Looking at options for capital

[anonymous-user]

Looking for some advice and/or experiences.

I have operated a Ltd company in the aerospace sector for a number of years.

I have developed a product (small unmanned aircraft system) over the past 2 years using my own time and money.

The product is approaching the switch over from prototype to production. To do so, I am looking at options for investment to allow working 100% of the time on this product and setting up a small production facility. I'm not looking to be massively flash, just appropriate kit and accommodation.

I see one of my options is a 'crowd' type investment platform, another is crowdfunding and another is approaching the bank. There are others as well, I'm sure.

What are peoples opinions of these types of approaches?

[DSLiverpool]

Look at funding supermarkets like MSIF they have all sorts of friendly ways to fuel the rocket.

[anonymous-user]

DSLiverpool said:

Look at funding supermarkets like MSIF they have all sorts of friendly ways to fuel the rocket.

Thanks, I'll add MSIF to the 'investigate' list.

Has anyone had experience raising capital using these types of sites?

[anonymous-user]

What do you need and what technology is it?

If it is innovative and on topic (I.e. green) then you may be able to get funding for a JV through a major player for a percentage / proprietary information (Airbus / Collins / Boeing, etc).

Or commercial lenders if the above funding doesn’t work, what are you offering in return, products or percentage?

[EarlofDrift]

Dragons Den

[LooneyTunes]

What sort of sums are you looking for? If you're looking at investment rather than borrowing, is it the sort of thing that would appeal to an angel investor?

[DSLiverpool]

Just to add MSIF are Merseyside but similar are everywhere. We needed funding to expand and they had so many options including interest only with a balloon, equity transfer, deferred terms etc.
What appealed was we can agree a sum and pull it down in tranches only paying interest on what we pull.
In the end we took a straight loan over 5 years but plan to overpay it back within 2.

[stongle]

Pension? Use pension led funding. Either commercial loan possibly secured on IP or preference shares? You need at least a 50k pot, and their are costs but stops you diluting or being beholden to a bank.

[anonymous-user]

Lord.Vader said:

What do you need and what technology is it?

If it is innovative and on topic (I.e. green) then you may be able to get funding for a JV through a major player for a percentage / proprietary information (Airbus / Collins / Boeing, etc).

Or commercial lenders if the above funding doesn’t work, what are you offering in return, products or percentage?

It is fully electric, but is small (i.e. 12kg Max all up weight). I've worked with large corporates in my day job and they are the antithesis of what I want to be, and how I want to run a company. I want to run a small, tight ship that is able to flex to changing situations and customers requirements and is approachable

I would be willing to offer products/a service or percentage. Many of my competitors mostly buy airframes in from China, add value by building them and then sell them on. I have a completely in-house designed and manufactured airframe which is designed around high end off the shelf equipment. It is fundamentally more suited to the way I think requirements and certifications are likely to go. It is also suited to modifications and sets the company up well for other products I have in mind.

EarlofDrift said:

Dragons Den

It's an interesting idea, which I hadn't thought of.

LooneyTunes said:

What sort of sums are you looking for? If you're looking at investment rather than borrowing, is it the sort of thing that would appeal to an angel investor?

I am looking at a value in the region of 100k to get the business to be self sustaining, the technology is just about de-risked. I honestly don't know if that is a big or small number in the investor world. I guess an Angel Investor could be interested.

DSLiverpool said:

Just to add MSIF are Merseyside but similar are everywhere. We needed funding to expand and they had so many options including interest only with a balloon, equity transfer, deferred terms etc.
What appealed was we can agree a sum and pull it down in tranches only paying interest on what we pull.
In the end we took a straight loan over 5 years but plan to overpay it back within 2.

Thanks for sharing your experiences that's really helpful.

stongle said:

Pension? Use pension led funding. Either commercial loan possibly secured on IP or preference shares? You need at least a 50k pot, and their are costs but stops you diluting or being beholden to a bank.

Thanks for the idea - I didn't know this could be done, but isn't an option for me.

[DSLiverpool]

£100k is classed as a micro loan and the lowest figure the guys we used would loan.

[anonymous-user]

DSLiverpool said:

£100k is classed as a micro loan and the lowest figure the guys we used would loan.

It seems like MSIF are far better than the South West alternative! I have family on the Wirral, could move there!