Investing in Yorkshire Breakfast Seminar Thursday 28 June 2007
Welcome from Richard Bamford Executive Chairman
Jonathan Diggines Chief Executive
EV in the Yorkshire region - introduction <ul><li>EV well established in the North of England  </li></ul><ul><li>£55 milli...
EV - background <ul><li>Independent specialist venture capitalist </li></ul><ul><li>Working out of Preston, Leeds and Roth...
EV – regional funds under management <ul><li>Technology </li></ul><ul><ul><li>three funds - £34 million investing in techn...
EV – regional funds under management <ul><li>Mainstream venture capital </li></ul><ul><li>Private equity ? </li></ul><ul><...
  Julian Viggars Head of Technology Investment
EV’s Technology Investment Team Julian Viggars Head of Technology Investment Edward French   Investment Director Dr Mark R...
RisingStars Growth Fund I & II <ul><li>What do we do? </li></ul><ul><ul><li>provide start up and early stage seed capital ...
What do we look for?   <ul><li>Clever technology or novel ideas that will use technology </li></ul><ul><li>Applications th...
Early stage technology investment <ul><li>£34 million of funds available for early stage technology investment </li></ul><...
RisingStars Growth Fund - highlights   <ul><li>Quoted Investments </li></ul><ul><ul><li>Provexis – 3p, value £12.5m, £2.1m...
  <ul><li>Develops natural and non-toxic products to improve plant healthcare </li></ul><ul><li>£30k initial deal in 2003 ...
RisingStars Growth Fund II   <ul><li>Currently £13.75 million – looking to increase </li></ul><ul><li>Four deals completed...
Edward French Investment Director
Early stage technology investment spread
Early stage technology investment spread
Femeda – starting point <ul><li>Opportunity identified for new “home treatment for female Urinary Inco.” </li></ul><ul><li...
Femeda – now <ul><li>Introduced: Chairman, CEO, engineering and clinical leads </li></ul><ul><li>Helped in-licence technol...
nCapsa – starting point <ul><li>Very strong technology founder </li></ul><ul><li>Great market opportunity </li></ul><ul><l...
nCapsa – now <ul><li>Recruited Chairman, NXD, FD (nearly CEO!) </li></ul><ul><li>First investment: testing route-to-market...
Yuuguu – starting point <ul><li>Good founding team </li></ul><ul><li>Pre-launch demonstrator </li></ul><ul><li>Massive opp...
Yuuguu – now <ul><li>Introduced Chairman </li></ul><ul><li>3000 users, growing rapidly </li></ul><ul><li>First revenues fr...
Summary <ul><li>Wide range of sectors of interest </li></ul><ul><li>Typically pre-revenue investing </li></ul><ul><li>Mass...
Paul Taberner Investment Director
The Coalfields Enterprise Fund investment team Paul Taberner Investment Director Wayne Thomas Investment Director Tina War...
Coalfields Enterprise Fund - overview <ul><li>£10 million fund managed on behalf of Department for Communities and Local G...
Coalfields Enterprise Fund - objectives <ul><li>To address the ‘equity gap’ in the former English coalfield areas </li></u...
Why approach the Coalfields Enterprise Fund?  <ul><li>Dedicated fund for the coalfield areas of Yorkshire & Humberside </l...
The Coalfields Enterprise Fund current portfolio   <ul><li>Now comprises 14 businesses with a total of £3.9m invested or a...
<ul><li>Doncaster based </li></ul><ul><li>Design and manufacture nozzles used in global electronics industry </li></ul><ul...
<ul><li>Sheffield based </li></ul><ul><li>Manufacture forged rings for aerospace, oil and power generation sectors </li></...
<ul><li>Sherburn in Elmet based </li></ul><ul><li>Design and manufacture sports equipment used in the education sector </l...
