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         Newsletter of the Yorkshire Association of Business Angels                               Winter 2011/2012




EIS relief – better
than ever before
For a number of years the Enterprise Investment Scheme has provided business investors with
some of the most generous tax reliefs on offer. As a result of the government’s increasing
desire to encourage investment in small and new start-up companies, the existing rate of EIS
income tax relief has been increased and a new relief has been introduced, specifically aimed
at start-up businesses.
Enterprise Investment Scheme (EIS)             Seed Enterprise Investment Scheme
As part of the Chancellor’s 2011 “open for     (SEIS)
business” budget, he announced that, with      This new scheme will provide income tax
effect from 6 April 2011, the rate at which    relief at the rate of 50 per cent on
income tax relief is granted on qualifying     qualifying investments made after 31
EIS investments will increase from 20 per      March 2012. The aim of this is to promote
cent to 30 per cent. Furthermore, from 6       investment in new businesses. To qualify,
April 2012, the maximum qualifying             the investment must be in a new business,
amount an investor can make in a tax year      which must be a genuine new venture. In
will rise from £500,000 to £1m. As a result,   addition, the company must have fewer
the maximum income tax relief on               than 25 employees; it must be unquoted;
qualifying investments becomes £300,000.       and it must have assets with a value of
                                               less than £200,000 at the point of
In addition to income tax relief, qualifying   investment. The maximum amount of
EIS investments also provide two very          investment is £100,000 (meaning
valuable capital gains tax reliefs. One is a   maximum income tax relief of £50,000),
deferral relief on gains made on the           and the maximum amount a company can
disposal of other assets. The second is an     raise under this scheme is £150,000.
exemption from capital gains tax arising on
gains made on the EIS shares themselves.       Qualifying SEIS investments will provide
Both of these reliefs are subject to           the investor with an exemption from capital
meeting certain qualifying criteria.           gains tax arising on assets realised in
Furthermore, in the vast majority of cases     2012/13. The result of these provisions is a
the EIS shares will attract business           possible rate of tax relief at 78 per cent.
property relief which exempts them from        Continued overleaf...
inheritance tax once the shares have been
owned for two years.


In this issue:
2    Fan Frames is Streets ahead                4/5    University Commercial             7    November Investment Forum
3    Angel profile                                     Evaluation Service pilot          8    Diary dates, Master classes and
     Company update                             6      Associate member profile               contact details
2               Newsletter of the Yorkshire Association of Business Angels                                      Winter 2011/2012




      EIS relief – better than ever before              is an employee of the issuing company            that the tax reliefs afforded to qualifying
      (continued from Page 1)                           or any of its subsidiaries.                      investments could be viewed as being an
                                                        An investor is not precluded from this           added bonus to a business investor
      Investments                                       relief by virtue of being a director so          confident in the investment opportunity.
      In light of the significant tax benefits          long as he/she is paid on normal
      associated with these two schemes, it is          commercial terms. This enables business          With correct structuring, EIS/SEIS relief
      no wonder that both small and new start-          angels to invest and obtain the relief and       can be obtained by many business
      up companies wishing to attract                   still take an active role in the business        angels on investments in companies in
      investment - and those looking for an             after the investment.                            which they will have an active
      investment opportunity - are anxious to                                                            involvement after they have made their
      ensure that EIS/SEIS qualifying status            The SEIS scheme will not disqualify              investment. This allows the business
      can be achieved.                                  directors from investing in their own            angel access to the tax reliefs and a
                                                        companies so long as they do not                 measure of control over their
      The rules for both schemes apply                  exceed the 30 per cent limit.                    investment’s performance.
      restrictions to the availability of tax relief.
      These restrictions include: the company’s         By nature, in their basic format, EIS/SEIS       In April, BHP Mitchell will be presenting a
      trading activities, the type of shares            qualifying companies can be small, high-         seminar about tax-efficient business
      issued and the usage of the funds raised          risk ventures and therefore, to many, the        structures, including a discussion as to
      by the investment. One key rule that often        tax benefits associated with a qualifying        the availability of EIS/SEIS tax relief and
      stands in the way of EIS income tax relief        investment are a means to mitigate the           how to structure the business and
      is that the individual cannot be                  risk of the investment itself. Whilst this is    investment in the best way possible to
      connected with the company before the             a valid view, many will see EIS/SEIS             obtain these valuable reliefs.
      investment. Broadly, an individual is             investments as having significant return
      connected if they or an associate of              potential. Many small companies have
      theirs (in most cases any relative) owns          solid business plans, firm foundations
      more than 30 per cent of the company or           and/or high growth potential, meaning




       Fan Frames                                       Accountants. “We really enjoyed the
                                                        experience,” says Fan Frames Director

       is Streets                                       Paul Gibson. “It was the first time we
                                                        have done a pitch like that and we were

       ahead                                            obviously really pleased to win the prize.
                                                        The event was also a fantastic
                                                        networking opportunity; we met a
       Hull based eyewear company Fan
                                                        number of potential investors and we’re
       Frames Ltd was the winner of a mock
                                                        in discussion with some of them now.”
       Investment Forum run by Yorkshire                                                                        Andrew Burton with the winning Fan Frames team

       Association of Business Angels (YABA)
                                                        Fan Frames is based at The Enterprise
       and Hull-based Streets Chartered                                                                 “We were really pleased with the
                                                        Centre in Hull. The company specialises
       Accountants.                                                                                     success of the event,” says Streets
                                                        in sports-branded eyewear: optical
                                                                                                        Chartered Accountants’ Marketing
                                                        frames, sun, reading and 3D glasses. Set
       Following a slightly different format to a                                                       Partner, James Pinchbeck. “One of our
                                                        up in February 2011, the company owns
       full YABA investment forum, four of the                                                          interests is stimulating enterprise in the
                                                        the licencing rights for eleven UK football
       region’s entrepreneurs – Muddy Boot                                                              area and, knowing how difficult it can be
                                                        clubs including Celtic, Rangers,
       Foods, Antyx Animations, Ed’s Toyland                                                            to raise finance in the current economic
                                                        Newcastle United, Hull City AFC,
       and Fan Frames – delivered their                                                                 climate, these kinds of events are
                                                        Manchester United, Manchester City,
       investment opportunities to a panel of                                                           invaluable. We’re already planning a full
                                                        Liverpool, Everton, Nottingham Forest,
       experienced business professionals and                                                           Investment Forum with YABA to coincide
                                                        Arsenal and Chelsea.
       business angel members.                                                                          with Hull Business Week in June 2012.”

