Knowledge Peers

Key points Starting with five shops in London, frozen yoghurt brand, Snog, expanded to 9 other countries and had been looking for a suitable venture partner to expand even further. Partnering with new investors often requires giving up equity and control over aspects of the business so it is vital to ensure that new partners have integrity and bring desi...

Key points Reed Elsevier Ventures is the venture capital partner of Reed Elsevier. It behaves much like a traditional VC but has only one investor – Reed Elsevier. When considering whether or not to invest in a company, Reed Elsevier Ventures looks closely at the quality of the management team, as well as their product's market potential. Compa...

Vast amounts of time and money are wasted by companies when they have to chase other companies to get paid. Gerry Hill looks at the issue in more detail, and explains how Direct Debit can assist tackling this "Payments Game". He tackles these questions: -Why is getting paid to agreed terms such a major problem in the UK, and how big is the problem? -In advance of issuing an invoice, what instruments/methods can you put in place to ensure you get paid? -How does “direct debit” help you get paid? ...

Lucci Dammone is a partner at Hammonds, and an expert in commercial matters and dispute resolution. Lucci provides an overview of the impact on customers when credit insurance is withdrawn, covering:

• What it means for the customer and their commercial relationship with the supplier
• What options they have, including legal options, to protect their business

Lucci Dammone is a partner at Hammonds, and an expert in commercial matters and dispute resolution. Lucci provides an overview of the impact on suppliers when credit insurance is withdrawn, covering:

• What it means for the supplier and their commercial relationship with the customer
• What options they have, including legal options, to protect their business

Lucci Dammone is a partner at Hammonds, and an expert in commercial matters and dispute resolution. Lucci provides an overview of what credit insurance is, including:

• Types of companies and transactions where cover is applicable
• Economic basis for paying for cover
• Whether cover can be withdrawn and why

Paul Russell a divisional director in commercial risks at Priest & Company, a Lloyds Broker based in the city of London.

In this interview Paul discusses:

• What D & O insurance is
• What D & O insurance covers
• How much it costs
• The dangers of not taking out D & O insurance

Paul Russell a divisional director in commercial risks at Priest & Company, a Lloyds Broker based in the city of London.

In this interview Paul discusses:

• How the insurance market works
• How to find the best deals

Paul Russell is a divisional director in commercial risks at Priest & Company, a Lloyds Broker based in the city of London.

In this interview Paul discusses:

• The current availability of credit insurance as at April 2009
• How the market has been affected by the downturn
• How a company can go about getting credit insurance after being refused

Paul Russell a divisional director in commercial risks at Priest & Company, a Lloyds Broker based in the city of London.

In this interview Paul discusses:

• What credit insurance is
• What companies pay for it and what it covers
• How much it costs

Martin Kennard has many years of experience in asset leasing and now runs Innervision, a company specializing in managing lease portfolios for larger corporate clients. In this interview he gives general advice to companies considering lease finance for an asset including:

• Making sure you get the correct type of lease
• Understanding the commercial terms of a lease
• Separating the purchase decision from the financing decision
• Pitfalls to avoid

Martin Kennard has many years of experience in asset leasing and now runs Innervision, a company specializing in managing lease portfolios for larger corporate clients. In this interview he discusses obtaining lease finance in the current environment including:

• The current state of the asset lease market
• Where to get lease financing today

Martin Kennard has many years of experience in asset leasing and now runs Innervision, a company specializing in managing lease portfolios for larger corporate clients. In this interview he discusses optimizing an existing asset lease portfolio including:

• How can a company make cost savings on a lease portfolio?
• Getting the commercial terms of the lease right from the start
• Typical problems that corporates encounter in asset leasing

Nick McChesney is a Partner at PricewaterhouseCoopers and an expert on indirect taxes. Here he discusses:

• The nature of the back-claim deadline of 31 March 2009
• Claiming back overpaid VAT from periods before 1997
• Examples of overpayments (eg in relation to unclaimed VAT on capital transactions, such as acquisition and IPO)
• General guidance on the ability to back- claim after 31 March 2009
• The basis on which HMRC can challenge past VAT claims

Victoria Leigh is a lawyer who specialises in commercial matters and dispute resolution. Here Victoria looks at how to deal with customers who won’t pay your bills, covering:

• The general steps you should take to manage the debt position of your business
• How to maximise your negotiating position with a non payer
• The options if you have to “go legal”, and associated costs
• Other aspects you should consider before taking action

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Introduction How mysupermarket.co...

