Tier 1 £50K VC funding

[yash121]

Hello Everyone
I got my visa on 17th September 2019 under Tier 1 VC funding route and I need your precious advise on below things

1) Is it mandatory to get the £50K from VC firm with 6 months period ?
2) Can I return the VC funding within 1 year by providing my company director loan as every year VC charges will increase

thanks for your help

[marcnath]

Hello Everyone
I got my visa on 17th September 2019 under Tier 1 VC funding route and I need your precious advise on below things

1) Is it mandatory to get the £50K from VC firm with 6 months period ?
2) Can I return the VC funding within 1 year by providing my company director loan as every year VC charges will increase

thanks for your help

1) No
2)Read through the guidelines. There are some documents needed from the VC for your extension application. As long as you have those documents, I don't see anything in the regulations that prevent you from returning the money.

Having said that, your questions raise the genuine nature of your VC investment itself. From my experience as an investor, VCs don't make investment for short term returns, so the fact that you even have the option to just return the money to avoid/reduce charges raises questions about the nature of that investment. HO has been known to scrutinise the VC investments and have even curtailed visas when they are concerned about the genuineness of the VC.

[yash121]

Hello
Thanks for sharing it
Yes, generally VC firm have minimum 3 years target however when your business is making more money and have more growth opportunity, in that case I feel it's better to pay them earlier as it will increase your profit.

[marcnath]

Hello
Thanks for sharing it
Yes, generally VC firm have minimum 3 years target however when your business is making more money and have more growth opportunity, in that case I feel it's better to pay them earlier as it will increase your profit.

Yes, and that is exactly what makes this a strange VC funding. A VC will be looking at having a share of the profits rather than a fixed interest on investment, so it makes absolutely no sense for a VC to get out when there is more money to be made from future profits.

This looks like some finance company masquerading as a VC company for Tier 1 entrepreneur visa applicants. It is very good for them but so risky for the T1 Entrepreneur that they should be condemned.

[yash121]

Hello
some VC firms want to be sure about there ROI as they look for upto 15% of roi so in that regards they are going according to there plan bcuz in the case of new businesses the chances of failure can be high.