Connect challenges the modus operandi for investor outreach, tackling two key areas that are considered most detrimental and dilutive to value creation.
First, faced with substantial inbound demand, investors lean toward warm introductions from their network, and in doing so, capital is unevenly allocated across the spectrum of opportunity - those with lesser access to the network but with equal or superior prospects, may be overlooked.
Second, outreach begins at the pitching phase, which is already too late. Minority equity investment is inextricably linked to relationship building and partnership, and the most successful investments emerge where management and investor have had sufficient time to judge fit, build trust and establish credibility.
These are problems worth solving - better capital allocation will ensure that investment reaches the companies capable of delivering value, through job creation, growth and profitability, benefitting shareholders, stakeholders, the economy and society as a whole.
The Connect platform provides the mechanism to identify and surface investment opportunities in startups, scaleups and established businesses, for seed, venture and growth funds, without the need for the network. The platform assesses and identifies investment readiness and opportunity, and delivers the information that investors require to assess fit against their own mandate. This enables and encourages both companies and investors to develop longer term relationships in advance of fundraising.
Connect builds on the past four years which has seen Capitalex support over 600 UK SMEs with the knowledge and expertise required to raise investment and deliver successful shareholder outcomes.
Jessica Zoutsos, CEO and Founder of Capitalex commented “I couldn’t be more excited to bring this new service to market. We have established Capitalex as the trusted, industry-insider for UK SMEs considering equity capital and as such have benefitted from unique insight into the challenges these companies are facing. We want to see an end to the days where the strength of your network, as opposed to the strength of your business or proposition, is a significant contributory factor in your ability to secure investment and grow.”
Capitalex provides support to UK SMEs throughout the equity investment lifecycle – from fundraising through to the creation and realisation of value. The company was set up in 2016 to address the lack of access to the expertise and networks required to make a success of equity investment. The team of current and former venture capital, growth and private equity investors provide support to companies across all sectors, via an online platform and in-person consultancy.