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Introduction Accretion Capital

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Introduction How does Go4Venture work...

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Introduction Growing PrivatSea

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Tax credits Misconceptions <...

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Mark Hoban was appointed Financial Secretary to the Treasury after the General Election in 2010, having been the Shadow Financial Secretary since December 2005. Mark spoke to us about what the Government is doing to help small and medium sized companies, who he sees as the drivers of the economic recovery.

Here Mark introduces himself and explains that the Government's priority has to be to identify the barriers to business expansion and people starting up businesses. Small and medium siz...

Mark Hoban was appointed Financial Secretary to the Treasury after the General Election in 2010, having been the Shadow Financial Secretary since December 2005. Mark spoke to us about what the Government is doing to help small and medium sized companies, who he sees as the drivers of the economic recovery.

Bank and capital finance are extremely important for growing businesses. Business angels are one source of this investment, and the Business Growth Fund launched by Britain's biggest ba...

Mark Hoban was appointed Financial Secretary to the Treasury after the General Election in 2010, having been the Shadow Financial Secretary since December 2005. Mark spoke to us about what the Government is doing to help small and medium sized companies, who he sees as the drivers of the economic recovery.

Scrapping NI for new start-ups, and making changes to NI to make it easier to recruit low and medium pay members of staff. Reducing capital gains under £5 million for entrepreneurs prov...

Mark Hoban was appointed Financial Secretary to the Treasury after the General Election in 2010, having been the Shadow Financial Secretary since December 2005. Mark spoke to us about what the Government is doing to help small and medium sized companies, who he sees as the drivers of the economic recovery.

The key to help businesses is to keep the prices price of borrowing low and ensure that capital is available. The Government is working to create the right climate for this by tackling ...

Mark Hoban was appointed Financial Secretary to the Treasury after the General Election in 2010, having been the Shadow Financial Secretary since December 2005. Mark spoke to us about what the Government is doing to help small and medium sized companies, who he sees as the drivers of the economic recovery.

The private sector is expected to lead the economic recovery, especially in the wake of public sector spending reductions. Mark accepts that the recovery is likely to be choppy, but the...

Key points It may be helpful to invest your own capital at first, test and prove your business model, and then use that track record to attract new investors. Different businesses need different kinds of investment. Most of the time the choice is between equity finance and debt finance, but make sure that you think hard about what type of investment is ri...

We spoke to Richard Langford, Director at Orchard PPP at our event "Lessons learnt from the BBC Switchover Help Scheme", hosted at Broadcasting House.

• Orchard PPP is a Joint Venture company that works on Health Service Contracts. We spoke to Richard about how he builds good relationships between public and private sector bodies to ensure intelligent long term investment in medical equipment.
• The Key to getting this right, says Richard, is to have good suppliers, and to ensure that th...

Richard Anson is the Co-founder of independent and impartial review website Reevoo. Prior to starting Reevoo he was a senior strategy consultant at KPMG covering the technology space.

In this interview Richard discusses raising finance, this includes:

• how he financed Reevoo in its early stages
• finding angel investors that had the right fit with the business
• moving on to second round funding
• managing investor relationships.

David Mansfield, a Director at Ingenious Media and serial non executive director, talks about the current investment climate within the media world.

In this interview David covers:

• what Ingenious Media does
• what Ingenious Media is currently looking for in its investments
• the continued involvement that Ingenious Media has with its investments
• the most common issues that it finds with its investments
• the opportunities that the current business climate could brin...

What would you ask a London Mayoral Candidate and the leader of the Labour Party if you met them for breakfast?

Our CEO, Chris Dines, was invited to do just that - and met with Ken Livingstone and Ed Miliband over coffee and croissants in Workspace Group's Oval offices.

Chris quizzed the politicians about their plans and priorities when it comes to growing businesses – you can watch our interview with Ken above, and read a

Key points Secondary deals are where shareholders sell their shareholding to another institution; typically, they are favoured by private equity houses and funds which are selling out, feeling they’ve invested enough in a particular company Venture capital houses often instigate the secondary deals: if they want to achieve exits to raise new funds, but ca...

Coming soon. Many privately backed businesses have achieved significant commercial success. But at some point, management and investors will need to address the question: "What Next?". That might include raising further growth capital, selling the business, or buying out external investors. This Guide evaluates all of the options.

