Funding from Traditional Venture Capital Investors
The British Venture Capital Association, which is the de facto professional organization of the UK venture capital industry, provides a directory of its members at http://www.bvca.co.uk.

Funding from Government Grants
While the Government has a number of options in place to help fund enterprises, the following list outlines the ones specific for small businesses that need capital assistance.

The Grant for Research and Development
This is funding given to individuals and small to medium sized companies with technologically innovative products and concepts. More information regarding this is available at the Business Link. (http://www.businesslink.gov.uk/)

Small Firms Loan Guarantee
Small businesses that do not typically qualify for small business loans due to lack of security can try to avail of the Department of Trade and Industry's Small Firms Loan Guarantee. This is for loans between £5,000 and £100,000 for new businesses, or up to £250,000 for businesses up and running for more than two years. Terms are from two to ten years, and costs 2% of the value of the loan. Restrictions still apply, as do any terms and conditions set by the credit institution giving the loan.

Lenders that support the Guarantee:

* Bank of Ireland (NI only)
* Bank of Scotland
* Barclays Bank
* Clydesdale Bank
* Co-operative Bank
* Doncaster Business Advice Centre
* Emerging Business Trust Ltd
* First Trust Bank/Allied Irish Banks
* HSBC Bank
* Lloyds TSB Group Plc
* National Westminster Bank
* Northern Bank Ltd
* Northern Enterprise
* Northern Investors Company Ltd
* oneLondon Ltd
* Royal Bank of Scotland
* State Securities plc
* Triodos Bank
* UK Steel Enterprise
* Ulster Bank Ltd
* Venture Finance plc
* Yorkshire Bank
* Yorkshire Enterprise Ltd

Additional details of the Guarantee are available from http://www.sbs.gov.uk/content/docs/SFLG_booklet.pdf.

Regional Venture Capital Fund Programme
England-based small and medium sized businesses that can demonstrate commercial growth potential may qualify for up to £500,000 in risk capital through the Regional Venture Capital Fund Programme.

Managed and operated commercially by independent companies appointed after extensive and open bidding, the funds for the Programme are protected by a Limited Partnership Guarantee.

To qualify, a business-owner has to apply at the head office assigned to their region and demonstrate that the fruits of the investment will have a positive effect on their respective locality.

More details are available at the Regional Venture Capital Funds information page (http://www.businesslink.gov.uk/) or from the region fund managers:

North East Fund
Northern Enterprise Limited
3 Earls Court
5th Avenue Business Park
Team Valley
Gateshead
NE11 0HF
Tel. (0191) 442 4300
Fax (0191) 442 4301
http://www.nel.co.uk/

East Midlands Fund
Catapult Venture Managers Limited
35 Park Row
Nottingham
NG1 6EE
Tel. (0115) 988 6025
Fax. (0115) 988 6075
Web: http://www.catapult-vm.co.uk/

North West Fund
RVCF Fund Manager
North West Equity Fund
Antler House
Crouchley Lane
Lymm
Cheshire
WA13 0AN
Tel. (01925) 759 246
Fax. (01925) 759 792
Web: http://www.nwef.co.uk/

London Fund
London Fund Managers
Brookmount House
62 – 65 Chandos Place
Covent Garden
London
WC2N 4LP
Tel. (020) 7812 6772
Fax. (020) 7812 6773
Web: http://www.londonfundmanagers.co.uk/

Yorkshire and Humber Fund
Yorkshire Enterprise
Handsworth House
35a Handsworth Road
Sheffield
S9 4AA
Tel. (0114) 280 0918
Fax. (0114) 280 0923
Web: http://www.yorkshire-enterprise.co.uk

South West Fund
South West Ventures Ltd
Argentum
Bristol Business Park
510 Coldharbour Lane
Bristol
BS16 1EJ
Tel. (0117) 9063410
Fax. (0117) 9063646
Web: http://www.southwestventures.co.uk/

South East
South East Growth Fund
2nd Floor, Orbital House
85-87 Croyden Road
Caterham
Surrey CR3 6PD
Tel. (01883) 337111
Fax. (01883) 337112
Email. mail@segrowthfund.co.uk
Web: http://www.segrowthfund.co.uk/

West Midlands
Midven Ltd
37 Bennetts Hill
Birmingham
B2 5SN
Tel. (0121) 710 1990
Fax. (0121) 616 2223
Web: http://www.midven.com/

East of England
Create Partners Ltd
The Business Centre
Station Road
Histon
Cambridge
CB4 9LQ
Tel. (01223) 713900
Fax. (01223) 484551
Email. enquiries@createpartners.com
Web: http://www.createpartners.com

Small Business Service Contact Point
Small Business Service
Investment Directorate
Level 2, St. Mary's House
C/o Moorfoot
Sheffield
S1 4PQ
Tel. (0114) 279 4387
Fax. (0114) 279 4375

Corporate Venturing Capital
Two companies can form a partnership, usually involving the larger of the two investing in the other. The investment may take the form of capital, shared technology or management resources. In return, the investing company usually receives a portion of the business, an exclusive licensing arrangement, or products and concepts developed to be used by both companies.

As corporate venturing is a wide field and not the best option for all businesses, consult first your financial adviser regarding your company's suitability.

For more information visit your local Business Link (www.businesslink.gov.uk.)

Corporate Venturing Scheme
Under the Government's Corporate Venturing Scheme, tax incentives are given to large companies investing in smaller companies. This encourages companies to branch out and share resources under mutually beneficial partnerships with higher-risk companies that show potential.

More information about the CVS is available from the Inland Revenue Website (http://www.inlandrevenue.gov.uk/pdfs/ir2000.htm)

Funding from Business Angels

The National Business Angels Network (http://www.nationalbusangels.co.uk/) is a good place to start. A non-profit organization, the NBAN assists small businesses looking for business angels or individual investors.

For finding venture capitalists outside the Network, contact your local Business Link office.