Presentation to the basque region

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Modelo Connect de financiación de start ups que está teniendo buenos resultados enMidlands (UK)

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  • What is Connect? Connect was started in 1985 at the San Diego campus of the University of California It was founded in response to adversity The local economy was dominated by the military/defence sector and was badly hit in the 1980s by European and Asian competition and by the US government deciding to balance the defence budget. The first response was to promote inward investment, but there was a major shock in 1985 when two major inward investment projects (in which the University was involved) were lost to other states. This led to a rethink and a determination to nurture to develop and grow indigenous technology enterprise. The University did not have a business or engineering school at San Diego at that time and decided the best contribution it could make would be in facilitating networking… Connecting technology entrepreneurs with the resources - investment - knowledge - business support - they need to grow their businesses.
  • As Jeff has mentioned, Connect Midlands was formed in 2001 and offers technology companies throughout the Midlands the opportunity to become part of a network of entrepreneurs, professionals, business advisers and most importantly, investors.   Since 2001, Connect Midlands has been strongly supported by the East Midlands Development Agency ( emda), its sister agency Advantage West Midlands and a growing number of private sector sponsors. We have managed over the last 18 active months to help technology companies raise £12m of new equity finance for their growth.
  • Ultimately, our aim is to increase the number of investment deals in the West Midlands.
  • From the start it was always the intention to span the East and West Midlands region and with emda’s support and particularly with InvoRed we have now two regional bases with dedicated staff. Our main focus is to make investors aware of Midlands based investment opportunities. We do this my rigorously filtering, screening, selecting and preparing the companies we work with.
  • So, you have seen that Connect offers conferences and events for those companies which ARE investment ready. Now take a look at what Connect offers through its InvoRed programme for those companies which are NOT investment ready. As you can see here, companies on the InvoRed programme may also have access to the Connect conferences and events as part of their FUNDRAISING ROADSHOW.
  • The Amber stream includes 8 seminars delivered by experts in their field. Having spent 10 years in the city, primarily as an industry analyst, Matthew Checkley has an excellent understanding of the investment options available to young companies. Mathew oversees the management of the amber stream workshop series and delivers a number of workshops. Later this evening, you will hear from Rennie Petrie , an experienced deal-maker and accountant, who will deliver workshop 6 on Financial Planning. Rennie will outline his approach to helping companies shape their core business offering from a financial perspective.
  • This is where you come in. The Companies Committee plays a pivotal role in the Connect Warwick Investment Conference. First we need your help, knowledge and contacts in scouting for companies which meet the criteria of the conference Secondly - the CC members will visit companies to evaluate whether they are good enough for our conference. The model, which we have taken from Scotland, is that each applicant, who gets through initial screening by WV staff, will be visited by 2 CC members. They will make a brief report to their colleagues as to whether the company meets the CWIC criteria. Thirdly - CC members will sit as a panel and decide whether companies can present at the conference Finally CC members will take part in the process of coaching and rehearsing the applicants - particularly be providing dummy panels for them to rehears their presentations to.
  • Presentation to the basque region

    1. 1. Connect Midlands welcomesMr Manuel Urquijo, Vice MinisterMr Iñaki Beristain Extabe, Director of Economic PlanningSupporting companies to getready for investment Isabell Majewsky, Director
    2. 2. Agenda• Background• About us• How we operate• Our success• Lessons learned• Connect Europe• Q&A
    3. 3. Background to Connect MidlandsFormed in April 2001 to address: • the absence of support for entrepreneurs • the lack of mechanisms to access finance • the insufficient pool of available investors
    4. 4. What is Connect? Started 1986 - University of California, San Diego Connects technology entrepreneurs to the resources they need Nurtures development and growth of technology enterprise
    5. 5. Connect World-wide12 active Connect organisations in USAand Europe and New ZealandIn the UK: Connect Scotland (started in1996),Connect Midlands and Connect Yorkshire
    6. 6. Our PurposeTo nurture the development and growth of technology related enterprise in the British Midlands by connecting entrepreneurs with the resources they need to succeed.