Coming soon. “Outsourcing” simply means using an external company to deliver a service to your business rather than doing it yourself. It can be a good option for organisations that want to concentrate resources on their primary business purpose, without being distracted by other issues. But when it comes to choosing what and how much to outsource, there are lots of options available, each with unique implications for cost, people and service levels. This Guide looks at the practical issu...

Coming soon. Most entrepreneurs, indeed, most business owners, will want to capitalise on their investment at some stage. One route is via a trade sale, but what makes a company saleable in the first place? Based on a range of case studies, this Knowledge Peers Guide provides some of the answers.

Coming soon. Once you have raised funds from other private individuals, how can you make sure that the relationship keeps on working? Smaller growth companies have lots of ups and even more downs, which can put a lot of pressure on the relationship between entrepreneurs and their backers. This Guide identifies how to get the best out of the relationship whatever the underlying performance of the business, focusing on angel-backed businesses.

Coming soon. The main source of capital for smaller growth companies is friends, families and wealthy individuals, collectively known as 'Angel' investors. But there are thousands of early stage companies competing for such funds, leading to a success rate of below 5%. If you are looking for £100,000 to £1,000,000 of equity backing, how do you go about ensuring you have a decent chance of securing funding? This Knowledge Peers Guide provides insight into the process of securing angel fund...

The credit crunch has had a dramatic impact on the supply of funding for larger, growing companies. Is it feasible to find equity backing in this environment, and how should you go about doing it? Is the funding there, and at what price? What are private equity investors looking for and what do they expect in return for their investment?

Based on the recent experience of those involved in the private equity market, including companies seeking funds, this Talking Guide helps executives...

Private Equity investors look for high returns on their investments, as they accept that they'll have a few failures along the way. This means they expect the business to be driven hard, something that can put considerable strain on the relationship between investors and management. When the investment has been made in the "good times", that relationship is really put to the test when the going gets tough. This Guide, based on a number of case studies, provides guidance on how to make a real...

Jill Franklin, the Managing Director of Franklin Rae PR, talks about PR client engagement models and how PR results can be measured.

In this interview Jill covers:

• the pros and cons of the retainer model, one-off model and results based models
• how the current economic climate is changing some clients’ approach to PR
• how PR can be measured on a quantitative and/or qualitative basis.

Anne Beitel is the managing director at Executives Online. She has more than 10 years experience marketing in high-growth environments. She played a crucial role in the company’s recent management buy out.

In this interview Anne covers:

• Keeping everyone onside when they're getting nervous
• The importance of having the right advisors
• Unexpected hurdles that had to be overcome
• Lessons learned: the need for urgency from the start.

Mike Simson is a founding partner at Buckingham Corporate Finance who specializes in advising on disposals, acquisitions, financing and fund raising.

In this interview Mike covers:

• Processes and hurdles of getting an MBO financed
• An overview of a recently completed deal.

Roger Wilson is Chairman of telecoms company Adept Telecom, a telecoms company which has made 16 acquisitions during the past three years. In this interview he discusses:

• Structuring the deal so that you only buy the assets you want
• Negotiating a price
• Working with the vendor before and after the deal

Roger Wilson is Chairman of Adept Telecom, a telecoms company which has made 16 acquisitions over the last three years. Here he discusses what Adept has learnt about successfully integrating acquired businesses, including:

• Having a clear idea about the assets that you are buying in advance
• Technology, people and process issues

Gareth Kervin, an Employment Partner with Kingsley Napley, provides an overview of TUPE.

In this interview Gareth explains:

● what TUPE is and when it applies
● what it involves
● under what circumstances difficulties can arise.

Joe Ryan, Partner at PwC, talks about the pre-deal due diligence process.

In this interview Joe explains what due diligence is and why it’s important to companies acquiring others; what it covers, and what happens if management disagree with the outcome.

Key points If you cannot find funding in one country you make have to look elsewhere for it. Finance is generally more easily raised in London, where investors are also used to doing business internationally Operating in different countries requires an understanding of the differences between those countries, in terms of culture, law and business practice...

Christopher Jenkins, senior partner at Wingrave Yeats, discusses the comparative advantages of doing a management buyout. In this interview Christopher covers:

- Main differences between an MBO and other forms of corporate transaction
- What the acquiring management team needs to do to prepare for the buyout
- What are pitfalls to watch out for.

