New Funding Option Opens Up for London Businesses

London management consultancy becomes gateway to new capital market for small businesses.

(PRWEB) October 16, 2005 -- London-based management consultancy, Onset management Ltd, has become the gateway into a new capital market opened up by recent changes to financial regulations by HM Treasury. The changes allow the free flow of information between capital-starved early-stage businesses, and the successful entrepreneurs who want to invest in them. Onset management acts as the quality control over business plans and assists in preparing fund-seeking clients for the due diligence which is always conducted by investors. They then post the investment opportunity to the Development Capital Exchange (DCX) through which incoming inquiries from prospective investors are taken.

Simon Paul, Director of Onset Management said, “We see the new early-stage investment market as a superb opportunity to widen our service to clients. We are now in a position to assist aspiring entrepreneurs and, even, established businesses raise informal equity funding, instead of having to rely on debt. This is an activity that’s been popularized by the BBC’s ‘Dragons Den’ programme, although I have to point out that the real-world Dragons Den which we work in is far removed from the entertainment we see on the television.”

The early-stage investment market enables successful entrepreneurs to off-set their capital gains liabilities through exploiting the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs). For fund-seekers, the investor will usually join the company as a director and contribute not only his capital but priceless business experience to the growing enterprise. It is estimated that there are between 20,000 and 50,000 early-stage businesses seeking funding and as many as 150,000 entrepreneurs who want to invest in them at any one time across the UK.

Funding deals range between £10,000 and £5m but with the vast bulk between £250,000 and £750,000. In the USA, where the early-stage investment market has been long-established with hands-off regulation, the entire market is valued at some $500bn. Between 1998 and 2004, £3bn was invested under the EIS in the UK, leaving plenty of room for growth.

In closing, Paul said, “This is a positive move by the Treasury which is targeted at small and medium size businesses across the UK. The market is already seeing rapid growth and we look forward to being of assistance to capital seeking companies and those who wish to invest in them in London”

Background information:
Onset Management Ltd focuses on assisting clients in two key areas, namely, marketing and business finance. The consultancy works with clients to improve their sales and profitability through analyzing past performance and marketing methodologies and then suggesting new strategies that will grow the business successfully. Many of Onset Management’s clients seek funding to grow their businesses. Help is provided in business planning and in accessing appropriate sources of finance such as banks, lenders of last resort and private equity.
Onset Management is a DCX Associate and, as such, can provide direct access for capital-raising companies to thousands of successful entrepreneurs who wish to roll-over their capital gains, and contribute their business experience, to early-stage businesses. In addition there are many enterprise funds as well as major corporations who are looking for corporate venturing opportunities, which is often a viable alternative route for capital-starved companies.

DCX at www.dcxworld.com was established in 1998 and was the leading lobbyist for the recent Amendments which have liberated the early-stage investment market.

Contact:
Simon Paul, Director
Onset Management Ltd, 07803 906131

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