ACAL Energy Ltd

1
ACAL Energy Ltd

• Background
• Founded August 2004 by Dr Andrew Creeth and
  Amanda Lyne
• Initially based at MerseyBio, U of Liverpool now
  based at The Heath, Runcorn
• Development and commercialisation of a low cost,
  novel type of membrane based fuel cell
• 14 FTE plus a full time KTP at Manchester

2
Company Formation

• Main issue Securing Funding
• VERY early an idea really
• Tight timescales to deliver first milestone
• Resolved by
• Phased investment against milestones and large
  equity sold off
• Focus on absolute priorities staff equipment
  suppliers good professional support in all other
  areas (accountancy, legal etc)
• Do differently
• Push for founders options up front or some kind
  of draw back of equity on delivery
• Fully appreciate the importance of Non Exec
• Which issues are still outstanding?
• Impact of equity to founders on funding and
  control for the future

ACAL Energy Ltd
3
Funding

• What were the main problems faced?
• VERY Early just an idea limits choice for
  source of funding
• Private equity was the only choice (no match
  funding of our own for grants etc)
• How were these problems overcome?
• Rising Stars Pathfinder investment secured
• Traded off significant equity and control in
  exchange
• What would you have done differently?
• Tried to get founders options or draw back on
  equity for delivery of milestones
• Even more emphasis on selection of Non Execs
• Which issues are still outstanding?
• Choices on sources of funding still considered
  early stage
• Founders dilution and loss of control

ACAL Energy Ltd
4
Premises

• What were the main problems faced?
• Suitable laboratory space
• Need for rapid availability of equipment
• How were these problems overcome?
• Initially set up at MerseyBio - short term
  lease/supportive landlords
• Loan funding support for initial capital
  equipment etc
• What would you have done differently?
• More detailed plan of longer term requirements
  for premises
• Explore other loan and lease options for capital
  equipment
• Which issues are still outstanding?
• Continue to need expansion space
• Lead times on equipment , credit terms etc

ACAL Energy Ltd
5
Staff

• What were the main problems faced?
• Immediate need for staff
• Need for multi skilled, multi experienced staff
  willing to work in risky environment
• How were these problems overcome?
• Networking for short term contract staff as stop
  gap
• Sell the opportunity and offer options as
  benefits
• What would you have done differently?
• More detailed benchmark of salaries and TandCs
• Website area for recruitment to solicit CVs
• Which issues are still outstanding?
• Recruitment of skilled and experienced staff
• Constraints on budget

ACAL Energy Ltd
6
Technology Development

• What were the main problems faced?
• Lead times on supplies
• All things needed doing
• How were these problems overcome?
• Prioritisation and focus
• Use grants and other funding to leverage equity
  capital
• What would you have done differently?
• Focused on H2 only (not allowed initial
  distraction on methanol)
• Used Scientific Advisory board more to
  accelerate development
• Which issues are still outstanding?
• Still too much to do too much unproven
• Commercial validation

ACAL Energy Ltd
7
Marketing/Company Profile

• What were the main problems faced?
• Marketing a company from scratch needs to
  evolve
• Limited resources (s focused on technical
  delivery)
• How were these problems overcome?
• Leverage via other public sector organisations
  (U of Liv Carbon Trust CPI etc)
• Prioritise and secure support funding e.g.
  Objective 1 funding for version 1 of website
• What would you have done differently?
• Focused campaign with UK early stage technology
  investors
• Start up awards for PR
• Which issues are still outstanding?
• Pro-active campaign with focused and target
  investors for next round
• Marketing resources for commercialisation

ACAL Energy Ltd
8
Collaborations/Projects

• What were the main problems faced?
• Time to make applications for grants
• Intellectual property
• How were these problems overcome?
• Just do it
• Upfront clarity about required ownership of IP
• What would you have done differently?
• Be more targeted in which to apply for and more
  importantly when
• Establish internal must haves and easy gives in
  advance of discussions
• Which issues are still outstanding?
• Intellectual property
• Project management of costs and resources within
  accounts

ACAL Energy Ltd