4iP Investment Workshop Ed Finance Yorkshire

539 views

Published on

Published in: Economy & Finance, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
539
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
5
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

4iP Investment Workshop Ed Finance Yorkshire

  1. 1. The Regional Landscape: Seedcorn Funding www.finance-yorkshire.com
  2. 2. Agenda <ul><li>Seedcorn Finance generally </li></ul><ul><li>FY Seedcorn Fund </li></ul><ul><li>Other Seedcorn Funding sources </li></ul>www.finance-yorkshire.com
  3. 3. Seedcorn Funding <ul><li>Our definition: </li></ul><ul><ul><li>LSE: “The financing of the development of a business concept. High risk; usually provided by venture capitalists, entrepreneurs or business angels..” </li></ul></ul><ul><li>Characteristics </li></ul><ul><ul><li>Highest risk class of investment </li></ul></ul><ul><ul><li>Possibility of great returns </li></ul></ul><ul><ul><li>Massive and constant change required </li></ul></ul>www.finance-yorkshire.com
  4. 4. Finance Yorkshire Three new funds... <ul><li>Seedcorn Finance (up to £780k) £15m </li></ul><ul><li>Business Loans (£15k – 150k) £27m </li></ul><ul><li>Equity Linked Finance (£100k - £2m) £48m </li></ul>www.finance-yorkshire.com
  5. 5. Seedcorn Finance Objectives www.finance-yorkshire.com <ul><li>Yorkshire potential </li></ul><ul><li>Impact of “Beacon Companies” </li></ul><ul><li>Challenge- 10-15 Potential Beacon Companies </li></ul><ul><li>Importance of Legacy </li></ul>
  6. 6. Seedcorn Finance Investment Characteristics www.finance-yorkshire.com <ul><li>Some investments start with £50k-£780k </li></ul><ul><ul><li>Usually spread over tranches/rounds </li></ul></ul><ul><li>Investments of £2m+ when syndicating with other funds </li></ul><ul><li>Fast (3.5 yr fund) </li></ul><ul><ul><li>Self sustainable companies in 2-3 yrs </li></ul></ul><ul><ul><li>Exit in 3-5 yrs </li></ul></ul>
  7. 7. Seedcorn Finance Target investments www.finance-yorkshire.com <ul><li>Pre-revenue or early-revenue </li></ul><ul><li>“ Huge” market opportunity </li></ul><ul><li>Competitor barriers at exit </li></ul><ul><ul><li>Patents, Data lock-in, Approvals etc. </li></ul></ul><ul><li>Management open to “change and growth” </li></ul>
  8. 8. Seedcorn Finance What it isn’t... www.finance-yorkshire.com <ul><li>Not grant money- investment for financial return </li></ul><ul><li>Not easy to get- (best 1-2%) </li></ul><ul><li>Not project finance- companies must be “exitable” </li></ul><ul><li>Not sales roll-out funding- other funds... </li></ul><ul><li>Not a bank loan </li></ul><ul><li>Not a purely financial transaction </li></ul><ul><li>Not a “content” fund... </li></ul>
  9. 9. Seedcorn Finance: Case Study www.finance-yorkshire.com <ul><li>Vidiactive Ltd </li></ul><ul><li>Universal web video viewer for TV’s </li></ul><ul><li>Portal/server system for content management and sharing </li></ul>
  10. 10. Seedcorn Finance: Case Study 2 www.finance-yorkshire.com <ul><li>Invested at prototype stage- universal web video viewer for TVs </li></ul><ul><li>£50k first investment to explore the opportunity </li></ul><ul><li>Helped recruit team (Chairman, CEO, CTO, etc.) </li></ul><ul><li>Invested from 2 funds- £1.4m total to date </li></ul><ul><li>Good progress- Intel, Orange, Vodafone, Cisco etc. </li></ul>
  11. 11. Seedcorn Finance Other funding sources: Direct www.finance-yorkshire.com <ul><li>You, Friends and Family </li></ul><ul><li>4IP , Nesta , Pembridge , Ingenious Media </li></ul><ul><li>Other VC’s (see www.bvca.co.uk ) </li></ul><ul><li>Grant for Research and Development </li></ul><ul><li>University-related Funding </li></ul><ul><li>Business Link innovation schemes </li></ul><ul><li>Banks (very very rarely without PG’s!) </li></ul><ul><li>Specialist content funds in NE and NW </li></ul>
  12. 12. Seedcorn Finance Other funding sources: Indirect www.finance-yorkshire.com <ul><li>Connect Yorkshire </li></ul><ul><li>Yorkshire Association of Business Angels </li></ul><ul><li>Business Link Access to Finance advisors </li></ul>
  13. 13. Summary www.finance-yorkshire.com <ul><li>Seedcorn Funding is hard (harder still for content plays) </li></ul><ul><li>FY Seedcorn fund is a first step for the region, but not a panacea </li></ul><ul><li>Lots of sources of help- allow plenty of time to raise money </li></ul>
  14. 14. Thank You www.finance-yorkshire.com Please contact [email_address] for more information

×