                                                        In total, the ‘Dragon’s Den’-style mock
       The prize awarded to Fan Frames                                                                  For more information about Fan Frames,
                                                        investment forum event attracted an
       included £1,000 worth of business                                                                visit www.fanframes.co.uk
                                                        audience of more than 40 entrepreneurs
       support services and a bottle of                                                                 For more information about Streets
                                                        and professional advisors.
       champagne, kindly donated by co-hosts                                                            Chartered Accountants go to
       and event sponsors Streets Chartered                                                             www.streetsweb.co.uk




    YABA information: 01423 810149 www.yaba.org.uk                                                                   Follow us on
Winter 2011/2012                        Newsletter of the Yorkshire Association of Business Angels                                  3




ANGEL MEMBER PROFILE
   John L Brierley Ltd is 125 years               for the individual businesses to carry on
   old but it’s changing with the                 running independently of each other.”
   times. YABA business angel Ian                 Ian’s been a member of YABA for a
   Brierley is the fourth generation of           couple of years with a view to spotting
   his family to run the Huddersfield-            possible acquisitions to add to the
   based textile manufacturer and                 company portfolio. Unlike some other
   he’s found that diversity is the key           business angels, he’s more interested in
   to the company’s longevity                     established companies rather than start-
                                                  ups. “It’s lower risk, lower reward than
                                                  investing in a new business and that’s a
   Although textiles are still important to the
                                                  good fit with my overall strategy. But if
   business, it’s distribution and processing
                                                  the right opportunity was presented –
   that the company specialises in now,
                                                  who knows?” he says. “It’s great to see
   rather than manufacturing. The company                                                                         Ian Brierley
                                                  the ideas and innovations presented at
   group also includes a craft business
                                                  Investment Forums – they’re always very
   which makes pipe cleaners, paper                                                               venture to add to the portfolio. “The
                                                  interesting and the networking
   shapes, pom-poms and sequins for the                                                           recycling sector interests me for a few
                                                  opportunity is just as valuable to me.”
   expanding craft market and to sell into                                                        reasons. It’s connected to manufacturing
   the education sector via group-buying                                                          but it’s not the same as any of our
                                                  The long-term plan for the core business
   syndicates.                                                                                    current businesses; it also has a
                                                  is to continue looking for suitable
                                                                                                  sustainable and eco-friendly aspect
                                                  acquisitions, preferably located within a
   The third arm of the business is an                                                            which is important to us. Our aim is to be
                                                  one-hour radius of Huddersfield.
   acquired turbo-charger company which                                                           socially ethical, to treat our employees
                                                  Although it’s important to Ian that any
   operates from its own premises. “There is                                                      well and to contribute to charity when
                                                  new acquisitions meet his criteria as far
   some synergy and group activity                                                                possible. By being successful and
                                                  as possible in terms of company size,
   between the different businesses,” says                                                        profitable as a business we are better
                                                  sector, ethos and location, he’s not
   Ian. “I’m on the board of each and so                                                          placed to fulfil these aims.”
                                                  averse to considering a very different
   have a strategic overview, but I’m happy




   Company update: Little Helper
   Little Helper is the company behind            ranges and products to add to the
   the FunPod®, a multi-award                     portfolio. “It’s time-consuming and costly to
   winning safety device that enables             develop all our own products from scratch,
   toddlers to have safe and easy                 so when we see a range without
                                                  representation in the UK that we know
   access to kitchen worktops. The                would be popular and fits with our
   product, which allows children to              company profile, we try and bring it on
   stand at worktop height safely,                board,” says Kim. The latest addition is
   without fear of falling, was                   Krooom, an Israeli brand of recycled (and
   developed back in 2005 by                      recyclable) toys and furniture. “It’s made
   company Sales and Marketing                    from cardboard but is treated in such a
   Director, Kim Johnson. A syndicate             way as to be as strong and robust as
   of four YABA members invested                  plastic but with the added benefit of being
   £100,000 in Little Helper in 2008              eco-friendly – something our customers are
   and this was the catalyst for the              passionate about.”
   company’s immediate expansion                  Little Helper launched in the US in 2011
   and continuing success.                        and is about to launch in Australia and
                                                  Germany.
   As well as developing and expanding its
   range of Funpod products to reflect            “We’re growing and continuing to be
   changing tastes in interiors and incorporate   successful,” says Kim. “The investment
   new features, Little Helper now has its own    was the springboard we needed to get a
   high chair range and is the exclusive UK       wide distribution for our products, plus Max
   stockist of Baby Boum – a Belgian              Davidson’s ongoing guidance as NED has
   sleepwear and bedding brand. The               continued to be invaluable.”                             The Krooom range shows its strength
   company is continually on the lookout for




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4                Newsletter of the Yorkshire Association of Business Angels                                        Winter 2011/2012




         University Commercial
         Evaluation Service pilot




        The first Assessment Forum cohort with YABA Manager, Barbara
        Greaves (centre), Mike Booth (3rd from right) and Neil Smith (far right)                           also suggested further areas of
                                                                                                           commercial potential that we’d not
      A new service to appraise                              become involved at an earlier stage in the    foreseen, which was great.
      commercial opportunities arising                       commercialisation process.”
      from university research in the                                                                      There’s always an element of risk when
      region was trialled in October as a                    The first Assessment Forum was hosted         working with early stage products that
      potential further addition to YABA’s                   by Leeds Metropolitan University on 25        may have commercial potential, but the
      portfolio of business activities.                      October at Old Broadcasting House in          evaluation service initiative will be useful
                                                             Leeds. Two research projects, from the        in helping to put us on a more solid
                                                             University of Hull and Leeds Metropolitan     footing as to the direction and best
      The aim of the new Commercial
                                                             University, were presented and discussed      markets to head for.”
      Evaluation Service is to co-ordinate
                                                             with a panel of four business angels.
      discussions about specific new
      technologies, products and services                                                                  Presenting at the event was Hilary Hamer,
                                                             Feedback from the event was entirely          Industry Liaison Manager of an innovative
      between business angels, the academics
                                                             positive. Andrew Raby, Business               digital technology developed at the
      and the University’s commercialisation
                                                             Development Manager at Leeds                  University of Hull which tracks food
      managers.
                                                             Metropolitan University, said:                consumption in controlled environments
      Says YABA Manager Barbara Greaves:                                                                   such as hospitals, care homes and
                                                             “The panel’s experience was highly            prisons.
      “We hope to show that this is an ideal
                                                             relevant to the research project we
      partnership which will forge closer links to
                                                             presented and they offered valuable and
      university technology transfer offices. The                                                          Both Hilary and co-inventor Matthew Taylor
                                                             specific advice and information, both to
      region’s universities have a steady flow of                                                          believe that the evaluation service could
                                                             the academic and to me, in terms of how
      potential business opportunities, and this                                                           become a very popular offer from YABA.
                                                             we might best proceed with this project.
      new service offers both support to                                                                   Hilary said: “It’s highly unusual for
                                                             We were pleased to hear that we were on
      business development managers in their                                                               researchers with a fledgling business
                                                             the right track and to have the extra input
      decisions about the commercial potential                                                             proposition to have the opportunity to
                                                             as to what our next steps could be and
      of new business ideas, as well as an                                                                 discuss ways forward with exactly the
                                                             how these could be taken forward. They
      opportunity for investors who might like to                                                          right industry experts. We all want to know




    YABA information: 01423 810149 www.yaba.org.uk                                                                     Follow us on
Winter 2011/2012                Newsletter of the Yorkshire Association of Business Angels                              5




                                             A N G E L V I E W: N E I L S M I T H
                                             Already a volunteer mentor                   advising them in particular to
                                             for a ‘Business Buddies’                     concentrate on who would buy the
                                                                                          product, rather than developing a
                                             community scheme which                       product or service – however innovative
                                             helps unemployed people                      and brilliant – that doesn’t have a
                                             start up their own                           defined customer base. I wouldn’t want
                                             businesses, Neil Smith from                  to stifle research for research sake, but
                                             Clear Image MMS Ltd was                      having an end game is key if you want
                                             delighted to be invited onto                 to commercialise.

