Where does that leave venture capital firms looking to cash in on investments?
The challenge for the venture capital and private equity industry is sometimes to resist the temptation of high valuations on AIM. Instead, you should put your company on to AIM when you really do want to sever the umbilical cord and the company is sufficiently robust that it can keep growing and keep developing profits in a way that public markets like to see. Private equity plays a critical role in probably doing more funding when a company is still reaching sustainable profitability. It needs to be careful that when it puts a company on to the market it isn’t going to peak at a high share price and then for the next year watch that price dwindle. So what does CT Investment Partners consider when investing in a company? In terms of the investment criteria the key element is whether one can reach commercial viability (profitability) in a defined timeframe of perhaps three to five years. I think one of the critical things for venture capitalists generally is to be able to identify when
