Tony Goulbourn Chief Executive Objectives • Inform about SYIF • Examine feedback from you • How we shape the future Key Messages • 469 investments totalling £50 million • Momentum of investment continuing • Additional £4 million injected by Yorkshire Forward • £10 million to be invested up to end of 2008 • Contingency Fund from January 2009 Business Loans £15k - £150k Andy Chaffer SBF Business Director Business Loans £15k - £150k • Core market remains funding the gap in projects for established businesses • For early stage deals depends on certainty of forecasted income • Investment amount reflects risk and we look to package deals with other funders Business Loans £15k - £150k • Up to £1.3 million available to invest by end of 2008 which provides headroom • Additional money is available if needed Investments by year 4 3.5 3 2.5 £M 2 1.5 1 0.5 0 2003 2004 2005 2006 2007 2008 Ye ar e nde d M arch SBF Business Loans Interest Rates • Headline rate remains 12% but retained rebate concept • Rates are fixed for term of the loan • Interest Rate Rebate available dependent on risk subject to meeting on-going conditions (Includes Management Accounts, QPR’s, Dividend Covenants etc) Business Loans Interest Rates Business Stage Rebate Net Rate Established & 4% 8% Profitable Established 2% 10% Early Stage No rebate 12% Summary • Ample money to lend to established and early stage businesses • If you have clients with funding gaps please give me a call…………….. Equity Linked Packages Mary Broadhead Investment Director Equity Linked Packages • Equity linked packages from £100k to £2.5 million • All stages considered • Returns linked to perceived risks • Syndication with other investors possible Equity Linked Packages • Performance to date • 82 investments in 44 companies • £22.2 million invested to June 2008 • Some exits achieved already, more in the pipeline Equity Linked Packages • Up to £4.7 million available to invest by end of 2008 • Additional money is available if needed Investments by year 7 6 5 4 £M 3 2 1 0 2003 2004 2005 2006 2007 2008 Year ended March Cap/Dev Types of investments • Mezzanine loans for established, profitable businesses (may include a small equity upside) • Equity packages for earlier stage or riskier proposals (minority stakes only) • Terms of investment are structured to fit each individual deal Seedcorn Fund Jonathan Dixon Deputy Chief Executive Key Goals of Seedcorn Fund • To enhance the SYIF product range • To increase the level of investment in early stage knowledge based businesses • To test the market, delivery mechanisms and financial instruments Seedcorn Fund • Total investable value - £4.685m • 2 portfolios: Proof of Concept Commercialisation • Budgets for mentoring and management support Seedcorn Fund • £2.5 million invested • £2.1 million committed for investment by the end of the year • Additional investments of £1.2 million anticipated before end of 2008 (funded from interim fund) Lessons Learnt • Collaboration model can & does work • Importance of milestone investments • Importance of developing management capability • IP is mobile and therefore significant for inward investment Microloans Fiona Greaves Loans Manager A Consortium Approach • SYIF – lead. Managing agent for the investor • DonBAC: providing loan management for non-social enterprise • Key Fund: for social enterprise Microloans • Simple access & low bureaucracy for the client • Intensive support process for the client • Cost effective delivery for the Investor (BiG) • Managed with a commercial focus Amount of Loan Details Business Location £15k - £50k Sole traders, partnerships, Doncaster (immediate (exceptionally up to limited companies travel to work area) £100k) £1k - £15k Unsecured. Loans in name South Yorkshire of owners of business £500 - £15k BiG Business Loans. Sheffield Unsecured. Loans in name of owners of business & social enterprises Activity to date • BiG - £96K in 22 businesses • BiG – additional £31k approved • Donbac - £23k in 3 businessses Tony Goulbourn • Conclusions • Feedback • Shaping the Future Conclusions • Proved the market • Proved the business model • The Fund will create a legacy fund of circa £19 million for South Yorkshire Feedback • EKOS commissioned to undertake survey – August 2008 • Objective: To seek intermediaries views on SYIF's current operations and the proposed Regional Successor Fund. Feedback - Satisfaction with SYIF • High satisfaction levels – 82% satisfied or very satisfied with overall performance • Strong endorsement of services (mentor/NED and pre-investment support) Feedback - SYIF & the Finance Gap • Finance gap greatest for new starts (89%) & for early stage businesses (76%) • Exists even for established small businesses (62%) & for medium & larger businesses (37%) • SYIF helps meet the gap through its products e.g 74% for small business fund Feedback - The Successor Fund • Awareness is high (76%) • Value as a regional resource recognised (96%) • Should address areas of greatest market failure (early stage, new starts and technology based businesses) • Two thirds say not sector prioritisation Shaping the future • The Contingency Fund • The Successor Fund www.syif.com 01709 386 377 South Yorkshire Investment Fund Ltd is a company limited by guarantee (Registered No 3936065). South Yorkshire Investment Fund comprises three sub funds, the South Yorkshire Investment Capital Fund, the South Yorkshire Investment Development Fund, which are each managed by YFM Venture Finance Limited, and the South Yorkshire Investment Small Business Fund, which is managed by Finance South Yorkshire Ltd. YFM Venture Finance Limited (Tel 0113 294 5000) and Finance South Yorkshire Ltd (Tel 01709 386 377) are each authorised and regulated by the Financial Services Authority. South Yorkshire Investment Fund also provides a number of services, which are not regulated by The Financial Services Authority. These include the pilot Seedcorn Fund, BiG Business Loan Fund, Mentorbank and access to the Donbac Microloan Fund. BiG Business Loan Fund is managed by Donbac Finance Ltd (company registration No. 01925556) and Key Fund Yorkshire Ltd (Tel 0114 242 8900).
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