Where does the name Gatcombe Park Ventures Limited
come from?
Our investment approach is based on David Ricardo's groundbreaking
theory of comparative advantage. Using Ricardo's famous
example of two nations (Portugal and England) and two commodities
(wine and cloth), Ricardo argued that there are gains from trade
if each nation specialises in the production of the good in
which it has a "comparative" cost advantage in producing,
and then trades with the other nation for the other good. If
a country is relatively better at making wine than cloth, it
makes sense to put more resources into wine, and to export some
of the wine to pay for imports of cloth. This is even true if
that country is the world's best wool producer, since the country
will have more of both wool and wine than it would have without
trade. There where several assumptions which long kept the theory
from being fully applicable. Trade and information flow barriers
as well as the cost of transportation made it long impossible
to see the full effect of the theory in real life. We are of
the strong belief that now - 180 years after his death - the
evolution of new technologies and in particular the Internet
and the consequent abolition of trade barriers will now allow
the full application of Ricardo's Theory of comparative advantages
- this is why we built Gatcombe Park Ventures. Ricardo developed
most of his theories in his country estate at Gatcombe Park.
We at Gatcombe Park Ventures are now working to turn the master's
macroeconomic approach into microeconomics and be part of building
the comparative advantages of the new millennium.
What areas of Internet business do you invest in?
Gatcombe Park Ventures Limited supports every Internet business
idea that is able to convince us according to its revenue
model. We invest in start-ups from all over Europe, every
business plan will be considered.
Will my ideas be kept confidential?
Gatcombe Park Ventures Limited considers investment ideas
to be proprietary and confidential, and will protect them
as such. It is in Gatcombe Park Ventures Limited's interest
to be confidential about its investee's or potential investee's
ideas. Gatcombe Park Ventures Limited believes investees should
have a high degree of trust in their investors, and will work
hard to uphold that expectation.
Do you participate in the day-to-day management of the
company?
Gatcombe Park Ventures Limited's policy is to let investee
companies have as much operational independence as possible.
However, we know that at some stage of a company's setup it
might be helpful to get advise from experts. In these cases
we will give a helpful hand that can be of great value.
How is a typical investment structured?
With initial investment Gatcombe Park Ventures Limited obtains
significant stake of the investee company. At a later stage,
as the company grows and we see potential, we can invest additional
capital either as equity or a loan.
What kind of support do you provide?
We want the investee companies to have great independence
and therefore we only offer our services when our help is
required. In general, help is provided in the areas of
- Sales and Marketing
- Strategic Guidance - identify market trends; market positioning
- Business Development - joint ventures, strategic alliances,
and joint market agreements
- Accounting and Financial Management - accounting, financial
planning, and tax planning
- Access to Frontier Technology - establish partnerships for
research and development of innovative technologies
How long does the investment process take?
The investment process from initial contact to investment
should not take more than 6 weeks.
