On Thursday 22nd March, 50+ investors and members of the investment ecosystem in the West of England gathered for the inaugural Quarterly Investment Briefing sponsored by Smith & Williamson, KPMG and TLT Solicitors. The event also saw the launch of the Bristol Angel Hub at Engine Shed.

1. Quarterly
Investment
Briefing
Thursday 22nd March
@EngineShed_BB
#QIBriefing
Wifi: EngineShed
Pw: ESOnTour

2. Agenda
16:20 - 16:30 Silicon Valley Bank - global investment insights
16:30 - 16:40 Invest Bristol and Bath - Opportunities and trends in
the West of England
16:40 - 16:50 UKBAA – Local investment & announcement of Angel Hub
16:50 - 17:30 Panel Discussion: Exploring angel investment in the
West of England
17:30 - 18:30 Networking and drinks

3. Nick Sturge
Director
@EngineShed_BB

4. Dom Honmong
& Ben Tickler
@SVB_UK

5. Venture Funding
Trends
& Insights
Silicon Valley Bank
March 2018

6. 6
SVB Financial Group overview
Where innovation can be found
Global LocationsFinancial highlights
At End Q4 2017
Investment Grade Ratings MOODY’S S&P DBRS
SVB FINANCIAL GROUP A3 BBB A (low)
SILICON VALLEY BANK A3 BBB+ A
OUTLOOK Stable Stable Stable
SVB Financial
Group’s Offices
SVB Financial
Group’s Coverage
SVB Financial Group’s
International Banking Network
$51.2bn
$23.1bn
$44.3B
Assets
Loans
Deposits
US
UK and
Ireland
Israel China
Commercial Banking Industry Expertise Networking & Events Key Connections Sector Insights Tailored Solutions

7. Early Growth Late Stage / PublicStartup
Venture Capital
Venture Debt
Corporate VC
Cashflow loan
Family & Friends
Angels
Accelerators
University R&D
Private Equity
Crowdfunding
Hedge Funds
Life cycle & funding options

8. Source: Pitchbook
UK VC Investment in tech
215
183
199
234
188 194 193 194
221
206
181
141
$0M
$100M
$200M
$300M
$400M
$500M
$600M
$700M
$800M
$900M
$1.0B
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016 2017
Total Capital Invested Deal Count
Investments $0.5m – $30m in 2015 – 2017

9. 13
26
12
8
2
South West funding into Tech = $300m
Investments $0.5m - $30m into Tech in 2015 – 2017
61investments
< $1mn
$1-5mn
$5-10mn
$10-25mn Bristol
28 deals
$177mn
$25mn+
Source: Pitchbook

10. Dublin
119 investments
$434mn
Bristol
28 investments
$177mn
Manchester
17 investments
$84mn
4
7
Edinburgh
56 investments
$104mn
Cambridge
73 investments
$358mn
Oxford
29 investments
$114mn
VC Funding into Tech across UK
Bristol = ranked #3 outside of
London (2015 – 2017)
Investments $0.5m - $30m into Tech in 2015 – 2017
Source: Pitchbook

11. $10m–$30m
$5m–$10m
$1m–$5m
< $1m
44%
31%
16%
9%
34%
24%
20%
12%
Continental EU
investors
US Investors were involved in 6 of the 10
largest UK Tech deals 2016–2017
Larger deals saw mainly US
investors (44% of deals $10m–
$30m had US investors,
whereas only 34% in this deal
size had EU investors)
Fewer US and EU
investors in smaller UK
rounds
Round size
Source: Pitchbook

12. UK EU
2017 SVB Corporate Advanced Template Footer 12
Most active VCs……
US

13. 13
SVB state of the market report - 2018
With abundance of capital, late stage valuations will climb higher with
steady capital investment
Market conditions + early filings signal strong year for IPOS
Increasing foreign sources of capital. Predicting another $30bn+ year
Life stage Prediction
Early Stage Deal count to remain flat…………but uptick in capital committed per deal.
Late Stage With an abundance of capital, late stage valuations will climb higher with
steady capital investment
Exits Market conditions + early filings signal a strong year for IPOS
Fundraising Increasing foreign sources of capital. Predicting a 5th straight $30bn+ year
Corporates Earnings growth being seen across industries and geographies. Expect strong
CVC involvement

