Investing Non-Execs - The Value of the Non-Exec Who Also Invests

Chris Spencer- Phillips explains how an investing nonexec can provide skills and funds crucial to your future success.

Raising finance for young companies remains very difficult in the current environment. In the absence of bank funding, there are a number of options, including the following.

• Family and friends are still a key source of funding for many UK businesses.
• Angel networks can be useful, although when businesses are short of skills and gravitas on their board, they tend not to invest. Also, putting an angel on the board does not necessarily provide the skills and experience that young companies need.
• Regional Development Agencies (RDAs), which are being replaced by Local Enterprise Partnerships. They usually operate on a matched fund basis and insist on a credible board.