1. Financing potentially high growth
Businesses-
Essentials
John Spindler CEO of Capital
Enterprise

2. Welcome
Agenda
Sources of funding
Going for growth- funding gaps
Equity Finance
Useful Links

3. Sources of Start-up/ Growth Finance
• Personal resources (time and money = sweat equity)
• Friends, Family & Fools ( Your Supporters)
• Customers and Suppliers
• Government Grants & Loans
• Corporate Sponsorship
• Debt Providers
– Banks
– Specialist lenders
• Equity Providers
– Private Investors-Angels
Matching the right mix of sources to the right stage and type of
finance is the key to successful fundraising

4. Hockey Stick Growth Curve

5. What do you need money for?
Type Amount Purpose Provider
Set-Up- Varies Get the business set-up- Founders ‘bootstrap’, - Sweat Capital, Family &
Pre-seed- before Up to £100k and trading. Friends, Personal Loans & Credit Cards.
trading Equipment, website, Over 95% of new businesses start-up on less than
accommodation, £10,000
marketing, salaries.
Research & Varies Proving of the Concept- Bootstrap- Finance whilst working elsewhere or as
Development Up to £0.5m. i.e. it works. consultant on commissions
Capital ( If doing Market testing Government Grants/ Tax Incentives e.g. TSB
something new Intellectual Property Open Innovation Collaborations with industry/ HEI
and innovative) Registration. Definitely not banks
Time
Working Capital Varies To fund cashflow cycle Customers & Suppliers
(once you have orders) Banks/ Factorers/ Invoice Discounters/ credit cards
Scaling up/ 200K- 2m Commercialisation of Private investors alone or in groups/ dedicated seed
Growth “proven” technology. funds, specialist VC’s alone or in syndicates.
Series A Roll out of growth plans Government Backed funds.
Investment VC’s only if more than £1m- below more likely
angels.

6. Scaling a Business
• Commissioned Model IP Business Model
• Service Product
• B2B vs B2C ?
• Grow a Commissioned based business need:
portfolio- brand recognition-sales funnel- high margins- unique talent- credit lines.
• IP Business model more scalable but need: Upfront
Investment- Legal Protection- Large Market- Distribution Chanel- Great Value
Proposition- Partners
• Business Model Growth Engine: Viral- Sticky- Channel
Explosion – (Life Time Value must significantly exceed Cost of Customer Acquisition)

7. Do I have a growth Business
Model?

8. Financing Growth
• Sales Spurt Extend Overdraft/ Factoring
• Expanding sales channels/funnel Loan
• Expanding capacity Loan
• Increasing efficiency/ margins. Loans/ Leasing
• Upfront/ Pre-Revenue Investment FFF/
Crowdfunding?
• Diversification/ “Pivot” business model Equity
Investment
Do you have a predictable business model?

9. Reasons Why Investors Invest.
The main reason why Angels invest in something is because they believe in the
entrepreneur. The following are the main factors they consider when making an
investment:
• Trustworthiness of the entrepreneur
• Expertise of the entrepreneur
• Enthusiasm of the entrepreneur
• Track record of the entrepreneur
• Independent Investors liked entrepreneur upon meeting
• Perceived rewards for the investors- 10X initial investment in 2-3 years
• Sales potential of the market- Must be large.
• Growth potential of the market
• Predictability of the Growth Engine.
• Quality of product
• Overall competitive protection of the product
• Potential exit routes (liquidity)
N.B. All Investors oscillate between fear & greed.

10. I still want Investment…..?
• Create a Growth Business Model
• Prove that it can work
• Write a business plan/ investor pitch
• Hire advisors/lawyers- Prepare Term Sheet.
• Meet Investors
• Prove it can work a bit more
• Pitch to investors
• Negotiate Terms & Condition
• YESSSSSSSSSSS- You now have an investor – your
hard work begins

11. What can we do to help?
• New Business Bootcamp (Tech/Lean/Fashion)
• Sign up to a bootcamp extra events
• Check out the 100 offers/ funding links
• Introduce you to an Angel Network
• Offer you a mentor
• Offer help developing a business plan
• Offer a professional business coach.

12. Looking for Funding
Information:
• Capital Enterprise What’s On in London- www.capitalenterprise.org/whats-on
• Business Link - www.businesslink.gov.uk
• Start- up Britain - http://www.startupbritain.org
• British Library- www.bl.uk/bipc
• HMRC Small Company Enterprise Centre- Source of advice and help
http://www.hmrc.gov.uk/manuals/vcmmanual/VCM10050.htm
• HMRC R& D Tax Credits www.ucl.ac.uk/advances/advances-news/hmrc
• HMRC Guide & Support- http://capitalenterprise.org/guide-to-rd-tax-credits
• British Business Angel Association: www.bbaa.org.uk
• British Venture Capital Association: www.bvca.co.uk/
• London Funding Conference: http://www.londonfundingconference.com/about-funding
• Guide to Early Stage Investment:
http://www.paloalto.co.uk/about_us/Early_Stage_Investment_by_Alan_Gleeson.pdf
• Design Council- http://www.designcouncil.org.uk/resources-and-events/Designers/Continued-
professional-development/Guides
And if you have not checked them out please look at the latest schedule of advice and training events at :
www.thebusinessbootcamp.org.

13. • Any area
• SME only
• Proof of market
• £25k @60%
• Proof of concept
• £100k @60%
• Prototype
development
• £250k @35-45%

14. Looking for funding?
Grants & Awards General
• J4B- Portal for grant finding http://www.j4b.co.uk
• Technology Strategy Board ( R&D Funding) - http://www.innovateuk.org -
http://www.innovateuk.org/content/competition/grant-for-rd-single-business.ashx
• London European Enterprise Network- http://www.een-london.co.uk
• E Funding for SME R&D - http://www.eurostars-eureka.eu/what.do
• EU Funding for R&D collaborations: http://ec.europa.eu/research/participants/portal/page/calls
• Knowledge Transfer Partnerships funding support- http://www.ktponline.org.uk/ktp-what-will-it-cost-
my-business
Translation/ Follow on research funds.
• www.rdfunding.org.uk/bulletin/queries/Search.asp?TheCloseMonth=July&TheYear=2011.
• http://www.rcuk.ac.uk/kei/ktportal/Pages/Followon.aspx
• https://ktn.innovateuk.org/web/145175/overview
• http://www.ahrc.ac.uk/FundingOpportunities/Pages/BrowseOpportunitiesOld.aspx
• http://www.ahrc.ac.uk/Pages/default.aspx
• http://www.theculturecapitalexchange.co.uk/

15. Looking for Funding?
Grants & Awards - Creative
• Arts Council- http://www.artscouncil.org.uk/funding/grants-arts
• London Councils- http://www.londoncouncils.gov.uk/services/grants/
• Fundraising Resources & News - http://www.fundraising.co.uk/news
• Foyles Foundation- http://www.foylefoundation.org.uk/main-grants-scheme-arts
• Welcome Trust- http://www.wellcome.ac.uk/Funding/Public-engagement/Funding-schemes/Arts-Awards/index.htm
• British Fashion Council- http://www.britishfashioncouncil.com
• Centre for Fashion Enterprise- http://www.fashion-enterprise.com/the-agency
• Shell Livewire -£1000 award for new entrepreneurs 16-30 - http://www.shell-livewire.org/news/awards2011
• UK Film Council- http://www.ukfilmcouncil.org.uk/whatwefund
• NESTA- http://www.nesta.org.uk/areas_of_work/creative_economy/digital_rnd
• British Council- http://www.britishcouncil.org/arts-performing-arts-funding.htm
Corporate Sponsorship
• http://artsandbusiness.org.uk/Media%20library/Files/Individual%20giving/09jul_taxguide.pdf
• http://www.companygiving.org.uk
• http://www.uksponsorship.com/arts1.htm
• http://resources.mediatrust.org/marketing-support/tactics/sponsorship/?gclid=CPjHwre-t6kCFcod4Qodo3-o-A

16. Looking for funding?
Equity Finance
• NESTA - www.nesta.org.uk/investments
• British Business Angel Association- www.bbaa.org.uk
• Capital 4 Enterprise- http://www.capitalforenterprise.gov.uk/portfolio
• London Business Angels: http://www.lbangels.co.uk
• London Seed Capital - http://www.londonseedcapital.com/
• Oxford Early Investments- http://www.oxei.co.uk/about.php
• Envestors- www.envestors.co.uk
• Fashion Angels- http://www.fashion-angel.co.uk
• Theatre Angels- http://www.solt.co.uk/angels.html
• Paste & Wait Investment (USA only) www.kickstarter.com
• Paste & Wait Investment. www.indiegogo.com
• Paste & Wait: www.peoplefund.it
• Paste & Wait: http://www.pleasefund.us/help/about-us
• Paste & Wait: http://www.wefund.com
• Crowd funding: http://www.pozible.com
• Crowd Funding : http://www.crowdfunder.co.uk
• Crowdfunding: http://www.crowdcube.com
Early Stage VC
• Amadeus- http://www.amadeuscapital.com/about-seed.php
• Balderton- http://www.balderton.com
• CAIN- http://www.cainuk.com
• DfJ Esprit - http://www.dfjesprit.com
• Doughty Hanson- http://www.doughtyhanson.com/technology-ventures.aspx
• Early Bird Ventures- http://www.earlybird.com
• Index Ventures- http://www.indexventures.com
• Octopus- www.octopusventures.com
• Anthemis ( Finance & Technology): http://www.anthemis.com
• London Technology Fund: www.londontechnologyfund.com

17. Looking for funding?
Debt Funding Initiatives
• Enterprise Finance Guarantee ( Government underwriting UK banks business loans-
http://www.rbs.co.uk/business/borrowing/g1/firms.ashx
• CDFA ( Soft Loans from Community Banks- http://www.cdfa.org.uk
• Manufacturing Funding- http://www.rbs.co.uk/business/borrowing/g1/manufacturingfund.ashx
• Examples of New types of funding:
• http://www.marketinvoice.com
• http://www.fundingcircle.com
• http://www.thincats.com
• http://www.firstfunding.org
Incubators ( Discounted accommodation & support)
• Camden Collective ( Creative) - http://camdencollective.co.uk
• Hatton Garden Jewellery Centre- http://www.centa.co.uk/hattonjc.html
• Fashion - http://www.fashion.arts.ac.uk/business
• CEME ( Science & Engineering) - http://www.ceme.co.uk
• Innovation Warehouse- http://www.theiw.org
• Design/Media- Ravensbourne- http://www.rave.ac.uk/pdf/ravensbourne_wearethefuture.pdf
• Dreamstake- http://www.dreamstake.net

18. Contact us for more information or to arrange a
follow up meeting
john@capitalenterprise.org
020 7 679 4598
07968 470901