Tech City Launchpad Campaign Review v2.1


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A review of the campaign created to stimulate applications to the Technology Strategy Board’s Tech City Launchpad 1 competition - summer 2011

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Tech City Launchpad Campaign Review v2.1

  1. 1. Tech City Launchpad Campaign Review v2.1 Huw Jones, Technology Strategy BoardTech City LaunchpadCampaign Review
  2. 2. Campaign Mission & OutcomesTech City LaunchpadCampaign Review
  3. 3. Campaign Mission • Stimulate the digital and creative industries centred in the ‘Tech City’ area of London & enable these companies to move faster towards commercial success. • Develop a creative and engaging acquisition campaign that will acquire the best of the UK’s companies interested in growing within the ‘Tech City’ areaTech City LaunchpadCampaign Review
  4. 4. Campaign Outcomes • 20 companies selected for funding – each receiving a slice of £2m in match- funding • Round 3 event – Final 40 pitching – 2 mins each – 254 registrants, 214 attendees; inc 145 vc/angel or funding intermediaries – Creation of final 40 company director (online and hardcopy) – Creation of ‘meet me’ boards – Creation of post-event networking ‘sticky world’ • Media outcomes • Round 2 – paper based down select process – final 40, and top 20 identified • Round 1 – Video application stage – 221 applications. All viewable/rateable on _connect 1/overviewTech City LaunchpadCampaign Review
  5. 5. Campaign Insights: creative and performanceTech City LaunchpadCampaign Review
  6. 6. Campaign Launch Video 2I&feature=relatedTech City LaunchpadCampaign Review
  7. 7. Campaign Website on _connect City LaunchpadCampaign Review
  8. 8. Example applicant videos • Video uploaded to YouTube • Embed code used on _connect websiteTech City LaunchpadCampaign Review
  9. 9. Round 3 – Funders’ Workshop event “Meet me” “Fund me” – 40, 8 and 2 min project pitches to audience Project directory – “read about me”Tech City LaunchpadCampaign Review
  10. 10. Customer perspectives “Despite the (at times) gruelling process, wed recommend the Technology Strategy Board for anyone looking to get some government backing for their projects. Now its time for us to chase those leads and secure the rest of the match funding. Fingers crossed!” Dagmara from Clearer PartnersTech City LaunchpadCampaign Review
  11. 11. Profile directory – printTech City LaunchpadCampaign Review
  12. 12. Post-event collaboration City LaunchpadCampaign Review
  13. 13. Profile directory – online collaboration spaceTech City LaunchpadCampaign Review
  14. 14. Example media coverageTech City LaunchpadCampaign Review
  15. 15. Campaign web traffic insight Deadline for videos to be uploaded Funders’ Workshop EventTech City LaunchpadCampaign Review
  16. 16. Who’s referring site traffic? Entrance Sources: /web/tech-city-launchpad-1Tech City LaunchpadCampaign Review
  17. 17. Where did you hear about?Tech City LaunchpadCampaign Review
  18. 18. Applicant demographicsTech City LaunchpadCampaign Review
  19. 19. Example Company Pitch Slides – 8 minutesTech City LaunchpadCampaign Review
  20. 20. FundingOptions Price comparison in small business lending Conrad Ford +44(0)7740707235Tech City LaunchpadCampaign Review
  21. 21. About me Clearlybusiness PBT £m 17Currently an interim executive with a firm 12whose technology is seen here.Previously COO of Clearlybusiness,(Deloitte ‘Fast 500 EMEA’ member). 7Built the UK’s leading credit 4management service by client numbers. 1Chartered Management Accountant(CIMA); ~10 years in financial services. 2005 2006 2007 2008 2009Tech City LaunchpadCampaign Review
  22. 22. Small business lending is a substantial market: ~£800m p.a. in interest GP aloneNo. Term 500kLoans (Illustrative only)Average £80kLoan Size Net Interest ~£800m GP AddressableInterest GP ~£200m 2% AnnuallyMargin Average ~4 yrs TermSources: BBA & BoE (2011) Tech City Launchpad Campaign Review