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Enterprise Ventures - Investing in Yorkshire breakfast seminar 28 June 2007

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Enterprise Ventures - Investing in Yorkshire breakfast seminar 28 June 2007

  1. 1. Investing in Yorkshire Breakfast Seminar Thursday 28 June 2007
  2. 2. Welcome from Richard Bamford Executive Chairman
  3. 3. Jonathan Diggines Chief Executive
  4. 4. EV in the Yorkshire region - introduction <ul><li>EV well established in the North of England </li></ul><ul><li>£55 million under management </li></ul><ul><li>Seminar to demonstrate EV’s spread of activities/funds targeting Yorkshire </li></ul><ul><li>Opportunity to meet the teams investing in the region </li></ul><ul><li>Introduction to some of our portfolio companies </li></ul>
  5. 5. EV - background <ul><li>Independent specialist venture capitalist </li></ul><ul><li>Working out of Preston, Leeds and Rotherham </li></ul><ul><li>Team of 18, with long experience </li></ul><ul><li>Third most active venture capital investor in the UK, again, and ninth in Europe during 2006 * </li></ul><ul><li>£25 million available for investment in Yorkshire now </li></ul><ul><li>* Source: Ernst & Young Venture Capital Insights Report 2004-2005 and 2005-2006 </li></ul>
  6. 6. EV – regional funds under management <ul><li>Technology </li></ul><ul><ul><li>three funds - £34 million investing in technology </li></ul></ul><ul><ul><ul><li>RisingStars Growth Fund I </li></ul></ul></ul><ul><ul><ul><li>RisingStars Growth Fund II </li></ul></ul></ul><ul><ul><ul><li>SYIF Pilot Seedcorn Fund </li></ul></ul></ul><ul><li>Start ups </li></ul><ul><li>Proof of concept </li></ul><ul><li>Pre-revenue </li></ul><ul><li>Through to AIM listings, Series A fundings and trade sales </li></ul><ul><li>Dedicated, specialist investment team </li></ul><ul><li>Institutional funds – investing for return </li></ul>
  7. 7. EV – regional funds under management <ul><li>Mainstream venture capital </li></ul><ul><li>Private equity ? </li></ul><ul><li>Coalfields Enterprise Fund </li></ul><ul><li>£10 million targeting the former English coalfield areas </li></ul><ul><li>MBOs, MBIs, development capital and turnarounds </li></ul>
  8. 8. Julian Viggars Head of Technology Investment
  9. 9. EV’s Technology Investment Team Julian Viggars Head of Technology Investment Edward French Investment Director Dr Mark Rahn Investment Manager Dr Mark Wyatt Investment Director Tina Ward Fund Administrator
  10. 10. RisingStars Growth Fund I & II <ul><li>What do we do? </li></ul><ul><ul><li>provide start up and early stage seed capital to high growth technology businesses </li></ul></ul><ul><ul><li>predominantly in the North of England </li></ul></ul><ul><ul><li>investment range £50k to £1.5m </li></ul></ul><ul><li>What don’t we do </li></ul><ul><ul><li>just provide the funding </li></ul></ul>
  11. 11. What do we look for? <ul><li>Clever technology or novel ideas that will use technology </li></ul><ul><li>Applications that will address large and global markets (£100m) </li></ul><ul><li>A protectable position </li></ul><ul><li>Clear exit potential </li></ul><ul><li>Sensible founders </li></ul>
  12. 12. Early stage technology investment <ul><li>£34 million of funds available for early stage technology investment </li></ul><ul><li>Lead deals – 38 to date </li></ul><ul><li>Creating businesses, not just investing </li></ul><ul><li>Proof of concept </li></ul><ul><ul><li>investing to fail quickly </li></ul></ul><ul><ul><li>clear risk management by investment in stages </li></ul></ul><ul><li>Best people </li></ul><ul><ul><li>55 executive and non-executive posts identified and filled to date </li></ul></ul><ul><li>Board positions when necessary </li></ul><ul><li>Exit opportunities under constant review </li></ul><ul><li>Ability to attract further syndicated funding </li></ul><ul><ul><li>c. £30m third party funds attracted alongside RisingStars Growth Fund I </li></ul></ul>
