Modelo Connect de financiación de start ups que está teniendo buenos resultados enMidlands (UK)

1. Connect Midlands welcomes
Mr Manuel Urquijo, Vice Minister
Mr Iñaki Beristain Extabe, Director of Economic Planning
Supporting companies to get
ready for investment Isabell Majewsky, Director

2. Agenda
• Background
• About us
• How we operate
• Our success
• Lessons learned
• Connect Europe
• Q&A

3. Background to Connect Midlands
Formed in April 2001 to address:
• the absence of support for entrepreneurs
• the lack of mechanisms to access finance
• the insufficient pool of available investors

4. What is Connect?
Started 1986 - University of
California, San Diego
Connects technology entrepreneurs to the
resources they need
Nurtures development and growth of
technology enterprise

5. Connect World-wide
12 active Connect organisations in USA
and Europe and New Zealand
In the UK: Connect Scotland (started in1996),
Connect Midlands and Connect Yorkshire

6. Our Purpose
To nurture the development and growth of
technology related enterprise
in the British Midlands
by connecting entrepreneurs with the
resources they need to succeed.

7. Our Aim
To increase the number of investment
deals in the Midlands, by
- holding investment events
- preparing investment ready companies
- building a network

8. Main focus
Making investors
aware of Midlands
based investment
opportunities
– Filter
– Rigorous screening
– Careful selection
– Thorough customised preparation

9. PRINCIPAL FOUNDING SPONSORS
FOUNDING SPONSORS
SPONSORS

10. The network
Venture Capital, Network of
Business Angels Intermediaries and
and Banks Universities
Connect
Universities, Professional
Research CentresMidland
Thank you for listening! and
Services
and technology s Business Support
companies Organisations

11. How we meet our objectives
Training
Workshops Forums Boot Camps Coaching
Workshops &
Not Investment-Ready
Coaching
Enterprise Workshop
Workshops and Seminars Meet The Entrepreneur
‘ Ready or Not ‘ Technology Briefing
Networking Events
Investment-Ready
Conferences
assisting entrepreneurs to raise investment

12. FUNDING STAGE
Sustained Growth Investment Conference
Roundtable
Early Growth
Springboard Conference
Start-up
InvoRed
Seed
Pre-Start Existence Survival Success Take-off Maturity
Proof of Concept
LIFE CYCLE STAGE
InvoRed Springboard Conference Roundtable Investment Conference
SMEs receive support to help 12-15 SMEs seeking up to 3-4 SMEs seeking early 15-18 SMEs seeking up to
them shape investment ready £0.5m to pitch to an audience of stage finance to present to £3m to pitch to an audience of
propositions investors and intermediaries 12 target investors over an investors and intermediaries
exclusive lunch or dinner

14. Connect InvoRed
Assists technology companies to:
• Understand the finance options
• Make their business ‘investor ready’ and
attractive to funders
• Identify appropriate investors
• Make the pitch
• Do the deal

15. Connect InvoRed package
• A heavily subsidised, tailored programme available
across the Midlands
• Open to high-growth, tech companies whether pre-
incorporation or SMEs
• Flexible programme with 2 streams giving access to
top regional and national specialists
• Helping companies to make successful bids for
investment

16. InvoRed Amber
• Amber Stream workshops – 8 half-day workshops on
areas key to investors
• 2 Business Forums – an opportunity to present to
intermediaries and investors and receive valuable
feedback
• 2 Bootcamps – intensive 1 and 2-day sessions
addressing key topics of investment readiness (such
as business development and market intelligence)

17. Workshop 1 Workshop 2 Workshop 3 Workshop 4
INTRODUCTION TO SALES, MARKETING MANAGEMENT INTELLECTUAL
INVESTMENT AND PR PROPERTY
Provides a solid Investors will not For many VCs this Understanding,
understanding of commit unless is the most defending and
the investment they can see high important factor. maximising the
options available potential growth. This workshop value of your IP is
to young This workshop will will offer advice essential to any
companies. help develop your on how to win the bid for investment.
Sales and trust of investors.
Marketing Plan.
Workshop 5 Workshop 6 Workshop 7 Workshop 8
FINANCIAL INVESTMENT DEAL PITCHING TO DEVELOPMENT
PLANNING INVESTORS PANEL
The all important Get the best deal How to get Test your
bottom line. Will for you, the noticed by the proposition with
help shape your investor and your investment our development
core business business. industry. panel, to give your
offering from a investment pitch a
financial thorough
perspective. evaluation.

