Abstract :
Because of the ways in which the responses of financial institutions in the UK to the need for capital have evolved over many decades, and the consequent dependence of small businesses upon bank loans or other forms of borrowing, Britain has been a late developer in the private venture capital arena. The situation is now perceptibly changing, and new avenues are opening for smaller opportunities to attract private capital. The venture capital industry has been accused of surrounding the process of matching supply and demand with jargon and mystique, and successive layers of statutory regulation have done nothing to help, but the air is clearing through democratisation and openness. `Effectiveness´ and `appropriateness´ are, however, as always of fundamental importance. The paper examines the issues to be faced by the engineering entrepreneur wishing to launch or expand his business using private capital. Frankness and clear thinking are the essential virtues in the search for venture partnerships, and the entrepreneurial engineer should be able to display them readily enough. The paper briefly reviews all funding routes before considering the steps to be taken to maximise the chances of success in the search for private capital. The main issues and processes are addressed, and the pitfalls examined
