Entrepreneur offered £200,000 to create a Residential care home in Bournemouth on Venture Giants whilst only posting a requirement of £20,000
Venture Giants has today received confirmation that Mr. John Hughes after discussing his funding requirements with an Property Angel Investor that Venture Giants found for him has successfully raised over £200,000 completely commission free through Venture Giants for his mental care home in spite of him only seeking to raise £20,000 and posting that requirement.
Full case study listed below:
John Hughes was not your prototypical entrepreneur; instead he was just an experienced person within the health care industry that was looking for investment to start his project. With Mental health care currently facing drastic cutbacks from the NHS budget for 2013/14, John saw potential in Mental care homes and with his experience his industry, knew that he could give something back to his community and also make the right investor a lot of money. he approached Venture Giants after carrying out a lot of research on us and we started promoting his proposal almost immediately.
"It was fair to say that we also saw the potential in the project, and were keen to take the project on" Alex Potter of Venture Giants.
Venture Giants found John investment by connecting him with a property professional who had many years’ experience in property, was well respected – but was also looking to get involved with a venture that could give something back to the community.
Below is the full case study on how this entrepreneur raised £200,000 from posting a requirement of only £25,000.
"John, thank you for answering these questions. We are sure it will help many other entrepreneurs that are in a similar position to you. In regards to the investor that we found for you, what was your feedback on him?"
My investor is genuine and reputable, he has taught me so much about deeper business issues already and is a definite business partner who is very excited about my business and the future for us both.
What was the total investment that was offered to you, in return for what percentage equity in your company?
The investment level offered to me initially was £25,000 but once we discussed the wider business prospects and he was satisfied that my input is 100% he has increased this to £200,000. As my investor brings experience and a vast business acumen to the business and is a dependable point of contact for me to gain advice and guidance from I had no hesitation offering him equal equity at 50%.
Were you happy with the deal?
I am very happy with deal as my investor brings much more than money to the business. I have no doubts that we can succeed with him at my side.
What troubles have you faced trying to find investment over your entrepreneurial journey so far?
Without Venture Giants I felt I had no hope of investment, trying to raise money from banks, friends, family and other business partners was slowly grinding to a negative halt i was giving up hope of ever getting my business operational.
Before finding Venture Giants I had no idea what an angel investor was or in fact that there even existed an online community offering investment opportunities to businesses.
I searched for investors online and Venture Giants appeared, Venture Giants just seemed so easy to navigate and deal with, I found it simple to upload my idea, pay a fee and away I went and within two days I had 4 investors contact me, these initial investors were not what I wanted mainly because while I have a strong business idea and plan I did not really have a wider business knowledge and the legalities involved etc. and as such the initial investors seemed cautious.
I needed investors to understand this. I became despondent to a degree and began reading endless business literature to gain the knowledge and flavour of business I thought I needed to gain respect from investors.
I then asked Venture Giants to instigate a mass resend (£39.00 available to all entrepreneurs when promoting their proposal) and within days my investor had contacted me, we spoke on the phone and I explained that I was not very astute with the language of business but believed I had a solid business idea, my new investor reassured me that he could fill this gap for me and that was that.
We are now in constant contact and I am learning all the time, we have to date already made an offer on a business for sale in our sector and it is progressing well, I could not have achieved any of this without finding Venture Giants and enjoying the support they offer.
I emailed Venture Giants for advice on occasion and received a prompt supportive response.
It’s as simple as that!
Best regards and thank you John Hughes
This is a Snippet of John Hughes Investment proposal below:
Mental health care is not at the present subject to drastic cutbacks and the government estimates mental health care to cost 13% of the total £102 billion NHS budget for 2013/14. The reason these costs are so high is that the mental health system is under considerable strain. The Mental health act can be misused by Police/Social Services and placing authorities - not to mention residential care companies who will simply evict a person if deemed too difficult to manage and in many cases these people can become homeless. We do not call on mental health crisis teams when the going gets tough, we stay the course addressing choices with managed risks, medication management eg we aim at reducing medications not increasing them as is the 'norm'. We actively promote independence within all our service users, we encourage them to manage their illness and support them to develop an independent lifestyle within their limits, this attitude will see us become an outstanding service within the mental health field in the coming years. People with mental health problems really can contribute to society, they really can have jobs, they really can have peer groups, they really can be your friends. All too often these groups are labelled as 'mad and bad' they enter and in some cases stay within the stretched mental health system without the correct support and the result of this is a revolving door of failure that ultimately costs more and achieves little except to compound existing problems while skirting the deeper issues. Our directors have worked with many 'dangerous' and written off people and have turned people lives around we are never afraid to confront and challenge a situation that others deem 'lost'. We believe in training as a mainstay of success coupled with effective team and service user management, with focused care planning these serve as invaluable tools to help written off people back into society and ensures these groups have the same rights and opportunities open to us all. Our directors have a proven track record of helping people with chronic MH problems. We are a registered care provider with the Care Quality Commission and a suitable setting registered as a residential care home with CQC would be immediately ready for occupation. The purchase of smaller is homes is one long term plan, owner operators in the main are selling their smaller homes as profitable businesses and the plan to acquire these smaller homes enabling us to build on a small but lucrative portfolio is paramount to us, another long term plan of ours is to operate small acute mental health units which will offer a service to social services, Police and primary care trusts by admitting people in 'crisis' for a short period to allow for in house assessment and stablisation of a person prior to professional services deciding on the best care pathway for the individual, this plan also has the potential to provide a feeder path to our residential services should longer term support be required. All services involved in mental health care are over stretched and acute mental health beds are in short supply in particular this is a major problem for the Police who are obliged to provide a 'place of safety' for individuals who are obviously ill and require medical treatment but due to shortages of mental health beds they are forced to 'house' individuals until mental health professionals intervene this can take over 24 hours thus costing the Police service not just money but man hours, a place of safety within a therapeutic environment with on site health professionals that can act and fill the gap we believe is an extremely strong business concept. It is estimated 70% of homeless people suffer from some sort of mental health disorder this group are prone to mental health breakdowns and as such the most likely group to be exposed to the criminal justice system labelled as criminals when in fact they are ill and due to their homeless situation they fall off the radars of teams in place to assist them (a detailed plan is available for this concept). We welcome investors to contact us for further discussion.