£12m deployed by R&D lender Finstock Capital
Following a successful 2019 and a strong start to 2020, Finstock Capital (“Finstock”) has now deployed over £12m into early stage businesses, supporting the UK venture ecosystem with access to capital at a critical time of a company’s need.
Through the combination of accelerated R&D, VGTR and other tax credits, venture debt, loans to growth businesses and support to games companies, Finstock has positioned itself as a niche provider of innovative finance to the start-up community. Commenting on the milestone, Oliver Jenkinson, co-founder of Finstock Capital explained that 2019 was a busy year – ‘we saw considerable growth in enquiries for early stage capital due to delays of payments from HMRC and also from equity investment taking longer than anticipated’. In 2019, Finstock Capital deployed more than £7.5m and it is looking to grow that number in 2020. Edo Salvesen, co-founder, commented ’there are a number of high quality businesses seeking alternative solutions to equity and our anti-dilutive options are being seen as a means to extend company’s cash runway’.
Oliver Jenkinson continued “We are able to look at unusual financing situations where, because of time constraints and risk-aversion, traditional lenders are unable to service customers’ needs efficiently”.
“Many firms prefer not to dilute the equity of their business and cannot obtain financing from banks due to a lack of revenues or fixed assets. Typically, the time between first contact with a company to the money hitting their account is 7 days or less. For a company with payroll approaching and insufficient funds to pay it, this service can be a real life- saver.”