                                             the panel.
                                                                                          As YABA members, we see many
                                                                                          investment opportunities through the
                                             "I thoroughly enjoyed the event and
                                                                                          Investment Forums and intranet that
                                             would definitely take part again. I
                                                                                          have thought out their
                                             initially got involved because I like
                                                                                          commercialisation direction, so to see
                                             helping young businesses get on the
                                                                                          them at a pre-investment stage is really
                                             right track, and I was intrigued to see
                                                                                          interesting."
                                             what early stage innovations might be
                                             presented by universities that broadly
                                             matched my experience. Amazing
                                             products can arise from blue skies
                                             research but I think it’s important for
                                             academics to be clear about the best
                                             and most lucrative potential markets for
                                             innovative research as early as
                                             possible, otherwise progress can
                                             quickly become unfocused. This is
                                             where I think the panel were able to
                                             add most value to the academics,

‘is there really a commercial application
here? Can it be profitable?’ and for us,
this event managed to condense what
would have taken a protracted period of
investigation and market research into a     A N G E L V I E W: M I K E B O OT H
morning’s discussion. This is hugely
important as this sector moves quickly       “I thought this was an extremely             different and interesting opportunity to
and if we’re to capitalise on our research   worthwhile event and, from talking to        get involved with early stage ventures.
outcomes then we need to make some           the academics, they agreed. For the          The benefit to the enterprise is that the
decisions in a short timeframe.”             panel, there was a ‘feel-good factor’ in     business experience of the panel can
                                             offering objective and constructive          help to steer it in a commercially viable
A second event is being planned which        feedback, to help crystallise thoughts       direction, avoiding some of the pitfalls
may be hosted by the University of
                                             about where embryonic businesses             which can only too easily hamper the
Huddersfield. Says Barry Timmins, the
                                             need to go and what they need to do to       development of a young business.
University’s head of Business
Development & IP Commercialisation:          get there. I particularly enjoyed the
“It’ll be great to meet and build            open discussion format, which allowed        I think this service could be a valuable
relationships with sector experts and        the parties to talk freely and sparked       addition to YABA’s portfolio of services
angel investors in the region – this is      constructive ideas. I think it is also       supporting the region’s business
something that I can see becoming a          useful to involve panel members from         community, I’d like to see it continue
very valuable aspect of YABA’s service.”     non-related sectors, as a bit of lateral     and I would happily take part again.
                                             thinking can have a really positive          The medium to longer term benefit is
                                             effect.                                      that it’s adding to the pipeline of
  For further information about the
                                                                                          investable local companies."
  commercial evaluation service,
                                             It’s not often we see pre-investment
  please contact Barbara Greaves
                                             propositions like this and, from an
  on barbara@yaba.org.uk or
                                             investor’s point of view, it offers a very
  01423 810149




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6                 Newsletter of the Yorkshire Association of Business Angels                                          Winter 2011/2012




        A S S O C I AT E M E M B E R P RO F I L E
        Irwin Mitchell                                   Irwin Mitchell became an Associate
                                                         Member of YABA in early 2011, after a
                                                         meeting with YABA’s South Yorkshire
        As one of the largest full service               Ambassador, Catherine Kennedy. Irwin
        law firms in the country, Irwin                  Mitchell is hosting a Master class in the
        Mitchell aims to promote the                     current series and Paul sees the benefit of
        benefits of obtaining timely legal               getting involved in this way: “It’s great to
        advice and break down                            be able to open our doors to new people,
        misconceptions about the                         showing them the human face of a legal
                                                         firm and what we have to offer,” he says.
        perceived expense of consulting a
                                                         “Although YABA angel members are
        lawyer. The company’s business                   experienced business people and
        clients range from small to medium-              accustomed to consulting lawyers, Irwin                         Paul Firth of Irwin Mitchell
        sized firms to multinational                     Mitchell has the expertise to help both
        companies with a more complex                    investors and entrepreneurs and
        set of legal requirements, but one               becoming involved with YABA has allowed               business partners in effect, so that we add
        thing remains the same – Irwin                   us to demonstrate this.”                              value by building relationships, knowing
                                                                                                               their history and therefore advising them
        Mitchell’s dedication to building a                                                                    better.”
                                                         Irwin Mitchell sponsored YABA’s investment
        relationship with them.
                                                         forum held at the AMP Technology Park in
                                                         September and several of Paul’s                       Already dedicated to supporting start-ups
        Paul Firth is the Regional Managing Partner      colleagues took the opportunity to                    and large companies, Irwin Mitchell has
        at Irwin Mitchell in Sheffield. “Changes in      experience what happens at a YABA event.              also identified the ‘intrapreneur’ – an
        the legal world have meant that law firms        “They were amazed at the energy and                   established business person or company
        need to be more accessible as well as            enthusiasm of the presenters at the                   with a new idea that they want to take
        more transparent in their pricing                investment forum – finding the range of               forward. Paul explains: “We can advise a
        structure,” he says. “We’ve set up a fixed-                                                            business or an individual on the best way
                                                         products and services staggering,” he
        price legal service for entrepreneurs and                                                              to proceed, whatever stage they’re at and
                                                         says. Irwin Mitchell has also sponsored the
        small businesses where initial advice on                                                               whatever level of support they need –
                                                         MADE Festival and StartUp Britain: “We
                                                                                                               that’s our strength.”
        an issue can be given for just £50 plus          want to be in there at the ground floor of a
        VAT without the ‘meter running’ as may           new venture, and build a lasting
                                                                                                               www.irwinmitchell.com/business
        have been the perception in the past.”           relationship with our clients – become




    Engineering students head for poll position, thanks to YABA
    A team of talented engineering students             Advisory Service (MAS), a government-funded            investment forum by Catherine Kennedy, YABA’s
    from the University of Sheffield is                 initiative that acts as a knowledge broker for the     South Yorkshire Ambassador! I wish them all the
                                                        region’s manufacturing industry.                       best in the 2012 competition, and hope they do
    revving up for their best performance
                                                                                                               Sheffield proud again.”
    yet at the 2012 Formula Student                     Peter facilitated introductions to MAS clients in
    competition, after securing sponsorship             the region and, as a result, the team secured a        For further information, please see
    and support through a YABA                          meeting with Stauff, a high-end hosing                 www.sheffieldformularacing.co.uk. If you can
    Investment Forum.                                   manufacturer, which offered to become their first      help the students with sponsorship, advice or
                                                        official national sponsor, as well as providing        any other support, please contact Barbara
    Held in the UK since 1998 and organised by the      essential machining support. The team has also         Greaves, YABA manager on
    Institution of Mechanical Engineers, the Formula    secured a second sponsorship from Sheffield-           Barbara@yaba.org.uk or 01423 810149
    Student competition challenges university           based Eldon Tools, who are manufacturing
    students from around the world to design and        machine parts for the team.
    build a single-seat racing car, which is then
    tested at the famous Silverstone Circuit.           Says the Sheffield Formula Racing team leader
                                                        David Rhys: “Meeting Peter at the YABA event
    In March 2011, two teams of engineering             was brilliant as it kick-started a chain reaction of
    undergraduates from the University of Sheffield     really positive things; we felt like a door opened
    and Sheffield Hallam University presented their     for us.”
    aspirations to take part in the 2011 event during
    an Investment Forum hosted by the Advanced          “Companies usually come to MAS looking for
    Manufacturing Park (AMP), hoping to secure          advice on solving problems with manufacturing
    sponsorship or practical support from YABA          processes and production, so in one sense I
    members. The presentation by the University of      was just doing my job,” says Peter. “I’m keen to
    Sheffield’s Marissa Bole led to a meeting with      support future engineers and I was very
    YABA guest delegate Peter Rooney, representing      impressed with their ambition and attitude. It’s
                                                                                                                        The University of Sheffield Formula Student team
    the South Yorkshire-based Manufacturing             fortunate that I’d been invited to that particular