14. 2018 – Hot sectors
Fintech
ICOs
AI + Blockchain
B2B, SAAS
Deeptech
Cybersecurity

15. Silicon Valley Bank is registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK under No.
FC029579. Silicon Valley Bank is authorised and regulated by the California Department of Business Oversight and the United
States Federal Reserve Bank; authorised by the Prudential Regulation Authority with number 577295; and subject to regulation by
the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our
regulation by the Prudential Regulation Authority are available from us on request. Silicon Valley Bank is a subsidiary of SVB
Financial Group, a Delaware corporation and is an affiliate of SVB Financial Group UK Limited. SVB Financial Group UK Ltd is
registered in England and Wales at Alphabeta, 14-18 Finsbury Square, London EC2A 1BR, UK under No. 5572575 and is
authorised and regulated by the Financial Conduct Authority, with reference number 446159. SVB Financial Group and its
subsidiary Silicon Valley Bank are members of the Federal Reserve System and Silicon Valley Bank is a member of the FDIC.
Contact:
Dominic Honmong dhonmong@svb.com
Ben Tickler bticker@svb.com
Silicon Valley Bank UK Branch
Alphabeta, 14-18 Finsbury Square, London EC2A 1BR
T +44 (0)20 7367 7800
F +44 (0)20 7600 9556
www.svb.com/uk
@SVB_UK

16. Mark Leaver
Digital Sector Lead
@InvestBrisBath

27. Jenny Tooth OBE
UK Business Angels Association
@UKBAngels

28. 28
About the early-stage investment
ecosystem
A N O V E R V I E W
KEY DEVELOPMENT AT POLICY AN
PRACTICAL LEVEL
W H AT A R E L AT E S T T R E N D S W H AT N E X T F O R
A N G E L I N V E S T I N G
The Angel Investment Landscape in 2018
Jenny Tooth OBE, Chief Executive
UK Business Angels Association
Engine Shed, Bristol, 22nd March 2018

29. 29
WE ARE THE TRADE BODY
FOR EARLY-STAGE INVESTING
W e s t r i v e t o b u i l d , c o n n e c t a n d e d u c a t e t h e i n v e s t m e n t e c o s y s t e m t o e n s u r e a c o h e r e n t l a n d s c a p e f o r
f i n a n c i n g
h i g h - g r o w t h e n t r e p r e n e u r s .
UKBAA creates opportunities for all
members of the angel and early-stage
community to build new relationships and
share their knowledge and experience.
C O N N E C T I N G
UKBAA champions the views and
interests of our industry to government,
key opinion formers, business leaders
and the public at national and
international level .
R E P R E S E N T I N G
UKBAA provide education, training and
guidance to communities of investors
and entrepreneurs across the UK,
setting the industry standard on best
practice.
R A I S I N G S TA N D A R D S

30. 30
£1.88bn invested in EIS 2016
in 3,470 businesses (HMRC)
£ 302m invested in VC in 50
businesses in 2016 (BVCA stats)
The Private Investment Market in UK
S I Z E A N D S H A P E O F

31. 31
Over 70% investment by Business
Angels in London and South
31
Source: UKBAA-BBB research Spotlight on Angel Investing 2017-18 IFF
58%
33%
15%
12%
12%
8%
8%
6%
5%
5%
5%
5%
12%
London
South East
Scotland
South West
East of England
West Midlands
North West
Northern Ireland
East Midlands
Yorkshire
North East
Wales
Outside the UK
Only 12% of angel
investments in
South West

32. 32
Investment through syndicates
32
Source : UKBAA--British Business Bank Research 2017
Around four fifths of Business Angels invested through a syndicate in 2016.
20%
21%
17%
25%
9%
6%
0
1
2
3-5
6-10
More than 10
Syndicate investments
Of those who invested as part of a syndicate
were lead investors for 1 or more investments
Being a lead investor was more common
amongst those with:
Higher value of 2016
investments
Higher number of investments
held in total
£
31%

