Key Points from TV – Meet the Investor Event
Attendees to Acuity’s ‘Meet the Investor Event’ on 24th January 2020 gained great insight into the Channel 4 Growth Fund and Creative England (soon to be rebranded Creative Nation) finance funds.
Both funds are looking to invest in companies with an ambition to grow.
Caroline Murphy and Caroline Percy of Channel 4 and Tim Evans of Creative England took part in a relaxed and informative Q&A session lead by Tessa Laws and shared the following key points:
Channel 4 Growth Fund
- Equity investment in company. Not project based finance.
- Total investment pot – £20M.
- 11 current live investments. Typically 5 investments per annum.
- Channel 4 will take a 20 – 25% equity share depending on nature of the deal.
The focus is on creating an active partnership. Ch4 Growth Fund will require:
- a nominated director on the board or board observer status;
- consents over key business decisions and commercial deals; and
- access to the company’s financial information.
Channel 4 Growth Fund will provide:
- strategic advice to help grow the company;
- access to industry experts as business mentors; and
- access to Channel 4 management;
- creative as well as business advice.
- Typically looking at a 4 – 5 year partnership, but could be shorter/longer depending on the company.
- Fund will expect a return on investment.
- To apply contact Channel 4 Growth Fund directly for an initial meeting.
Creative England (to be rebranded Creative Nation)
- Equity and debt investment in company. Not project based finance.
- Current live fund is a £25M debt fund. New equity fund launching Q1 2021.
- Investments are capped at £500k per investment.
- Investments include: venture debt, business loans, bridging finance and MBO finance.
- Aim to invest a certain proportion of the total fund in the Nations and Regions.
- Online proposals can be submitted through Creative England’s website.
- Creative England also offer a number of other business support programmes to creative business.
Both investors will need to see a business plan and other details including existing relationships with commissioners and projects in development when deciding whether or not to fund.
Welsh companies are yet to benefit from these opportunities – so make sure to reach out for that initial meeting to get the ball rolling!