Equity Financing

If your business needs more than £1m in growth capital and you want to raise funds through equity financing, we can help you prepare an investor ready investment offer.

“CODE Investing really did a thorough job of due diligence.  They got to know our company really well and gave us plenty of support. They took a genuine interest in helping us succeed.”

Benedetta – Business Development Director, Considerate Hoteliers.

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“CODE Investing really did a thorough job of due diligence. They got to know our company really well and gave us plenty of support. They took a genuine interest in helping us succeed.”

Benedetta

Business Development Director of Considerate Hoteliers

How equity financing works

For entrepreneurs, equity financing is a method of raising finance for your company in exchange for a stake in the capital of the company. It involves selling a portion of your company shares to external investors who will profit alongside you as your company’s valuation increases.

CODE Investing provides access to a wide range funding sources and expertise to help you prepare an investor pack that attracts potential equity investors.

We will work closely with you, guiding you on how best to make your business investment ready. We will also give you access to venture capitalists, private equity funds, business angels, and family offices for your fund raise.

Why raise funds through equity financing?

During the earlier stages of a company’s growth, particularly if you do not have sufficient revenues, cash flow or hard assets to act as collateral, equity financing can be a good funding solution. Your business may attract more capital from investors who are willing to take a greater financial risk for the potential reward.

Equity financing may be more appealing if your company does not have the liquidity required to make regular loan repayments. Raising finance by offering equity also means any profit you make can be put back into the business rather than going straight to investors.

Equity financing doesn’t suit every business, it’s worth looking at different funding options including debt financing if you are at all unsure. You can find out more about the differences and benefits of debt financing with us here.

The benefit of equity financing

funds from equity can be spent on what your business needs

Equity doesn’t need to be paid back like a business loan so you won’t have to keep up with costs of servicing bank loans or debt finance. This allows you to use the capital for long term business activities.

Investor networks can mean you benefit from their knowledge and skills

Investors can bring valuable skills, contacts and experience to your business. They could also assist with strategy and key decision making.

Equity funding means you can use funds to upscale your business

Any funding you get is committed to your business and your intended projects. Investors only realise their investment if the business does well and they wish to exit e.g. through stock market flotation or a sale to new investors.

Your business success equates to an increase in investors' share value

Investors have a vested interest in your business doing well. Your business success, growth and profitability equates to an increase in their share value.

As your business grows, investors may help in further fund raising rounds

Your investors can become some of your strongest supporters, becoming brand advocates and possibly even advisors. As your business grows those same investors may want to help in further fund raising rounds.

How CODE Investing can help you

Our experienced team will help you prepare investment documentation, improve your credibility and make your business an investment-ready opportunity. Using our expertise and guidance, we can advise you on how to publicise your raise and introduce your business to our own network of private investors.

Apply now and talk to us about the best way for you to raise capital with CODE Investing.

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