18. InvoRed Green
• Fast track grooming for later stage
companies
• Customised programme
• Full access to Amber stream
• Individual attention of experienced
coach for 5-10 days over 9-12 months

19. InvoRed Green 2
• Meeting ‘Hygiene Factors’
– Review business objectives, strategy and
valuation
– Develop pitch for investors
– Identify appropriate target investor
– Facilitate introductions and deliver
presentations
– Guidance through legal and completion
process

20. STAGE 7: EXIT
Appendix 2
STAGE 6: GROWTH
THE INVESTMENT READINESS VALUE CHAIN DEVELOPMENT CAPITAL
STAGE 5: CORPORATE
FINANCE
INVESTMENT READINESS
STAGE 4: INVESTMENT
STAGE 3: READINESS
Amber (1 or 2 day workshops)
Amber (8 week workshops)
Bootcamp and Business Forum
Green Stream
Green Stream Elite
Green Stream Interim
STAGE 2: DIAGNOSTIC
STAGE 1: AWARENESS
STAGE OF BUSINESS DEVELOPMENT
© University of Warwick, 2005

21. A one-day showcase
For entrepreneurs seeking
investment up to €750k
Audience of investors
and business professionals

22. An informal lunch-time
focussed on one sector
For entrepreneurs seeking
investment up to €1.5m
Invited audience of
sponsors and investors

23. A major event
For companies seeking
investment up to €5m
Strict selection process
using CAG
Audience of investors
and professionals

24. Supporting Events
Enterprise Workshop
Informative seminars
finance and funding
legal and IP
markets and marketing management and more
Opportunities to learn & practice new skills
Meet The Entrepreneur
Experienced entrepreneurs passing on the benefits of
their experience
Technology Briefing
Highlighting today’s Research and Development
Identifying potential commercial opportunities for the
coming years

25. Our success since 2001
• 540 active and networking members
– Entrepreneurs, Researchers, Investors, Mentors
• 200 entrepreneur presentations so far
• Over €70m investment raised by 65 companies
• Additional €6m of offers
• 200 jobs created/safeguarded

26. Lessons learned
• In start-up phase:
– Secure university/ research organisations support
– Secure private sector backing
– Secure public sector support
– Shadow and learn (avoid re-inventing the wheel)
– Develop a financial model that works
• Never compromise on flexibility

27. Lessons learned 2
• In development phase:
– Develop the network
• Sponsors (add value)
• Technology companies (manage expectations)
• Inventors (R&D support)
• Professional service providers (manage them)
• Intermediaries (get close)
• INVESTORS (schmooze & focus)
• Never compromise on quality

28. Lessons learned 3
• In growth phase:
– Plan for long-term sustainability
– Continually evolve the programme
– Don’t loose sight of sponsors
– Secure external contracts but protect the core
– Get early successes and SHOUT about these
– Invest in a virtual platform to maintain momentum
• Never compromise on your core ethos &
values

29. Connect Europe Background
• Interest generated from delivering
workshop by invitation from EC in
Prague, November 2004
• Relevant to the Competitiveness &
Innovation Framework (CIP)

30. Connect Europe Overview
Three distinct phases:
2. Creating 10 new Connect
organisations
3. Sharing best practice
4. Maximising the benefits of a
European-wide network

31. Phase 1 - Start-up
Creating 10 new Connect organisations
• Develop an appropriate model for partner
regions, establish infrastructure
• Business plan for long-term sustainability
• Exchange of good practice
• Transfer of processes, procedures,
management guidance
• Start-up capital matched with private & public
sector support

32. Phase 2 - Consolidation
Sharing best practice
• Virtual interactive web-platform
• Development & launch of a series of programmes
– Investment readiness value chain aimed at helping tech-
entrepreneurs prepare investment pitch
– Investor readiness to help novice angels understand the
pitfalls & up-sides of investing in technology
– Technology-transfer & business development programmes
– Diagnostic workshops to help companies develop corporate
strategy
• Investment platforms
• Post-investment support

33. Phase 3 - Growth
Maximising the benefits of a European-wide
network
• Introduction of market readiness programme
• Facilitated access to wider network of
investors, corporate, trade partners & other
collaborators
• Powerful network with lots of leverage shared
& brokered by Connect organisations

34. Potential areas for collaboration
• Joint assessment of Basque Regional
suitability by SPRI/ Connect
• Hosting of investment platforms by
SPRI/ Connect
• Incorporation of the Connect web
platform into SARATEK/ Science Parks
• Development of programmes
SARATEK/ Connect

35. Action Plan
• Consult with partners
• Develop business plan in conjunction
with partners’ input – 15 August
• EC & EP road show in Brussels – 1
week in September

36. Questions & Answers?
Thank you for listening.

37. Isabell Majewsky
Director
Tel: (+44) 24 7632 3316
Fax: (+44) 24 7632 3330
E-mail: isabell@connectmidlands.org
Web: www.connectmidlands.org

38. To nurture the
development
and growth of
technology-
related
enterprise in
the British
Midlands
by connecting
entrepreneurs
to the
resources they
need to
succeed