Reading time: 5 minutes
The West Midlands Co-Investment Fund (WMCO) was set up by the West Midlands Combined Authority (WMCA) in partnership with the West Midlands Pension Fund. Managed by Midven, part of Future Planet Capital, the fund will provide innovative SMEs with equity of up to £1m matched on a 1:1 basis by private co-investment. The Fund’s objective is to help expand and grow the region’s industries of the future.
If you are a founder in the Midlands seeking investment for your high-growth business you might be eligible to pitch for WMCO.
What business models are suitable for investment?
Midven is on the lookout for high-growth businesses with the potential for substantial growth. While there’s no definitive formula for success, certain business models consistently attract investor interest.
- SaaS (Software as a Service): The SaaS model offers the potential for rapid scaling, predictable recurring revenue, and high profit margins. Companies that can successfully acquire and retain customers while continuously expanding their product offerings are particularly attractive.
- Marketplace Platforms: Creating a platform that connects buyers and sellers can lead to significant network effects. As the platform grows, so does its value proposition, making it an appealing investment opportunity.
- E-commerce: While competition is fierce, innovative e-commerce businesses with strong brands and unique offerings can still capture the attention of investors. A focus on customer experience, rapid growth, and scalability is essential.
- Biotechnology and Pharmaceuticals: These industries require significant upfront investment but also offer the potential for substantial growth.
- Artificial Intelligence and Machine Learning: Businesses leveraging AI and ML to solve complex problems or create innovative products are increasingly sought after by investors. A strong technology foundation and a clear path to market are key.
What are the considerations for investment?
While the business model is crucial, there are also a number of additional factors to consider:
- Large addressable market: The potential market size is a key indicator of growth potential.
- Strong team: A talented and experienced management team is essential for executing the business plan. Read our tips for hiring new talent in the West Midlands.
- Scalability: The ability to grow rapidly without proportionally increasing costs is highly valued. Read our scaling strategies for Midlands startups.
- Intellectual property: Strong IP protection can create a competitive advantage.
If you’re a founder with a high-growth business, exploring funding options like the WMCO is essential. Understanding the business models that typically attract venture capital can give you a competitive edge. Remember that a strong team, large addressable market, and scalability are crucial to pique investor interest.
To increase your chances of securing investment, focus on building a robust business plan and developing a compelling pitch.
Are you a Midlands-based founder ready to scale your business? Explore your WMCO eligibility and pitch for investment.