Over 60% of VC deals UK, Germany and France

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The European Situation
European SMEs consider access to finance as the
major barrier
SMEs fail to utilise or exploit financial
opportunities due to lack of knowledge, lack of
collateral, or through poor presentation of their
case for funding.
Observatory for European SMEs 2003 Report

• Over 60 of VC deals UK, Germany and France
• 86.1 of European respondents to CIS3 survey
  stated that lack of appropriate sources of
  finance is the most severe barrier to
  innovation.
• a misalignment between the innovators who
  complain about the lack of finance and
  investors who complain about the quality of
  investment opportunities.

European Trend Chart on Innovation 2004-2005
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Our aim is to increase the number of investment
deals in the UK Midlands by preparing
investment-ready companies, holding investment
showcasing events and building a support network
of contacts and investors.
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Clear purpose

• A public-private partnership to stimulate
  interaction between universities, research
  institutes, private sector, professional service
  providers and public sector
• Commercial exploitation of research outputs and
  innovative products processes
• Stimulating enterprise and innovation agenda
• Delivering measurable economic impact

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Connect Objectives

• Provide aspiring technology companies with access
  to an expert network that can understand
  support their needs
• Facilitate and support the transfer of technology
  from the regions science base to new existing
  companies
• Enable the development of investor-ready
  companies and provide access to finance, routes
  to market effective management capability
• Create a virtual networking and advisory resource
• Add value to activities of member organisations
  stakeholders

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PRIME PARTNERS
BUSINESS PARTNERS
CORPORATE MEMBERS
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Key areas for business development
and investability
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Connect InvoRed programme

• Midlands region
• Start-up, early stage, later stage, high-growth
  technology businesses
• Companies seeking 25k to 8m in equity, debt
  grants
• High volume throughput programme, quality results
• 80 public sector funded, 20 private

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CM Investment Readiness Process

• AMBER
  GREEN

• Workshop Based
• Two-Day intensive
• Four-Day intensive
• Assessment panels
• Bootcamps Specific

• Coaching
• One-to-One
• Boot-camps / Amber
• Assessment panels

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STAGE 7 EXIT
The IR Value Chain
STAGE 6 GROWTH DEVELOPMENT CAPITAL
STAGE 5 CORPORATE FINANCE
STAGE 4 INVESTMENT Showcasing Links to investors
INVESTMENT READINESS
STAGE 3 READINESS Build investment proposition
pitch Workshops-Amber Bootcamps 11 Coaching
-Green Pathfinder
STAGE 2 DIAGNOSTICS Grant, Debt, Equity, None ?
STAGE 1 AWARENESS Investment options
STAGE OF BUSINESS DEVELOPMENT
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Readiness Stage - lets get ready

• Financing options, investment proposition, the
  pitch
• What Funds are Right for You
• Amber 2 day workshops
• Amber 4 day workshops
• Bootcamps
• Forums and Assessment Panels

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Green Stream 11 coaching

• Coach helps to
• Review business strategy, goals, plan
• Helps build and finesse the value proposition
• Develop pitch for investors
• Identify appropriate target investors
• Facilitate introductions presentations

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Investment Stage - finding the money
FUNDING STAGE
Pre-Start
Existence
Survival
Success
Take-off
Maturity
LIFE CYCLE STAGE
LIFE CYCLE STAGE
Springboard 12-15 SMEs seeking up to 750k to
pitch to an audience of investors and
intermediaries
Investment Conference 15-18 SMEs seeking up to
8m to pitch to an audience of investors and
intermediaries
Roundtable 3-4 SMEs seeking early stage finance
to present to 12 target investors over an
exclusive lunch or dinner
InvoRed SMEs receive support to help them shape
investment ready propositions
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811k
947k
FDAS
Monica Healthcare
4.96m
112k
Prime Principle
Haemostatix
8m
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Updated May 06
Connects track record

• 296 entrepreneur presentations to investors
• 95m investment raised by over 100 companies
• More than 330 jobs created / safeguarded
• Links to regional, national and international
  investors
• Connecting with banks and finance providers
• Strong and growing network of support
  organisations

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Summary of benefits

• Understand options, requirements, process
• Basics on investment proposition and pitch
• Excellent grounding for raising money
• Improve chances of raising finance
• Better growth prospects
• Meet like minded entrepreneurs
• Get to grill the professionals !
• Networking with people companies need to meet
• Established successful track record

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Conclusion

• Facilitating technology transfer and exploitation
  of innovation on a regional and European level
• Creating viable, well financed new businesses
• Opening routes to market for new technology
  businesses
• Providing access to Finance
• Leveraging private sector involvement
• Widening access to the European and US VC
  community
• Sharing best practice across Europe

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Existing Connect Networks
Proposed Connect Networks
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Thank you for your attention.Any Questions?

• Isabell Majewsky
• Director
• Connect Midlands
• isabell_at_connectmidlands.org