Slides which accompanied the Q1 2019 Quarterly Investment Briefing on 6th March. The event saw presentations on Bristol Private Equity Club, the Regional Angel Investment Accelerator and University of Bristol Enterprise Fund. Slides 50 - 52 include information about those companies that have recently raised investment or are actively doing so in Q1 2019. Check out the disclaimer - these aren't recommendations, just information.
2. Agenda
16:30 - 16:35 Tea, coffee, welcome
16:40 – 17:25 Sharing and learning
+ Jerry Barnes, BPEC
+ Alun Williams, Parkwalk Advisors
+ Rod Beer, UKBAA
17.25 – 17:35 What Beauhurst data tells us
17:35 – 18:20 Networking and drinks
3. QIB Guiding Principles
Those who attend the Quarterly Investment Briefing share
three common principles:
• Whoever attends is an active or potentially active investor, or
manager of investors – or enabler of investment activity.
• Whatever is presented is informative, fact-based and regionally
relevant.
• We value the opportunity to learn equally with the
opportunity to share.
4.
5. Angel Investment in West of England
https://scaleupgenerator.co.uk/investment
6. Angel Investment in West of England
Main seed investment infrastructure:
- Bristol Private Equity Club (BPEC)
- ‘Incubators’ – RocketMakers and SimpleWeb Ventures
- Whiteoak capital
- Informal angel investor links – often through hubs // regional contact points
Later stage
- Investors in residence at Engine Shed
- Warm introductions through incubators
Parkwalk Investment Fund
- University spinouts and SETsquared businesses
https://scaleupgenerator.co.uk/investment
9. INTRODUCTION
FOUNDERS
• Jerry Barnes
• Allan Rosengren (Chairman)
• Mark Mason MBE
• Julian Telling
• Denis Mullan
• Charles Cook
• Heather Frankham, joined in 2018
• Jerry Barnes, CEO of BPEC
• 24 Haymarket
• Bristol : established in 2016
9
10. CLUB STRUCTURE
• Not a fund
• Local entrepreneurs
• Putting back (time, money & expertise) into the local economy
• We’re nice (not Dragons!)
• Want to get involved?
10
PANEL EVENTS
• 10 events per annum
• 2 dinners with Founders
• 2 businesses per panel event
• Seminar style
• £150 - £500K (equity only)
• Local (within 1 hour from Bristol)
• 5% commission
DEALS
11. ACTION
2 years to 30 September 2018
• 16 deals (13 companies)
• £3.6m invested (average £280K per company)
11
12. 12
6 Months to 5 April 2019
• 8 deals (6 follow-ons)
• Estimate £1M plus invested
No exits (yet!)
And no failures either …
Our Members
• 75 Members
• Wide range of experience
14. IMPACT
• 2016/17 Investments ; 2018 Survey
• £1.75M BPEC Investment (out of £4.6M total) in 6 businesses
• Grants – less than 10% of total equity
• In one year;
• Employment – up 110% (34 people)
• Wages - £1.6M total
• Bristol non-wages spend - £558K
• EIS Tax Relief - £523K but PAYE/RATES - £511K
• 1 year ; tax neutral
• 2016/18 Investments ; 2019 Survey
• Will update July 2019 (with 10 businesses)
14
15. FUTURE
• Aiming for c. £2M pa Equity Investment
• No stortage of proposals
• No shortage of Members
• Innovate Regional Bid
• SETsquared led this successfully
• BPEC a Partner (of many)
• May 2019 launch
15
19. Important Notice
1UoBEF III | March 2019
This document is issued by Parkwalk Advisors Limited (‘Parkwalk’) which is authorised and regulated by the Financial Conduct Authority FRN
502237.
Parkwalk EIS Funds may not be suitable for all investors and as such should only be directed at the following:
1. Existing clients of a financial adviser regulated by the Financial Conduct Authority;
2. Persons who meet the criteria for being a professional client;
3. Persons who qualify as certified high net worth individuals in accordance with COBS 4.7.7(a);
4. Persons who qualify as certified sophisticated investors in accordance with COBS 4.7.7(b);
5. Persons who qualify as self-certified sophisticated investors in accordance with COBS 4.7.7(c); or
6. Certified restricted investors in terms of COBS 4.7.10.
Investing in unquoted and/or AIM-listed companies (including EIS Qualifying companies) carries with it a high degree of inherent risk. Any
investment in this product should be considered as a long-term investment as no established or ready market exists for the trading of shares
in unquoted companies.