    YABA information: 01423 810149 www.yaba.org.uk                                                                        Follow us on
Winter 2011/2012                                         Newsletter of the Yorkshire Association of Business Angels                                                            7



   I N V E S T M E N T F O RU M


York, November 2011
New chocolate and drinks brands were on                                                                                              Big Rich Films, London
the menu at the November Investment
                                                                                                                                     Requirement: Min. investment £5,000
Forum, along with a whole host of other
businesses that whet the audience’s                                                                                                  This company is seeking investment in its
sensory appetites…                                                                                                                   new film, Dyson with Death. With a track
                                                                                                                                     record in creating and producing
                                                                                                                                     commercial films, the company is looking
As YABA Chair Andrew Burton pointed out                                                                                              for investors who are able to make a
at the end of the Investment Forum, there                                                                                            minimum investment of £5,000.
really was something among the presenting                                                                                            –––––––––––––––––––––––––––––––––––––––––––––––––
companies to satisfy most interests. “You
can eat and drink it, get on your bike to                                                                                            OblinArk, Leeds
work off the calories and, if you fall off                                                                                           Requirement: £960,000
                                                                            Turbo Drinks Company
your bike, there’s a technology here that                                                                                            OblinArk has created an innovative and
might help fix you,” he said.                                                                                                        effective floating hydro-wheel for power
                                                                    Turbo Drinks Company, Leeds                                      generation and has interest from bodies
                                                                    Requirement: £250,000                                            such as British Waterways. It seeks
                                                                    With a management team experienced in                            investment to help capitalise fully on its
                                                                    the drinks industry, this company has                            potential.
                                                                    created innovative drinks which bridge the                       –––––––––––––––––––––––––––––––––––––––––––––––––
                                                                    gap between conventional lagers and
                                                                    beers, and alcopops.                                             Montague Healthcare,
                                                                    –––––––––––––––––––––––––––––––––––––––––––––––––                Nottingham
                                                                    Get Cycling CiC, York                                            Requirement: £500,000
                                                                    Requirement: £100,000                                            Montague Healthcare is seeking investment
                                                                    This well-established company has                                to bring its prototype technology – a new
                                                                    innovated to ensure its sustainability and is                    approach to diagnostics – to market,
       Networking at the York Investment Forum                                                                                       initially developing the technology for
                                                                    seeking investment in its disability cycles
                                                                    retail operation.                                                diabetes screening.
Held in partnership with York St John                               –––––––––––––––––––––––––––––––––––––––––––––––––
University and with the support of ICAEW                            Travelnet, Manchester
Business Advice Service, the ten                                    Requirement: £250,000
companies presenting their businesses did
                                                                    This web business provides consumers
so to a packed audience.
                                                                    with a ‘one stop shop’ for all airline and
                                                                    airport options across the UK. Having
Brannan Tempest of OblinArk, a company                              proven the technology the company now
that has developed an innovative power                              seeks investment to fund growth activities.
generation hydro-wheel, says he found the                           –––––––––––––––––––––––––––––––––––––––––––––––––
Forum incredibly useful. “I made a lot of                           Enjoy Chocolate, Huddersfield
excellent contacts at the event and as a                            Requirement: £200,000
result I’ve met with quite a few potential
investors,” he says. “It can be difficult to                        With listings in several major retailers, Enjoy                            IC Innovation
find finance and it offered the chance to                           Chocolate’s branded confectionary offer,
connect with people who are actively                                called ICONS, now requires investment to
interested in investing.”                                           ensure its growth so far can be sustained                        IC Innovations, Sheffield
                                                                    into the future.                                                 Requirement: £150,000
                                                                    –––––––––––––––––––––––––––––––––––––––––––––––––                Having successfully designed,
Presenting companies:                                               Neotherix, York                                                  manufactured, imported and distributed
                                                                    Requirement: £180,000                                            FMCG goods into the UK for six years now,
The Music Jar, Stockport                                            Originally a spin-out from Smith & Nephew,
                                                                                                                                     this company is looking to significantly
Requirement: £500,000                                                                                                                scale up and requires investment to help it
                                                                    Neotherix develops novel tissue scaffolds to
                                                                                                                                     reach its goals.
Offering music free downloads for                                   speed up and enhance the repair of
broadcast, revenues have been healthy for                           wounds. It has match funding for the
this young business, which now seeks                                amount it seeks, which will enable it to                                            Photos: Simon x2 Photography
                                                                                                                                                        www.simonandsimonphoto.co.uk
finance to help fund its growth.                                    bring its major product to market.
                                                                                                                                                        Tel: 01937 844442


   Disclaimer: Investment in new business carries high risks as well as the possibility of high    investments of this kind. Yorkshire Association of Business Angels (“YABA”) cannot advise on
   rewards and potential investors should be aware that no established market exists for the       the merits or risks of investment and is not authorised to arrange transactions or circulate
   trading of shares in private companies. Before investing in a project about which information   offer documents under the Financial Services and Markets Act 2000. YABA is an exempt
   is given, potential investors are strongly advised to take advice from a person, authorised     body for the purposes of arranging deals in investments under statutory instrument 1201 of
   under the Financial Services and Markets Act 2000 (“FSMA”), who specialises in advising on      2001 as a non-profit making organisation.




