A Capital Idea - Start-ups need banking support
"In March this year, Stats accepted a £7.8m investment from the Business Growth Fund, a bank-financed venture capital fund. The relationship has already produced results, with the BGF helping Stats find a non-executive chairman and finance director to lead the finance team.
It is this support, as much as the funding, that has made the relationship with the BGF worthwhile, Mr Duguid says. “What I see is stronger internal disciplines, stronger accountability in the internal functions of the business and probably stronger banking relationships,” he says. “I have far better visibility [of what is happening in the business] without doing more myself.”
If there has been a benefit from the financial crisis it is that many entrepreneurial businesses have been forced to reassess their reliance on debt and how they manage available capital."
Full article: Financial Times 31 March 2012