Expansion Capital

Expansion capital can allow your business to:

• create new products
• enter new markets
• acquire other businesses
• invest in new systems and equipment

The aim is to help your business grow as much as possible.

An expansion capital firm invests large sums of money into your business in return for an equity stake (and usually a seat on your board). This allows you to grow faster with the benefit of the investors' strategic help and advice.

Expansion capital is typically suited to businesses that want to accelerate their growth without giving up control. Investors typically plan for a three-year to five-year holding period, but they can invest for longer if it will help your business grow.

You can appoint an external adviser to support you through the process, but not everyone chooses to do so.

What are the benefits?

Retain control

You can access large sums of money and the investor will receive a share of your business (usually between 10% and 40%).

Help and advice

The investor will take a seat on your board, so you can expect direction and guidance from a business expert.

Repeat funding

Follow-on investments are common in the expansion capital world and are part of an ongoing dialogue with your investor.

Scale that suits you

You and the investors can set goals and strategies to grow at a pace that suits the business.