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Finance Yorkshire Welcome

Finance Yorkshire Welcome. www.finance-yorkshire.com. Finance Yorkshire James Newman - Chairman. www.finance-yorkshire.com. Finance Yorkshire Why are we here this morning?. Strengthening relationships with stakeholders, partners, intermediaries and clients

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Finance Yorkshire Welcome

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  1. Finance YorkshireWelcome www.finance-yorkshire.com

  2. Finance YorkshireJames Newman - Chairman www.finance-yorkshire.com

  3. Finance YorkshireWhy are we here this morning? • Strengthening relationships with stakeholders, partners, intermediaries and clients • Demonstrating how we are working in partnership with our LEP to support business growth • Looking to the future • Dialogue and questions www.finance-yorkshire.com

  4. Finance YorkshireAgenda • James Newman, Chairman, Finance Yorkshire • Alex McWhirter, CEO, Finance Yorkshire • Neil McLean - Leeds City Region LEP Chair • Seedcorn Case Study – Chris Hanson, Xeros • Business Loans Case Study – Sam Moss, Leeds Brewery • Equity Linked Finance Case Study – Philip Crick, The Black Hole • Questions & Answers www.finance-yorkshire.com

  5. Finance YorkshireAlex McWhirter - CEO www.finance-yorkshire.com

  6. Finance YorkshireWhat we are… £90m Venture Capital and Loan Fund Finance sourced from: £30m European Regional Development Fund £15m Yorkshire Forward/Business Innovation and Skills £45m European Investment Bank www.finance-yorkshire.com

  7. Finance YorkshireOur business approach… • To fully invest the £90 million fund through helping SME’s constrained by finance to grow • To create a sustainable fund • To be recognised and respected as a key participant in the SME business and professional sectors • To stimulate demand for finance in our key market segments • To realise good returns for investors and value for money www.finance-yorkshire.com

  8. Finance YorkshireOur investment performance so far... • 338 investments totalling over £37 million • On track to meet economic targets; jobs created & safeguarded; increase in turnover; business starts and private sector leverage • On track to achieve full investment by December 2014 www.finance-yorkshire.com

  9. Finance YorkshireInvestment Profile www.finance-yorkshire.com

  10. Finance YorkshireInvestment impact... • Created or safeguarded 5620 jobs • Over £64 million Private Sector Leverage, resulting in £2 levered for every £1 invested • £44.2 million in value added sales • Legacy fund to be invested in region’s businesses in line with original objectives - to be utilised after 2019 www.finance-yorkshire.com

  11. Finance YorkshireInvestment performance by location... www.finance-yorkshire.com

  12. Finance YorkshireInvestment performance by location... www.finance-yorkshire.com

  13. Finance YorkshireInvestment performance by sector... www.finance-yorkshire.com

  14. Finance YorkshireInvestment criteria… • A business with growth potential • A new start or growing business • A business unable to source its full funding requirement from the commercial market • SME’s paying business rates in Yorkshire and the Humber or relocating to the region www.finance-yorkshire.com

  15. Finance YorkshireThree portfolios • Seedcorn Finance • Business Loans • Equity Linked Finance www.finance-yorkshire.com

  16. Finance YorkshireSeedcorn Finance • Start up or early stage innovative businesses • Involves strong technological ‘know-how’ and credible founders • First products or services developed with potential for rapid growth • Can invest up to £780,000 over the lifetime of the business through equity-based, tranched investments • Investments of £2m+ when syndicating with other funds www.finance-yorkshire.com

  17. Finance YorkshireCase Study – Carlton Manufacturing • Start up that develops sustainable construction materials • £675,000 Seedcorn Fund investment • Company moved premises and expanded workforce as a direct result of investment • The company has rapidly growing revenues and has plans to develop new products www.finance-yorkshire.com

  18. Finance YorkshireBusiness Loans • Fixed rate loans typically between £15,000 - £150,000 as syndicated or complete financial packages for businesses • Financial packaging with other forms of debt finance including the banks • Range of investments include; Working Capital, Capital Expenditure, Investment in Premises and development capital www.finance-yorkshire.com

  19. Finance YorkshireCase Study – Silchrome Plating • Offers a wide range of metal finishes and treatment processes to engineering, aerospace, defence, oil and gas industries • £60,000 Business Loan to help them install new processing lines and increase production • Plan to grow the business and increase the workforce www.finance-yorkshire.com

  20. Finance YorkshireEquity Linked Finance • Equity-linked investments from £100,000 to £2m and Mezzanine loans • Some start ups, largely growth, development capital or expansion • Work alongside other finance providers to invest in larger transactions • Tailored deal structures to give maximum benefit to the investee companies www.finance-yorkshire.com

  21. Finance YorkshireCase study - Silentair • Offers a design, manufacture and installation service for its ‘super quiet’ and energy efficient air conditioning units. • £525,000 Equity Linked investment to be used to enhance market penetration, and secure further IP protection • Looking at overseas opportunities including Europe and Asia www.finance-yorkshire.com

  22. Finance YorkshirePortfolio performance to date.. • Finance Yorkshire has: • completed 338 investments • Invested a total of £37.22m • Seedcorn Finance – 42 investments totalling £7.50m • Business Loans – 267 Investments totalling £14.92m • Equity Linked Finance – 29 Investments totalling £14.80m www.finance-yorkshire.com