  13. 13. RisingStars Growth Fund - highlights <ul><li>Quoted Investments </li></ul><ul><ul><li>Provexis – 3p, value £12.5m, £2.1m refinancing March 2007 </li></ul></ul><ul><ul><li>Plant Impact – listed October 2006 at 38p now 50p, value £11.7m </li></ul></ul><ul><li>Trade Sales </li></ul><ul><ul><li>Next Device – 2.1 x cash plus uncapped earn out 84% IRR </li></ul></ul><ul><ul><li>SpiraTech – 1.2 x cash (£2.1 million potential) > 30% IRR </li></ul></ul><ul><li>Series A Fundings </li></ul><ul><ul><li>Blue Prism £1m Endeavour / MSIF </li></ul></ul><ul><ul><li>Femeda £1.4m Acceleris / NStar / Trapezia </li></ul></ul><ul><ul><li>Acal £1.6m Carbon Trust / Synergis </li></ul></ul>
  14. 14. <ul><li>Develops natural and non-toxic products to improve plant healthcare </li></ul><ul><li>£30k initial deal in 2003 followed by tranches, then merged with trading business in 2005 </li></ul><ul><li>Built team </li></ul><ul><ul><li>added Chairman, FD and NXD </li></ul></ul><ul><ul><li>RSGF board rep </li></ul></ul><ul><li>AIM flotation Q4 2006 </li></ul><ul><ul><li>valuation c. £9m at IPO </li></ul></ul><ul><ul><li>current market cap. c.£13m </li></ul></ul><ul><li>Total investment £870k </li></ul><ul><li>Return (current NAV) £2.44m </li></ul>“ Sustainable green agrichemistry” IP secured Licensing talks IPO Field trials Corp. restructure
  15. 15. RisingStars Growth Fund II <ul><li>Currently £13.75 million – looking to increase </li></ul><ul><li>Four deals completed to date - £326k invested, further £734k committed </li></ul><ul><ul><li>Yuuguu – software for screenshare applications </li></ul></ul><ul><ul><li>Integrated Hydrogen Solutions – technology for the new hydrogen economy – storage and release </li></ul></ul><ul><ul><li>Chromatide – chemical synthesis of large molecules </li></ul></ul><ul><ul><li>nCapsa – software for consumer electronics </li></ul></ul><ul><li>Expect to have completed a further ten deals by December 2008 </li></ul>
  16. 16. Edward French Investment Director
  17. 17. Early stage technology investment spread
  18. 18. Early stage technology investment spread
  19. 19. Femeda – starting point <ul><li>Opportunity identified for new “home treatment for female Urinary Inco.” </li></ul><ul><li>Disposable “slendertone for the pelvic floor” </li></ul><ul><li>Existing applicant “unsuitable for investment” </li></ul>Legacy Products
  20. 20. Femeda – now <ul><li>Introduced: Chairman, CEO, engineering and clinical leads </li></ul><ul><li>Helped in-licence technology from a UK university </li></ul><ul><li>£1.4m Series A completed </li></ul><ul><li>Approaches on route-to-market deals </li></ul>Alison Kibble, CEO
  21. 21. nCapsa – starting point <ul><li>Very strong technology founder </li></ul><ul><li>Great market opportunity </li></ul><ul><li>Software for improving the user-interface of consumer electronics </li></ul><ul><li>IP protection </li></ul>
  22. 22. nCapsa – now <ul><li>Recruited Chairman, NXD, FD (nearly CEO!) </li></ul><ul><li>First investment: testing route-to-market </li></ul><ul><li>Larger sum followed to build out product and engage with customers </li></ul><ul><li>Early partnership with Silicon vendor </li></ul><ul><li>MoU with STB manufacturer </li></ul><ul><li>Investor interest in £2m round </li></ul>
  23. 23. Yuuguu – starting point <ul><li>Good founding team </li></ul><ul><li>Pre-launch demonstrator </li></ul><ul><li>Massive opportunity - collaboration tools & esp. screensharing </li></ul><ul><li>Revenue model unclear </li></ul><ul><li>www.yuuguu.com </li></ul>
  24. 24. Yuuguu – now <ul><li>Introduced Chairman </li></ul><ul><li>3000 users, growing rapidly </li></ul><ul><li>First revenues from conference calls </li></ul><ul><li>Interest from various VC’s in follow-on round (first term sheet in) (Webex sold for $4,300m!) </li></ul><ul><li>We introduced two new people to the team, and follow-on investors </li></ul>
  25. 25. Summary <ul><li>Wide range of sectors of interest </li></ul><ul><li>Typically pre-revenue investing </li></ul><ul><li>Massive opportunity is vital </li></ul><ul><li>Happy to help build the company </li></ul>
