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 the 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 – almost 200 years after his death – the information technology revolution facilitates 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 in the 21st century.
What areas of Internet business do you invest in?
Gatcombe Park Ventures supports every business idea that is able to convince us according to its revenue and operating model. We invest in start-ups from across the world.
Will my ideas be kept confidential?
Gatcombe Park Ventures considers investment ideas to be proprietary and confidential, and will protect them as such. It is in Gatcombe Park Ventures’ interest to be confidential about its investee’s or potential investee’s ideas. Gatcombe Park Ventures 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’ policy is to let investee companies have as much operational independence as possible.
How is a typical investment structured?
With its initial investment Gatcombe Park Ventures 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
– strategic guidance
– business development
– joint ventures and strategic alliances
– financial planning
How long does the investment process take?
The investment process from initial contact to investment should not take more than 2 months but depends on the specific investment case.