It's fantastic to announce we're bringing together a group of sophisticated investors in the Tees Valley to back high growth local businesses and projects through the formation of the G Ventures Investor Club.
The G Ventures Investor Club is an exclusive group of high net worth individuals who will meet monthly to brief members on new investment opportunities, as well as introducing them to G Venture partners who are trusted, well-known advisors.
Members will have the opportunity to group together and anchor high growth businesses and projects or co-invest alongside an institutional investor. These investors are able to invest from £10,000 upwards, into the region of six opportunities every year.
The G Ventures Investor Club will concentrate on investments in high growth businesses, clean energy and property related projects. As GCV we developed GrowthFunders as our online co-investment platform to streamline the investment process and G Ventures is the latest development in our alternative finance armoury.
Already having a major success in raising funds from an investor network before formalising this with G Ventures when one of the UK’s leading digital challenger banks approached us to raise capital. We soon received commitments from 44 private investors in excess of £1 million as part of the £16 million fund round.
The network also recently supported Intelligence Fusion, a GCV portfolio company, break through its £400,000 target and is currently on course to raise £500,000 to further develop its online global intelligence and risk management system. Following the event, a further £45,000 was invested into this deal from members of the G Ventures network.
Ralph Pickles, a member of the network, said “The Tees Valley has been in need of an angel group for some time. Having access to the G Ventures Investor Club is a great way to support North East businesses looking to raise capital. I’m excited to be involved in this exclusive club, and having the opportunity to invest in the next wave of ambitious business and projects.”
Tax efficient investing
G Ventures was formed on the back of there being a number of high net worth individuals who have approached us, explaining they would benefit from a personal relationship with us and work with us longer term; going further in-depth on opportunities than some of our retail investors look for.
These investors are interested in the opportunities provided by the kind of high growth, ambitious businesses that we bring to market, but they also appreciate the comfort they get from investing alongside institutional investors such as Maven Capital Partners.
In addition, there is a desire to learn more about how they can diversify their portfolio. Many of the investments we bring forward qualify for the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) tax reliefs.
These schemes allow investors to mitigate some risk when backing earlier stage growth businesses by taking advantage of some particularly generous reliefs, including up to 50% back on their income tax bill, and in some cases access to Capital Gains Tax relief.
In the recent Budget, the Chancellor announced a doubling of the annual allowance for those investing in knowledge-intensive companies through EIS and the annual investment those companies can receive through EIS and Venture Capital Trust (VCT) schemes. He also introduced a new test to reduce the scope for and redirect low-risk investment, together unlocking more than £7 billion of growth investment
What's more, our network of investors are also keen on investing into high growth residential property projects, offering a generous return with a wider positive output, including job creation and local economic growth - something that was also mentioned heavily in last week's Budget.
Co-investment in the North East and beyond
G Ventures allows us to further develop our co-investment offering, with the potential to raise funds from members who are professional and sophisticated investors, retail investors through GrowthFunders and from institutional investors such as Maven. That’s a compelling proposition.
Once G Ventures is established in the Tees Valley, we have exciting plans to roll the concept out with similar groups for the wider North East, the North West, Yorkshire, Scotland and London.
Membership into G Ventures is by invitation only, but we are happy to meet and discuss with potential investors interested in joining the network (and you can contact me directly to do so here).