Investment

Entrepreneurs today have access to capital from a variety of sources but each comes with a cost, set of criteria or limited added value that can often frustrate the development or execution of the very business that is looking to be supported.

Traditional Venture Capital organisations have business overheads and fund management accountability and metrics that often prohibit investments in early stage businesses seeking limited initial funding or with cautious expansion and profit projections.

Angel investment networks have helped address an early stage funding gap but rarely bring a common investment management and participation model or sector/competency focus that adds any value to the entrepreneur over and above simply making cash available to the business.

With a VC you get investors who often have relatively little market specific, founder executive experience or current market facing contacts.  With an angel network you get a disconnected team of investors from which you might be fortunate to find one lead investor with some relevant market experience but little else to call upon. You also face the potential for serious multi-investor personality and business strategy conflicts.

Capitalise's investment proposition and approach sits firmly in the middle of the Angel and VC models and is designed to inherit the best elements from each and to discard the worst.

We offer our investees the early stage capital investment focus (£100k - £500k), decision making speed and 'skin in the game' mentality of individual angel investors but through a process that is managed and co-ordinated by one managing partner representative and backed by a highly experienced team and a disciplined investment management process.

Furthermore, our focus means that we only invest in areas where the team and its network have significant relevant experience and potential for investment leverage and where we believe that there is minimal exposure to further unplanned equity dilution.

Investment Strategy

When it comes to the investments we make then we take our portfolio focus strategy as our starting point and overlay this with a few additional guiding principles:

  • we expect our entrepreneurs to have a clear vision for the growth or shift in business performance that an investment in their business would stimulate
  • we look for some form of existing revenue realisation, tangible target market penetration and client activity 
  • we expect our entrepreneurs to possess the core management team that it will take to exploit the funds that would be made available
  • we expect our investment to take a company into profitability and positive cash generation
  • we are looking as much at the potential for niche market domination as we are absolute scale