 Join us on                                                                                                    YABA information: 01423 810149 www.yaba.org.uk
8                Newsletter of the Yorkshire Association of Business Angels                                 Winter 2011/2012




      Diary dates
      YABA runs a full and varied events
      calendar each year – if you’re interested
      in attending any of these events, please
                                                                Expo of inspiring science,
      contact us on 01423 810149, or email
      our Communications and Events
                                                                technology and innovations
      Manager, Charlotte Atkinson at                            Wednesday 8 February, York Racecourse
      charlotte@yaba.org.uk
                                                                Venturefest Yorkshire showcases the region’s finest science, technology
                                                                and innovation entrepreneurs and brings them together with the
      08 February                                               professionals who support them.
      Venturefest Yorkshire 2012
      Investment Competition                                    Events during the day include:
      Location: York Racecourse                                 • The Investment Competition organised by YABA and sponsored by The
                                                                  Shepherd Group. Up to eight start-up or early stage companies will pitch to
      Time: 9.00am
                                                                  win a prize worth in the region of £30,000 as well as receiving publicity and
                                                                  possible private equity investment
      14 February                                               • Angel members and angel guests lunch sponsored by Ellis IP Ltd
      Master class                                              • The Innovation Showcase where 36 of the best young companies in the
      Exit strategies                                             region will exhibit and promote new ideas
      Location: Nabarro LLP Sheffield
                           ,                                    • A large exhibition where delegates can network with suppliers
      Time: 9.00am                                              • Breakfast networking
                                                                • A dinner and awards ceremony
                                                                • Opportunities for young people to showcase their enterprising potential
      20 March                                                  • A variety of seminars and a high profile debate all designed to educate and
      Investment Forum                                            inspire both the entrepreneurs of today and of the future
      Global Manufacturing Festival fringe event
                                                                All entrants to the Investment Competition benefit from increased visibility to
      Location: AMP Rotherham
                   ,
                                                                potential investors. Last year’s winner, Owen Dukes of York-based Propalms, is
      Time: 5.45pm
                                                                positive about its benefits. “The competition certainly raised our profile among
                                                                the business angel and venture capital community and we received a lot of
      24 April                                                  publicity as a result,” he says. “The business services prizes have proven very
      Angel seminar                                             useful and are available for us to use when it suits our needs. It’s a great way to
      Tax planning for investments (EIS/SEIS)                   meet potential investors.”
      Location: Carrwood Park, Leeds                            Come and visit YABA on Stand 3.
      Sponsored by: BHP Mitchell
                                                                For further information please contact charlotte@yaba.org.uk or visit
      Time: 8.15am
                                                                www.venturefestyorkshire.net
                                                                www.shepherd-group.com
                                                                www.ellis-ip.co.uk




                                                                New Faces
                                                                The YABA associate membership continues to grow
                                                                – our most recent new recruit is:
                                                                Watts Associates Ltd - www.watts-associates.co.uk




                                                                                              www.twitter.com/yaba1995


      Contact us             Yorkshire Association   Barbara Greaves,                            Members of:
                                                                                                                      Copy: Campus PR
      If you want to know    of Business Angels      Charlotte Atkinson                                               www.campuspr.co.uk
      more about YABA        1 Hornbeam House        or Jordana Beattie                                               Tel: 0113 357 2100
      or come to an          Hornbeam Park           T: 01423 810149                                                  Design: Spiral
      investment forum,      Hookstone Road          E: admin@yaba.org.uk                                             www.spiralcom.co.uk
      please get in touch.   Harrogate HG2 8QT       W: www.yaba.org.uk                                               Tel: 0113 205 1400




    YABA information: 01423 810149 www.yaba.org.uk

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Catalyst Newsletter Winter 2011 2012

