In a time where venture capital is considered crucial to the resurgence of the UK economy, North East Fintech company, Growth Capital Ventures (GCV) are strengthening their portfolio of high growth start-ups and expanding their private network of individual and institutional investors.
Recently achieving another key milestone, the business has now reached £35 million in venture capital investments as of June 2020.
Two businesses. One mission.
Launched in 2014 GCV provides investors with access to high quality, pre-vetted investment opportunities in early stage and high growth businesses. Over the past five years, GCV’s venture building arm (G-Labs) have worked with some of the UK’s most innovative start-ups, investing knowledge, experience, ideas and infrastructure to help them scale fast.
GCV’s private investor network (G-Ventures) brings together an online and offline investor network of experienced, private investors and institutional investors to access and co-invest in growth focussed investment opportunities. Since 2015, the company has built a co-investor network of sophisticated, retail and institutional investors with a liquidity pool of circa £20 million.
To date, GCV has provided its G-Ventures investor network with nine well researched and high growth venture capital investment opportunities across 17 fundraising rounds. Based on the latest funding rounds, an investor participating equally across the portfolio with a £10,000 investment in each transaction would have an initial investment of £90,000 (before tax reliefs where available) and the current portfolio valuation (based on latest funding rounds) would indicate a portfolio valuation of £290,700* (excluding tax reliefs).
Craig Peterson, Chief Operating Officer at GCV commented:
“Our mission is to provide our investors with access to well researched SEIS and EIS eligible opportunities with the benefits of generous tax breaks.
Ultimately, our core purpose is to create value by identifying investment opportunities that have the potential to deliver the best possible returns for our investors, make a positive social and economic impact – and help our investor members build a well balanced and diversified investment portfolio.
Impact driven start-ups with high growth potential will be the driving force in helping the economy recover from the effects of COVID-19 and therefore continued Venture Capital backing from investors will be crucial. ”
In 2018 businesses backed by angel investment and venture capital generated a combined turnover of £36.5 billion in 2018 which is almost three times the amount invested.
In turn, this supported a total of more than 570,000 jobs, which is the same as the number of people working across all UK road and rail transport services, including both passenger and freight.
High growth SMEs vital to strengthen the economy
From the UK’s first app only and most trusted bank (Atom Bank), to the tech startup that is transforming the way businesses engage employees (HIVE.HR) GCV’s portfolio companies are collectively proving that high growth SMEs and venture capital go hand in hand.
According to research from the British Business Bank, British venture capital funds have £8.4bn ready for investment in fast-growth businesses, which could provide vital investment for innovative companies as the country emerges from the Covid-19 crisis.
Technology solutions born out of COVID-19
As more businesses and consumers become more reliant on technology, it comes as no surprise that GCV portfolio companies including global intelligence and risk management provider, Intelligence Fusion and guest self service platform, QikServe have been in high demand throughout the coronavirus crisis.
Intelligence Fusion (‘IF’) now supports some of the world’s leading brands with real time data and insights to help protect people, assets and reputation.
IF’s platform is used to judge current and future trends around risks, from everyday crime or political changes through to larger events like civil unrest, terrorism or the current pandemic.
Demand for such a system is high in the current climate. For global companies running complex operations around the world, this will lead directly to tougher trading environments and a lot of necessary belt-tightening when it comes to costs around operations.
In the hospitality sector, QikServe has also been providing innovative technology solutions to support fast food outlets remain operational throughout the pandemic. In May, Qikserve teamed up with Britain’s biggest motorway service operator, Moto, to launch a click and collect ordering service at 48 of it’s sites around the UK. Since the lockdown came into force, motorway services have remained open albeit with reduced facilities.
This has hit many of the UK service station based restaurants hard following lengthy closure due to the COVID-19 outbreak. With lock-down restrictions in place, Moto said the ordering portal would help to protect colleagues and customers by minimising contact time.
Live investment opportunity
With an expanding private investor network of over 5000 members and a secure £2m deal pipeline, GCV is set to have a busy year ahead for the remainder of 2020.
17 transactions have been completed to date with GCVs portfolio currently demonstrating a 2.4x unrealised money-on-money return.
As well as generating financial returns, the investments also have a positive social and economic benefit with the GCV portfolio companies having collectively created in excess of 500 jobs.
In the last 18 months GCV has strengthened the team further in order to increase capacity and scale the business. With a head count of 22 employees, GCV is in a strong position to further support more exciting high growth businesses and help investors access more carefully selected investment opportunities.
To support the next phase of growth, GCV has secured £1 million from new and existing institutional investors. The investment opportunity is now open to private investors. Interested parties can reserve an allocation of shares in GCV through the GrowthFunders co-investment platform.
This is an EIS Qualifying Investment Opportunity which means UK based investors can enjoy a number of generous tax breaks;
- Up to 30% Income Tax Relief
- Potential to shelter and defer Capital Gains Tax (CGT)
- Any investment profits are free from CGT
- The investment is also free from Inheritance Tax (IHT)
Visit the GrowthFunders co-investment platform to discover further information about the following;
- The Team
- Our achievements to date
- Future growth plans
- How we plan to create future shareholder value
- Proposed exit strategy and target investor returns
*Please Note – returns are not guaranteed. Past performance is not an indicator of future performance.