2013 - 4 Oceans Capital Ltd

Crowdfunding crackdown: FCA to regulate financing

By David Yates on December 12, 2013 / Blog Post, business, Crowdfunding, Investment, SEIS / Leave a comment

The Financial Conduct Authority (FCA) is to regulate crowdfunding and peer-to-peer financing early next year. The FCA is the regulatory authority that oversees financial firms providing services to consumers and is the replacement body to the Financial Services Authority. The new regulator has published a consultation paper outlining its intended restrictions on traditional crowdfunding methods. It means products listed on crowdfunding websites may find it harder to source finance. Proposals include firms forced to disclose any potential risks and restricting sales to ‘sophisticated’ investors. It also intends on imposing restrictions

Wonga for Business takes advantage of banks’ funding gap

By David Yates on October 4, 2013 / Blog Post, business, Investment / Leave a comment

Wonga for Business is providing more than £500,000 in short-term loans a month. Directors increasingly are using alternative forms of finance to fund their companies. A survey of 5,000 SMEs has revealed that 44 per cent used “non-core” finance in the second quarter, up from 39 per cent. The survey showed that instead of turning to traditional loans, credit cards and overdrafts, companies were taking other options, such as leasing, invoice discounting, grants and loans from directors. The use of short-term loans from companies such as Wonga for Business

You can’t fire your investors – 5 tips to keep investor relationships strong

By David Yates on October 4, 2013 / Blog Post, business, Investment, M&A, PE/VC, SEIS / Leave a comment

Have you ever seen a story about a start-up firing its investors? Me neither. The reality is that investors don’t get fired. They may get squashed in a recapitalisation, minimised in a down round, or bought out, but they don’t get removed. Because the minute they give you money, they aren’t going anywhere. Unlike an employee that quits or a founder that gets replaced, your investors aren’t walking away until they get their money back, regardless of how painful the process is. Investors are professional at one thing: Investing. Yes,

An entrepreneur said to the Investor: Will you sign an NDA?

By David Yates on September 7, 2013 / Blog Post, business, Investment, PE/VC / Leave a comment

It sounds like the start of a really bad joke doesn’t it? But the truth is that this question is often asked by entrepreneurs and is probably one of the most infuriating questions VC’s and Advisors are faced with. No legitimate VC or Advisor will sign an NDA they have to keep as many doors open as possible and it just shows naivety on the part of the entrepreneur. Asking this question will in most cases lead to a – “We’ll get back to you.” – response and will almost

Business Lending set to hit a seven-year low

By David Yates on August 7, 2013 / Blog Post, business, Investment / Leave a comment

Business lending is on course to slump to its lowest level for seven years, a recent report warns. UK banks will lend £422billion to British firms this year – the lowest amount since 2006. This is well below the £575billion lent in 2008 before the financial crisis. The recent figures from Ernst & Young underline the crisis facing companies as banks starve them of the funds they need to prosper which poses a serious threat to the economic recovery. The report also warns that lending will not return to its pre-recession

Are Santander and Funding Circle set for a tie-up?

By David Yates on August 7, 2013 / Blog Post, business, Crowdfunding, Investment / Leave a comment

Santander is trying to enter the rapidly growing lend to save market and team up with one of its biggest players, Funding Circle, some reports have claimed. The UK arm of the Spanish bank is in discussions with Funding Circle – which lends money from private investors direct to to small and medium-sized businesses – in a move which could undermine the sector’s position as an alternative to the big banks. According to the Financial Times, Funding Circle’s ability to tap into the balance sheet of one the UK’s biggest

SEIS contributes to surge in use of government funding schemes

By David Yates on July 24, 2013 / Blog Post, business, Investment, SEIS / Leave a comment

Government funding schemes are attracting increased interest from start-up companies in the UK. The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Schemes (SEIS) are being used a whole lot more. According to recent figures released, the number of companies which applied to HMRC for approval under EIS and SEIS rose from 2,147 in 2011/12 to 4,075 in 2012/13. At 4oceans we would point to changes brought in back in April 2012 which expanded the scope of EIS, and saw SEIS introduced as the catalyst helping to increase awareness and

Companies Should Prepare in Advance for Due Diligence

By David Yates on June 28, 2013 / Blog Post, business, M&A / Leave a comment

M&A activity is heating up across the TMT sector and I am seeing a stream of transactions within my client base, but 2 recurring themes keep popping up which may scupper that all important deal – an approach or opportunity that arises very unexpectedly, and companies which are just not prepared for the Due Diligence process. This is particularly important in a hot M&A climate because success often means being prepared, in advance, to move through the deal process in an organised and timely fashion. Being ready and prepared for

Five Tips for a Successful Crowdfunding Campaign

By David Yates on June 11, 2013 / Blog Post, business, Crowdfunding, Investment / Leave a comment

We all have great ideas from time to time. The difference is that some of us know what to do in order to take it into the next level and some of us don’t. The good news is that help is now at hand if financing is the only problem that is holding you back. Crowdfunding is a fantastic way of turning your bright ideas into something real, and here are some ideas on how you can do this successfully. 1. Don’t Look for Sympathy You want to get hold

What is Funding for Lending?

By David Yates on June 11, 2013 / Blog Post, business, Investment / Leave a comment

We have probably all heard about the Bank of England’s Funding for Lending scheme, but do you actually know what it is? Funding for Lending allows banks to swap assets such as existing loans with the Bank of England in exchange for gilts, which they can then use to borrow money for their lending at close to base rate. They pay a small fee to access the scheme, of 0.25 per cent per year. This will remain the same if they keep grow net lending or keep it stable. If

Yearly archive for 2013