Mike Weaver has worked in the Angel Investment arena for many years. Here he identifies some emerging trends in the availability of fresh equity for small businesses, including the absence of VC funds in the sub £2m market, and the partial replacement by an increasing level of direct investment.

Roger Coghill is a serial entrepreneur. Asphalia was formed three years ago, and its core product is a food supplement that helps you get a good night’s sleep. It is now sold 400 retailers across the UK alone. Here Roger covers:

• The often accidental nature of business success
• The strictures attached to securing grant funding
• The benefits of going to a well established Angel network
• The need to keep a check on professional fees.

Mike Weaver has worked in the Angel Investment arena for many years. Here he gives his key tips for individuals going out to seek finance for the first time, including:

• Some of the basic regulatory issues
• The different types of Angel Networks
• Comparison between Angel Networks that have Government funding and those that have purely commercial models

Frank Joshi has generated wealth through building and selling his own businesses. Here he explains why he was motivated to invest in other entrepreneurs’ businesses as an “Angel” and why he has recently pulled out of such activity.

“To be successful at Angel Investing, in my view it’s a full time occupation involving a portfolio of investments”.

Econotherm is a leading UK based manufacturer of Waste Heat Recuperators, Condensers and Heat Pipes. In the past two years it has raised finance in a number of ways, including Angel Finance. Mark Boocock gives an honest answer to the question “How much money should you look to raise?

Econotherm is a leading UK based manufacturer of Waste Heat Recuperators, Condensers and Heat Pipes. In the past two years it has raised finance in a number of ways, including grants, debt finance and angel finance via two separate angel networks. Mark Boocock explains the importance of maintaining effective channel of communication with the various interest groups.

Econotherm is a leading UK based manufacturer of Waste Heat Recuperators, Condensers and Heat Pipes. In the past two years it has raised finance in a number of ways, including grants, debt finance and angel finance via two separate angel networks. Mark Boocock explains how funding was achieved, and some of the challenges that had to be overcome. The ability to do a live presentation of an impressive product to potential investors was a big help.

DegreeArt.com , which was founded in 2003, is an innovative company selling, commissioning and renting the finest artwork created by the students and recent graduates emerging from the most prestigious art establishments. Having developed a successful business model, the founders are currently raising £500,000 to support overseas expansion. Elinor Olisa, Director and founder, covers:

• Working with Princes’s Trust
• Accessing specialist funding, such as Aspire (which supports women led...

GlimpseOnline.com was born with the intention of connecting artists and designers with both trade and private buyers under one multi-brand umbrella. The idea behind the business model was transferred from another successful on-line business, and received Angel backing from an early stage. The founders, Elinor Olisa and Isobel Beauchamp, talk about their experience of working with an Angel backer, and some of the adjustments they have to make as a team.

Paul Catherall, CEO Theraglass Limited, talks describes the process of raising angel capital.

In this interview Paul Catherall covers:

• Why choose angel investment
• How to use different networks to meet angel investors
• The different types of angel investor
• Getting the pricing right

Paul Catherall, CEO Theraglass Limited, describes the relationship between angel investors and management.

In this interview Paul Catherall covers:

• The information requirements of angel investors
• The alignment of interests
• The advantages of hybrid angel structures and having lead investors

Beer & Partners claims to be the largest of Angel Networks in terms of deal flow and completion. The business completes over 50 deals per year, sometimes including single Angel investments of £1m plus. Mike Weaver talks in more detail about their business model, including:

• Types of investors they have in their 1600 strong network, and investor checks
• Filtering of investment opportunities (in particular, what proposals get swiftly rejected)
• Guidance given to Management Team, an...

Bill Morrow, founder of Angels Den, is a prominent figure in the Angel Investment Community. Bill discusses the impact of the Credit Crunch on Angel Investment.

Anoushka McLernan-Cardis talks about Silverback Media Solutions’ experience of working with an Angel Investor

Angels Den have helped raise finance for over 150 growth companies. How?

Anoushka McLernan-Cardis talks about Silverback Media Solutions’ experience of raising Angel Finance

Richard Anson is the Co-founder of independent and impartial review website Reevoo. Prior to starting Reevoo he was a senior strategy consultant at KPMG covering the technology space.

In this interview Richard discusses raising finance, this includes:

• how he financed Reevoo
• finding investors
• managing investor relationships.

