BANK EQUITY PRODUCTS CAPITAL VENTURES BASIC INFORMATION AND TUTORIALS

The main clearing banks, which also promote reputable ‘business angels’, have designed and offer a range of equity products for smaller companies.

Prominent among the funds on offer from the clearing banks are the nine HSBC Enterprise Funds, operated by HSBC, which provide investments from £5,000 to £250,000 specifically orientated to start-ups and small businesses.

HSBC has committed £18.75 million to these funds since 1992. HSBC has also leveraged in money from other sources (including the European Investment Bank (EIB)), which have committed over £45 million to the Enterprise funds and a separate fund for technology-based companies, of which some £27 million has already been invested in 203 companies.

The average investment value is just £133,000. In addition, HSBC Ventures, the bank’s venture capital arm, specialises in investing equity sums of between £250,000 and £2 million.

Separately, the Bank of Scotland contributes to a number of Scottish-orientated funds, such as the Dumbartonshire Fund and the West Lothian Venture Fund; the Bank also participates with other clearers as an investor in the Scottish Equity Partnership.

Barclays, HSBC, Lloyds TSB, and RBS-NatWest together support the National Business Angel Network (NBAN), which relies on a regional presence to match business angels with appropriate investment opportunities.