What is venture capital?

• Cash flow challenge: My business is growing fast and needs significant investment to scale, but traditional loans and small investors can’t provide the level of funding required.

• Perfect for: High growth startups and scale-ups seeking substantial funding and strategic support from professional investors.

Novuna helps businesses explore equity finance routes like crowdfunding, supporting you in comparing providers and securing the right deal to fund your growth.

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What is venture capital?

Venture capital (VC) is a form of private equity investment where professional firms or funds invest in early-stage, high-growth businesses in exchange for equity.

VC firms not only provide large-scale funding but often play an active role in the business, offering strategic guidance, access to networks, and support in scaling operations.

Benefits of venture capital

• Access to significant funding - often millions of pounds for growth-focused businesses.
• Strategic input - VC firms bring expertise, governance, and industry connections.
• Increased credibility - backing from a VC can open doors to further investment.
• Support for rapid scaling - capital and expertise are tailored to fast growth.

Challenges to consider

• Loss of equity - giving up a substantial share of your business.

• Time and preparation - VC firms may want board seats and decision-making power.

• Ongoing communication - investors expect fast growth and strong returns.

• Public failure risk - competition is fierce, and only a small percentage of businesses secure VC backing.

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When to consider equity crowdfunding

Venture capital could be right for your business if you:

• Have proven traction and rapid growth potential

• Operate in a scalable market (e.g. tech, healthcare, fintech)

• Require millions in funding to expand operations quickly

• Are prepared for investor involvement in strategic decisions

Alternatives to venture capital

Other funding routes you might consider include:

• Angel investment for earlier-stage, smaller raises

• Equity crowdfunding for consumer-facing businesses

• Business loans or invoice finance for non-equity funding

How Novuna Business Cash Flow helps

Novuna works with businesses to explore the right equity and debt funding mix. Whether you’re considering VC or other finance solutions, we help you compare options and secure the best deal for your growth.