  • 1. www.yaba.org.uk catalyst Newsletter of the Yorkshire Association of Business Angels Winter 2011/2012 EIS relief – better than ever before For a number of years the Enterprise Investment Scheme has provided business investors with some of the most generous tax reliefs on offer. As a result of the government’s increasing desire to encourage investment in small and new start-up companies, the existing rate of EIS income tax relief has been increased and a new relief has been introduced, specifically aimed at start-up businesses. Enterprise Investment Scheme (EIS) Seed Enterprise Investment Scheme As part of the Chancellor’s 2011 “open for (SEIS) business” budget, he announced that, with This new scheme will provide income tax effect from 6 April 2011, the rate at which relief at the rate of 50 per cent on income tax relief is granted on qualifying qualifying investments made after 31 EIS investments will increase from 20 per March 2012. The aim of this is to promote cent to 30 per cent. Furthermore, from 6 investment in new businesses. To qualify, April 2012, the maximum qualifying the investment must be in a new business, amount an investor can make in a tax year which must be a genuine new venture. In will rise from £500,000 to £1m. As a result, addition, the company must have fewer the maximum income tax relief on than 25 employees; it must be unquoted; qualifying investments becomes £300,000. and it must have assets with a value of less than £200,000 at the point of In addition to income tax relief, qualifying investment. The maximum amount of EIS investments also provide two very investment is £100,000 (meaning valuable capital gains tax reliefs. One is a maximum income tax relief of £50,000), deferral relief on gains made on the and the maximum amount a company can disposal of other assets. The second is an raise under this scheme is £150,000. exemption from capital gains tax arising on gains made on the EIS shares themselves. Qualifying SEIS investments will provide Both of these reliefs are subject to the investor with an exemption from capital meeting certain qualifying criteria. gains tax arising on assets realised in Furthermore, in the vast majority of cases 2012/13. The result of these provisions is a the EIS shares will attract business possible rate of tax relief at 78 per cent. property relief which exempts them from Continued overleaf... inheritance tax once the shares have been owned for two years. In this issue: 2 Fan Frames is Streets ahead 4/5 University Commercial 7 November Investment Forum 3 Angel profile Evaluation Service pilot 8 Diary dates, Master classes and Company update 6 Associate member profile contact details
  • 2. 2 Newsletter of the Yorkshire Association of Business Angels Winter 2011/2012 EIS relief – better than ever before is an employee of the issuing company that the tax reliefs afforded to qualifying (continued from Page 1) or any of its subsidiaries. investments could be viewed as being an An investor is not precluded from this added bonus to a business investor Investments relief by virtue of being a director so confident in the investment opportunity. In light of the significant tax benefits long as he/she is paid on normal associated with these two schemes, it is commercial terms. This enables business With correct structuring, EIS/SEIS relief no wonder that both small and new start- angels to invest and obtain the relief and can be obtained by many business up companies wishing to attract still take an active role in the business angels on investments in companies in investment - and those looking for an after the investment. which they will have an active investment opportunity - are anxious to involvement after they have made their ensure that EIS/SEIS qualifying status The SEIS scheme will not disqualify investment. This allows the business can be achieved. directors from investing in their own angel access to the tax reliefs and a companies so long as they do not measure of control over their The rules for both schemes apply exceed the 30 per cent limit. investment’s performance. restrictions to the availability of tax relief. These restrictions include: the company’s By nature, in their basic format, EIS/SEIS In April, BHP Mitchell will be presenting a trading activities, the type of shares qualifying companies can be small, high- seminar about tax-efficient business issued and the usage of the funds raised risk ventures and therefore, to many, the structures, including a discussion as to by the investment. One key rule that often tax benefits associated with a qualifying the availability of EIS/SEIS tax relief and stands in the way of EIS income tax relief investment are a means to mitigate the how to structure the business and is that the individual cannot be risk of the investment itself. Whilst this is investment in the best way possible to connected with the company before the a valid view, many will see EIS/SEIS obtain these valuable reliefs. investment. Broadly, an individual is investments as having significant return connected if they or an associate of potential. Many small companies have theirs (in most cases any relative) owns solid business plans, firm foundations more than 30 per cent of the company or and/or high growth potential, meaning Fan Frames Accountants. “We really enjoyed the experience,” says Fan Frames Director is Streets Paul Gibson. “It was the first time we have done a pitch like that and we were ahead obviously really pleased to win the prize. The event was also a fantastic networking opportunity; we met a Hull based eyewear company Fan number of potential investors and we’re Frames Ltd was the winner of a mock in discussion with some of them now.” Investment Forum run by Yorkshire Andrew Burton with the winning Fan Frames team Association of Business Angels (YABA) Fan Frames is based at The Enterprise and Hull-based Streets Chartered “We were really pleased with the Centre in Hull. The company specialises Accountants. success of the event,” says Streets in sports-branded eyewear: optical Chartered Accountants’ Marketing frames, sun, reading and 3D glasses. Set Following a slightly different format to a Partner, James Pinchbeck. “One of our up in February 2011, the company owns full YABA investment forum, four of the interests is stimulating enterprise in the the licencing rights for eleven UK football region’s entrepreneurs – Muddy Boot area and, knowing how difficult it can be clubs including Celtic, Rangers, Foods, Antyx Animations, Ed’s Toyland to raise finance in the current economic Newcastle United, Hull City AFC, and Fan Frames – delivered their climate, these kinds of events are Manchester United, Manchester City, investment opportunities to a panel of invaluable. We’re already planning a full Liverpool, Everton, Nottingham Forest, experienced business professionals and Investment Forum with YABA to coincide Arsenal and Chelsea. business angel members. with Hull Business Week in June 2012.” In total, the ‘Dragon’s Den’-style mock The prize awarded to Fan Frames For more information about Fan Frames, investment forum event attracted an included £1,000 worth of business visit www.fanframes.co.uk audience of more than 40 entrepreneurs support services and a bottle of For more information about Streets and professional advisors. champagne, kindly donated by co-hosts Chartered Accountants go to and event sponsors Streets Chartered www.streetsweb.co.uk YABA information: 01423 810149 www.yaba.org.uk Follow us on
  • 3. Winter 2011/2012 Newsletter of the Yorkshire Association of Business Angels 3 ANGEL MEMBER PROFILE John L Brierley Ltd is 125 years for the individual businesses to carry on old but it’s changing with the running independently of each other.” times. YABA business angel Ian Ian’s been a member of YABA for a Brierley is the fourth generation of couple of years with a view to spotting his family to run the Huddersfield- possible acquisitions to add to the based textile manufacturer and company portfolio. Unlike some other he’s found that diversity is the key business angels, he’s more interested in to the company’s longevity established companies rather than start- ups. “It’s lower risk, lower reward than investing in a new business and that’s a Although textiles are still important to the good fit with my overall strategy. But if business, it’s distribution and processing the right opportunity was presented – that the company specialises in now, who knows?” he says. “It’s great to see rather than manufacturing. The company Ian Brierley the ideas and innovations presented at group also includes a craft business Investment Forums – they’re always very which makes pipe cleaners, paper venture to add to the portfolio. “The interesting and the networking shapes, pom-poms and sequins for the recycling sector interests me for a few opportunity is just as valuable to me.” expanding craft market and to sell into reasons. It’s connected to manufacturing the education sector via group-buying but it’s not the same as any of our The long-term plan for the core business syndicates. current businesses; it also has a is to continue looking for suitable sustainable and eco-friendly aspect acquisitions, preferably located within a The third arm of the business is an which is important to us. Our aim is to be one-hour radius of Huddersfield. acquired turbo-charger company which socially ethical, to treat our employees Although it’s important to Ian that any operates from its own premises. “There is well and to contribute to charity when new acquisitions meet his criteria as far some synergy and group activity possible. By being successful and as possible in terms of company size, between the different businesses,” says profitable as a business we are better sector, ethos and location, he’s not Ian. “I’m on the board of each and so placed to fulfil these aims.” averse to considering a very different have a strategic overview, but I’m happy Company update: Little Helper Little Helper is the company behind ranges and products to add to the the FunPod®, a multi-award portfolio. “It’s time-consuming and costly to winning safety device that enables develop all our own products from scratch, toddlers to have safe and easy so when we see a range without representation in the UK that we know access to kitchen worktops. The would be popular and fits with our product, which allows children to company profile, we try and bring it on stand at worktop height safely, board,” says Kim. The latest addition is without fear of falling, was Krooom, an Israeli brand of recycled (and developed back in 2005 by recyclable) toys and furniture. “It’s made company Sales and Marketing from cardboard but is treated in such a Director, Kim Johnson. A syndicate way as to be as strong and robust as of four YABA members invested plastic but with the added benefit of being £100,000 in Little Helper in 2008 eco-friendly – something our customers are and this was the catalyst for the passionate about.” company’s immediate expansion Little Helper launched in the US in 2011 and continuing success. and is about to launch in Australia and Germany. As well as developing and expanding its range of Funpod products to reflect “We’re growing and continuing to be changing tastes in interiors and incorporate successful,” says Kim. “The investment new features, Little Helper now has its own was the springboard we needed to get a high chair range and is the exclusive UK wide distribution for our products, plus Max stockist of Baby Boum – a Belgian Davidson’s ongoing guidance as NED has sleepwear and bedding brand. The continued to be invaluable.” The Krooom range shows its strength company is continually on the lookout for Join us on YABA information: 01423 810149 www.yaba.org.uk
