £7.5m

Under what time frame do you invest?
- There is no set time frame on investments. However the funds have a ten year life and must exit all investments within this period

If my company has other funding or grants, does this preclude me from applying to Bridges Community Ventures for an investment?
- No. We do have to work within the constraints set by the European Commission on State Aid to the private sector but, in most cases, these will not be affected by other grant funding you may have received.

Are you going to invest in community businesses and social enterprises?
- Our primary objective is to demonstrate that we can generate a financial return by investing in companies located in deprived wards
- By helping our investee companies to succeed, and in the process generate a financial return, our investee companies will act as a 'locomotive', pulling along the 'carriages' of social return
- We have found that the return expectations of our investors, along with the need to find an ‘exit’ for our investment through sale of our shares, mean our funds are not often the right sort of capital for non-profit businesses.

Aside from money, what else can Bridges Community Ventures bring to a business in which it invests?
- We are about much more than money
- We look to bring knowledge and connections to the companies in which we invest
- Through the Bridges Network, investment professionals and our entrepreneurs' club members, we can deliver invaluable experience, advice and connections to our investee companies. We see this support as a strong competitive advantage which should enable our investee companies to reach their full potential

How do I approach you for capital?
- Check that you meet our qualifying criteria:
- Submit your business plan to:
Bridges Community Ventures Ltd
1 Craven Hill
London W2 3EN
Email: Info@bridgesventures.com

- If you do not yet have a business plan look at our Resources page for advice on putting together your own business plan.