Successful investment in early-stage businesses is not about providing capital and wishing them ‘good luck’!

Managing growth investments requires balancing entrepreneurial optimism and venture capital realism. The potential upside can blind investors in early-stage development. However, seeing the path to commercialisation from a realistic standpoint demands an objective and experienced perspective from the Investment Provider.

Investment Providers are typically expected to guide, mentor, and counsel an investee company’s management team. Providing hands-on operational experience combined with financial expertise can materially mitigate the investment risk the investor bears, along with comprehensive due diligence on investee companies.

In the Venture Capital industry, it is common for Investment Providers to take a seat on the Board of an investee company, providing them with:

• Assistance in establishing controls, procedures and financial reporting at a standard required for exit
• Advice, guidance and mentoring to impart the wealth of experience Deepbridge has intending to grow the company quickly and profitably
• Advice from and/or secondment of our team of experienced business builders
• Assistance in establishing worldwide distribution through our network of partners and distributors worldwide.

Often, a company will not raise all the capital it requires in just one round. Most start-ups go through a series of follow-on fundraisings before supporting themselves from their cash flows. It is important to assess how likely it is that further investment may be needed before an exit can happen and what that could mean for the investment.

Deepbridge has internal criteria regarding which companies receive investment. Deepbridge invests in sectors where the management team has experience or knowledge of the industry to ensure they can proactively engage with the company.

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EIS: The Basics – On Demand

Our industry leading educational programme covers the basics on what you need to know to recommend an EIS.
If you’ve never recommended an EIS before, we suggest you start with episode 1.

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EIS: Advanced – On Demand

This is recommended for advisers who have completed the EIS—The Basics course, who already recommend EIS, or who are confident in tax-efficient investments.

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IMPORTANT: The views expressed in these webinars are the views of the individual and not necessarily of Deepbridge Capital LLP. Figures quoted by the presenter and/or guest may be approximations. The content of these videos should not be construed as financial advice. This video is a real-time financial promotion and, as a result, has not been approved as a financial promotion for the purposes of Section 21 of the Financial Services and Markets Act 2000.

RISK WARNING: Any decision to invest should be made only on the basis of the relevant documentation for the investment available in the accompanying company profile. Investments in unquoted companies carry high risks. Capital invested will be at risk and you could lose all of your investment. No established market exists for the trading of shares in private companies, making it difficult to sell shares.

Tax treatment depends on the individual circumstances of each investor and may be subject to change in future. The availability of tax reliefs depends on the Company invested in maintaining its qualifying status. Past performance is not a reliable indicator of future performance.

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