33. 33
83% of Angels
used EIS
Importance of EIS/SEIS tax breaks for angel investors
33
High proportions of angels used EIS/SEIS for investment in 2016;
particularly for higher value investments
Source: UKBAA-BBB Research 2017
£ 87% of Angels who
invested in 2016 used EIS
or SEIS
42% of Angels
used SEIS
£
Mean: 3.8
Median: 2
Mean: 2.1
Median: 1
Number of 2016 scheme investments per Angel:

34. 34
41% of Angels invested more in 2016 than 2015
34
Mean
Initial
investment
£75,511
Follow-on
investment
£40,457
Total value £114,886
Value of investments 2016
Invested more
Invested less
Volume (in £) of 2016 investments
compared to previous year
26%
Invested
the same31%
41%

35. 35
Expectations regarding portfolio performance
35
For most (69%) the performance of their portfolio was in line with, or above
their expectations
Performance of portfolio against expectations
16%
53%
19%
12%
Exceeding Meeting Underperforming Don't know
Reasons for underperformance Reasons for exceeding expectations
“Poor management”
“Start-ups always take longer
and need more money than
they think”
“Its brand new, the companies
are pre-revenue and will be a
while before they start to
perform”
“State of the economy, e.g.
uncertainty”
“The individuals have Integrity,
vision, commitment”
“I have become more
experienced I am better at
picking things that will have a
greater of chance of success”
“Element of luck”
“We are very hands on”
Source : UKBAA--British Business Bank Research 2017

36. 36
Located in the
West of England.
West of England Regional Investment Landscape
These slides endeavour to highlight the most active investors and investment
vehicles in the region of the West of England as at March 2018.
If you would like to suggest an addition or amend, please contact Briony.Phillips@engine-shed.co.uk

37. 37
EQUITY
(funds & brokerage)
CORPORATE
FINANCE
(inc. M&A)
DEBT, LOANS,
GRANTS
FUNDS CROWD
FUNDING
SOCIAL IMPACT
SEED GROWTH
Based in region • Bristol Private
Equity Club
• Cool Ventures
• Clifton Dragons*
• Angels4angels
• Wyvern Seed
Fund (UoB)*
• Deepbridge
Syndicate**
• Maven Capital
Partners
• Horatio Investments
• Tech Venture Partners
• BGF
• BGF Ventures
• Deepbridge Capital
• Catalyst Venture
Partners
• Momentum
Corporate Finance
• Shaw & Co.
• Bristol York
• Bishop Fleming
• FRP Advisory
• ISCA Ventures
• Alternative
Business Funding
• SWIG Finance
• Innovation 4
Growth
• RBS/Natwest
• Barclays
• Lloyds
• Santander
• HSBC
• Parkwalk University
of Bristol Fund
• SWIG Regional
Growth Fund
• Bristol City Fund **
• ADV Regional Fund
**
• Fundsurfer
• Hyperstarter
• Social Enterprise &
Innovation Support
Programme
• Seedbed Enterprise
• Resonance SITR
• Bristol + Bath
Regional Capital
• Quartet
Community
Foundation
• Fredericks
Foundation
From outside
region
(this list highlights
those that are
most visible, it is
not
comprehensive)
• Surrey100
• Dorset Business
Angels
• Oxford
Investment
Opportunity
Network
• AngelCoFund
• ADV – Accelerated
Digital Ventures
• Beringea
• Downing Ventures
• Episode 1
• IP Group
• Octopus
• Notion Capital
• Frog Capital
• Eden Ventures
• Alpina Partners
• Beer & Young
• Acuity Advisers
• KPMG
• Smith and
Williamson
• Silicon Valley Bank
• Clydesdale Bank
• Funding Circle
• Venture Founders
• Seedrs
• AngelList
• Zopa
• Crowdfinders
• Syndicate Room
• Growth Deck
• Invesdor
• Crowdfunder
• Crowdcube
• Bethnal Green
Ventures
• Nominet Trust
• Geovation
Challenge
KEY: * Not currently active | ** Not yet launched

38. 38
NEW GOVERNMENT SUPPORT
FOR ANGEL INVESTING
• Investors can access further £1m pa for investing in Knowledge
Based Businesses ( in addition to existing £1m)
• Additional £5m lifetime limit (in addition to existing £10m)
• Enabling angel investors to support Innovating businesses to
successfully scale
• New Opportunities for KIB Businesses to access 50% increased
level of EIS annually
Enhanced EIS for investing in
Knowledge Intensive Businesses

