Posted on 2nd February, 2017

by Jamie Beare
Investment Director

Taking Control: What can be done to get people interested in backing British business?

More than 30 years ago, Margaret Thatcher outlined her ambition for a society where everyone would own shares in British businesses. The reality today is that although many people do own shares, they do so indirectly (through their pensions, etc.), and culturally it seems the only ‘investment’ British people feel comfortable – or interested – discussing, is their own property.

 

So why are people still uncertain about investing in shares more than three decades on?

I think there are three major factors at play:

  • a general lack of understanding about investing;
  • limited access to information and;
  • the opaque, almost mystical nature of the stock market.

The solution? Help people feel confident and empowered to invest in young British companies, and truly excited about the businesses they’re backing.

 

New investment routes

The new alternative investment channels that have emerged in the last few years have become significantly more robust and transparent. This is a very good thing. It opens up a breadth of opportunities and information for ordinary investors to which they would never have had access in the past, so the ability to invest in fast-growth private businesses is no longer the preserve solely of venture capital. 

Before this, ‘angel’ investing meant not only finding and undertaking due diligence the companies yourself, but also having the capacity to write a cheque large enough to be accepted into the funding round. 

At VentureFounders, we want to lead the way in giving investors access to growth investment opportunities that have undergone the same rigorous process of origination and vetting, to the same standard, as those expected by a professional investor.

We put a strong emphasis on shareholder rights (anti-dilution provisions etc) and the ongoing monitoring of the companies we have invested in, ensuring the investor is protected and has sufficient ongoing and timely access to information and trading updates.

 

Investing with confidence

By maintaining this ongoing standard of structuring and monitoring of investments, we want investors to feel confident enough to build their own portfolio of private investments. They can feel excited to invest in scale-up businesses. They can share ideas and promote the companies they are invested in.

Taking control for VentureFounders means giving private investors the ability to do their own analysis and make their own decisions. We want investors to be able to decide how their portfolio looks and monitor their investments on their own terms.  

Maggie’s vision of shares ownership can, finally, become a reality!


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