To the extent that this document contains forward-looking statements, such statements are based on the current expectations of Parkwalk
as of the date of this document and are subject to a number of risks and uncertainties and other factors that may cause the actual results,
performance or achievements of a fund or the underlying portfolio companies to be materially different from any future results,
performance or achievement expressed or implied by these forward-looking statements. In light of these risks and uncertainties, there can
be no assurance that the forward-looking statements made in this document will be realised. Except as otherwise required by applicable
securities laws, Parkwalk disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Rates of tax, tax benefits and allowances referred to are based on current legislation and HM Revenue & Customs practice. These may
change from time to time and are not guaranteed. EIS tax benefits and reliefs depend on individual circumstances.
Past performance is not a guide to future performance and may not be repeated.
The value of shares can fall as well as rise and investors may not recover the full amount of money originally invested.
20. Parkwalk
Parkwalk established 2009: Capital Markets backgrounds
Largest Growth EIS fund-raise in 2017 and 2018
Focus on Hard Science UK university spin-outs and start-ups
‘Knowledge Intensive’ businesses with strong IP and freedom to operate
Co-investing alongside other, non tax-advantaged institutional investors
Deploying within 12 months and generating cash exits
Part of the IP Group plc group - UK listed FTSE 250 net assets £1.4bn
EIS Association “Best EIS Fund Manager” 2018, 2017 and 2016
2UoBEF III | March 2019
AUM
>£200m
86 current
Portfolio
Companies
£23.5m Cash
Realisations to
date
Over 210
investments
into 100
Companies
£66m invested
in last
12 months
21. University Spin-Outs
3UoBEF III | March 2019
In higher education, the UK is a superpower. Four of the 10 top-
rated universities in the world, five of the top 20 and 9 of the top
50 are British.
QS World Rankings 2019
The University of Cambridge alone has created 15 companies in
the last 20 - 25 years that have each achieved a valuation of over
$1bn (two over $10bn)
Business Weekly, May 2017
IP Group has arrangements with 17 of the UK’s top universities.
Parkwalk manage the University of Oxford, the University of
Cambridge and the University of Bristol EIS Funds.
The UK punches above its weight in R&D….
UK share of global
population:
0.9%
UK share of
article output:
6.4%
UK share of
researchers:
4.1%
UK share of
total citations:
11.6%
UK share of highly
cited papers:
15.9%
UK number of top
200 universities:
29
23. The UoBEF Investment Process
The Fund is a real partnership between the University of Bristol, SETsquared Bristol and Parkwalk
• UoBEF III will invest in opportunities related to the University, whether the company has been founded by University
staff, students or alumni or has links with the University through SETsquared Bristol.
• Strong deal flow from both the University and SETsquared Bristol
• The University of Bristol will be an investor in the Fund, so this is a chance to co-invest with a world-class research
institution
• Companies go through a two-stage screening process:
• Pre-screening by the University and SETsquared staff and mentors to ensure the companies are suitable for investment and to guide
them on their presentation;
• Presentation to the Fund’s Investment Committee, made up of members from the University, the Bristol investment community,
entrepreneurs and Parkwalk.
• The Fund will invest in between 5 and 8 companies with the potential to deliver equity returns to investors
• Defensibility is a key criterion for investment
• Investing only when HMRC has pre-approved EIS/SEIS treatment
31. 31
193 MEMBERS FROM
ACROSS THE INDUSTRY
W E L O O K A F T E R
ANGEL GROUPS
Over 15,000 angels
represented by these
groups
VC FUNDS
From micro funds to major
PE funds
ONLINE PLATFORMS
And all the major crowd
funding platforms
ACCELERATOR
S
Including incubators and
universities
ASSOCIATES
Including government
agencies, royal societies,
corporates and
intermediaries
72 28 14 30 49
32. 32
WE DELIVER INVESTOR TRAINING
T h i s n a t i o n a l , i n d u s t r y - b a c k e d p r o g r a m m e b r i n g s t h e i n s i g h t s a n d e x p e r t i s e f r o m 2 2 e x p e r i e n c e d a n d
l e a d i n g A n g e l i n v e s t o r s f r o m a c r o s s t h e U K .