39. 39
Creating a focal point for
collaboration; access to deal-
flow and education
A n g e l s H u b s -
b u i l d i n g c o n n e c t i v i t y
E - l e a r n i n g B u i l d i n g
A w a r e n e s s a n d k n o w l e d g e
New BBB Funds for regional
angel clusters; Enhanced EIS
funds for KIBs
G o v e r n m e n t I n i t i a t i v e s t o
b u i l d A n g e l I n v e s t i n g
Building awareness and skills
for being an effective angel
investor
BUILDING THE REGIONAL ANGEL ECOSYSTEM

40. 40
Angel Hubs:
Connecting and
Building the Angel
ecosystem

41. 41
REGIONAL FOCAL POINT FOR INVESTORS
O U R H U B S C R E A T E A
A s w e l l a s f r e e c o - w o r k i n g , h o t d e s k i n g a n d m e e t i n g s p a c e , a n A n g e l H u b o f f e r s o p p o r t u n i t i e s f o r
n e t w o r k i n g a n d s h a r i n g a m o n g s t o t h e r i n v e s t o r s , t r a i n i n g w o r k s h o p s f o r n e w a n d w o u l d - b e i n v e s t o r s ,
p l u s a c c e s s t o m a r k e t i n t e l l i g e n c e a n d l o c a l e n t r e p r e n e u r s .
Hotdesking and touchdown
space for investors
W O R K S PA C E
Form new groups, learn
from your peers and build
your co-investment network
M E E T I N V E S T O R S
Access a year-round
programme of education
workshops and courses for
investors
E D U C AT I O N
Attend pitching events
which showcase the best
the region has to offer.
D E A L F L O W

42. 42
ESTABLISHED FOUR ANGEL HUBS SO FAR
WITH MORE PLANNED FOR 2018
W E H A V E A L R E A D Y
W e ’ r e r o l l i n g o u t o u r h u b s r i g h t a c r o s s t h e U K w i t h f i v e f u r t h e r h u b s p l a n n e d f o r 2 0 1 8

43. 43
 Ongoing programme of Events for Investors
 Workshops for new or inexperienced investors
 Market Intelligence and access to expertise
 Pitching/showcasing events
 Connect with the wider UKBAA community
 Take advantage of other UKBAA Angel Hubs

44. 44
ANGEL
INVESTING
BUILDING THE
SCALE-UPS OF
TOMORROW
For more information
See www.ukbaa.org.uk

45. Jenny Tooth OBE
@UKBAngels
Chief Executive, UK Business Angels Association
Jerry Barnes #BPEC
Founding Member, Bristol Private Equity Club
Roger Wilkins @cool_ventures
Director, Cool Ventures Ltd.
Fuchsia Curry @FC_Deepbridge
Syndicate Manager at Deepbridge Syndicate

46. Briony Phillips
Scale-up Enabler
@Brionyphi1

47. QIB Guiding Principles
Those who attend the Quarterly Investment Briefing share
three common principles:
• Whoever attends is an active or potentially active investor, or
manager of investors – or enabler of investment activity.
• Whatever is presented is informative, fact-based and regionally
relevant.
• We value the opportunity to learn equally with the
opportunity to share.

