Small business interest defies economic down-turn

1:50am Monday 22nd September 2008

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INVESTOR interest in successful small businesses in Worcestershire is holding firm despite the credit crunch.

Sue Summers, chief executive of online share trading platform Investbx, believes recent activity has suggested a growing appetite among private investors, business angels and private equity houses to diversify their portfolio and the attention is turning towards growing firms in the county.

The importance of being involved earlier in the transitional growth of a business has risen in line with the demand for more medium and long-term investments.

“Discussions over the past three months have indicated a significant desire to look at emerging SMEs, as many investors are looking at the ‘longer-term’ option as a sensible way of spreading their risk and maximising value,” said Mrs Summers.

“This is encouraging news for Worcestershire companies that are finding it difficult to raise money through traditional sources, as it gives them an additional opportunity to put their growth plans into action without the constraints of the economic environment. In fact, we are building a strong community of potential investors, who are supportive of participating in the growth of these expanding businesses.”

When Investbx was launched last year it was tasked with helping the West Midlands region bridge the £500,000 - £2m equity gap by connecting investors with local businesses.

Using an innovative online trading platform, companies can raise capital for growth in exchange for shares, with Investbx securing the investors on behalf of the applicant.

Investors are provided with independent research on which to base their decision and, via an auction-driven platform, have the capability to trade shares.