  23. Finance YorkshireOur Investment approach Working alongside the commercial market; • Maintaining and developing relationships with financial intermediaries to promote awareness and dealflow • Market making effect, making deals happen by spreading the risk with other investors and lenders • Co-investing with other lenders and funds www.finance-yorkshire.com

  24. The Leeds City Region LEP Neil McLean Leeds City Region LEP Chair

  25. The Leeds City Region Functional Economic Area 3m population 106,000+ businesses £54 billion economy 5%+ of UK GVA 1.2m+ homes

  26. Priorities 1: Unlocking the potential of business and enterprise 2: Enabling a flexible, skilled workforce 3: Facilitating a low carbon economy 4: Creating the environment for growth

  27. Focus for Growth • Life sciences\meditech\biotech • Digital and creative • Advanced manufacturing • Financial and business services • Low carbon\energy

  28. Finance • £20m Business Growth Fund • £36m Growing Places Fund • Regional Growth Fund –£70 million obtained by private sector projects rounds 1 to 3 • City Deal: £1bn transport fund= 20,000 jobs • City Deal: £400m investment fund

  29. Working with Finance Yorkshire • Co-investment for businesses projects (Business Growth Programme grants / Finance Yorkshire Loans) • Signposting • Cross reference of applications • Co-promotion and marketing • Advice on project appraisal

  30. Business support • Developed a comprehensive platform for business support (see http://business.leedscityregion.gov.uk) • Trade and investment and apprenticeship campaigns. • LCR wide Planning Protocols for major applications - 'single front door‘ • Super-Connected Cities: £10-14m secured from Gov't for ultra fast broadband - This will benefit 88,000 homes and over 16,000 businesses

  31. Future plans • Regional Growth Fund Round 4 – endorsing applications, seeking additional funding for Business Growth Programme • Continue negotiations for further devolution • Deliver streamlined approach to investment • Centralise investment funds in one pot • Attract investment and increase exports • Increase apprenticeships, mentoring and building links with education • Bridging the gap between skills shortage and the jobs of the future

  32. How to stay in touch @leedscityregion /leedscityregion www.leedscityregion.gov.uk

  33. Thank you

  34. Finance Yorkshire Seedcorn Fund Testimonial Chris Hanson - Xeros www.finance-yorkshire.com

  35. Xeros Limited – The power of Polymer Bead Cleaning • Formed in 2007 • Over £16m invested to date • 20 scientists and engineers • First product designed and proven for launch (inset) • Presence established in the US

  36. Xeros experience of Finance Yorkshire • Investments by Finance Yorkshire in Xeros • Oct 2010, Dec 2011 - £300k as part of a £3.5 million fundraising • March 2013 - £400k as part of a £10 million fundraising • SYIF investments in Xeros • June 2009 - £250k as part of a £920k fundraising • State aid, so certain requirements • Process • Ongoing support • Overall impression

  37. Finance YorkshireBusiness Loans Testimonial Sam Moss – Leeds Brewery www.finance-yorkshire.com

  38. Finance YorkshireEquity Linked Finance Testimonial Philip Crick, The Black Hole www.finance-yorkshire.com

  39. The Black Hole Investee Business Finance Yorkshire roadshow – Queens Hotel, Leeds 20th March 2013

  40. Investee Business A few facts about The Black Hole… A direct response advertising agency, focused on results • Steeped in DM and Digital experience - fanatical about the numbers for more than 22 years • Independently owned – clients come first • Proven track record - established in 1991, currently a team of 27 • Award winning • Have launched 40% of all US credit card entrants into the UK, including MBNA

  41. Some of our clients… Investee Business

  42. Investee Business The Finance Yorkshire process – for us • Introduced by a financial consultant • Prepared a detailed 3 year business plan • History • Objectives • Reasons for investment • Presentation to Finance Yorkshire • Detail on the business and team • Questions • Official application and form filling • Appointed an Investment Manager to assist us through the process • Due diligence • Signed the contracts • Got the money 5 Months

  43. Investee Business Other outcomes • Made us look in detail at our future plans and requirement for investment • Business questions from Finance Yorkshire highlights areas not previously thought of • Creates good business practice – reporting, board meetings • Can bring useful contacts and learnings • Confidence boosting Would we do it again? Everyday of the week and twice on Sundays! Thank you

  44. Finance YorkshireFuture work… • Work collaboratively with the Leeds City Region LEP and Local Authorities • Creating the next gap fund for SMEs after 2014 • Develop the Finance Yorkshire brand and a recognised provider of growth finance to SMEs www.finance-yorkshire.com

  45. Finance YorkshireMaking an application • Call us to make sure it’s eligible 0845 649 0000 or make enquiry via website www.finance-yorkshire.com • An Investment Manager will contact you to discuss. • Complete Application Form & the supporting information when advised by the Investment Manager. www.finance-yorkshire.com

  46. Finance YorkshireQ & A Finance Yorkshire Ltd is a company limited by guarantee (Registered No 07075478). Finance Yorkshire Ltd (0845 649 0000) comprises three sub funds, Finance Yorkshire Equity Fund, which is managed by Neon Capital Partners Limited, Finance Yorkshire Small Loans Fund, which is managed by EV Business Loans Limited and Finance Yorkshire Seedcorn Fund, which is managed by Enterprise Ventures Limited. Each of these Fund Managers is authorised and regulated by the Financial Services Authority. www.finance-yorkshire.com

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