Announcing GradFactor Capital

GradFactor Enterprises, the Government backed organisation established to help fund and support UK university students and recent graduates who wish to launch their own start-ups nationwide, is delighted to announce its full acquisition of Profectus Capital LLP.

In its operation, Profectus Capital helped entrepreneurs and business owners typically at the concept and start-up stage, by providing investor-readiness coaching and mentoring to help develop and articulate a commercial strategy that appealed to investors. Its primary remit was to help early stage companies secure angel investment.

As a result of the acquisition, GradFactor Capital is to be the new investment fund operation within GradFactor Enterprises.

As a National Delivery Partner to the Government, GradFactor Enterprises has access to £90m pa to distribute via Government backed Start-Up Loans. The creation of GradFactor Capital is to primarily fund Government backed businesses through the Start-Up Loan scheme, all being supported by a first class Mentoring Programme, that show early signs of disruption, fast growth potential and which are already generating revenues. Working to the Profectus Capital model, the GradFactor Capital team will then support the business owner(s) to develop a commercial strategy that will appeal to investors before introducing founding entrepreneurs to an angel investment network to help secure secondary funding in the form of an equitable investment. Initial investment rounds are anticipated to be in the region of £100-£500k.

Ian Barratt, Founder of Profectus Capital, said: “This is a wonderful and exciting business opportunity. Profectus Capital has enjoyed some great success since the business was officially launched just over two years ago and having personally joined GradFactor Enterprises recently as Enterprise Programme Director, it was a sensible decision to fuse the Capital business into GradFactor.”

Keith Chaplin-Mabbutt, CEO of GradFactor Enterprises, said: “With an estimated 1 in 4 students now looking to start their own business, the creation of GradFactor Capital makes a whole lot of sense. Through our not-for-profit operation, GradFactor Start-Up Loans; we fund and support a number of exciting start-ups throughout the UK. For those that become fast-moving and require secondary funding in the form of equitable investment, we wanted to further support these exciting businesses, who would all be on our Mentoring Programme, achieve on that. GradFactor Capital will benefit from the exceptional talent and investor community that comes across into it from Profectus Capital, and we hope to be able to support the exciting start-ups we identify nationwide raise the investment they require to further grow and scale.”

 

GradFactor Capital will operate a success fee basis model. For each successful investment GradFactor Capital secures for a supported business start-up, a 5% success fee is to be charged against the investment raised, with an additional 5% minority equity stake taken in the funded business. For further information please contact Ian Barratt, Enterprise Director: ian@gradfactor.co.uk.

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