Slides which accompanied the Q2 2019 Quarterly Investment Briefing on 30th May. The event saw presentations from Shaw and Co. on their new Investment Academy, from Bristol and Bath Regional Capital on the City Funds and from Tom Bridges of ARUP who shared insights into what we can learn from Leeds. Slides 66-68 include information about those 24 companies that are actively raising investment in Q2 2019. Check out the disclaimer - these aren't recommendations, just information.

1. Q2 Quarterly
Investment
Briefing
Our region
Thursday 30th May
@EngineShed_BB
#QIBriefing

2. Agenda
12:30 - 12:40 Grab a sandwich and a seat
12:40 – 12:45 Welcome and scene setting
12:45 – 13:30 Sharing and learning
+ Ed Rowberry, Bristol and Bath Regional Capital
+ Tom Bridges, ARUP
+ Nathan Morgan, Shaw and Co.
13.30 – 13:45 What Beauhurst data tells us
13:45 – 14:00 Who is raising and what next?
14:00 – 14:30 Networking and drinks

3. QIB Guiding Principles
Those who attend the Quarterly Investment Briefing share
three common principles:
• Whoever attends is an active or potentially active investor, or
manager of investors – or enabler of investment activity.
• Whatever is presented is informative, fact-based and regionally
relevant.
• We value the opportunity to learn equally with the
opportunity to share.

4. [ [

7. Ed Rowberry
Bristol and Bath Regional Capital
@BristolBathRCap

9. Quarterly Investment Briefing
Bristol & Bath Regional Capital CIC
Edward Rowberry, Chief Executive
Ryan Munn, Business Development
30 May 2019

10. Innovation
BBRC - Story so far

11. Problem
Bristol is a city with entrenched
systemic inequality and
disadvantage…
…which most negatively impacts
specific neighbourhoods and
groups of people.

12. City Funds:
Vision
City Funds is a disruptive, place-
based, locally-led fund which aims
to catalyse sustainable and
transformational change where
the need is greatest in Bristol.

13. Collaborative Impact
COMMUNITIES COUNCIL INVESTORS BUSINESS FOUNDATIONS
• Regional investment fund, linked to city priorities
• One point of contact with supportive infrastructure to bring
together:
• Collaborative support for organisations creating social or
environmental impact

14. Funding themes
Innovation
Community Initiatives
No Child Goes Hungry
Economic Inclusion
Environmental
Transformation

15. Comprehensiv
e support
along growth
pathway
Capacity building
Enterprise development
Investment readiness
Impact investing, equity and debt
Ecosystem interventions

16. Investment
strategy
1. Additional
2. Collaborative
3. Transformative

17. Questions
Edward Rowberry, Chief Executive
Ryan Munn, Business Development
Manager

18. Tom Bridges
Arup, Leeds
@bridges_tom

19. Building an ecosystem for innovation driven
entrepreneurship
Presentation to Quarterly Investment Briefing, Engine Shed, Bristol, 29 May 2019.
Tom Bridges, Director Cities Advisory, Arup
tom.bridges@arup.com @Bridges_Tom www.citypolicy.wordpress.com

20. 20
Leeds Inclusive Growth Strategy

21. 21
Cambridge Innovation Centre, 1 Broadway, Cambridge Massachusetts
Learning from best practice

22. 22
Thinking differently about innovators and entrepreneurs – the old
mindset

23. 23
MIT REAP Framework. Source: MIT Sloan
It is the ecosystem that matters

24. 24
R&D Spend is an important factor
Source: Tom Forth. www.tomforth.co.uk/researchingresearch/

25. 25
Connecting the actors: example of NorthInvest
Not-for-profit organisation connecting
technology driven start-ups and scale-ups
to the angel and investor community
across the North of England

26. 26
Over-reliance on incubators

27. 27
Source: Greentown Labs
The role of accelerators

28. 28
Source: Arup
Testing and experimentation tools
Figure 2: Real-world testbeds placed among other innovation tools

29. 29
Role of innovation testbeds
“Controlled or
bounded
environments for
testing innovations
in real-world or
close to real-world
conditions in the
manner (or close to
the manner) in which
they will be used or
operated”.

30. 30
• Importance of clear policy framework
• Focus on building the ecosystem
• Increasing R&D spend matters
• Accelerators can help get more firms investment-ready
• Think about designing testing tools as part of a mission-orientated local industrial
strategies
Conclusions

31. Thank You!
Further information:
www.leedsgrowthstrategy.co.uk
www.reap.mit.edu
www.northinvest.co.uk
www.tomforth.co.uk/researchingresearch/
https://www.nesta.org.uk/project/flying-high-challenge/
https://www.ucl.ac.uk/bartlett/public-purpose/partnerships/ucl-commission-mission-oriented-innovation-and-
industrial-strategy-moiis

32. Nathan Morgan
Shaw and Co. LLP
@ShawCoLLP

33. Engine Shed
Quarterly Investment Briefing
Nathan Morgan| 30 May 2019

34. Who are we?

35. We are an advisory boutiquehelping
ambitious owner-managers to create
value in their business
grow
fund exit

36. What we do

37. ScaleUp Supporting high growth businesses to raise equity
investment
Debt Working with institutions and private wealthto provide
debt solutions to established businesses
M&A Enabling owner managers to complete their journey
with an Exit