  23. 23. It’s also notably uncompetitive: 4x more likely to get a term loan from main bank than a rivalTendency to use main bank for financing needs, % Term loans 100% With 75% another bank 50% 98% 80% 80% 25% 47% With main 24% bank 0% Overdrafts Credit cards for Commercial Invoice Leasing & hire- business loans & Finance & purchase purposes mortgages Stock financeSource: Warwick Business School (2009) Tech City Launchpad Campaign Review
  24. 24. Two notable advantages for the small businesses’ main bank Access to client bank account data, the primary decision tool Local relationship with client via the branch networkTech City LaunchpadCampaign Review
  25. 25. Ability to generate financials (including bank data) from accounting softwareData extracted directly from small business accounting software (e.g. Sage or QuickBooks) Tech City Launchpad Campaign Review
  26. 26. Accountants are a nationwide channel, more trusted than banksMost trusted source of support & advice Nationwide launch partner identified •Hundreds of their accountant clients surveyed on FundingOptions. No •50% of survey respondents would like to Advice Account -ant or take part in a FundingOptions trial. Auditor Bank Manage Other rSource: Warwick Business School (2009) Tech City Launchpad Campaign Review
  27. 27. High-level proposition flow 1 2 3 “The precise “Quotes from a range of “Quotes from all finance information required by leading finance providers in a standard finance providers for providers ... get the very format... easily review them to ...quote with best terms” them with my clients” confidence” IMPORT ADD PLAN & CHOOSE (TRACK COMPARE PROGRESSADVISOR FINANCIALS CONTEXT LENDERS STATUS) QUOTES WITH QUOTE ACCEPT (5 WORKING DAYS) PROVIDE FULFILLENDERS REQUEST QUOTE QUOTE REFERRAL SUCCESS FEE AS A % OF LOAN VALUE Tech City Launchpad Campaign Review
  28. 28. Illustrative financial profile & external factors 0% share 2% share <5% share (Note: Money- Supermarket P/E = ~50x) “Skate to where the puck is going to be, not where it has been” SageOne & Yodlee ‘Rainbow’ Account QB Online APIs & ‘Verde’ PortabilityTech City LaunchpadCampaign Review
  29. 29. How I intend to deliver, & where I am nowDELIVERY PLANS CURRENT STATUS• Phase I “Prove Concept” Area Status – Low cash burn & lead times. – ~£400k seed funding. Infrastructure Managed sub-lease agreed Team 3 at launch, 2 in holding• Phase II “Grow Quickly” – Spend to maximise growth. Platform MoU in place – ‘Series A’-scale funding. Distribution Launch partner agreed Investment ~£300k raised (including TSB) Tech City Launchpad Campaign Review
  30. 30. Why FundingOptions, & what am I seeking? Why invest in FundingOptions? What am I seeking? • Attractive target market • Investors/mentors with:- – Large high margin market – Domain knowledge. – Tech & regulatory ‘tailwind’ – Industry contacts. • Decent chance of execution – Valuable hands-on skills. – Defined revenue model – Known platform & distributionTech City LaunchpadCampaign Review
  31. 31. Resources & citationsTech City LaunchpadCampaign Review
  32. 32. Resources and citations • Tech hub winners –Clearer partners:Framblast – • Tech hub winners – Contentment: Padify • launchpad-funding/ • Tech City Launchpad doubled to £2 million • doubled-to-2-million.thtml • Innovative digital businesses in London’s Tech City given opportunity to pitch to leading investors • london%E2%80%99s-tech-city-given-opportunity-to-pitch-to-leading-investors/ • Technology Strategy Board plans series of launchpad investment events to boost UK’s tech start-ups • series-of-launchpad-investment-events-to-boost-UKs-tech-start-ups • Tech City: Britain’s answer to Silicon Valley • City LaunchpadCampaign Review