33. 33
SIX ANGEL HUBS, WITH
MORE PLANNED FOR 2019
W E O P E R A T E
W e ’ r e r o l l i n g o u t o u r h u b s r i g h t a c r o s s t h e U K w i t h f i v e f u r t h e r h u b s p l a n n e d f o r 2 0 1 8
WWW.ANGELHUBS.ORG
35. “I have seen too many entrepreneurs …
spend too much time on fundraising,
and …miss important milestones.”
Ed Sim, BoldstartVentures
“Companies that have received both an
Innovate UK grant and equity
investment have a higher valuation on
average than companies that have
received only equity investment. ”
Beauhurst
Start-ups that access grant + equity funding do better
But weneed to make iteasier outside London!
Not enough Angel investors are backing early stage innovative businesses across the Zone
Source:Beauhurst
36. There’s an explosion of
innovative businesses
rightacross the country
And it’s growing
in the South West
But this growth
is hampered
by lack of finance
There is not enough angel investment outside London
London and South East Entrepreneurs access 6x investment compared to South West
and West
37. Catalyst for
Change
De-risking the
investment process
Stimulating growth through
additional resources
Creating a
connected ecosystem
Enhancing visibility
and access to capital
The Innovate UK RAIA pilot is a catalyst for growth and change by combining non-
diluting grant funds with angel equity
… but it is only the first step
38. Targeting and recruitment
of a diversegroupof
new angelinvestors
Grow the number and
capacity of thelocal investmentcommunity to co-
investandsupportlong-termgrowth
Educate new investors
andprofessionalisethe existing angel
investmentprocess
Increase the number of female and ethnic
minority investors andintegratewithinexistingand
new groups
Build angel capacity and make diversity an integral aspect of local investing
43. Five ‘triggers’ for inclusion
Secured
equity
investment
1
Secured
venture debt
2
Completed
management
buyout/in
3
Participated
in selected
accelerator
programmes
4
Has been or
is a scale-up
5
50. Ovo Energy
Gas & electricity supplier
Raised successfully in Q1 2019 (27)
Graphcore
Machine learning processor
BluWireless
60GHz band technology for devices
Immersive Labs
Digital security platform
OpenBionics
Bionic hands using 3D-printing
YellowDog
Monetises spare processing power
3Radical
Customer engagement mobile apps
KETS Quantum Security
Digital security through quantum
iAM Compliant
Compliance software for schools
TalkLife
Online mental health support
Helpfulpeeps
Platform to find help
LuJam Security
Software to detect security threats
Caleño Drinks
Non alcoholic spirits
Service Robotics
Develops robots for consumers
Auroch Digital
Games developer + publisher
Agent Online
Estate agency
Level
ERP online software
51. Raising Q1 2019 – raising £10m - 500k
Zeetta Networks
£10M Series A – Optical and network function
virtualisation.
GapSquare
£2M – brings the power of data science to talent
management.
Engine Shed is a trading activity of The Science Research Foundation whose mission is to stimulate sustainable and inclusive economic growth as an honest broker.
Engine Shed does not give advice on the risks of investment and is not authorised to carry on investment business under the Financial Services and Markets Act 2000 (‘the Act’).
Before investing in a project about which by Engine Shed, potential investors are strongly recommended to take advice from a person authorised under the Act who specialises in advising on investments of this nature.
Engine Shed is not recommending in any way any business or investment opportunity, merely public highlighting information it is aware of.
Tumelo
£1M – app that builds personalised investment
portfolios aligned with investor values.
Fundsurfer
£500k – UK based fintech and brokerage company
Codices
£1M – developing the tools and shows for the next
generation of live interactive gameshows
Limber
£750k – A vibrant shift-working marketplace for
the hospitality sector
Wriggle
£600k – Discover & save money at the best
independent food & drink venues in Bristol,
Brighton and Cardiff.
52. Raising Q1 2019 – raising £300k – 25k
Engine Shed is a trading activity of The Science Research Foundation whose mission is to stimulate sustainable and inclusive economic growth as an honest broker.
Engine Shed does not give advice on the risks of investment and is not authorised to carry on investment business under the Financial Services and Markets Act 2000 (‘the Act’).
Before investing in a project about which by Engine Shed, potential investors are strongly recommended to take advice from a person authorised under the Act who specialises in advising on investments of this nature.
Engine Shed is not recommending in any way any business or investment opportunity, merely public highlighting information it is aware of.
iExport
£150k – Kickstarter - Making exporting easy
through a super–connected SaaS platform
Shower in a can
£60k– Anti-bacterial dry shower foam which kills
the bacteria that causes body odour and drys
naturally
Music Memory Box
£25k – Kickstarter - a physical + digital tool for
people living with dementia and their families.