Paul Pyle, managing director of Vivid Prepress, talks about his approach to raising capital in order to buy new machinery for his printing business.

In this interview he discusses the various sources of funds that he tapped into including government grants, financing by equipment supplier, additional investment by partners and bank finance.

Knowledge Peers Guides draw on our comprehensive research with business leaders and specialist advisors to present accessible advice on some of the most pressing challenges facing growth business leaders. This report is the first in a series looking at options for financing growth in the new economic climate.

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Introduction The pre-investment p...

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Ben Pegg, Portfolio Manager at Aldersgate Investment Managers, talks about how companies can attract an angel investor like him.

In this interview Ben explains:

● the companies he gets involved in
● what makes a company attractive to an angel investor
● the time scale of an angel investment
● how to get the best deals.

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Jouko Ahvenainen, technology entrepreneur and a Partner at financing services company Replicon, discusses the growing role of angel investors in the technology sector.

In this interview he explains:

● the current funding environment for technology companies
● the new ways in which angel investors are getting involved in the technology sector
● what angel investors look for in an investment opportunity.

Carol Savage is the founder and Chief Executive of MyDish.co.uk, a web business for people who love to cook and network with similar minded people. Carol has recently raised 1st and 2nd stage finance from Angel Investors, and here she talks about her experience of raising capital:

• how the business was created
• finding Investors, and getting noticed
• meeting and presenting
• valuing the business
• investor relations.

In this audio podcast the term “Angel Networks” ignores the fact that there are some very different business models involved, including:
• Angel Networks that operate as quasi venture capital houses
• Government backed Agencies
• Web based offerings and bulletin boards

In this audio podcast UTalkMarketing.com was established in 2007, and is the leading user generated content site for the marketing industry. It is funded via a mix of Angel Investment and small VC backing. Here, Niall McKinney discusses how he ensures the different shareholder groups stay aligned from the start.

In this audio podcast UTalkMarketing.com was established in 2007, and is the leading user generated content site for the marketing industry. It is funded via a mix of Angel Investment and small VC backing. Here, Niall McKinney discusses why he was successful in raising funds, which involved the support and guidance of London Business Angels Network.

In this audio podcast: Econotherm is a leading UK based manufacturer of Waste Heat Recuperators, Condensers and Heat Pipes. In the past two years it has raised finance in a number of ways, including grants, debt finance and angel finance via two separate angel networks. Mark Boocock explains how funding was achieved, and some of the challenges that had to be overcome. The ability to do a live presentation of an impressive product to potential investors was a big help.

In this audio podcast: Roger Coghill is a serial entrepreneur. Asphalia was formed three years ago, and its core product is a food supplement that helps you get a good night’s sleep. It is now sold 400 retailers across the UK alone. Here Roger covers:

• The often accidental nature of business success
• The strictures attached to securing grant funding
• The benefits of going to a well established Angel network
• The need to keep a check on professional fees.

Frank Joshi has generated wealth through building and selling his own businesses. In this audio podcast he explains why he was motivated to invest in other entrepreneurs’ businesses as an “Angel” and why he has recently pulled out of such activity.

“To be successful at Angel Investing, in my view it’s a full time occupation involving a portfolio of investments”.

In this audio podcast: Matrix Model Group is a FSA regulated investment advisor. Part of their business is about presenting private company investment opportunities to their client network.

Mike and his team have a lot of experience in getting business “investment ready”, but have learnt that the entrepreneur still has to be open and responsible for the direction of the business.

In this audio podcast: Matrix Model Group is a FSA regulated investment advisor. Part of their business is about presenting private company investment opportunities to their client network. This model involves:

• Pre-assessing investment opportunities
• Carrying out due diligence
• Securing investment from a wide group of individuals
• Staying with the investee company post deal.

UTalkMarketing.com was established in 2007, and is the leading user generated content site for the marketing industry. It is funded via a mix of Angel Investment and small VC backing. In this audio podcast, Niall McKinney looks at why legal advisors can play a vital part in agreeing legal documentation that supports the interests of the busy entrepreneur.

Econotherm is a leading UK based manufacturer of Waste Heat Recuperators, Condensers and Heat Pipes. In the past two years it has raised finance in a number of ways, including grants, debt finance and angel finance via two separate angel networks. In this audio podcast, Mark Boocock explains the importance of maintaining effective channels of communication with the various interest groups.