  26. 26. Paul Taberner Investment Director
  27. 27. The Coalfields Enterprise Fund investment team Paul Taberner Investment Director Wayne Thomas Investment Director Tina Ward Fund Administrator
  28. 28. Coalfields Enterprise Fund - overview <ul><li>£10 million fund managed on behalf of Department for Communities and Local Government (formerly Office of the Deputy Prime Minister) </li></ul><ul><li>New and existing SMEs located in or looking to relocate into the former English coalfield areas </li></ul><ul><li>Includes large proportion of Yorkshire </li></ul><ul><li>All stages considered, including pre-revenue and early stage </li></ul><ul><li>Most sectors considered, although some exclusions under State Aid rulings </li></ul><ul><li>Equity, mezzanine and loan funding of £40,000 to £500,000 with follow-on funding available </li></ul><ul><li>50% matched funding required </li></ul><ul><li>Can lead transactions and participate in larger syndicate packages </li></ul>
  29. 29. Coalfields Enterprise Fund - objectives <ul><li>To address the ‘equity gap’ in the former English coalfield areas </li></ul><ul><li>Provide investment to growing and sustainable businesses which have exhausted ‘traditional’ sources of debt finance </li></ul><ul><li>Leverage other lending/investment </li></ul><ul><li>Sustain economic development, regeneration and stimulate employment </li></ul><ul><li>Make a commercial return, thereby recycling the funds </li></ul><ul><li>To do so by taking an equity share in the business and adding value to the management </li></ul><ul><li>Not grants or ‘soft’ loans </li></ul>
  30. 30. Why approach the Coalfields Enterprise Fund? <ul><li>Dedicated fund for the coalfield areas of Yorkshire & Humberside </li></ul><ul><li>Investments targeted to support and encourage growth </li></ul><ul><li>Flexible funding packages </li></ul><ul><li>Added value through:- </li></ul><ul><ul><li>support and advice from EV </li></ul></ul><ul><ul><li>access to other coalfield regeneration and support programmes </li></ul></ul><ul><ul><li>access to wider business advice from and experience of EV </li></ul></ul><ul><li>Straight forward, no-nonsense and rapid application process </li></ul>
  31. 31. The Coalfields Enterprise Fund current portfolio <ul><li>Now comprises 14 businesses with a total of £3.9m invested or allocated to the portfolio </li></ul><ul><li>Leverage of 3.4 times monies invested - £13.3 million </li></ul><ul><li>Businesses based throughout England, with half the portfolio based in the Yorkshire region </li></ul><ul><li>Operating across many different sectors </li></ul><ul><li>Comprising start-up and early stage businesses (high risk) through to more mature and lower risk companies </li></ul><ul><li>Actively looking to expand the portfolio and very much “open for business” </li></ul>
  32. 32. <ul><li>Doncaster based </li></ul><ul><li>Design and manufacture nozzles used in global electronics industry </li></ul><ul><li>85% of product exported </li></ul><ul><li>CEF funding to support relocation to larger premises and investment in tooling to expand range of manufactured products </li></ul>METRO TECHNOLOGIES LIMITED
  33. 33. <ul><li>Sheffield based </li></ul><ul><li>Manufacture forged rings for aerospace, oil and power generation sectors </li></ul><ul><li>CEF funding facilitated management buyout from Gardner Aerospace Group </li></ul><ul><li>Invested alongside management and bank – total funding package circa £3 million </li></ul>TC WILD LIMITED
  34. 34. <ul><li>Sherburn in Elmet based </li></ul><ul><li>Design and manufacture sports equipment used in the education sector </li></ul><ul><li>CEF funding helped new owners buy a sleepy business destined to close </li></ul><ul><li>Looking to expand production and now selling direct to the educational sector </li></ul><ul><li>Also establishing direct web-based offering to grass root sports clubs </li></ul>PMF PRODUCTS LIMITED

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