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Tony Goulbourn Chief Executive PowerPoint Presentation
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Tony Goulbourn Chief Executive

Tony Goulbourn Chief Executive

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Tony Goulbourn Chief Executive

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  1. Tony Goulbourn Chief Executive

  2. Inform about SYIF Examine feedback from you How we shape the future Objectives

  3. 469 investments totalling £50 million Momentum of investment continuing Additional £4 million injected by Yorkshire Forward £10 million to be invested up to end of 2008 Contingency Fund from January 2009 Key Messages

  4. Business Loans £15k - £150k Andy Chaffer SBF Business Director

  5. Core market remains funding the gap in projects for established businesses For early stage deals depends on certainty of forecasted income Investment amount reflects risk and we look to package deals with other funders Business Loans £15k - £150k

  6. Up to £1.3 million available to invest by end of 2008 which provides headroom Additional money is available if needed Business Loans £15k - £150k

  7. Investments by year

  8. Headline rate remains 12% but retained rebate concept Rates are fixed for term of the loan Interest Rate Rebate available dependent on risk subject to meeting on-going conditions (Includes Management Accounts, QPR’s, Dividend Covenants etc) Business Loans Interest Rates

  9. Business Loans Interest Rates

  10. Ample money to lend to established and early stage businesses If you have clients with funding gaps please give me a call…………….. Summary

  11. Equity Linked Packages Mary Broadhead Investment Director

  12. Equity Linked Packages • Equity linked packages from £100k to £2.5 million • All stages considered • Returns linked to perceived risks • Syndication with other investors possible

  13. Equity Linked Packages • Performance to date • 82 investments in 44 companies • £22.2 million invested to June 2008 • Some exits achieved already, more in the pipeline

  14. Equity Linked Packages • Up to £4.7 million available to invest by end of 2008 • Additional money is available if needed

  15. Investments by year

  16. Mezzanine loans for established, profitable businesses (may include a small equity upside) Equity packages for earlier stage or riskier proposals (minority stakes only) Terms of investment are structured to fit each individual deal Types of investments

  17. Seedcorn Fund Jonathan Dixon Deputy Chief Executive

  18. Key Goals of Seedcorn Fund • To enhance the SYIF product range • To increase the level of investment in early stage knowledge based businesses • To test the market, delivery mechanisms and financial instruments

  19. Total investable value - £4.685m Seedcorn Fund • 2 portfolios: • Proof of Concept • Commercialisation • Budgets for mentoring and management support

  20. £2.5 million invested £2.1 million committed for investment by the end of the year Additional investments of £1.2 million anticipated before end of 2008 (funded from interim fund) Seedcorn Fund

  21. Collaboration model can & does work Importance of milestone investments Importance of developing management capability IP is mobile and therefore significant for inward investment Lessons Learnt

  22. Microloans Fiona Greaves Loans Manager

  23. A Consortium Approach • SYIF – lead. Managing agent for the investor • DonBAC: providing loan management for non-social enterprise • Key Fund: for social enterprise

  24. Microloans • Simple access & low bureaucracy for the client • Intensive support process for the client • Cost effective delivery for the Investor (BiG) • Managed with a commercial focus

  25. Activity to date • BiG - £96K in 22 businesses • BiG – additional £31k approved • Donbac - £23k in 3 businessses

  26. Tony Goulbourn • Conclusions • Feedback • Shaping the Future

  27. Proved the market Proved the business model The Fund will create a legacy fund of circa £19 million for South Yorkshire Conclusions

  28. Feedback • EKOS commissioned to undertake survey – August 2008 • Objective: To seek intermediaries views on SYIF's current operations and the proposed Regional Successor Fund.

  29. Feedback - Satisfaction with SYIF • High satisfaction levels – 82% satisfied or very satisfied with overall performance • Strong endorsement of services (mentor/NED and pre-investment support)

  30. Feedback - SYIF & the Finance Gap • Finance gap greatest for new starts (89%) & for early stage businesses (76%) • Exists even for established small businesses (62%) & for medium & larger businesses (37%) • SYIF helps meet the gap through its products e.g 74% for small business fund

  31. Feedback - The Successor Fund • Awareness is high (76%) • Value as a regional resource recognised (96%) • Should address areas of greatest market failure (early stage, new starts and technology based businesses) • Two thirds say not sector prioritisation

  32. The Contingency Fund The Successor Fund Shaping the future

  33. 01709 386 377 South Yorkshire Investment Fund Ltd is a company limited by guarantee (Registered No 3936065). South Yorkshire Investment Fund comprises three sub funds, the South Yorkshire Investment Capital Fund, the South Yorkshire Investment Development Fund, which are each managed by YFM Venture Finance Limited, and the South Yorkshire Investment Small Business Fund, which is managed by Finance South Yorkshire Ltd. YFM Venture Finance Limited (Tel 0113 294 5000) and Finance South Yorkshire Ltd (Tel 01709 386 377) are each authorised and regulated by the Financial Services Authority. South Yorkshire Investment Fund also provides a number of services, which are not regulated by The Financial Services Authority. These include the pilot Seedcorn Fund, BiG Business Loan Fund, Mentorbank and access to the Donbac Microloan Fund. BiG Business Loan Fund is managed by Donbac Finance Ltd (company registration No. 01925556) and Key Fund Yorkshire Ltd (Tel 0114 242 8900).