    7. 7. Our AimTo increase the number of investmentdeals in the Midlands, by- holding investment events- preparing investment ready companies- building a network
    8. 8. Main focusMaking investorsaware of Midlandsbased investmentopportunities – Filter – Rigorous screening – Careful selection – Thorough customised preparation
    9. 9. PRINCIPAL FOUNDING SPONSORSFOUNDING SPONSORSSPONSORS
    10. 10. The network Venture Capital, Network of Business Angels Intermediaries and and Banks Universities Connect Universities, Professional Research CentresMidland Thank you for listening! and Services and technology s Business Support companies Organisations
    11. 11. How we meet our objectives TrainingWorkshops Forums Boot Camps Coaching Workshops & Not Investment-Ready Coaching Enterprise Workshop Workshops and Seminars Meet The Entrepreneur ‘ Ready or Not ‘ Technology Briefing Networking Events Investment-ReadyConferencesassisting entrepreneurs to raise investment
    12. 12. FUNDING STAGE Sustained Growth Investment Conference Roundtable Early Growth Springboard Conference Start-up InvoRed Seed Pre-Start Existence Survival Success Take-off Maturity Proof of Concept LIFE CYCLE STAGEInvoRed Springboard Conference Roundtable Investment ConferenceSMEs receive support to help 12-15 SMEs seeking up to 3-4 SMEs seeking early 15-18 SMEs seeking up tothem shape investment ready £0.5m to pitch to an audience of stage finance to present to £3m to pitch to an audience ofpropositions investors and intermediaries 12 target investors over an investors and intermediaries exclusive lunch or dinner
    13. 13. Connect InvoRed Assists technology companies to: • Understand the finance options • Make their business ‘investor ready’ and attractive to funders • Identify appropriate investors • Make the pitch • Do the deal
    14. 14. Connect InvoRed package • A heavily subsidised, tailored programme available across the Midlands • Open to high-growth, tech companies whether pre- incorporation or SMEs • Flexible programme with 2 streams giving access to top regional and national specialists • Helping companies to make successful bids for investment
    15. 15. InvoRed Amber • Amber Stream workshops – 8 half-day workshops on areas key to investors • 2 Business Forums – an opportunity to present to intermediaries and investors and receive valuable feedback • 2 Bootcamps – intensive 1 and 2-day sessions addressing key topics of investment readiness (such as business development and market intelligence)
    16. 16. Workshop 1 Workshop 2 Workshop 3 Workshop 4INTRODUCTION TO SALES, MARKETING MANAGEMENT INTELLECTUALINVESTMENT AND PR PROPERTYProvides a solid Investors will not For many VCs this Understanding,understanding of commit unless is the most defending andthe investment they can see high important factor. maximising theoptions available potential growth. This workshop value of your IP isto young This workshop will will offer advice essential to anycompanies. help develop your on how to win the bid for investment. Sales and trust of investors. Marketing Plan.Workshop 5 Workshop 6 Workshop 7 Workshop 8FINANCIAL INVESTMENT DEAL PITCHING TO DEVELOPMENTPLANNING INVESTORS PANELThe all important Get the best deal How to get Test yourbottom line. Will for you, the noticed by the proposition withhelp shape your investor and your investment our developmentcore business business. industry. panel, to give youroffering from a investment pitch afinancial thoroughperspective. evaluation.
