Member Article

Alternative investment startup hopes to unlock potential of North East SMEs

A new enterprise set up to raise business finance and encourage growth, while delivering alternative investment opportunities for individuals, has launched to help SMEs in the region.

Founded by former JEREMIE Fund Investment Manager, Rebecca Roberts, and experienced Independent Financial Adviser, Kris Bolton, Current Capital aims to attract private investment via HMRC’s Seed and EIS schemes available to support the development of entrepreneurial businesses and individuals.

Financial Conduct Authority (FCA) approved, the Jesmond-based business is utilising the online investment model associated with crowdfunding, while delivering stringent levels of business due diligence that is more commonly applied to private equity transactions.

In addition, the team at Jesmond-based Current Capital will work with businesses to ensure they have the fundamental frameworks and strategies in place that will deliver their target growth and also offer ongoing quality reporting to instil confidence for all investors.

Rebecca Roberts, Partner at Current Capital, said: “Alternative funding platforms can provide a positive impetus for SME’s and can deliver growth for ambitious enterprises.

“Our business is focused on supporting the expansion of quality companies while protecting investors from some of the practices that have become associated with crowdfunding.

“Crowdfunding sites are often inconsistent with their support for investors, over valuing start-up businesses and not checking investment eligibility for SEIS/EIS tax reliefs. This can discourage investors and businesses from considering alternative funding options.

“Our approach is consistent and professional, which offers all parties peace of mind, particularly investors who, after all, are using their own hard-earned funds.

“Investing in private companies can be a beneficial addition to investor portfolios as it not only provides great tax benefits, but also the chance to be involved in early stage opportunities and really make a difference to the growth potential of SMEs.”

Among the first businesses to partner with Current Capital is County Durham sales and lettings company, Castledene Group. Castledene has enlisted the expertise of Current Capital to raise investment on their behalf to open its seventh branch in Spennymoor.

The Castledene Group, which currently has 6 branches, was founded in 2008 and now manages more than 2,000 lettings and employs 52 staff.

The newest branch, Castledene Spennymoor, is looking to raise £130,000, in exchange for 20 percent equity for its expansion, which will enable it to secure premises and create a further jobs.

As part of the support provided to Castledene, Current Capital has achieved advanced assurance for the company which enables investors to utilise the benefits offered by HMRC’s Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS).

The schemes are designed to help small companies raise finance by offering tax relief on new shares among various other tax benefits.

John Paul, Managing Director of Castledene, said: “We are confident in the Current Capital team and their expertise to fundraise for, and support the growth of, our business.

“Castledene has a strong presence and track record in the County Durham property market, which we believe will encourage investors to be part of our expansion and continued success.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →