Slides from the GMV funding event in Brighton, 22 September

1. Funding for Innovation
for Creative and Cultural Enterprises
22 September 2015

2. Introduction
Sophia Woodley, Design Manager
Golant Media Ventures
#createinnovfund

3. Wireless and twitter
Wifi: 68 Middle Street
Password: thund3rstorm
Twitter:
• @golantmedia
• @68MiddleSt
• #createinnovfund

4. Agenda
11.00 Arrival, mingling, coffee and tea
11.30 Welcome – Sophia Woodley
11.40 The funding landscape - Patrick Towell
12.00 Growth Accelerator: Business growth and Access to Finance – Richard Cooper
12:30 Growth Accelerator: Growth Through Innovation – Roya Croudace
13.00 Lunch
1.40 R&D tax credits – Patrick Towell
1.55 Private finance - John Spindler (Capital List)
2.20 Creative KTN – Tom Campbell
2.40 European funding – Sophia Woodley
3.00 Tea break
3.15 Case Studies: Business Models – Patrick Towell, Sophia Woodley, Mandy Berry
3.35 Introduction to working session - Patrick Towell
3.40 Working session
4.20 Feedback from working session
4.30 Case study: Financing a media distribution platform – Cinegi - Mandy Berry
4.50 Summing up and thanks
5.00 Time for the pub!

5. Introduction
Patrick Towell, Chief Executive
Mandy Berry, Founder Director
Golant Media Ventures
#createinnovfund

6. Who we are
An innovation agency for creative, cultural and digital
sectors
• Coaching & mentoring • Training & development
• Advice & support • Commercial & public benefit
• Funding • Business models • Intellectual property
• Service & experience design • Data exploitation
• Organisational change • Content distribution
#createinnovfund

7. Who we work for, with, funded by
http://www.golantmediaventures.com/projects

8. Funding landscape
• UK & EU
• Public & private
• Equity, debt, crowd, P2P…
• Understand media/creative/entertainment or…
#createinnovfund

9. What innovation funding needs
• Compelling market opportunity
– Market dynamics, focus, segmentation
– Sizing, growth justification
– Competitor analysis and positioning
• Clear portfolio of products, services, content, experiences…
• Identifiable and defensible IP (and other intangibles)
• Business models
– Value proposition
– Revenue models, pricing, profitability
– Delivery models, partnering, costs
– Channel/distribution strategy
#createinnovfund

10. Richard Cooper and Roya Croudace
On behalf of GrowthAccelerator
Now part of the Business Growth Service
#createinnovfund

11. Introduction to the
Business Growth Service
Richard Cooper & Roya Croudace

12. What is the Business Growth Service?
Business Growth Service
Closely linked to:
To be eligible, all businesses must fit
the European Union definition of an
SME:
• Based in England
• Registered in the UK
• Fewer than 250 employees
• Turnover below £40M OR balance
sheet < £34M
The growth need of a business will
determine the Business Growth
Manager assigned to them on their
growth journey.

13. What does the Business Growth Service do?
We Identify growth barriers, provide a dedicated Business
Growth Manager and tailored support to those businesses
who have the right level of ambition, capability and capacity
to improve and grow.
This support includes coaching, consultancy, mentoring,
training, access to finance and export advice

14. Growth Accelerator

15. Business Development
• Stepping back to see the bigger picture and developing a
growth strategy which exploits opportunities for greater
business success
• Assessment of current direction vs. future vision
• Could involve :
• Business planning
• Strategic planning
• Improving performance and efficiencies
• Recruitment and people management

16. • Access to specialist finance support
for investment readiness
• Review and assistance with financial
performance.
• Assistance with funding options
including debt and/or equity funding
• Introduction to appropriate funders.
Access to GrowthAccelerator's
Investor Relations team.
Complemented by two tickets
Access to Finance

18. Introduction to Investor Relations
Investor Relations is a unique service available only to
Business Growth Service participants on the Access to
Finance stream.
Primarily work with coaches and companies towards the end of
their intervention and works on connections to funders.
A team of four based in London, but with national
responsibility.

19. Role of Investor Relations team
 Manage national relationships with funding providers, covering debt, equity and
grant funding
 Represent Business Growth Service in the external finance community and the
service's views on UK funding landscape
 Handle all Opportunity Note submissions and have a review and refine process
– act as objective sounding board
 Manage the weekly Review Group meetings
 Circulate deal flow to external finance providers and make requested
introductions
 Responsible for the GrowthShowcase platform

20. Our funding contacts
 Over 250 personal relationships with national funding providers

21. What do our funders think of us?
“The deals presented to me through the
Investor Relations team have proved to
be high quality, sufficiently investment
ready and extremely targeted to my
criteria…my best source of deal flow.”
– angel investor
“The pre-vetting and high
quality propositions presented
through Investor Relations
make it much easier for us to
say yes…it goes to the top of
the pile.” – EIS fund
“When I see a referral come
through from your team, I can
assume I am going to like it. If
you think it's one for us, chances
are we will do the deal.” –
Bank

22. Leadership and Management
• Up to £2000 match funding available for senior managers
to undertake leadership and management training
• Available for any training linked to the growth objectives of
the business
• Senior managers with strategic responsibility for the
direction of the business are eligible

23. Innovation

24. Pains or challenges?
...we are beginning to saturate
existing markets – we need to find
something new to continue to grow.
…don't see that the
organization needs to
change & adapt to
support & stimulate
innovation.
…our new products
are late to market &
suffer performance
problems.
…we’ve become a lot
more efficient but
we’re struggling to
come up new product
concepts & to
innovate.
…we’re too focused
on the day to day to
concentrate on
developing new
products.
…our people aren’t
capable of creating &
leading new product
concepts.
...we have a great
idea, but can’t
afford to do it.
…we’ve been growing
but we think our culture
is stifling further
innovation

25. Growth through Innovation
An innovation is the implementation of a new or significantly improved
product, service or process, a new marketing method, or a new
organizational method in business practices, workplace organisation or
external relations.
Organisation for Economic Co-operation & Development (OECD)

26. Growth through Innovation
• How to generate new ideas
• Understand customer needs
• Creating competitive products & services
• Collaboration & partnering for innovation
• Developing an innovative organisation
• Understand, protecting & exploiting IP
• Finding & winning grants for innovation

27. Growth through Innovation – New themes
• Innovation strategy
• Develop the right commercial model & route to market
• Managing innovation projects

28. Growth through Innovation - Framework

29. IP Audits

30. IP Audits – What does it cover ?
It’s a long list including:
1. Granted patents & pending patent applications
2. Registered trade marks & trade mark applications
3. Registered designs & design applications
4. Unregistered trade mark rights, including trading names and branding
5. Domain names
6. Potentially patentable inventions, registrable trade marks, registrable designs
7. Technical know-how
8. Other forms of confidential information, including trade secrets & other commercial information
9. Potential sources of copyright (e.g. databases, websites, promotional materials, product Information, internal
documentation)
10.IP-relevant contracts (e.g. licences, franchises, joint venture agreements, material transfer agreements)
11.Known or likely sources of other IP rights, e.g. database rights, plant variety rights

31. Growth through Innovation – IP Audits
• Integrate IP into business strategy
• Identify opportunities to use IP to generate income/value
• IP risk management
• Internal IP management strategies inc employee contracts etc.
• Audit delivered by an IP Professional
• Client contribution £400 (inc VAT)
• £2,600 (inc VAT) IPO grant towards £3,000 (inc VAT) Audit

32. Design Mentoring
Typical problems solved by the Design Mentoring (Design expert coaching
& Design Intensive) part of the service are around:
• Design Strategy
• Understanding the Users
• Developing Future Products & Services
• Developing a Competitive Brand
• Maximising Brand Visibility
• Consistent Brand Articulation
Plus workshops & masterclasses & a grant up to £3,150.

33. Logo Packaging Web
Retail ServiceProduct People
Advertising

34. Thank You
Richard Cooper & Roya Croudace
r.cooper@oxin.co.uk r.croudace@oxin.co.uk

35. Funding for Innovation
for Creative Enterprises
22 September 2015

36. Patrick Towell, Chief Executive
Golant Media Ventures
#createinnovfund

37. R&D tax credits
Have you ever…
• Solved complex technical or scientific challenges even
though at the beginning you weren’t certain how?
• Dealt with unexpected problems along the way?
• Spent more time and money on it than you intended?
• Needed to put in more effort and money to exploit what
you learnt and get a return on investment?
#createinnovfund

38. R&D tax credits
What do you need to do?
• Have activities that are liable to corporation tax
• Work out which costs you can legitimately claim – what
HMRC will consider ‘proper’ R&D
• Have your accountant submit each R&D tax claim as part of
an annual return
• Consider consulting lawyers if you have had other public
funds or aid, such as SEIS or Innovate UK funding.

39. Financing an
Ambitious Start-up
John Spindler CEO of Capital
Enterprise
43@capenterprise

40. …to start you need..
@capenterprise 44

41. No 1 source of Finance…
@capenterprise 45
Your Money, the money you can borrow, your
family and friends money…

42. Sound advice is…
Don’t Raise… …unless
• Can’t launch a product
into market without
external funds..
• Need to get big fast to
compete.
@capenterprise 46

43. “There is an opportunity gap when the
scope for growing income at a very fast
rate is limited for those who have too little
to invest , but expands dramatically for
those who can invest a bit more.”- i.e. to
win requires scale
Banjaree &Duflo- Poor Economics
@capenterprise 47
..only raise to
SCALE..

44. -20
-10
0
10
20
30
40
50
0 2 4 6 8 10 12 14 16
NetIncome
Period
Start-up Growth Pathway

45. … and the world is changing…

46. ..So a Start-up in want of
investment needs..
• Team, Tech & resources
that is FIT for the task of
creating an awesome
company
• Product that is the best
solution FIT for the target
customers problems.
• Business Model that is FIT
to be scaled.
• Smart Ass Team
• with a Kick Ass Product
• With a Business model that
can “capture” a Big Ass
Market
( Jeff Clavier 3 Ass-es rule)
+ Capital Efficient to create a
repeatable and scalable
business.
@capenterprise 50

47. Idea to Tech Business- Three
Chasms

48. @capenterprise 52
Idea
Problem/
Space
Exploratio
n
Design/
Prototyp
e
Beta Test
Adapt/
PivotX2
Launch
Bootstrap- FFF
Innovation Awards
Start-up Loans
Crowdfunding i.e.
Kickstarter
Seedrs/
CrowdcubeSEIS
Super
Angels/
Angel
Groups
Early Stage VC’s
Start-Up Funding road –
map
Pre-Accelerators
Hackathons/ Hatcheries/ Meet-
ups
Accelerators
Accelerators

49. Funding Product Development & BETA Testing
Grants & Awards General
• Technology Strategy Board ( R&D Funding) - http://www.innovateuk.org -
http://www.innovateuk.org/content/competition/grant-for-rd-single-business.ashx
• Knowledge Transfer Networks- www.innovateuk.org
• IC Tomorrow- https://connect.innovateuk.org/web/ictomorrow
• NESTA- http://www.nesta.org.uk/
• London European Enterprise Network- http://www.een-london.co.uk
• EU 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
• J4B- Portal for grant finding http://www.j4b.co.uk
@capenterprise 53

50. Crowdfunding (Reward)
Crowd funding Platforms-
Reward based Crowdfunding platforms will help
you to raise funding to build a proto-type and
market test a great idea or product. Great for
pre-selling cool tech hardware.
• www.kickstarter.com
• www.indiegogo.com
• www.hubbub.com
• www.crowdfunder.co.uk
• http://spacehive.com
• http://crowdshed.com
• https://www.banktothefuture.com
@capenterprise 54

51. Funding the Runway…?
• How much/ little money is
needed to build and test MVP/
demonstrate viability. ?
• Usually required to fund co-
founder “Ramen” salary
• Going to need a Budget,
Cashflow forecast and “burn
rate”
55@capenterprise

52. @capenterprise
Need less than £10K to get to Build and test MVP?
- Sources of Grants- www.j4b.co.uk
- Competition funding £1000 issued to 10+ businesses per month- http://www.shell-livewire.org
- Princes Trust http://www.princes-trust.org.uk/need_help/enterprise_programme.aspx
- £1000- £20,000 Enterprise Loans for Under 25’s- www.startuploanslondon.co.uk or www.startuploans.com
- New Enterprise Allowance Scheme – Check who delivers the scheme in London by e-mailing Capital Enterprise.
- Community Development Finance Associations- http://www.cdfa.org.uk - Also check out North London Community
Finance
- ELSBC Access to Finance – Business Plan support for those looking to raise up to £10K
• Soft loans for Creative Businesses- http://www.creativeindustryfinance.org.uk/
Need Less than
£10K to Launch a
business
No Funds
Grant-
www.j4b.co.uk
Unemployed?
New Enterprise
Allowance Scheme
Self Fund
Borrow
Write a simple
Business Plan & 12
month cashflow
Community
Development
Finance Institution
Start-Up Loan Bank
56

53. Accelerators In SE England
http://www.f6s.com/
https://capitallist.co

54. Investment Readiness Test
@capenterprise 58

55. Are you Investment Ready?
@capenterprise 59

56. @capenterprise 60
1
Idea
Stage
2
Commitmen
t Stage-
Secure Co-
Founders
3
FFF funding
round –Build &
Beta Test
Minimum
Viable Product
4
Seed Investment
Round (Angels +
Early VC’s)
- Prove Business
model & acquire
metrics to prove
scalability
5
Series A Round
(Angels, VC’s &
Strategic
Investors) – Go for
scale, build out
team, technology-
EXECUTE
6
Exit
(Average 7 years
and after many
rounds) – Trade
Sale or IPO
£££££££££££££
£
How Start-Up Funding Works
Why 100% of Nothing is worth Less than 10% of something
big

57. Investment Essentials
@capenterprise 61
Round Amount Purpose London Pre-Money
Valuation Guideline
Source of Investment What investors
like to see
Pre Seed £25K-£150K
(SEIS eligible)
Assemble Team/ Build & Test
MVP/ Proof of Concept R&D
Zero- £500K Own Money/ FFF/
Crowdfunding/ SEIS Funds/
TSB
Unfair Advantages
Seed £150-£350K BETA Test/ Launch into
Beachhead/ Proof of Product
Solution Fit
£500K-£1.5m Business Angels/
Crowdfunders/Seed VC's/
Co-Investment Funds
SMART Team- Early
Evidence of Product/
Solution Fit- Validating
customers/ users
Super Seed
(Bridging
round)
£500K- £1m Working Business
Model/Proof of Product/
Market Fit/ Demonstration of
Growth
£1.5M-£4m Super Angels/ Seed VC's Product Solution FIT
Proved- Early
Indications of Product-
Market Fit ( i.e.
revenues)
Series A £2m-£15M+ Scale £8m- £50m VC's/ Family offices and
Corporate Ventures
Revenues & METRICS
proving scalability.

58. Importance of Tax breaks
• EIS
• SEIS
• ECF’s
• Co-Investment Programmes
@capenterprise 62

59. @capenterprise
Seed Enterprise Investment Scheme-SEIS is a tax break launched in April
2012 for UK tax payers to encourage them to buy shares in start-up
companies registered in the UK
The Facts:
• SEIS investors can input £100,000 in a single tax year rising to a maximum £150,000
over two or more tax years in to a single company
• Investors cannot control the company receiving their capital
• Investors pick up 50% tax relief in the tax year the investment is made, regardless of
their marginal rate.
• In the 2013-14 tax year, tax payers can roll 50% of a chargeable gain in the tax year
in to a SEIS with a full capital gains tax exemption (another 14%)
• The business must be a start-up company -registered in the UK within 2 years of
claim.
• The company must not employ more than 25 workers.
• The company must have assets of less than £200,000.
• The company has to trade in an approved sector – generally not in finance or
investment, for example, a property company raise capital as a SEIS.
SEIS is…… “a game changer”?
63

60. Proof of Product-Solution Fit
@capenterprise 64
Does the
tech work/
product
deliver?
Does it
create
value for
the
customer?
Can You
Capture
some of
that Value?
£££
Product
Solution Fit

61. P/S Fit for Creative/ Content based
start-ups…
@capenterprise 65
Am I
talented?
Have I
achieved
“Critical”
acclaim?
Do I create
value for
my
customers?
Product
Solution Fit

62. Proof of Product-Market Fit
@capenterprise 66
• Team/
Resources/Plan
• Business Model
• Market• Technical
Does it
work
Does it
create
Value for
the
customer?
Is the Team
fit and able
to deliver
Can you
make
money/
repeat &
scale.

63. POC P/S Fit P/M Fit
SEIS LCI
F
VC
What stage is your
business at?
FF
Investors tend to invest
for transitions…

64. Capital List –
The Minimum Viable Introducer
“ Showcasing and connecting
Entrepreneurs to champions and
investors”
beta.capitallist.co
@capenterprise 68

65. Send a slide deck and get
introducedhttp://www.slideshare.net/slidesthatrock/how-to-pitch-a-vc-redesigned
69
Ten slides. Ten is the optimal number of slides in a PowerPoint
presentation because a normal human being cannot comprehend
more than ten concepts in a meeting—and business angels are very
normal. If you must use more than ten slides to explain your
business, you probably don’t have a business. The ten topics that an
investors cares about are:
1. Summary and call to action/ what do you want?
2. Problem
3. Your solution
4. Business model
5. Underlying magic/technology
6. Marketing and sales
7. Competition
8. Team
9. Projections and milestones
10. Status and timeline
@capenterprise
Send to :
magdalena@capitallist.co

66. 7 Types of Early Stage Investors in
SE England Market
1. Crowdfunders/ Platforms
2. Tax Relieve Seeking SEIS/EIS Funds
3. Government Backed ECF’s
4. Traditional Angel Syndicates
5. Super Angels
6. VC’s
7. Strategic Investors ( Corporate Venture)
@capenterprise 70

67. Seed/ Early stage Investment
Platforms
Crowdfunders.
www.crowdcube.com
www.seedrs.com
www.crowdbnk.com
https://www.crowd2fund.com
Angel Platforms
- www.angel.co
- www.syndicateroom.com
@capenterprise 71

68. “Pay to Play” Funds.
Top SEIS Funding
Syndicates
1. Jenson Solutions-
www.jensonsolutions.com
2. Ingenious Media-
www.ingeniousmedia.co.uk
3. Ascension Ventures-
http://www.ascensionmedia.co
m/ascension-ventures.php
4. Start-up Funding Club-
http://www.startupfundingclub.
com/
5. Ascot SEIS – www.ascotwm.com
Top Traditional Angel
Syndicates
1. London Business Angels:
http://www.lbangels.co.uk/
2. E100 (LBS)
3. Oxford Angels:
http://www.oxei.co.uk
4. Cambridge:
http://cambridgeangels.com
5. Envestors- www.envestors.co.uk
6. Angels Den- www.angelsden.com
@capenterprise 72

69. Super Seed Investors
• Playfair Capital- http://playfaircapital.com
• Angel Lab- http://angellab.co.uk/
• Firestartr- www.firestartr.com
• Kima Ventures- http://www.kimaventures.com
• Boundary Capital - www.boundarycapital.com
• Venerex ( Fashion Tech- see Capital List)
• Jam Jar Investments-
http://jamjarinvestments.com
• No 1 Seed - www.number1seed.co.uk
• Angel List Syndicates – www.angel.co
@capenterprise 73

70. Enterprise Capital Funds.
ECF’s
• Notion Capital – SAAS specialist- See portfolio here
• Passion Capital: Early Stage, see their portfolio here.
• Sussex Place Ventures- Early stage ( linked to LBS)
• Amadeus Capital: Early and mid-stage- just launched new fund.
• Episode1: Early Stage Software Companies
• Longwall – Oxford Based – Science backed Start-ups focus
• Dawn Capital - Fintech and SAAS
• IQ Capital – Seed and Series A
@capenterprise 74

71. Active Seed VC’s in SE England.
Big 7
Accel Partners: Stage agnostic, see their
portfolio here.
Balderton- Stage Agnostic- See there portfolio
here
Index Ventures: Stage agnostic, see their
portfolio here.
Wellington Partners: Stage Agnostic, see there
portfolio here
Octopus Ventures: Early to mid-stage, see their
portfolio here.
DN Capital : Early and mid-stage, see their
portfolio here
DFJ Esprit: Early to mid-stage, see their
portfolio here.
Cool Cats
• Profounders: Early and mid-stage, see their
portfolio here.
• MMC Ventures - Series A Fund- Co-
Investment fund with Mayor of London
• Piton Capital: Early and mid-stage specialize
in market places.
• White Star Capital- Early stage – See
portfolio here
• EC1 Capital: Early stage, see their portfolio
here
• Connect Ventures- Early stage and very
cool.
• Hoxton Ventures – New and focus on
seed with next move to USA.
@capenterprise 75

72. Specialist Funds
Social/ Tech for Good
- NESTA - www.nesta.org.uk/investments
- Unltd – www.ubltd.org.uk
- Big Society Capital- http://www.bigsocietycapital.com
- Sources of Social Finance- http://www.bigsocietycapital.com/finding-the-right-investment
- Bridges Venture Fund http://www.bridgesventures.com/social-entrepreneurs-fund
- Big Issue Investment- http://www.bigissueinvest.com
- Social Finance- http://www.socialfinance.org.uk
- Social Investment Fund- http://www.thesocialinvestmentbusiness.org
Women
- Stargate Capital- Trapezia- http://www.stargatecapital.co.uk/trapezia_1.aspx
- FSE-- http://thefsegroup.com/investors/business-angels/incito-ventures/
- Aspire Fund - http://www.capitalforenterprise.gov.uk/files/Aspire%20Information%20Leaflet%20(v%202)%20Flyer%20brochure.pdf
Green
- Bridges Sustainable Fund- http://www.bridgesventures.com/sustainable-growth-funds
- Ingenious Media- Cleantech Fund http://www.ingeniousmedia.co.uk/investments/investment-
opportunities/clean-energy
- Carbon Trust- http://www.carbontrust.com/about-us/our-investments
- Low Carbon Accelerator- http://www.lowcarbonaccelerator.com
- CT Investment Partners- http://www.ctip.co.uk
- Wellington Partners- http://www.wellington-partners.com/wp/index.html
@capenterprise 76

73. Corporate Players
@capenterprise 77

74. Who can Capitallist introduce
a start-up to...
http://capitallist.co/our-investors
@capenterprise 78

75. www.lcif.co
@capenterprise 79

76. Thank You
Contact: sia@capitallist.co
@capenterprise 80

77. Tom Campbell
Knowledge Transfer Network
#createinnovfund

78. ktn-uk.org @KTNUK
Tom Campbell
22 Sep 2015
Golant Media Ventures: Funding for innovation for Creative Enterprise
The Knowledge Transfer Network

79. Introducing
What we do
— KTN is the UK’s innovation network. It brings together businesses,
entrepreneurs, academics and funders to develop new products, processes
and services
— We help business to grow the economy and improve people’s lives by
capturing maximum value from innovative ideas, scientific research and
creativity
The Knowledge Transfer Network
ktn-uk.org @KTNUK @KTN_Creative

80. The Knowledge Transfer Network
Connecting people to accelerate innovation
Interdisciplinary
Bringing together
businesses and
researchers from
different sectors.
Commercial
Introducing
innovators to
public and
private funders
and investors.
Strategic
Connecting
people who
wouldn’t usually
meet to solve
innovation
challenges.
Entrepreneurial
Linking people
with new ideas
and technologies
to partners and
customers.
ktn-uk.org @KTNUK

81. Clustered communities, groups and
business programmes
Focus is on bringing together groups that would not normally meet
ktn-uk.org @KTNUK
Materials
Chemistry
Environmental
Services
Agri-Food
Biosciences
Health
ICT
Electronics,
Sensors &
Phototonics
Defence &
Security
Space
Built
Environment
Transport
Energy
Creative
Industries
Digital Economy
Design
Sustainability, H2020, International, Access to Finance, Design

82. Thought leadership + reports + resources
GMV's report for the KTN on innovation through co-design
and data in the creative industries:
http://golantmediaventures.com/projects/innovation-from-co-design-and-
data-in-the-uks-creative-industries
Creative Industries Strategy:
https://connect.innovateuk.org/web/creativektn/article-view/-/blogs/video-
creative-futures-innovation-and-growth

83. https://connect.innovateuk.org/web/creativektn/resources
KTN H2020 guidebook:
Brokerage events: Horizon 2020
Series of KTN brokerage and networking events
November 2015
London, Brighton, Manchester, Cardiff
Join the Linkedin group:
http://www.linkedin.com/groups?about=&gid=3233422&trk=groups%2Fhome-h-share

84. Clustered communities, groups
and business programmes
ktn-uk.org @KTNUK
Business programmes
— Sustainability
— Design
— Horizon 2020
— International
— Access to
funding
& finance

85. National and local
ktn-uk.org @KTNUK

88. THEMATIC RESPONSIVE

89. THEMATIC COMPETITIONS
• Collaborative Research & Development (CR&D)
• Feasibility Study
• Innovation Contests
• Launchpad
• Small Business Research Initiative (SBRI)
• Knowledge Transfer Partnerships (KTP)

90. RESPONSIVE COMPETITIONS
INNOVATION VOUCHERS
- designed to help businesses gain the knowledge they need to
innovate and grow.
- An Innovation Voucher can help your business to work with an
external expert for the first time by paying towards the cost of
their services.
- £5k for SMEs to work with ‘Knowledge suppliers’ to help their
businesses address a real challenge, not just a small
improvement or change to what they currently do.
- 4 rounds of funding every 3 months. Over 100 vouchers are
issued each round.

91. RESPONSIVE COMPETITIONS
SMART GRANTS
• Proof of Market
- This grant enables companies to assess commercial viability.
- Max. Grant £25k. Up to 6 months. 60% of total project costs
• Proof of Concept
- A grant to explore technical feasibility .
- Max. Grant £100k. Up to 18 months. 60% of total project costs
• Development of Prototype
- To develop a technologically innovative product or service.
- Max. Grant £250k. Up to 2 yrs months.
- 35% of total project costs (Medium), 45% for small & micro.

92. Current Open Creative & Digital Competitions
Register for our Bi-weekly Newsletter
http://www.ktn-uk.co.uk/subscribe-2/
http://www.slideshare.net/KnowledgeTransferNetwork/creative-digital-design-business-briefing-september-2015
+ Monthly Slideshare

93. Monthly Business Drop-in sessions
16 Sept Digital Catapult Centre, London:
17 Sept, Tech Hub, Swansea: ow.ly/RKIt6
ow.ly/QvKXP

94. Thank you

95. European Funding
Sophia Woodley, Design Manager
Golant Media Ventures
#createinnovfund

96. Horizon 2020
“Horizon 2020 is the biggest EU Research and Innovation
programme ever with nearly €80 billion of funding
available over 7 years (2014 to 2020) – in addition to the
private investment that this money will attract...
Horizon 2020 is the financial instrument implementing the
Innovation Union, a Europe 2020 flagship initiative aimed
at securing Europe's global competitiveness.” (Source.)
#createinnovfund

97. Horizon 2020
Types of Horizon 2020 ‘Action’:
• Research & innovation actions
– R&D creating new knowledge or testing feasibility
– “At least three legal entities from at least three different Member States
or associated countries.”
– 100% of eligible costs
• Innovation actions
– New or improved products, processes or services, including testing pilots
– “At least three legal entities from at least three different Member States
or associated countries.”
– Includes “Fast track to innovation”:
http://ec.europa.eu/programmes/horizon2020/en/h2020-section/fast-
track-innovation-pilot-2015-2016
– 70% of eligible costs
• SME instrument
– Can be for single SMEs
– Usually 70% of eligible costs

98. Horizon 2020: SME Instrument
• For single or groups of highly innovative SMEs with international ambitions
• Phase I (proof-of-concept): Scientific/technical feasibility & commercial potential
– Activities: risk assessment, market study, user involvement, partner search, IP management
– Output: feasibility report, with more detailed business plan
– Around 6 months
– €50,000
• Phase II (development & demonstration): Make business idea market-ready
– Activities: demonstration, testing, prototyping, piloting, scaling-up, design, market replication
– 12-24 months
– €500,000-2.5m
• Phase III: Commercialisation
– “Investment readiness support, help with accessing risk finance and customers, and Enterprise
Europe Network are available to help business commercialising the innovation resulting from
phase 2.”
• Includes coaching in parallel with phases 1 and 2, provided via the European Enterprise Network
• http://ec.europa.eu/research/participants/docs/h2020-funding-guide/cross-cutting-
issues/sme_en.htm

99. Horizon 2020: Work Programmes 2016/17
• Will be officially adopted and published mid-October 2015
• ICT-20-2017: Tools for smart digital content in the creative industries
• ICT-21-2016: Support technology transfer to the creative industries
• ICT-22-2016: Technologies for Learning and Skills
• ICT-23-2017: Interfaces for accessibility
• ICT-24-2016: Gaming and gamification
• CULT-COOP-08-2016: Virtual museums and social platform on European digital heritage, memory,
identity and cultural interaction.
• CULT-COOP-09-2017: European cultural heritage, access and analysis for a richer interpretation of
the past.

100. Creative Europe 2014 – 2020
Budget: €1.46 billion
€823 million
56.3%
€455 million
31.1%
€184 million
12.6%
MEDIA Culture Cross Sector
• Creative Europe is the European Union's programme to support the cultural, creative
and audiovisual sectors.
• From 2014-2020, €1.46 billion is available to support European projects with the
potential to travel, reach new audiences and encourage skill sharing and
development.
• Creative Europe’s Culture sub-programme supports the cultural, creative and heritage
sectors.
• Creative Europe’s MEDIA sub-programme invests in film, television, new media and
games.
What is Creative Europe?

101. • Film and TV professionals
• Video game developers
• Distributors
• Sales agents
• Audiovisual training
providers
• Organisers of festivals,
markets and networks
• Film education specialists
• Cinema exhibitors
• Visual
arts
• Theatre
• Opera
• Circus
• Literature
• Music
MEDIA Culture
Who does Creative Europe support?
Organisations/companies working
in the film, television and
new media sectors.
Funding, training and networking
opportunities available for:
Organisations/companies working
in the cultural, creative
and heritage sectors.
Funding available for mainly
collaborative projects involving
organisations across all art forms,
such as (but not limited to):
• Dance
• Fashion
• Heritage
• Design
• Architecture
• Interdisciplinar
y

102. What does Creative Europe support?
MEDIA
• The wider circulation of European films and TV programmes,
including innovative models of distribution
• European focused training courses, festivals and industry
events
• Funding for the development of projects for cinema, television
and digital platforms (including video games)
• The Europa Cinemas network
• Film literacy and audience development initiatives
CULTURE
Support for a wide range of projects including:
• International dance networks
• Collaborative projects on disability arts and live
performance
• Pan-European digital opera projects
• Translation of fiction from one European language to
another
• Audience development projects
• Network of theatre for early yearsAnd much more… www.creativeeuropeuk.eu/funded-projects

103. Free advice and support to help the UK’s cultural, creative
and audiovisual sectors to access funding from Creative
Europe. www.creativeeuropeuk.eu
Where can I go to find out more?
Cardiff
MEDIA
Culture
Belfast
MEDIA
Glasgow
Creative
Scotland
Arts Council
of Northern
Ireland
Edinburgh
Creative
ScotlandCulture
Welsh
Government
MEDIA
Culture MEDIA
London
British Film
Institute
London British Council
& Arts Council
EnglandCulture
Manchester British Council
& Arts Council
EnglandCulture

104. Where to find further guidance?
• Creative Europe Desk UK: http://www.creativeeuropeuk.eu
– Culture Breakfast seminar in London, 28 Oct:
http://www.creativeeuropeuk.eu/events/culture-breakfast-seminar-london-2
• Horizon 2020 UK: https://www.h2020uk.org/who-can-help
• Enterprise Europe Network UK: http://www.enterprise-europe.co.uk
• Creative KTN: https://connect.innovateuk.org/web/creativektn/horizon-
2020-creative-industries-funding

105. Business Models
Patrick Towell and Sophia Woodley
Golant Media Ventures
#createinnovfund

106. The Live & Digital R&D project explored the
questions – can digital technology be used to:
• capture and distribute small-scale
theatre productions economically and
effectively to reach new audiences?
• retain the unique intimacy, engaging
quality and ‘liveness’ of performances?
• facilitate a viable and sustainable
business model around this?

107. Recording
partners
Marketing
partners
Sponsors
Distributors
Sales agents
Production/
post prod
Exploitation/
sales
IP framework
Distribution
network
Original
production
New content
for venues
Additional
ways to see
production
Access for
remote
audiences
B2B B2CDirect
and indirect
relationships
Public screenings
– digital and
satellite
Home ent DVDs
etc
End Audiences
List from ACE
segmentation
Cinemas
community,
cultural and
commercial
non cinema
venues
Capture - filming and post production
Additional performance costs –
actors, venue etc Rightsholders fee
from distributors
and sales agents
DVD sales
Touring Theatre company

108. Business model chart of accounts
• Profit and loss AND balance sheet structure reflects that this is
venture requiring risk capital and planned to make a profit
• Exploitation of film across multiple platforms & windows – and
ancillary rights (eg soundtrack) and spin-off products (merchandise)
• What the original producer(s) of the performance take as a fee can
significantly effect the profit of the film
• The costs of ‘producing’ – management, executives, commercial
negotiations, business affairs (legal) – need to be factored in
• There will usually be multiple investors – and multiple other
rightsholders with a share of profits – rights/profit share require
administration

109. Data tells you how well you do at connecting
‘people’ to ‘stuff’… and what impact that has
People
• Board
• Staff
• Ticket-buyers
• Artists
• Cafe-users
• Web users
• Social media
followers
• Partners
• Influencers
• Students
• Media
• Funders
• Educational institutions
Stuff
• Products and services
• Content
• Experiences
• Creative works
Organisational
performance
(Connecting people to stuff)
Direct impact
Social impact
Data

110. Hierarchy of value in ‘knowledge assets’
(with apologies to Nathan Shedroff)
Knowledge
Information
Data
Wisdom

111. Levels of working with data
Comprehension
Coherence
Completeness (availability)
Information design
Information engineering
Information architecture
Creating meaning and
ultimately value
Creation

112. Message:
Multiple filter
Category:
Regular café wifi users
Event attendees:
Only once
Interest:
contemporary
classical
“Come to a low-key
gig at our café!”

113. Multiple filter
Have donated
more than £50 before
Have not donated
in the past year
Have attended
an event in
the past year
“Please keep supporting
the performances
you love.”
Message:

114. Legal
Enterprise
Film Unit Video Department
Development
IT
Education
Graphics
Press/Comms
Marketing SBT
E&E
Danny
Evans
Comms
Jane Ellis
Comms
Michelle
Morton
Enterprise
Gina Print
Graphics
Matthew
Boss
Graphics
Andy
Williams
Graphics
Nada Zakula
Press
Directors
Jo Litt
Marketing
Anna
Mitchelson
Marketing
David Collins
Marketing
Natasha
Goodge
Marketing
Elin Joseph
Marketing
Laura
McMillan
Marketing
Chris Hill
Marketing
Chris McGill
Video
Annette
Bowery
Graphics
Actors Producers
John
Benfield
Press/
Comms
Tim Baxter
Video
Max White
Video
James
Oprey
Films
Geraldine
Collinge
E&E
Georgia
Mazower
E&E
Catherine
Simpson
E&EBea Hendry
E&E
Dean Asker
Press
Phillippa
Harland
Press
Helen
Hargest
SBT
Lucien
Riviere
Comms
Kevin Wright
Enterprise
Sarah
Lovsey
Enterprise
Liz
Thompson
Comms
Caroline
Barnett
Legal
Amy Hurst
SBT
Anna
Griffiths
SBT
Robyn
Greenwood
SBT
David
Hopes
SBT
Rosalyn
Smith
SBT
Chris O'Brien
IT
Matt Collins
Develt
Jacqui
O'Hanlon
Education
Melanie
Whitehead
Education
Commissioning new graphics
New versions of web images
Image edit assistance
Video admin
Video admin
Video admin
Image admin
Commission films
Use images she has
commissioned
Work together
to find images
Line manage
Line managePart of
team
Commissioning
News items
for web
Use images she has
commissioned
Commissioning
Manager
Press commissions
Animations &
stills for films
Commissions
Rehearsal
photos
Sourcing images
from discs
Sourcing archived images
& clearing permissions
Rights queries
Rights queries
Rights queries
Commercial use of
RSC created images
Passes on
rights requests
Line manager
Supplying
images for
internal use
Suggesting images
for digitisation
Copyright issues
Requesting images
from museum
collections
Provide software
development,
hosting & storage
Commissioning
Working on
restaurant site
Use her file
of RSC Transformed
images
Get copies
of images
Source iBase
images
Commissioning
Access production images
Access production
images
Reformatting Choosing
images
Choosing
images
Choosing
images
Images for use
on website
Approvals
Approvals
Commissioning
Finding approved
production images
Resize production
images
Resize production
images
Tower/Tours/
Restaurant images
Commissioning,
concepts, rights
Commissioning,
concepts, rights
Commissioning
and approvals
Commissioning
& approvals
Approvals
Approvals
Approvals, EPO
Rights questions
Image requests
Clearing
requests
Use of
their
images
Actor requests
for images
E&E images
for press use
Child protection
issues
Commissioning, rights
Commissioning, rights
Commissioning,
rights
Rights
Rights
Rights
Rights
Commissioning
Commissioning
Images for
press
Images for Young
People's Shakespeare
Commissioning
Production
images
Sourcing
films
Working on
marketing
visuals
Andrew Rye
Develt
Vince
Herbert
Video
Note: Some departments are represented
more completely than others, due to the
limitations of the original survey.
Carolyn
Porter
Comms
Volunteers
for
Providing images
Providing
images
Providing images
Providing
images
The existing process – spaghetti
This is why it doesn’t work now

115. What rights are there in this moving image?
(Most of the rights described in the previous graphic, plus...)
"To be or
not to
be..."
"To be or not
to be..."
Offstage actor,
presenter or
voiceover
Performance
right
Text
Author of
underlying work
Copyright
Actor
Performance
right
Non-
music
audio
Sound designer
Designer of
video creative
used in production
Lighting
designer
Non-incidental
inclusion of
copyright work
in image.
Copyright.
Moral rights.
Copyright
For rights in music,
see following slide.
Text
Author of adaptation,
screenplay, etc.
Parent or guardian
Child actor
or participant
Performance
right
Copyright
Director Producer Editor
Fight director
Director of
photography
Copyright
Moral rights
Copyright ??? ???

116. Working session
• Type of enterprise
– Film/TV production
– Digital production
(games/TV/mobile)
– Publishing (books/mags)
– Major arts, culture, heritage
– Smaller arts, culture, heritage
– Ad/marketing agency
– Food, fashion, or design
– Public body
• Target demographic
– Children
– Young people
– Middle age
– Older people
• Market
– UK
– International
• Type of
content/data/technology
• Revenue model
• Current revenue
• Stage of growth
– Concept
– Prototype
– Early stage
– Growth
– Expansion
• Funding already acquired

117. Mandy Berry
Chief Executive, Cinegi
Founder Director, Golant Media Ventures
#createinnovfund

118. DIGITAL FILM DISTRIBUTION SERVICE
ANY VENUE CAN BE A ‘CINEMA’
MANDY BERRY, CHIEF EXECUTIVE

119. HOW IT WORKS
• Filmed media rights management
• Secure distribution
• Web-based platform and desktop app
• Download over public internet using standard broadband
• No proprietary kit
• Screening in full HD
…“as easy as home entertainment”
123

120. Film societies Village halls Arts centres
Pubs/hotels
Touring circuits Theatres Independent cinemas
Colleges Community centres
VENUES AND PROMOTERS OF ALL KINDS …AND MORE!
Workplaces
Tourist attractions
High street pop-ups
Festivals
Outdoor public spaces
Sports & leisure venues
Social clubs, church halls
VENUES/PROMOTERS

121. CINEGI PLATFORM – B2B WEBSITE
Catalogue – packaging,
programming & booking
Paperless
box office &
admissions
reporting

122. CINEGI PLATFORM – CINEGI PLAYER
Download Manager
In-venue Playout
• As easy to use as a catch-up
TV service
• No special training required

123. CINEGI IP
E-BusinessSecuredigitaldelivery
Brand
IP
Web application design &
software
IP
Catalogue
IP
Customer
database
IP
Media, metadata
& collateral
IP
Player design
& software
IP

124. DEVELOPMENT & FUNDING JOURNEY
Public funding & corporate support 2011-12
VC Investment 2014
- Research into audiences and alternative
venues
- Business modelling for alternative content
Public funding 2013
- Gap finance
- Market analysis, product strategy, business
planning
- Management & administration resources
- Platform & player built
- Team in place
- Initial content secured
- Private beta in South West
- Funding from public funders and commercial
partners (no equity/rights taken)
- Proof of concept – created technical,
commercial & legal blueprint
Innovation support all stages 2010-14
Digital R&D Fund for the Arts

125. • Keep it simple
• Be open
• Partnerships
• Leverage your funding
• Tenacity
129
KEY SUCCESS FACTORS

126. Get in touch!
Building resilience and agility
• Innovation and realising opportunities from digital
• Making new revenues, reaching new customers
• Distribution strategy and organisational change
Designing new products and services
• Realising the full value of content & data
• Devising new entertainment, cultural & information propositions
• Developing creative, technical and business solutions
Getting value from data
• Making data a strategic asset
• Using data to realise your creative and commercial ambitions
Public funding and private financing
• Securing funding from a mix of funders
• Being investment ready – proposition & business model
Patrick Towell patrick.towell@golantmediaventures
www.golantmediaventures.com @golantmedia

127. Thank you for attending!