    17. 17. InvoRed Green • Fast track grooming for later stage companies • Customised programme • Full access to Amber stream • Individual attention of experienced coach for 5-10 days over 9-12 months
    18. 18. InvoRed Green 2• Meeting ‘Hygiene Factors’ – Review business objectives, strategy and valuation – Develop pitch for investors – Identify appropriate target investor – Facilitate introductions and deliver presentations – Guidance through legal and completion process
    19. 19. STAGE 7: EXIT Appendix 2 STAGE 6: GROWTH THE INVESTMENT READINESS VALUE CHAIN DEVELOPMENT CAPITAL STAGE 5: CORPORATE FINANCEINVESTMENT READINESS STAGE 4: INVESTMENT STAGE 3: READINESS Amber (1 or 2 day workshops) Amber (8 week workshops) Bootcamp and Business Forum Green Stream Green Stream Elite Green Stream Interim STAGE 2: DIAGNOSTIC STAGE 1: AWARENESS STAGE OF BUSINESS DEVELOPMENT © University of Warwick, 2005
    20. 20. A one-day showcaseFor entrepreneurs seekinginvestment up to €750kAudience of investorsand business professionals
    21. 21. An informal lunch-timefocussed on one sectorFor entrepreneurs seekinginvestment up to €1.5mInvited audience ofsponsors and investors
    22. 22. A major eventFor companies seekinginvestment up to €5mStrict selection processusing CAGAudience of investorsand professionals
    23. 23. Supporting Events Enterprise Workshop Informative seminars finance and funding legal and IP markets and marketing management and more Opportunities to learn & practice new skills Meet The Entrepreneur Experienced entrepreneurs passing on the benefits oftheir experience Technology Briefing Highlighting today’s Research and Development Identifying potential commercial opportunities for thecoming years
    24. 24. Our success since 2001• 540 active and networking members – Entrepreneurs, Researchers, Investors, Mentors• 200 entrepreneur presentations so far• Over €70m investment raised by 65 companies• Additional €6m of offers• 200 jobs created/safeguarded
    25. 25. Lessons learned • In start-up phase: – Secure university/ research organisations support – Secure private sector backing – Secure public sector support – Shadow and learn (avoid re-inventing the wheel) – Develop a financial model that works • Never compromise on flexibility
    26. 26. Lessons learned 2 • In development phase: – Develop the network • Sponsors (add value) • Technology companies (manage expectations) • Inventors (R&D support) • Professional service providers (manage them) • Intermediaries (get close) • INVESTORS (schmooze & focus) • Never compromise on quality
    27. 27. Lessons learned 3 • In growth phase: – Plan for long-term sustainability – Continually evolve the programme – Don’t loose sight of sponsors – Secure external contracts but protect the core – Get early successes and SHOUT about these – Invest in a virtual platform to maintain momentum • Never compromise on your core ethos & values
    28. 28. Connect Europe Background• Interest generated from delivering workshop by invitation from EC in Prague, November 2004• Relevant to the Competitiveness & Innovation Framework (CIP)
    29. 29. Connect Europe OverviewThree distinct phases:2. Creating 10 new Connect organisations3. Sharing best practice4. Maximising the benefits of a European-wide network
    30. 30. Phase 1 - Start-upCreating 10 new Connect organisations• Develop an appropriate model for partner regions, establish infrastructure• Business plan for long-term sustainability• Exchange of good practice• Transfer of processes, procedures, management guidance• Start-up capital matched with private & public sector support
    31. 31. Phase 2 - ConsolidationSharing best practice• Virtual interactive web-platform• Development & launch of a series of programmes – Investment readiness value chain aimed at helping tech- entrepreneurs prepare investment pitch – Investor readiness to help novice angels understand the pitfalls & up-sides of investing in technology – Technology-transfer & business development programmes – Diagnostic workshops to help companies develop corporate strategy• Investment platforms• Post-investment support
    32. 32. Phase 3 - GrowthMaximising the benefits of a European-wide network• Introduction of market readiness programme• Facilitated access to wider network of investors, corporate, trade partners & other collaborators• Powerful network with lots of leverage shared & brokered by Connect organisations
    33. 33. Potential areas for collaboration• Joint assessment of Basque Regional suitability by SPRI/ Connect• Hosting of investment platforms by SPRI/ Connect• Incorporation of the Connect web platform into SARATEK/ Science Parks• Development of programmes SARATEK/ Connect
    34. 34. Action Plan• Consult with partners• Develop business plan in conjunction with partners’ input – 15 August• EC & EP road show in Brussels – 1 week in September
    35. 35. Questions & Answers?Thank you for listening.
    36. 36. Isabell MajewskyDirectorTel: (+44) 24 7632 3316Fax: (+44) 24 7632 3330E-mail: isabell@connectmidlands.orgWeb: www.connectmidlands.org
    37. 37. To nurture thedevelopmentand growth oftechnology-relatedenterprise inthe BritishMidlandsby connectingentrepreneursto theresources theyneed tosucceed

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