Starting and building a prosperous business is an ambition of many people and is the world’s main source of job creation. But in general business people and private investors are failing to capitalise on this entrepreneurial potential.

Although most small and medium sized enterprises (SMEs) say that growth is their main objective too few manage to achieve it. Getting a company off the ground and/or expanding it requires money and raising the right kind of finance is still a major difficulty for SMEs.

The lack of capital is a barrier to growth that can rarely be overcome by recourse to family, friends, business angels or banks. A 2009 survey of 2500 entrepreneurs across 15 European countries showed that some 75% of Europeans consider it difficult to start their own business due to a lack of available financial support.

Private equity and venture capital is an increasingly important source of finance for European high growth potential companies. The goal of private equity and venture capital is to help more businesses achieve their ambitions for growth by providing them with finance, strategic advice and information at critical stages in their development.

Although overall awareness of private equity and venture capital in Europe has improved in recent years a clear understanding of its mechanics is required. This is even more obvious in the case of smaller firms and family owned businesses. The lack of information, together with the fear of relinquishing control through the exchange of shares for cash flow prevents companies calling on private equity and venture capital.

The 2009 survey also showed that the risk of losing control was the deciding factor for not calling on private equity and venture capital (24%) followed by the lack of information on how private equity and venture capital operates (23%).

However and despite this, 80% of the entrepreneurs who did approach private equity and venture capital investors welcomed the improvement in their business activities and in their budgetary and financial monitoring. In a similar vein, the investors' experience and network of contacts were also regarded as very positive elements. Furthermore, having private equity and venture capital investors provided the companies with more credibility with their clients, suppliers, banks and competitors. This is particularly true for start-ups whose assets are often intangible and who have to provide numerous guarantees.

The GVCGroup exists as a strong and trusted network of entrepreneurs and funders. We are prepared and willing to introduce and demystify the private equity and venture capital industry to business people searching for external capital. We will help to answer questions such as:

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Why should I call on private equity and venture capital?

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Which are the types of companies private equity and venture capital investors are looking for?

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How do I select a partner?

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How do I prepare a business plan?

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What should I expect from this partnership?

We are well experienced in providing a comprehensive insight into the private equity and venture capital business model and investment process.

We will detail at first contact the relationship between the entrepreneur and the interim micro funding community, the stages towards an eventual agreement, the follow up to and the exit from an investment and how the funding can be structured.

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