Your journey to Expansion Capital

This article outlines what it takes to get Expansion Capital Investment.

Expansion Capital firms invest in established, growing businesses who want to take their company to the next level.

Are you ready for Expansion Capital?

Expansion Capital firms won't invest in any old business. They want to see potential. Your business must be:

  1. Post Revenue - It's all about scaling and optimising now
  2. Profitable - You need to be making money
  3. Growing - Between 10 and 30% year-on-year

Did you know? An Expansion Capital fund will aim to grow your business by around 15% when it gets involved.

Stage One - Preparing for Expansion Capital

Get organised and get focused. Expansion Capital firms will review your business' details, so make it as simple as possible for them. They want to see your:

  • Financial Reporting they want details!
  • Legal Framework - how's your company structured?
  • Growth Plans how do you plan to grow?

Stage Two - Where to look for Expansion Capital

  • Your network
  • Advisers
  • High Net Worth Individuals
  • Banks
  • Non-Executive Directors (NED)
  • Investors
  • Go direct to Expansion Capital funds

Stage Three - Pitching for Expansion Capital

  • Why now? - Explain why you're looking for funding now.
  • Show your working out - Show how you will grow and how you calculated that growth.
  • Form a connection - It's hard to buy into a business without a story and a vision.
  • Sell your USP - What's special about your business and can you sustain it?
  • Price properly - Be clear in how much investment you want and how you'll use it.

Sealing the deal: Timeframes

  • 2-3 months minimum
  • 5-6 weeks is the typical amount of time it takes from terms agreed to payment

Stage Four - Expansion Capital and you

  • What's life like working with a Expansion Capital firm and how do you work together?
  • Welcome aboard - Lots of Expansion Capital firms place someone on your board in a non-executive role.
  • It's a relationship - Expansion Capital deals work best when it's a two-way relationship. Both parties should push each other.
  • 3-5 years - Typically, Expansion Capital deals last three to five years.

Reference to any organisation, business and event on this page does not constitute an endorsement or recommendation from the British Business Bank or the UK Government. Whilst we make reasonable efforts to keep the information on this page up to date, we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. The information is intended for general information purposes only and does not take into account your personal situation, nor does it constitute legal, financial, tax or other professional advice. You should always consider whether the information is applicable to your particular circumstances and, where appropriate, seek professional or specialist advice or support.

Making business finance work for you

Our Making business finance work for you guide is designed to help you make an informed choice about accessing the right type of finance for you and your business.

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