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How do businesses finance growth?

There are lots of growing, successful businesses in the UK and abroad.

Google started life in a garage, while it was a group of university friends that launched Facebook.

And there are many examples of businesses that have grown into market-dominating ones despite inauspicious beginnings.

But what’s often overlooked is how successful businesses used external finance to get to where they are. This can suggest that they didn’t need outside money to achieve growth.

While that’s true of some businesses, lots of successful companies we know wouldn’t be in their position without securing finance along the way.

We’ve put together the following infographic to demonstrate how some of our most established businesses have used external finance to grow.

Download the infographic here (.PDF, 833.96 KB) or view it below.

There's no single fixed way for a business to grow.

Depending o your size, sector and plenty of other factors, there are various finance options that may be available to you.

Here are some examples of different finance types and the businesses who have used them as a platform for growth.

Angel investment - Used by Zoopla

Often used by: Early-stage businesses looking for strategic, financial and sector advice from a credible mentor.

  • Zoopla in its early stages: received investment from experienced angels.
  • Zoopla now: 2nd largest property site in the UK.

Equity Crowdfunding - Used by Monzo

Often used by: Businesses of any size that are looking to investors who believe in them and are willing to invest.

Monzo raised £20m in 2 days, 2 hours and 45 minutes, from 36,006 people.

Private Equity - Used by Greensill

Often used by: Mature, proftable businesses looking for large investments to take them to the next level.

Greensill received: significant funding from General Atlantic to expand into new markets & other types of working capital.

Venture Capital - Used by KisanHub

Often used by: Businesses looking for a large injection of cash without giving away a controlling stake.

KisanHub works with some of the largest farming businesses in the world.

Kisanhub received: £1.75m through VC & Angel Investors & employed more staff to expand into markets faster.

Corporate Venture Capital - Used by Chargepoint

Often used by: Smaller businesses looking for an investor with a ready-made network of important contacts.

BMW Group’s investment arm, i Ventures, invested in Chargepoint, with different beneÿts for each party, including:

BMW Group

  • Gets access to an innovative start-up in their sector

Chargepoint

  • Financial support
  • Technical expertise
  • Access to an established network

IPO - Used by Fever-Tree

Often used by: Established businesses wanting to repeatedly access fnance, raise their profle and gain credibility.

Fever-Tree raised: £154m on AIM boosting its profile.

Your previously read articles

Quick links

Did you know?

£1.5bn is invested by Angels in the UK businesses every year. 1

Did you know?

Monzo worked with Crowdcube to allow customers to invest directly via the Monzo app.

Did you know?

£189M was the largest UK private equity deal in 2018 2

Did you know?

Deliveroo, JustEat and iZettle all received Venture Capital backing in their early stages 3 .

Did you know?

Unilever - Microsoft - BP - Sky

Four global brands with corporate venture arms 4

Did you know?

An Initial Public Offering (IPO) is the first time a company can sell shares to the public.

Debt finance options

  • Overdraft
  • Business loans
  • Asset-based lending
  • Invoice finance
  • Peer-to-peer lending
  • Direct lending fund
  • Leasing & hire purchase
  • Export finance

£57.7bn value of new loans for SMEs in 2018 excluding overdrafts 5

96% of smaller businesses held some form of credit in 2018 6

30% the fall in Overdraft usage since 2011 (,PDF, 603KB) 7

  • 5

    https://www.british-business-bank.co.uk/sites/g/files/sovrnj166/files/2023-11/british-business-bank-small-business-finance-report-2019-v2.pdf

  • 6

    https://www.british-business-bank.co.uk/sites/g/files/sovrnj166/files/2023-07/Small-Business-Finance-Markets-2018-Report-web.pdf

  • 7

    https://www.british-business-bank.co.uk/sites/g/files/sovrnj166/files/2023-11/british-business-bank-small-business-finance-report-2019-v2.pdf

Reference to any organisation, business and event on this page does not constitute an endorsement or recommendation from the British Business Bank or the UK Government. Whilst we make reasonable efforts to keep the information on this page up to date, we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. The information is intended for general information purposes only and does not take into account your personal situation, nor does it constitute legal, financial, tax or other professional advice. You should always consider whether the information is applicable to your particular circumstances and, where appropriate, seek professional or specialist advice or support.

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