options4 finance robin jackson
Post on 19-Oct-2014
196 views
DESCRIPTION
Researcher to Innovator SETsquared programme at Exeter Innovation Centre 22nd November 2013TRANSCRIPT
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2013 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Options 4 Finance
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2013 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Agenda
⢠Intros
â Robin Jackson, Director, Innovation Centre
â Ben de Cruz, Partner HWCA
⢠Housekeeping
⢠Aims
â Information to be best placed to secure finance when needed
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2013 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Who are you?
⢠Start-up
â Track record
â Industry Knowledge
â Market acceptance
⢠Growth
â New or Existing Markets
â Current performance
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2013 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
How Much?
⢠Know how much you need
⢠Know what you are going to use it for
⢠Prepare a Business Plan
⢠Prepare financial forecasts
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2013 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Your Investment?
⢠Risk â How much are you taking?
â You need to be âall inâ
⢠Personal Investment
â If youâve got it, use it
⢠Sweat Equity
â Difficult to assign value to
⢠Accounting to record personal investment
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2009 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
External Funding
⢠Donât do it!
â Bootstrap
â Find your first customer
â Build Value
⢠Cash is King
⢠Accounting for profitability
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2009 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Horses for Courses
⢠Know what you want the money for
â Differentiate between âstart up costsâ and âworking capitalâ
â Very clear in business plan
⢠Know what type of finance suits your needs
â Target the appropriate source
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2009 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
The 3 Fs
⢠Friends, Family & Fools!
⢠Loan or investment
⢠Carries a Social Risk
⢠Always use contracts â not just handshakes!
⢠Structuring family loans
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2013 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Grants
⢠Not always as good as they sound!
â Almost always matched
â Often lengthy applications
⢠Technology Strategy Board products
â Smart Awards
â Innovation Vouchers
⢠UKTI for export support
⢠Regional variations
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2009 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Loans
⢠Must be repaid!
⢠Start-up Loans
â 18 â 30, average ~ ÂŁ2.5K
⢠Funding Circle
â Crowd-sourced business loans
⢠Personal Loans or Credit cards - expensive
⢠Borrowing with confidence
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2009 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Banks
⢠Donât ignore them!
⢠Does your bank understand your business?
â Talk regularly to your bank contact
⢠Do you understand your bankâs business?
â How do they de-risk their business?
â How are their products designed to be used?
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2013Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Bank Products I
⢠Overdraft
â Liked by businesses, less so by banks
â Used to deal with cash flow variations, not purchases
⢠Invoice Financing
â Confidential
â Grows with the business
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2013Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Bank Products II
⢠Loan
â Secured
â Enable growth, rather than start-up
⢠Enterprise Finance Guarantee
â Developed to support loans where security is not available
â Same requirements as a loan
â Higher interest
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2013 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Bank Products III
⢠Asset Finance
â Suitable for Plant, IT etc
â Better fit than normal loan
⢠Mezzanine
â High Growth Capital loan
â Finance for 3 â 7 years, no equity
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2009 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Private Equity
⢠Investors require an exit â 3- 5 years, 5x
⢠Looking for something unique⢠You are placing a value on your business
â The more you achieve before investment, the higher the value
â Demonstrate increasing value
⢠Understand the rights of shareholders and what you are giving away
⢠Valuing your business
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2013 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Crowd Funding
⢠Project or Equity
⢠Crowdcube â up to ÂŁ150K or ÂŁ250 in special circumstances
⢠Not a shortcutâ Same requirements as any other source
⢠Get the ball rollingâ Promote your pitch
⢠People still invest in people â even online
⢠Forecasting high growth
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2013 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Angels
⢠An individual
⢠Offer experience as well as funds
â Sometimes want NED role
⢠Rarely a quick process
⢠Requires negotiation
⢠Consider phased draw downs
⢠Preparing for Due Diligence
The Innovation Centre, University of Exeter, Exeter EX4 4RN
[email protected] - 01392 262300
Š 2013 Peninsula Innovations Ltd All Rights Reserved, Peninsula Innovations Ltd.
Registered in England under No 06022710
Venture Capital
⢠A business
⢠> £1M
⢠Larger scale
⢠Board involvement
⢠Very High Growth