Equity Gap - Early Stage Investment

Investing in Emerging Businesses throughout Scotland

Funding and Support

Equity Gap is a business angel syndicate actively investing throughout Scotland.

Our investment criteria are simple:

  • We invest in all sectors except property, traditional retail
  • Scottish Based Company
  • Startup/Early Stage
  • Investment required of £20,000 – £500,000
  • We are happy to invest on our own or co-invest with others.


What type of Investments are we looking for?

Equity Gap is keen to invest in and support companies considered ready for funding, being able to clearly demonstrate:

  • realistic, scalable growth prospects to create income stream turning over at least £5m within 3 to 5 years
  • an outline business plan of how this can be achieved
  • a coherent management team with the skills, commitment and experience to deliver the plan
  • a sufficiently large, growing market to buy the product or service at the rate/quantity detailed in the business plan
  • how funding will be used to achieve targets
  • why competitor products or services will not damage the company’s unique or dominant position in the market
  • main risks to success and how these will be mitigated
  • how existing commitments and encumberences will be managed, e.g. debt, obligations, shareholdings, subsidiaries
  • when (within 3 to 5 years), how, and to whom, the company aims to exit and provide a return for investors

Equity Gap members will also wish to confirm whether funds sought will be EIS (Enterprise Investment Scheme) compliant.

Equity Gap considers each investment opportunity individually, taking a pride in being open, helpful and thorough. We aim to give helpful feedback to all those who approach us for support or funding. Once committed, Equity Gap aims to work with companies right through to exit, usually at Board level, both prior to and following investments to ensure that each party gets the most out of the relationship.


Our Process

If you feel that we would be interested in your company, first send us a short business plan summary to jock@equitygap.co.uk. If you are in doubt as to what to put into such a summary then view our Business Plan Essentials document [pdf] with suggested contents. Our Chairman is happy to receive calls on 0131 510 7145 if you wish to introduce yourself before submitting a plan. Such a conversation is recommended to ensure your business is presented in the best light. We will review the proposal and give you feedback to it’s suitability.

At our next monthly meeting the syndicate will discuss your opportunity and if we are interested to know more, you will be offered the opportunity to present your business plan at the subsequent monthly meeting. A successful presentation will allow us to move to an investment offer and we will then circulate this to our members and complete the investment. Equity Gap will charge the company 3% of the total money invested to cover the costs incurred during the investment.


Support

If you think your company may not yet be able to meet the funding criteria noted above, Equity Gap may still be able to offer assistance through its extensive network of experienced members.


Exceptions

Your company is unlikely to interest Equity Gap if its plans involve:

  • a limited retail, plant, food, property project or where purchase of capital equipment would form a large part of the equity funding required
  • extensive research & development before product sales
  • founders withdrawing a significant proportion of new funds invested in the near future as salary or other benefits

 

  • Scottish Enterprise
  • LINC Scotland
  • LinkedIN

 

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