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BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
BEN Investability Brian Dorricott
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BEN Investability Brian Dorricott

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  • 1. The Funding LadderBristol & Bath Enterprise NetworkTuesday, 29th March 2011Brian DorricottBusiness Mentor, Coach and Investorhttp://www.meteorical.co.ukbrian.dorricott@meteorical.co.uk 1
  • 2. Brian Dorricott Electrical & Electronic Engineer Serial Entrepreneur ◦ Founded two IT companies ◦ Sold to CISCO & Management Team South West Angel Investment Network Mentor ◦ UWE Ventures, SetSquared Coach 2
  • 3. Finding Money General principles ◦ Return on Investment ◦ Things to sell ◦ Enhancing chances of success The Funding Ladder Business Angels More information 3
  • 4. Return on Investment (RoI) Also known as: ◦ Cost of money ◦ Internal Rate of Return (IRR) ◦ “interest” Pays for... ◦ Inflation ◦ Deal costs  Entry, management & exit ◦ Risk premium (investment failures) 4
  • 5. Return on Investment (RoI) Expressed as ◦ % Rate of Return ◦ A multiplier over a number of years Years 1% 5% 10% 60% 100% 1 1.01 1.05 1.10 1.60 2.00 2 1.02 1.10 1.21 2.56 4.00 Return1.03 ( 1 1.16 IRR) years 3 = + 1.33 4.10 8.00 4 1.04 1.22 1.46 6.55 16.00 5 1.05 1.28 1.61 10.49 32.00 10 1.10 1.63 2.59 109.95 1024.00 5
  • 6. Things to sell AssetsNow  ◦ Cars, vans, computers, property  Near term income ◦ Customer purchases ◦ Invoices  Ability to pay ◦ Loans 5 years +  DreamsFuture ◦ Equity – Soul? 6
  • 7. Enhancing Chances of Success Demonstrate you are “low risk” Sales process. Selling... ◦ Future value ◦ Ability to realise future value ◦ Not just MD / CEO nor Product / Service Learn from others ◦ Colleagues ◦ Advisors ◦ Dragons’ Den H. G. Bohn 7
  • 8. Funding Ladder 8
  • 9. Friends & Family 9
  • 10. Grants & Competitions 10
  • 11. Crowd Sourcing 11
  • 12. Loans & debt 12
  • 13. Hire Purchase 13
  • 14. Factoring & CID 14
  • 15. Trade Finance 15
  • 16. Revenue Based Finance 16
  • 17. Business Angels 17
  • 18. Venture Capital 18
  • 19. Business Angels Scope of funds Key advantages & disadvantages Typical deal characteristics Finding Business Angels 19
  • 20. Scope of funds 20
  • 21. Advantages & disadvantages BAs may help the business grow. Money available quickly. No security required. Deals complex. Equity must be sold. High growth potential and exit. 21
  • 22. Deal characteristics Deal size £50K - £250K Term 3 – 10 years Collateral required No Business valuation required Yes Sales Required No Sell equity Yes Business Development Help May be Cost of money 30% - 60% Deal time 2 to 9 months 22
  • 23. Finding Business Angels Web searches Business Angel Networks ◦ Angels’ Den, Envestors, SWAIN, Xenos Corporate Finance Boutiques ◦ Beaufort Brokers, Exigo, Pegasus Funding Resources Networking ◦ Evangelising 23
  • 24. Useful websites Business Link ◦ http://www.businesslink.gov.uk Meteorical ◦ http://www.meteorical.co.uk  Funding section  Business Angel Network listing 24
  • 25. The Funding LadderBristol & Bath Enterprise NetworkTuesday, 29th March 2011Brian DorricottBusiness Mentor, Coach and Investorhttp://www.meteorical.co.ukbrian.dorricott@meteorical.co.uk 25

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