Venture capital funds (also known as private equity finance) are for large organisations in need of a longer-term investment to help growth and expansion. Venture capital funds are only interested in organisations with good, strong management and which operate within a large and fast-expanding market.

In return for a significant injection of cash (the minimum is usually about £2 million), venture capital funds will expect a large stake in your business (up to a 50% annual return) and a full return on all their money within three to ten years. Although they do not typically get involved in the day-to-day running of a business they will bring wealth of skills and experience to help ensure that your business achieves significant success and profits.

The money for venture capital funds comes from a variety of sources including banks, insurance companies, pension funds, industry and regional development agencies. Venture capital trusts, on the other hand, encourage investors by offering tax concessions and by investing the money in growing, expanding companies.