GoodSixty
£250k – Borough Market raise!
Glas Data
£250k – world’s first agricultural data ecosystem.
LUX Rewards
£300k – app for discovering local fine dining
restaurants and collecting points.
https://www.luxrewards.co.uk/investors
BeforeStores
£150k– new approach to global e-commerce
53. What next?
1. Pick up one page summaries // check
https://techspark.co/sginvest/
2. Read and share the Quarterly Investment in Brief
(newsletter) tomorrow
3. Put the next event in your diary…
The Quarterly Investment Briefing exists to encourage and enable more investment activity and to provide a platform to share good practice in the West of England. It is an initiative run by the Engine Shed in partnership with KPMG, Smith & Williamson and TLT.
Mercia £23m in addition to previous £50m – 36 active equity investments atm. £750k in rounds of up to £2m
Like New Energy Systems and Digital Living clusters in the South West and Wales and Birmingham and Coventry in the West Midlands ranked as the 2nd highest Innovation Cluster in the UK!
It’s growing too, according to BEIS, The South West was the most innovative English region, with 53% of businesses being innovation active and showing 10% growth in one year.
But this growth is being hampered by a lack of funding. The UK Innovation Survey Report showed that for SMEs availability of finance and the cost of innovation were the biggest factors cited as constraining innovation.
We see the opportunity offered by the Regional Angel Investment Accelerator as a catalyst to help bring about this change. The funds deployed will derisk early stage businesses for investors whilst also professionalising and standardising tech due diligence too.
But the resources this brings will fund structured programmes of support designed to tackle the core issues. RAIA has already brought about this consortium of partners that we think is an incredibly strong team perfectly positioned to deliver the Pilot successfully
This is a problem the problem that the partners in our consortium are working to address, it’s why we exist: To bring support to amazing early-stage businesses and to build and grow the angel investor community.
To solve this issue, we need to firstly upskill local communities of innovating businesses. They need to have a better understanding of what an investable business looks like and how to get there.
But crucially, we also need to increase the capital available to these businesses. We need local investors to learn and engage with their local tech clusters, we need the existing investor groups to grow and in some cases professionalise their approach. And we need to help engage new investors and form new groups too.
Use the numbers!
Don’t forget the Catapults!
Also able to work with any other networks – both UKBAA and SSQ have this as part of our DNA – and that’s important for the long-term
Was 245 at the start of the year. 294 in Q3. 323 in Q4…
They have added a new data source - companies who appear on the UK's top high growth lists
When started? Q3 2010, Q1 2015 and 245 in Q1 – partly to do with data development, partly to do with newly recognised businesses
Plus Growth Lists Companies
8% established – new category
7% Growth (from 16%)
Exited and dead increased by 1% each
10 more venture backed companies
OVO 59.1 – 259m
Graphcore 85.8m
NEW
Ultrahaptics moved up 2 places thanks to £35m raise announced last weekend
Pirate Studios – LONDON BASED - new in the top 10 - company that specialises in studio hire, with a network of studios (which includes rehearsal spaces, productions rooms & DJ studios) all over England.
Two significant pieces of news:
Graphcore - $200m Atomico, BMW i Ventures, Microsoft, Merian Chrysalis, Sequoia and Sofina - December
OVO Energy – Mitsubishi investment – Daily Mail £200m - Feb
Amadeus more than doubled
Foundation cap more than doubled
Draper more than doubled
Robert Bosch up 12m
IP group dropped 8 places
BGF, Eden Ventures and MMC no longer in top 20
Microsoft Ventures rebranded to M12
BMW and Merian are new
No change of substance
Business & Professional Services (27.2 27.6%)
Technology/IP-based businesses (27.2 27.1%)
27 companies
7 below 100k
3 unknown amounts – Kinneir Duffort, Rovco and Prezola
+ hot off the press - Good Energy announces strategic investment in Zap-Map through its parent company Next Green Car Ltd
Zap-Map is the go-to app for Britain's 200,000 electric vehicle ("EV") drivers - planning routes, identifying charge points, checking their availability and sharing power. Bristol based.
20 in last quarter
Wriggle - (1) launch in three new cities, (2) grow our revenue 5x
Limber – 350k committed so far