  • 4. 4 Newsletter of the Yorkshire Association of Business Angels Winter 2011/2012 University Commercial Evaluation Service pilot The first Assessment Forum cohort with YABA Manager, Barbara Greaves (centre), Mike Booth (3rd from right) and Neil Smith (far right) also suggested further areas of commercial potential that we’d not A new service to appraise become involved at an earlier stage in the foreseen, which was great. commercial opportunities arising commercialisation process.” from university research in the There’s always an element of risk when region was trialled in October as a The first Assessment Forum was hosted working with early stage products that potential further addition to YABA’s by Leeds Metropolitan University on 25 may have commercial potential, but the portfolio of business activities. October at Old Broadcasting House in evaluation service initiative will be useful Leeds. Two research projects, from the in helping to put us on a more solid University of Hull and Leeds Metropolitan footing as to the direction and best The aim of the new Commercial University, were presented and discussed markets to head for.” Evaluation Service is to co-ordinate with a panel of four business angels. discussions about specific new technologies, products and services Presenting at the event was Hilary Hamer, Feedback from the event was entirely Industry Liaison Manager of an innovative between business angels, the academics positive. Andrew Raby, Business digital technology developed at the and the University’s commercialisation Development Manager at Leeds University of Hull which tracks food managers. Metropolitan University, said: consumption in controlled environments Says YABA Manager Barbara Greaves: such as hospitals, care homes and “The panel’s experience was highly prisons. “We hope to show that this is an ideal relevant to the research project we partnership which will forge closer links to presented and they offered valuable and university technology transfer offices. The Both Hilary and co-inventor Matthew Taylor specific advice and information, both to region’s universities have a steady flow of believe that the evaluation service could the academic and to me, in terms of how potential business opportunities, and this become a very popular offer from YABA. we might best proceed with this project. new service offers both support to Hilary said: “It’s highly unusual for We were pleased to hear that we were on business development managers in their researchers with a fledgling business the right track and to have the extra input decisions about the commercial potential proposition to have the opportunity to as to what our next steps could be and of new business ideas, as well as an discuss ways forward with exactly the how these could be taken forward. They opportunity for investors who might like to right industry experts. We all want to know YABA information: 01423 810149 www.yaba.org.uk Follow us on
  • 5. Winter 2011/2012 Newsletter of the Yorkshire Association of Business Angels 5 A N G E L V I E W: N E I L S M I T H Already a volunteer mentor advising them in particular to for a ‘Business Buddies’ concentrate on who would buy the product, rather than developing a community scheme which product or service – however innovative helps unemployed people and brilliant – that doesn’t have a start up their own defined customer base. I wouldn’t want businesses, Neil Smith from to stifle research for research sake, but Clear Image MMS Ltd was having an end game is key if you want delighted to be invited onto to commercialise. the panel. As YABA members, we see many investment opportunities through the "I thoroughly enjoyed the event and Investment Forums and intranet that would definitely take part again. I have thought out their initially got involved because I like commercialisation direction, so to see helping young businesses get on the them at a pre-investment stage is really right track, and I was intrigued to see interesting." what early stage innovations might be presented by universities that broadly matched my experience. Amazing products can arise from blue skies research but I think it’s important for academics to be clear about the best and most lucrative potential markets for innovative research as early as possible, otherwise progress can quickly become unfocused. This is where I think the panel were able to add most value to the academics, ‘is there really a commercial application here? Can it be profitable?’ and for us, this event managed to condense what would have taken a protracted period of investigation and market research into a A N G E L V I E W: M I K E B O OT H morning’s discussion. This is hugely important as this sector moves quickly “I thought this was an extremely different and interesting opportunity to and if we’re to capitalise on our research worthwhile event and, from talking to get involved with early stage ventures. outcomes then we need to make some the academics, they agreed. For the The benefit to the enterprise is that the decisions in a short timeframe.” panel, there was a ‘feel-good factor’ in business experience of the panel can offering objective and constructive help to steer it in a commercially viable A second event is being planned which feedback, to help crystallise thoughts direction, avoiding some of the pitfalls may be hosted by the University of about where embryonic businesses which can only too easily hamper the Huddersfield. Says Barry Timmins, the need to go and what they need to do to development of a young business. University’s head of Business Development & IP Commercialisation: get there. I particularly enjoyed the “It’ll be great to meet and build open discussion format, which allowed I think this service could be a valuable relationships with sector experts and the parties to talk freely and sparked addition to YABA’s portfolio of services angel investors in the region – this is constructive ideas. I think it is also supporting the region’s business something that I can see becoming a useful to involve panel members from community, I’d like to see it continue very valuable aspect of YABA’s service.” non-related sectors, as a bit of lateral and I would happily take part again. thinking can have a really positive The medium to longer term benefit is effect. that it’s adding to the pipeline of For further information about the investable local companies." commercial evaluation service, It’s not often we see pre-investment please contact Barbara Greaves propositions like this and, from an on barbara@yaba.org.uk or investor’s point of view, it offers a very 01423 810149 Join us on YABA information: 01423 810149 www.yaba.org.uk
  • 6. 6 Newsletter of the Yorkshire Association of Business Angels Winter 2011/2012 A S S O C I AT E M E M B E R P RO F I L E Irwin Mitchell Irwin Mitchell became an Associate Member of YABA in early 2011, after a meeting with YABA’s South Yorkshire As one of the largest full service Ambassador, Catherine Kennedy. Irwin law firms in the country, Irwin Mitchell is hosting a Master class in the Mitchell aims to promote the current series and Paul sees the benefit of benefits of obtaining timely legal getting involved in this way: “It’s great to advice and break down be able to open our doors to new people, misconceptions about the showing them the human face of a legal firm and what we have to offer,” he says. perceived expense of consulting a “Although YABA angel members are lawyer. The company’s business experienced business people and clients range from small to medium- accustomed to consulting lawyers, Irwin Paul Firth of Irwin Mitchell sized firms to multinational Mitchell has the expertise to help both companies with a more complex investors and entrepreneurs and set of legal requirements, but one becoming involved with YABA has allowed business partners in effect, so that we add thing remains the same – Irwin us to demonstrate this.” value by building relationships, knowing their history and therefore advising them Mitchell’s dedication to building a better.” Irwin Mitchell sponsored YABA’s investment relationship with them. forum held at the AMP Technology Park in September and several of Paul’s Already dedicated to supporting start-ups Paul Firth is the Regional Managing Partner colleagues took the opportunity to and large companies, Irwin Mitchell has at Irwin Mitchell in Sheffield. “Changes in experience what happens at a YABA event. also identified the ‘intrapreneur’ – an the legal world have meant that law firms “They were amazed at the energy and established business person or company need to be more accessible as well as enthusiasm of the presenters at the with a new idea that they want to take more transparent in their pricing investment forum – finding the range of forward. Paul explains: “We can advise a structure,” he says. “We’ve set up a fixed- business or an individual on the best way products and services staggering,” he price legal service for entrepreneurs and to proceed, whatever stage they’re at and says. Irwin Mitchell has also sponsored the small businesses where initial advice on whatever level of support they need – MADE Festival and StartUp Britain: “We that’s our strength.” an issue can be given for just £50 plus want to be in there at the ground floor of a VAT without the ‘meter running’ as may new venture, and build a lasting www.irwinmitchell.com/business have been the perception in the past.” relationship with our clients – become Engineering students head for poll