Econotherm is a leading UK based manufacturer of Waste Heat Recuperators, Condensers and Heat Pipes. In the past two years it has raised finance in a number of ways, including Angel Finance. In this audio podcast, Mark Boocock gives an honest answer to the question “How much money should you look to raise?

Steve Reynolds is Managing Director of TBS Ltd., an enterprise mobility solutions provider. Earlier this year TBS changed its bank, following some changes in terms and conditions that the bank wanted to impose relating to a temporary overdraft facility. Here Steve discusses the reasoning behind his decision, and what the move involved.

This interview was recorded at the Mobile Data Association’s conference, Monetising the Internet in tough times...

Ian Gotts discusses how and why the directors of a successful, profitable, growing software business were required to sign up to personal guarantees on company loan

Christopher Jenkins, senior partner at Wingrave Yeats, discusses the advantages of giving your bank a debenture when you are renegotiating your facilities.

"....sophisticated investors will respect you for giving a debenture to your bank."

Rob Stapledon, who is an experienced banker specialising in the mid tier sector (particularly media), provides a banker’s view of the availability of growth finance in 2009. Rob covers:

● The type of finance and clients he/Coutts are supporting
● The importance of a relevant business plan: banks are looking for a different pitch to investors
● The refinancing of existing venture backed deals
● The types of returns banks are looking for
● The need for management to share in ris...

Paul Taylor, Partner of Fox Williams LLP, talks about some of the different types of bank facilities.

In this interview Paul explains:

● the different types of bank facility
● providing effective documentation
● the outcomes of non-compliance.

Paul Taylor, Partner of Fox Williams LLP, gives advice for borrowers entering into a fixed period loan.

Paul covers:

● the top ten tips for the loan process.

Oliver Wynn-James, Director of Panmure Gordon, talks about the role of the equity analyst report in the IPO process.

Oliver Wynn-James, Director of Panmure Gordon, talks about the role of the equity analyst during the IPO process.

In this interview Oliver explains the role of the analyst; how analyst independence is maintained; and why a company must be realistic about its targets and its valuation. He also talks about when the AiM market can be a good one to use.

Chris Dines, CEO of Knowledge Peers Plc, gives advice on conducting a successful IPO process.

Shaun Dobson, Managing Director of Landsbanki, talks about the role of a NOMAD during the IPO process.

In this interview Shaun explains:

● what a NOMAD is
● the contract between company and NOMAD
● how he meets companies and competes to be a NOMAD
● the cost of the NOMAD.

Shaun Dobson, Managing Director of Landsbanki, talks about choosing a nominated advisor for the IPO process.

In this interview Shaun gives advice on:

● how a company can choose the right NOMAD for them
● at what point to discuss valuation
● how to help the NOMAD
● the process of due diligence.

Ben Pegg, Portfolio Manager at Aldersgate Investment Managers, talks about the role of a hedge fund manager.

In this interview Ben explains:

● the companies and sectors he deals with, and how he meets them
● how a hedge fund differs from a long-only fund
● how he valuated the companies
● how brokers manage the news flow and liquidity in the secondary market.

Key points 90% of bank lending is concentrated in the top five banks, which is not helpful for small businesses. It may be wise to look at non-bank lending institutions, including internet-based services, fund managers and bond markets. The long-term future in the lending market is diversification, following European and US economies. As with personal f...

Key points Invoice financing allows small firms to tap into one of their greatest assets: the quality of their customers, and to use this to help them secure funds. Invoice financing is significantly quicker than many traditional fundraising approaches. Once a company is registered with Market Invoice they can access funding in as little as a day....

Key points An AIM listing is a large undertaking; consider it seriously before you decide to do it. Be cautious: private equity financing is more expensive than it may seem, and it has more in common with debt financing than many people think. A retail bond allows the firm to raise money from its customers and retail investors, while avoiding the...

Key points Asset-based finance is funding borrowed by businesses against their sales invoices to avoid cash flow issues. Factoring, invoice discounting and asset-based lending are all examples. It works well for companies that are not asset-rich but consistently generate invoices. The benefits are myriad: invoice financing can be implemented wh...

Key points Using Crowdcube was a more desirable alternative to bank lending or venture capital backing, but one that was certainly helped by Rushmore’s track record of profitability 90% of their investors on Crowdcube were existing Rushmore members who bought into the potential to become an investor, meaning that the group were happy to bring them in as s...

