Development Capital, Future Power Capital

Where Development Capital fits

Growth financing spans a spectrum. At one end, Venture Capital backs earlier-stage, often unproven businesses where the model is still being tested. At the other, Private Equity typically takes large stakes or full control of mature businesses. Development Capital sits between the two: it is aimed at businesses that are already established, generating revenue, and profitable or close to it, but that need outside capital to fund a specific next step. The investment is usually structured as a minority position, so the founders and existing management keep running the business day to day.

	Venture Capital	Development Capital	Private Equity
Business stage	Early, often pre-profit	Established, profitable or near-profitable	Mature, often larger scale
Typical stake	Minority, higher risk	Minority growth stake	Majority or full buyout
Primary use of funds	Proving the model, initial scaling	Expansion, capacity, acquisitions	Ownership transition, restructuring
Control implications	Board seat, light governance	Board input, management retains control	Often full operational control

These are general distinctions, not fixed rules; every situation is assessed on its own facts.

Situations we typically see

Development Capital conversations tend to start from a concrete, near-term need rather than an abstract growth plan. Some recurring examples:

✓ A profitable regional business ready to expand nationally, but reluctant to sell a controlling stake to fund the rollout.

✓ A manufacturer that needs new equipment or additional capacity to take on larger orders it would otherwise have to turn down.

✓ A services business that wants to fund the acquisition of a smaller competitor to consolidate its market position.

✓ A company with a proven, repeatable model that simply needs working capital to scale faster than cash flow alone allows.

How we structure it

There is no single template: the right structure depends on the business, the amount involved, and what the capital is for. Typical approaches include:

Structure	What it involves
Minority growth equity	A non-controlling equity stake, sized to the capital need and the business's valuation
Structured instruments	Convertible or hybrid instruments that blend debt-like and equity-like features
Follow-on tranches	Capital released in stages tied to milestones such as a new site opening or an order being confirmed

How the process works

Initial conversation

We talk through the business, what the capital is for, and whether Development Capital is the right fit compared with other stages of financing.

Review

We look at the business's financials, trading history, and growth plan in more depth to understand the opportunity and the risks.

Terms

If we want to move forward, we put together proposed terms: structure, size, and the governance rights that come with it.

Commitment

Once terms are agreed, we complete the investment and the business moves ahead with the capital it needs for its next stage.

Frequently asked

Do you take a majority stake?

Not typically. Development Capital is generally structured as a minority investment, so existing owners and management retain control of the business. Larger, controlling positions sit closer to what we'd consider Private Equity territory.

What stage of company do you look at?

We focus on businesses that are already established: trading, generating revenue, and profitable or close to it. The capital is meant to fund a clear next step, not to prove an unproven concept.

How is this different from venture capital?

Venture Capital tends to back earlier-stage businesses where the model is still being tested and the risk profile is higher. Development Capital is aimed at businesses that have already proven their model and need capital to fund a specific, well-defined next stage of growth.

Does a conversation guarantee an investment?

No. Every situation goes through our review process, and not every conversation results in an investment. We assess each opportunity on its own merits before any terms are proposed.