The MoneyLab Blog

How to value companies for SEIS / EIS investment

Posted by Vasiliki Carson, Sapphire Capital on 01-Oct-2019 21:59:57


Steinway & Sons have been making the world's finest pianos for over 160 years, and their instruments have become global icons of high culture. The company was acquired in 2013 by a notable private equity firm for $438 million, and by 2018 there was a take-over price offer on the table for $1 billion! This valuation is high especially for a manufacturer with quirks, like requiring the instruments to return to the workshop in Queens, New York to get repaired. What did Herr Steinweg estimate his business would be worth when he first started trading? Did he expect his company to become a global symbol of craftsmanship? I believe so.

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Topics: startup, valuation

Why it's important to manage risk in your business.

Posted by Violet Spence, Sapphire Capital on 26-Oct-2015 09:30:06

Risk is part of everyday life. We all face risks, from the moment we wake up and throughout our busy day. And each time we are faced with a risk, we need to assess the various options and decide a course of action that meets our needs. I use a simple example of crossing a road, do I rush across weaving between the passing cars, or do I walk that extra little bit and use the pedestrian crossing?  It might depend on whether I am late for an appointment, but I still have to weigh up all the facts and choose what to do. So assessing risk is something which we all learn from an early age.    

Why then do most small businesses find it difficult to complete a risk assessment?
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Topics: startup

Top 5 things a successful start-up needs to do

Posted by Costas Christodoulou, Intern at Sapphire Capital on 29-Sep-2015 18:55:00

As my internship with Sapphire Capital Partners comes to an end and I take the next step in my career to join corporate America upon graduation,  I wish to share the key things I learned over the past seven months in my first job within the world of corporate finance. Abiding by these may be the way entrepreneurs succeed and are as follows:

1.Help attract finance

A company's first round of finance is usually the hardest to raise - hence the importance of tapping into government support which provides investor incentivisation for "risk finance", such as the type provided by the EIS, SEIS and SITR schemes. A start-up, no matter how innovative, contains additional risk. This risk is apparent to a novice intern, as well as to an investor, who has the experience and know-how to properly review a start-up’s investment documents. Therefore, entrepreneurs should consider government investment schemes in order to make their company more attractive to investors.  

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Topics: startup

Crowdfunding: The One Million Pound Startup Competition

Posted by Michael McDowell, Sapphire Capital on 05-Jun-2013 19:12:00

UK equity crowdfunding platform Seedrs - are giving investors the opportunity to invest in the winner of the Million Pound Startup competition which was launched at London's Digital Shoreditch 2013 festival.

The competition was launched at the London's Digital Shoreditch 2013 festival and will see the winning high growth technology company move to London and receive £1 million of new investment.

The objective of the competition is to take a raw, start up who have been trading for less than ten years, from anywhere in the world and bring them to Shoreditch and hothouse them with the help of start up community at the Silicon Roundabout. They will be given £1m and be heavily mentored with the expectation that they'll be worth £100m in five years.

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Topics: seedrs, startup, shoreditch, Boris Johnson