Key points Retail bonds are a great way for SMEs to raise funds - asking a large number of people for a small amount of money on a fixed term basis can grow funds quickly without giving away to equity or conducting an IPO Retail bonds are both cost-effective and quick: Caxton FX planned and executed the entire process in 3 months, raising £4m in a 6 week ...

Key points There is no typical business that uses Funding Circle: Manufacturers, retail firms, newsagents, pharmaceutical firms and even a jet pack maker have borrowed through the platform. Defaults are unavoidable and are bound to occur with any lender. Transparency about the levels of defaults encourages trust in Funding Circle. Operating onlin...

Key points Open innovation and competitions can be an powerful way of financing innovation. It can also be used as a way of outsourcing, or complementing your research and development. Through open innovation the companies who seek to solve a problem can get access not only to internal competence but to the ideas of their suppliers, costumers and others.<...

John Melotte is Director of Corum Group, a M&A house specialising in the sale of software and IT Services companies, and formerly CEO of a software company and a VC.

In this interview he discusses the process of selling a software company. He considers:

• Timing of a sale: how to get it right for optimal value and why companies generally do not
• How long the process takes, normally, and the implications of selling in a hurry
• Ways of finding buyers, with or without the us...

John Melotte is Director of Corum Group, a M&A house specialising in the sale of software and IT Services companies, and formerly CEO of a software company and VC.

In this interview he discusses the art of valuing a software company from the perspective of vendors and buyers. He considers:

• the usefulness of the vendor valuation
• the different metrics and ratios employed
• differences between sectors
• cycles of valuation in the marketplace as market conditions change.

John Melotte is Director of Corum Group, a M&A house specialising in the sale of software and IT Services companies, and formerly CEO of a software company and VC.

In this interview he discusses the value of patenting IP in a growing software company at the different stages in its lifecycle.

Mike Simson is a founding partner at Buckingham Corporate Finance who specialise in advising on disposals, acquisitions, financing and fund raising.

In this interview Mike covers:

• How to find a buyer in a difficult market
• Financing deals in the absence of debt finance
• Managing vendor and buyer expectations.

Barney Battles, Managing Director of Balgownie Ventures, talks about creating an exit strategy and planning for a sale.

In this interview Barney explains:

● early preparations for a trade sale
● managing shareholder expectations
● identifying likely purchasers
● how exit objectives affect business strategy
● how to assess the value of your company.

Joe Ryan, partner of PwC, talks about surviving the due diligence process.

In this interview Joe explains:

● the importance of due diligence and how it can make a deal fall apart
● why preparation is absolutely key to success
● how those doing due diligence can quickly assess whether a company is well prepared for the review or not - and whether it will be a successful deal.

Key points When selling a company, an entrepreneur needs to put the company and their vision in front of their own ego. "If you need to be the CEO for ever, you probably cannot exit your company" Having good and cost efficient advisors is key when finalising a purchase agreement. They will protect you from the bulk of the negotiations, and only bring the ...

Ian Gotts is the CEO of Nimbus Partners, a global software company specialising in business process management. In this interview Ian talks about how he financed his business, and gives his view of the current private equity market.

Julian Spooner has had regular appointments as a Chairman of business, including those with private equity backing. Here, Julian gives some insight into the pressure that a Chairman faces when involved with a company that is in financial stress, and why being crystal clear on the different options for the business is vital.

Dr Daniel Farb has invested US$2m of his own cash in developing Leviathan Energy, a business focused on generating clean power from Waves, Wind and Hydro. Here he talks about the challenges of building and financing the business, not least the mismatch between his naturally inventive nature and the more focused requirements of VC backers.

Stephen Rosen specialises in providing legal advice on private equity deals. Here he looks at how the credit squeeze has impacted on private equity deals including:

• Time taken to complete deals
• Greater volume of information, due diligence and repeated updates during the deal process
• Uncertainty on pricing leading to delays and more complex deal structures, include ratchets
• Uncertain market valuations creating as much of a deterrence as lack of debt finance
• Existing d...

In less than 10 years Michael Whitfield and his team have built a high growth, high profit business delivering employee benefits packages over the web. To help this growth, Michael raised c.£3m of private equity backing

• How was this done, and what did Michael learn (for good and bad)?
• How has the relationship with his backers developed?

