The 'Complete Capital Solution'
Mercia's 'Complete Capital Solution' solves the problems many early stage businesses face when seeking funding.
Early stage investing can provide great opportunities, but it also involves heightened risks, extended timelines and, in some cases, increased volatility, as businesses can grow or fail rapidly. Company valuations can also change very quickly, subject to these companies winning or losing important contracts.
At Mercia, we have an understanding of the start-up landscape, and a funding solution that supports value creation in small, high-tech businesses.
[Investing in start-ups can be a challenge, as the needs of the business can change rapidly.]
Using our Complete Capital Solution, Mercia can bring a unique funding model that incorporates the capital of private investors, institutional co-investment, and off-balance sheet investment from Mercia Technologies PLC.
The result of Mercia's Complete Capital Solution, which includes Mercia Technologies PLC and its wholly-owned subsidiary, Mercia Fund Management, is a single investment partner solution for growth enterprises in the UK.
How it works
Pathfinder & seed investment
Mercia is able to work with companies that are sometimes less than a few months old, by offering Seed EIS investment, as well as grant or pathfinder support where available. Some of these businesses are formed from academic research, whilst others are sourced via incubators or our team's own personal networks.
Businesses based on academic research are supported by Mercia's Head of Universities, Dr Nicola Broughton, who works with them at every stage of their commercialisation, from building the right team, to drafting the right business plan.
Early Stage & Development
Once the framework of the business has been established, and our Investment Directors are satisfied that the company is on track, it can then move forward to receive further investment via the Enterprise Investment Scheme (EIS).
EIS funding allows the company to continue its expansion, by providing the resources necessary to build a team, increase marketing efforts, or continue research & development on the company's first product. Mercia's Investment Directors also continue to provide hands-on support, from recommending key management hires, to setting milestones and targets for the business.
Growth & Scale
Businesses that repeatedly hit their milestones, and show the potential to succeed, can then enter the next stage of Mercia's Complete Capital model. We call these our 'Emerging Stars'. These businesses are supported by Mercia Technologies PLC, which is able to invest deeply at the later stages of a business' life cycle via direct investment.
The investments made by Mercia Technologies are able to scale the business ahead of a potential exit, which could take the form of a trade sale or a stock exchange listing. Mercia has a range of examples of recent exits achieved through both of its third party fund managers - Mercia Fund Management and Enterprise Ventures. For more information, please speak to a member of our Investor Relations team.
VR developer and publisher nDreams has travelled through Mercia's Complete Capital Solution to become an 'emerging star' that is now partnering with the likes of Google to create exciting new VR content. Take a look at their journey here:
This year, nDreams will launch their first major title, The Assembly. Mercia joined them at 2015's EGX, where the team were demoing the game to the public for the first time.