Preparing for Investment Richard Young Manchester Technology Fund

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Preparing for InvestmentRichard
YoungManchester Technology Fund

• Going for Growth 19th September 07

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Preparing for Investment

• Process who to approach and how
• Content what you are offering
• Questions and discussion

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Who to approach

• Sources of venture funding
• Regional funds
• Angel investors
• National funds

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North West VC Funds
68m uninvested
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Business Angel Networks

• Beer Partners
• Chris Webber 01625 879777
• Acceleris
• Norman Molyneux - 01942 322256
• TechInvest
• Vivienne Upcott-Gill 01925 400301

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National Fundsc.3bn in Europe/ 15bn US

• Some funds visiting Manchester

3i Accell Ventures Albany Venture Managers Atlas
Venture Avlar Bioventures Amadeus BioVeda Care
Capital Crescendo Ventures Delta Partners
Healthcap Ventures Intel Capital JP Morgan
Partners Pond Venture Partners Merlin
Biosciences MTI Ventures NIF Ventures Schroder
Ventures LS Scottish Equity Partners Temasek
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How to approach them

• Always seek an introduction
• Its all about people
• Inspire trust
• Quality of investor is more important than terms
• Be patient!

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Content your proposition

• Why investors are very selective
• 90 of start-ups fail
• 30 of nationally-funded start-ups fail
• Nearly all start-ups miss their revenue targets
• VC fund returns are erratic only some in top
  quartile match the FTSE
• Unlike in the US, Venture in Europe is still
  unproven

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Hence we ask ourselves

• Which projects will be the exceptions which
  generate growing revenues and exit value?
• How do we pick them?
• Which criteria would you use?

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Typical investor checklist

• Management team who know the market and have
  executed successfully before
• Evidence of unmet need in a growing, cash
  generative, innovative customer base
• Protected technology
• Scalability
• What do you do if you fail on one of these?

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• Questions and discussion