Can I apply with 50k funds from Venture Capital outside UK?

[EL CHOLO CARAYOL]

Hi everyone,

Is it possible to apply from outside the Uk if I have £50k funding from Venture Capital firms or does it have to be £ 200k, if the application is from outside the UK ?

Thanks in advance.

Regards

[Olasunkanmi]

@ EL CHOLO CARAYOL, if you can secure the funding from venture capital firms then you are qualify to apply for the Tier 1 entrepreneur either from UK or abroad.

[VentureCapital Route]

Before talking to any Venture Capital Firm or consultant - please make sure you check that you know what a venture capital firm is and what it is allowed to do. I don't blame people for not really knowing what a Venture Capital firm is, as this is not a well known concept for people who are not in the financial services. In order to meet UKBA definition of Venture Capital Firm, a firm must meet the following criteria defined by FCA:

A Venture Capital Firm is defined under Financial Control Authority (“FCA”) regulations as:
“a firm whose permission includes a requirement that it must not conduct designated investment business other than venture capital business”

Venture Capital business is defined as:
“the business of carrying on any of:
(a) investing in, advising on investments which are, managing investments which are, arranging (bringing about) transactions in, or making arrangements with a view to transactions in venture capital investments;
(b) advising on investments or managing investments in relation to portfolios, or establishing, operating or winding up collective investment schemes or managing AIFs,9, where the portfolios or funds9 (apart from funds awaiting investment) invest only in venture capital investments;
(c) any custody activities provided in connection with the activities in (a) and (b);
(d) any related ancillary activities”

Venture Capital Investment is defined as:
“a designated investment which, at the time the investment is made, is:
(a) in a new or developing company or venture; or
(b) in a management buy-out or buy-in; or
(c) made as a means of financing the investee company or venture and accompanied by a right of consultation, or rights to information, or board representation, or management rights; or
(d) acquired with a view to, or in order to, facilitate a transaction falling within (a) to (c)

It means when you search the firm name on FCA register, go into "Permissions" tab and if the permissions section states "Only Venture Capital Business" then the firm will be accepted for UKBA purposes otherwise not! Even if they have £billion funding the firm will NOT be able to sponsor your application..

Also, read carefully the above definition, a VC firm can certainly provide "debt" and there is no restriction on them to require guarantees. The above definition is from FCA Handbook Glossary definitions go check yourself on FCA website.

I am searching for a genuine VC who meets the above condition and as I myself work in financial services sector I am hopeful that I will find one soon. Technical reason that there are hardly any firms that can sponsor a visa is that when firms get authorisation from FCA they prefer NOT to limit their business to Venture Capital business but keep it broader so that they can be involved in other types of businesses as well - and this means they cannot be a sponsor on the visa!

I will let you know as soon as I find a genuine VC firm..