FAQs
Below is a list of our Frequently Asked Questions, along with answers. We hope you find them useful.
- How much can the Early Advantage fund invest?
- Does the fund investment need to be matched by private investment?
- How long does the process take?
- Does the business have to be located in the West Midlands?
- What are the likely terms of the investment?
- Will you sign a confidentiality agreement?
- What are the key characteristics you look for?
- I don’t have a business plan. Can we still progress with investment?
- Will you want to run my business?
- How long do you expect to remain invested in the business for?
- Where can I find co-investment?
1. How much can the Early Advantage fund invest?
The fund can invest up to a total of £400,000 in any one firm, but only £125,000 as a first investment.
2. Does the fund investment need to be matched by private investment?
Generally yes, however there are certain exceptions where the fund can total two thirds of the overall investment.
3. How long does the process take?
You should allow approximately 6 to 12 weeks from the time when you and we agree to proceed to the time of investment.
4. Does the business have to be located in the West Midlands?
You have to have a significant part of your operations in the West Midlands or you must commit to have a significant part of your operations in the West Midlands post investment.
5. What are the likely terms of the investment?
Our offered terms will reflect the balance of risk and reward for your particular business. The majority of our investment will be in equity in the business.
6. Will you sign a confidentiality agreement?
We prefer not sign one at the first meeting but if we decide to progress then we will be more than happy to sign an approved NDA.
7. What are the key characteristics you look for?
Ideally there will be more than one owner of the business, an experienced management team, barriers to entry, a large and growing market, competitive advantage, and good exit options, however we do not expect you to have all of these.
8. I don’t have a business plan. Can we still progress with investment?
We do prefer you to have a full business plan. If you need help then Business Link can provide sound advice on how to do this.
9. Will you want to run my business?
No we don’t want to run your business, but we will retain the right to appoint a director to the board and ensure your business is run with good corporate governance.
10. How long do you expect to remain invested in the business for?
Our normal exit from a company is when that company is sold. We will agree with you a target date for sale which we would usually expect to be within 3 to 7 years.
11. Where can I find co-investment?
Advantage West Midlands has a range of grants, loans and venture capital initiatives which are listed on their website
If you have any further questions, contact us for more information