Nimbus, a successful software company, has three separate private equity backers. Ian discusses what he has learnt about managing a complex set of interests.

Ian Gotts discusses how and why Nimbus, a software company, successfully raised over £2m in private equity in early 2009.

Richard Anson is co-founder of the independent consumer-review website, Reevoo, which has backing from two venture companies: Banexi and Eden Ventures. In this interview he discusses

• how the economic downturn has affected his business
• the implications of this when operating with venture finance backing
• the implications in terms of raising new finance for Reevoo and for other companies.

Richard Anson is the co-founder of the independent consumer-review website, Reevoo, which has backing from two venture companies: Banexi and Eden Ventures. In this interview he discusses the implications of operating with venture finance:

• what they provide over and above finance
• managing different expectations

Richard Anson is the co-founder of the independent consumer-review website, Reevoo, which has backing from two venture companies: Banexi and Eden Ventures. In this interview he discusses

• finding VC backers
• what he believes makes for a good and suitable venture capital/PE company to work with
• valuations, deal structures and term
• what else VC backers can bring to the table, in non-monetary terms

Stephen Rosen specialises in providing legal advice on private equity deals. Here he tells us how current market uncertainties have meant that many existing PE deals are being revisited to ensure that risk and reward are re-balanced in the light of new market conditions.

Alex Meisl talks about some of the challenges of running a struggling business (not Sponge Group), funded by two quite different private equity backers.

Rob Stapledon, who is an experienced banker specialising in the mid tier sector (particularly media), provides a banker’s view of the availability of growth finance in 2009.

Rob covers:

● The type of finance and clients he/Coutts are supporting
● The importance of a relevant business plan: banks are looking for a different pitch to investors
● The refinancing of existing venture backed deals
● The types of returns banks are looking for
● The need for management to shar...

Andy Hogarth, executive Chairman and CEO of Staffline and non-executive Chairman of Carnell, discusses how they dealt with the downturn through an efficiency drive and changing of staff mix.

Wol Kolade has worked in the private equity sector for many years, and was Chairman of the BVCA – British Private Equity and Venture Capital Association, in 2007. Here he looks at:

• The importance of entrepreneurs and private equity in the UK economy
• How the credit squeeze and recession has impacted on the private equity sector
• The role of Government
• His expectations for the future

Mark Curtis is CEO of Flirtomatic, a UK-based mobile and web flirting service which has proved to be immensely popular with users and has successfully expanded overseas. Here Mark discusses:

• Securing funding at different stages of the venture
• Working with venture capital investors
• Effects of the current downturn on the advertising market
• Current priorities as the company moves towards its goal of becoming profitable.

This interview was recorded at the

Tom Raymond is an expert in commercial due diligence, typically working on MBO’s and MBI’s that are financed by private equity. Here Tom provides a perspective on what type of deals secure finance (and then complete) at a time when bank lending is in short supply. He covers:

• Types of business that attract funding
• Deal structures
• Pricing
• Availability of finance, including bank finance
• Handling existing deals that have too much debt

Matthew Honey, former CFO of Unique Broadcasting, is in the process of securing funds for a Management Buy In (MBI). Here he discusses some of the challenges he has dealt with, including:

• Developing the pitch
• Putting an MBI team together
• Identifying sources of finance
• Dealing with a lack of responsiveness on the part of finance houses
• Keeping the vendor onside during a long process

Abstract

Dharmesh Mistry is co-founder and Chief Technology Officer at Edge IPK. He has experience in leading product development and professional services.

In this interview Dharmesh covers:

• How Edge IPK raised capital
• The challenges he faced
• Finding potential investors

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Barney Battles, Managing Partner of Balgownie Ventures, talks about what makes a business attractive to a venture capital investor.

In this interview Barney explains:

● what he finds attractive in a business
● what should be assessed during the due diligence stage
● why the management team is as important as the busines plan.

Tom Carless, CFO of 7City Ltd, talks about how VC funding can affect the recipient.

In this interview Tom describes:

● his personal experience of raising VC funding
● the changes to the company that VC backing can make
● the relationship between organisation and VC investors.

Key points A family business is inherently different to an investor backed one, so since Valldata's MBO, the company and management have grown used to a more commercial culture, increased financial reporting, a huge increase in marketing activity and a focus on increasing value. Due diligence involves "opening the doors to people who are coming in to be ...