position, thanks to YABA A team of talented engineering students Advisory Service (MAS), a government-funded investment forum by Catherine Kennedy, YABA’s from the University of Sheffield is initiative that acts as a knowledge broker for the South Yorkshire Ambassador! I wish them all the region’s manufacturing industry. best in the 2012 competition, and hope they do revving up for their best performance Sheffield proud again.” yet at the 2012 Formula Student Peter facilitated introductions to MAS clients in competition, after securing sponsorship the region and, as a result, the team secured a For further information, please see and support through a YABA meeting with Stauff, a high-end hosing www.sheffieldformularacing.co.uk. If you can Investment Forum. manufacturer, which offered to become their first help the students with sponsorship, advice or official national sponsor, as well as providing any other support, please contact Barbara Held in the UK since 1998 and organised by the essential machining support. The team has also Greaves, YABA manager on Institution of Mechanical Engineers, the Formula secured a second sponsorship from Sheffield- Barbara@yaba.org.uk or 01423 810149 Student competition challenges university based Eldon Tools, who are manufacturing students from around the world to design and machine parts for the team. build a single-seat racing car, which is then tested at the famous Silverstone Circuit. Says the Sheffield Formula Racing team leader David Rhys: “Meeting Peter at the YABA event In March 2011, two teams of engineering was brilliant as it kick-started a chain reaction of undergraduates from the University of Sheffield really positive things; we felt like a door opened and Sheffield Hallam University presented their for us.” aspirations to take part in the 2011 event during an Investment Forum hosted by the Advanced “Companies usually come to MAS looking for Manufacturing Park (AMP), hoping to secure advice on solving problems with manufacturing sponsorship or practical support from YABA processes and production, so in one sense I members. The presentation by the University of was just doing my job,” says Peter. “I’m keen to Sheffield’s Marissa Bole led to a meeting with support future engineers and I was very YABA guest delegate Peter Rooney, representing impressed with their ambition and attitude. It’s The University of Sheffield Formula Student team the South Yorkshire-based Manufacturing fortunate that I’d been invited to that particular YABA information: 01423 810149 www.yaba.org.uk Follow us on
  • 7. Winter 2011/2012 Newsletter of the Yorkshire Association of Business Angels 7 I N V E S T M E N T F O RU M York, November 2011 New chocolate and drinks brands were on Big Rich Films, London the menu at the November Investment Requirement: Min. investment £5,000 Forum, along with a whole host of other businesses that whet the audience’s This company is seeking investment in its sensory appetites… new film, Dyson with Death. With a track record in creating and producing commercial films, the company is looking As YABA Chair Andrew Burton pointed out for investors who are able to make a at the end of the Investment Forum, there minimum investment of £5,000. really was something among the presenting ––––––––––––––––––––––––––––––––––––––––––––––––– companies to satisfy most interests. “You can eat and drink it, get on your bike to OblinArk, Leeds work off the calories and, if you fall off Requirement: £960,000 Turbo Drinks Company your bike, there’s a technology here that OblinArk has created an innovative and might help fix you,” he said. effective floating hydro-wheel for power Turbo Drinks Company, Leeds generation and has interest from bodies Requirement: £250,000 such as British Waterways. It seeks With a management team experienced in investment to help capitalise fully on its the drinks industry, this company has potential. created innovative drinks which bridge the ––––––––––––––––––––––––––––––––––––––––––––––––– gap between conventional lagers and beers, and alcopops. Montague Healthcare, ––––––––––––––––––––––––––––––––––––––––––––––––– Nottingham Get Cycling CiC, York Requirement: £500,000 Requirement: £100,000 Montague Healthcare is seeking investment This well-established company has to bring its prototype technology – a new innovated to ensure its sustainability and is approach to diagnostics – to market, Networking at the York Investment Forum initially developing the technology for seeking investment in its disability cycles retail operation. diabetes screening. Held in partnership with York St John ––––––––––––––––––––––––––––––––––––––––––––––––– University and with the support of ICAEW Travelnet, Manchester Business Advice Service, the ten Requirement: £250,000 companies presenting their businesses did This web business provides consumers so to a packed audience. with a ‘one stop shop’ for all airline and airport options across the UK. Having Brannan Tempest of OblinArk, a company proven the technology the company now that has developed an innovative power seeks investment to fund growth activities. generation hydro-wheel, says he found the ––––––––––––––––––––––––––––––––––––––––––––––––– Forum incredibly useful. “I made a lot of Enjoy Chocolate, Huddersfield excellent contacts at the event and as a Requirement: £200,000 result I’ve met with quite a few potential investors,” he says. “It can be difficult to With listings in several major retailers, Enjoy IC Innovation find finance and it offered the chance to Chocolate’s branded confectionary offer, connect with people who are actively called ICONS, now requires investment to interested in investing.” ensure its growth so far can be sustained IC Innovations, Sheffield into the future. Requirement: £150,000 ––––––––––––––––––––––––––––––––––––––––––––––––– Having successfully designed, Presenting companies: Neotherix, York manufactured, imported and distributed Requirement: £180,000 FMCG goods into the UK for six years now, The Music Jar, Stockport Originally a spin-out from Smith & Nephew, this company is looking to significantly Requirement: £500,000 scale up and requires investment to help it Neotherix develops novel tissue scaffolds to reach its goals. Offering music free downloads for speed up and enhance the repair of broadcast, revenues have been healthy for wounds. It has match funding for the this young business, which now seeks amount it seeks, which will enable it to Photos: Simon x2 Photography www.simonandsimonphoto.co.uk finance to help fund its growth. bring its major product to market. Tel: 01937 844442 Disclaimer: Investment in new business carries high risks as well as the possibility of high investments of this kind. Yorkshire Association of Business Angels (“YABA”) cannot advise on rewards and potential investors should be aware that no established market exists for the the merits or risks of investment and is not authorised to arrange transactions or circulate trading of shares in private companies. Before investing in a project about which information offer documents under the Financial Services and Markets Act 2000. YABA is an exempt is given, potential investors are strongly advised to take advice from a person, authorised body for the purposes of arranging deals in investments under statutory instrument 1201 of under the Financial Services and Markets Act 2000 (“FSMA”), who specialises in advising on 2001 as a non-profit making organisation. Join us on YABA information: 01423 810149 www.yaba.org.uk
  • 8. 8 Newsletter of the Yorkshire Association of Business Angels Winter 2011/2012 Diary dates YABA runs a full and varied events calendar each year – if you’re interested in attending any of these events, please Expo of inspiring science, contact us on 01423 810149, or email our Communications and Events technology and innovations Manager, Charlotte Atkinson at Wednesday 8 February, York Racecourse charlotte@yaba.org.uk Venturefest Yorkshire showcases the region’s finest science, technology and innovation entrepreneurs and brings them together with the 08 February professionals who support them. Venturefest Yorkshire 2012 Investment Competition Events during the day include: Location: York Racecourse • The Investment Competition organised by YABA and sponsored by The Shepherd Group. Up to eight start-up or early stage companies will pitch to Time: 9.00am win a prize worth in the region of £30,000 as well as receiving publicity and possible private equity investment 14 February • Angel members and angel guests lunch sponsored by Ellis IP Ltd Master class • The Innovation Showcase where 36 of the best young companies in the Exit strategies region will exhibit and promote new ideas Location: Nabarro LLP Sheffield , • A large exhibition where delegates can network with suppliers Time: 9.00am • Breakfast networking • A dinner and awards ceremony • Opportunities for young people to showcase their enterprising potential 20 March • A variety of seminars and a high profile debate all designed to educate and Investment Forum inspire both the entrepreneurs of today and of the future Global Manufacturing Festival fringe event All entrants to the Investment Competition benefit from increased visibility to Location: AMP Rotherham , potential investors. Last year’s winner, Owen Dukes of York-based Propalms, is Time: 5.45pm positive about its benefits. “The competition certainly raised our profile among the business angel and venture capital community and we received a lot of 24 April publicity as a result,” he says. “The business services prizes have proven very Angel seminar useful and are available for us to use when it suits our needs. It’s a great way to Tax planning for investments (EIS/SEIS) meet potential investors.” Location: Carrwood Park, Leeds Come and visit YABA on Stand 3. Sponsored by: BHP Mitchell For further information please contact charlotte@yaba.org.uk or visit Time: 8.15am www.venturefestyorkshire.net www.shepherd-group.com www.ellis-ip.co.uk New Faces The YABA associate membership continues to grow – our most recent new recruit is: Watts Associates Ltd - www.watts-associates.co.uk www.twitter.com/yaba1995 Contact us Yorkshire Association Barbara Greaves, Members of: Copy: Campus PR If you want to know of Business Angels Charlotte Atkinson www.campuspr.co.uk more about YABA 1 Hornbeam House or Jordana Beattie Tel: 0113 357 2100 or come to an Hornbeam Park T: 01423 810149 Design: Spiral investment forum, Hookstone Road E: admin@yaba.org.uk www.spiralcom.co.uk please get in touch. Harrogate HG2 8QT W: www.yaba.org.uk Tel: 0113 205 1400 YABA information: 01423 810149 www.yaba.org.uk