London (PRWEB UK) 2 September 2011
The Network has been described as similar to an online Dragon’s Den, the popular TV investment programme, where business owners pitch their businesses to wealthy investors who provide cash and expertise in exchange for an equity stake in those businesses.
The social network style allows Members to create profiles and make use of text, photos and videos to describe their activities. The communication functions of chat, comment and email are all available to Members to interact. A less scary and hopefully more effective way of pitching compared to the TV approach. “It is also better for Investors because they have much more information at their finger tips since businesses can also upload Business Plans containing as much or as little information that they wish to disclose at this stage” says Paul Turner, an accountant who created the Network.
There are five Groups on the site which cover the finance range of £10,000 to £4m. The Business Plans are added to the appropriate Group and only up to 150 investors can view the Plans in each Group.
The Network was created following a change in UK law in July 2011. This change allowed businesses to offer shares to raise up to 5 million euros from up to 150 investors without going through the often costly process of preparing a prospectus. Investors will still have their own information criteria but the more flexible approach should have a beneficial impact. The Treasury has been quoted as estimating that the new regime will help businesses access equity finance more cheaply and effectively and save UK firms £12 million per year.
The Network hopefully will help the process further by acting as an online meeting place for businesses looking for equity investment and those able to provide and advise about it.
“The Network is more than just about raising finance since we expect a number of advisers to join and they will be encouraged to share their expertise in the Discussion Forum and post Videos. Members can also share their experiences, recommendations and post blogs which can act as a Diary of their journey,” says Paul Turner.
The Network can be found at http://www.EquityFinanceNetwork.com It offers no financial advice and simply provides a medium for communication. The Network is UK based but businesses and investors from across the world are welcome to join.
It is free to join although all applications are reviewed for suitability before acceptance. The Network formally launches on 12th September 2011. Members can join the Network ahead of the launch.