Originally written by Matthew Cushen on Small Business
There are many different ways for a business to raise money. Unfortunately, seldom are any of them easy and it can be frustrating and disheartening. Understanding the broad rationale for different types of investors might save some of that effort and frustration.
Lenders are fixated on the probability that a loan will be paid back. This generally means seeing regular revenue, sufficient to cover principal and interest payments. They also seek security over some assets — either the business’s or, if they are not sufficient, through a personal guarantee from the founders. Their confidence in available revenue and the value of assets increases if there is a relationship that has bred some trust and where there is a credible financial history. Hence debt is only rarely an option for the newest businesses.
For equity investment there are very different aims and criteria. You may have family and friends, for whom the relationship will be as important as the returns and they might only have one venture investment. But for experienced angels, professional investors and venture capital firms that are investing other people’s money, the investment is likely one of many in a portfolio.
When considering a

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Originally written by Nick Ismail on Small Business
The Start-Up Series competition is back for February! Win hands-on help and up to £250,000 in equity funding for your business (subject to due diligence, terms & conditions) — apply before February 14.
Worth Capital is back on the hunt for start-ups with the return of The Start-Up Series.
Continuing our usual monthly cycle, the competition is open for entries from 1st to 14th of each month, where we’ll be hunting for ambitious start-ups with the potential to become much loved brands. Regardless of sector or whether you’re a B2B or B2C business, as long as your start-up is eligible for SEIS or EIS HMRC advance assurance, then we’ll consider your application.
Winners will receive up to £250,000 of equity funding, a minimum of two-years expert support from Worth Capital and media coverage on smallbusiness.co.uk and other channels to promote your business and follow your journey.
See how to enter here. Please note, your start-up will need to be eligible for SEIS or EIS HMRC advance assurance.
Hayley Etherington, business operations director of Worth Capital, said: “The Start-Up Series has already invested over £4.2M into some of the UK’s most promising start-ups – which makes us the largest

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