48. EQUITY
(funds & brokerage)
CORPORATE
FINANCE
(inc. M&A)
DEBT, LOANS,
GRANTS
FUNDS CROWD
FUNDING
SOCIAL
IMPACT
SEED GROWTH
Based in
region
•Bristol Private
Equity Club
•Cool Ventures
•Clifton Dragons*
•Angels4angels
•Wyvern Seed
Fund (UoB)*
•Deepbridge
Syndicate**
•Maven Capital
Partners
•Horatio
Investments
•Tech Venture
Partners
•BGF
•BGF Ventures
•Deepbridge Capital
•Catalyst Venture
Partners
•Momentum
Corporate
Finance
•Shaw & Co.
•Bristol York
•Bishop Fleming
•FRP Advisory
•ISCA Ventures
•Smith &
Williamson
•Alternative
Business
Funding
•SWIG Finance
•Innovation 4
Growth
•RBS/Natwest
•Barclays
•Lloyds
•Santander
•HSBC
•Parkwalk
University of
Bristol Fund
•SWIG Regional
Growth Fund
•Bristol City Fund
**
•ADV Regional
Fund **
•Fundsurfer
•Hyperstarter
•Social Enterprise
& Innovation
Support
Programme
•Seedbed
Enterprise
•Resonance SITR
•Bristol + Bath
Regional Capital
•Quartet
Community
Foundation
•Fredericks
Foundation
From
outside
region
(this list
highlights those
that are most
visible, it is not
comprehensive)
•Surrey100
•Dorset Business
Angels
•Oxford
Investment
Opportunity
Network
•AngelCoFund
•ADV – Accelerated
Digital Ventures
•Beringea
•Downing Ventures
•Episode 1
•IP Group
•Octopus
•Notion Capital
•Frog Capital
•Alpina Partners
•Beer & Young
•Acuity Advisers
•KPMG
•Smith and
Williamson
•Silicon Valley
Bank
•Clydesdale Bank
•Funding Circle
•Venture
Founders
•Seedrs
•AngelList
•Zopa
•Crowdfinders
•Syndicate Room
•Growth Deck
•Invesdor
•Crowdfunder
•Crowdcube
•Bethnal Green
Ventures
•Nominet Trust
•Geovation
Challenge
KEY: * Not currently active | ** Not yet launched

49. Equity
Seed
Growth
Corporate
Finance
West of England
Investment
Landscape
Debt, loans,
grants
Funds
Crowd
funding
Corporate
Finance

50. Identifies 245 ‘scale-up businesses’
in the West of England

51. Five ‘triggers’ for inclusion
Secured
equity
investment
1
Secured
venture debt
2
Completed
management
buyout/in
3
Participated
in selected
accelerator
programmes
4
Has been or
is a scale-up
5

52. Stage of Evolution
• 109 Seed stage
• 52 Venture
• 41 Growth
• 7 Zombie
• 8 Exited
• 28 Dead

53. Sectors

54. Fundraisings

55. YellowDog
Processing power
Inclusive Media
EasyVideo app
Seadog Productions
Filming underwater
BCRM
Fertility clinic & products
Ammique
Bed manufacture
3Radical
Customer engagement app
Bookbarn International
Secondhand books
MoveGB
Gym memberships
CodyCommerce
Web-based software
Pertinax Pharma
Antibacterial/antiviral agent
Pieminister
Restaurant chain
Funnel Music
Musician management
Raised successfully in Q1 2018

56. Raising Q2 2018 – an open call
GoodSixty*
£150k Online grocery
marketplace.
Synseer
£1.3m - Enterprise decision
making SaaS platform.
Hedge
£200k SEIS - Savings and
sustainable impact service.
Sorbet
£500k - SaaS enabled
marketplace for lettings
agents.
DisruptSports
Ondemand
manufacturing of sports
equipment.
Tickitto
£100k SEIS - AI event
recommendation Chatbot.
Studio Meineck
£200k SEIS/EIS - Design
studio & dementia
product.
Perceptual
Robotics
£250k - Intelligent robotics
in industry.
LUX
£150k AngelsDen SEIS/EIS
"Air Miles" of the
restaurant world.
UPROAR
£250k - Natural grooming
and skincare brand for men.
Tisc Report
£500k SEIS/EIS –
Transparency in supply
chains register.
TravelLocal*
Tailor-made holiday
bookings.
Landmrk*
Branded Mixed Reality
Campaigns.
Industrial
Phycology
£1.2m - Sustainable,
chemical free wastewater
treatment solutions.
FundSurfer
£500k – fundraising platform.

57. What next?
1. Pick up one page summaries
2. Read the Quarterly Investment in Brief (newsletter)
1. PwC Investor Showcase - SCALE SW - 29/3
2. Introduction to Angel Investing 26/4
3. Join The Bristol Angel Hub
4. Engine Shed Investor Dinner. Ticket price £1m+ 3/5

58. Quarterly
Investment
Briefing
For your diary: Thursday 28 June 16:00
@EngineShed_BB
#QIBriefing
Wifi: EngineShed
Pw: ESOnTour