38. The Funding Academy
• 5 workshops expertly designed to cover:
- business plan, investment proposition,
financial model, investment deck and pitch
practice
• Input from industry experts, investors and peers.
• Practical one-to-one support between workshops.
A fivemonth programmeof hands-on workshops and tailored one-to-one support, designed to get
businesses investment ready.
Fully funded
by Shaw &
Co, free to
participants

39. Draft programme summary
• Quarterly cohorts commencing in July 2019
• Five one-day classroom sessions over five months:
- Investment landscape, Vision & Leadership
- Unit economics, Sale & Marketing strategy
- Financial forecasts, What investors look for
- Board, HR, Legals & Pitch Deck
- Pitch practice
• One-to-one support to define the vision, understand the unit economics,
prepare a financial model and articulate the investment proposition
*provided by external
industry specialists

40. Graduation
• Successful graduates can:
- Pitch to our investor network
- Showcase their investment on our private investment platform
Standard fees would apply at this stage
• Working with business over an extended period allows Shaw & Co to
undertake rigorous take-on diligence prior to initiating a fundraise
- allowing us to present only high quality deals to investors.
TheAcademy@shawllp.co.uk

41. The ScaleUp
Landscape

42. 1. Total UK investment quantum remains solid,
following a record 2018

43. … but deal volumes have slowed
UKVC Deals
Indicating that
institutions are
investing later.

44. 2. This is not (entirely) a Brexit issue

45. Global VCInvestments
… the global trend is fewer but larger
Non-institutional
investors needto
fillthe gap

46. 3. Bristol punches on the global stage (time and
again)
#2 in Europe
$282m
#1 in
Europe
$200m
2018Q4
#10 in UK
$45m
2019Q1

47. • ...but fundingearly stage businesses (pre 1m revenue) remains
difficult
• …and despite beinghometo 10% of UK Scaleups, the Southwest
attracts only5% ofUK equityfunding(overstated by outliers)
3. Bristol (continued)

48. 4. Corporate and private venturing is on the rise
• Nearly 25%of allVC deals inEurope were bycorporates inQ1 (acontinued
upward trend)
• Weare speaking withanincreasingnumberof family offices andHNW
seekingdirect investments

49. 5. AI is hot
UK, £800m
FR, £400m
GER, £300m
With UKcompanies
raising x2 Germany and
France combinedin 2018
AI fundraising, 2018
Source: TechNation 2018 report

50. 7. On the M&A side, in 2018global deal volumes and
values were strong.

51. With acquisitions of tech and SaaS businesses being
particularly buoyant.

52. M&A outlook (continued)
❌Butglobal deal volumes were down 17%in2019Q1 (after abumper 2018)
❌AndUKlost its rankingas the world’s thirdbiggest M&A region.
This could just be timing
✅UK is nowthemost likelytargetfor foreign acquirers*
✅UK is outperformingEurope (drivenby US buyers)
*EYsix-monthly sentiment surveyQ1 2019

53. Concluding thoughts
• Plenty of money & opportunities.
• Investors remain selective, as high valuations combine with market uncertainties.
• We have found the consumer space challenging.
• Tech enabled businesses with recurringrevenues remain in highdemand and command
premium valuations.
• Founders remain cautious of investment and have high value expectations

54. Thank you
Nathan Morgan
Director of Scaleups
0117 325 8505
07788 277 927
NathanMorgan@shawllp.co.u
k
TheAcademy@shawllp.co.uk

55. Identifies 359 equity-backed ‘high growth
businesses’ in theWest of England

57. • 168 Seed companies
• 83Venture companies
• 31 Growth companies
• 28 Established companies
• 10 Zombie companies
• 24 Exited companies
• 52 Dead companies
Stage of Evolution

58. Fundraisings: Top companies by total amount raised

59. Equity fundraisings by companies in West of England
Total amount raised since 2011:
£1.15bn
Number of deals since 2011: 723
Announced: £939.7m
Unannounced: £214.3m

60. Top investors by number of deals (since
2011)

61. Top investors by total value of deals (since
2011)

62. Sectors by number of deals (since
2011)

63. £12.7MBluWireless
60GHz band technology for
Inductosense
Wireless sensing technology
TravelLocal
Connects tourists w/ locally-owned travel
Wriggle
Mobile app for food discounts
Zentraxa
Synthetic biology platform for novel
peptides
Fly Fitness
Gym and café – classes & boxing
Azul Optics
Diagnoses risk of age-related macular
degeneration
Limber
Hospitality staffing marketplace
100% Natural
Ethical and organic food
TOG Knives
Designs & produces kitchen knives
B2Space
Optimal launch location software
Rockstar Sports
Sells sporting wear
+ 4 below £100k
Raised successfully in Q2 2019 (16
deals)

64. Triggers of growth in the South
West

65. Investment in the South
West

66. Raising Q2 2019 – raising £10m - 500k
Zeetta Networks
£10M Series A – Optical and network function
virtualisation.
GapSquare
£2M – brings the power of data science to talent
management.
Engine Shed is a trading activity of The Science Research Foundation whose mission is to stimulate sustainable and inclusive economic growth as an honest broker.
Engine Shed does not give advice on the risks of investment and is not authorised to carry on investment business under the Financial Services and Markets Act 2000 (‘the Act’).
Before investing in a project about which by Engine Shed, potential investors are strongly recommended to take advice from a person authorised under the Act who specialises in advising on investments of this nature.
Engine Shed is not recommending in any way any business or investment opportunity, merely public highlighting information it is aware of.
Tumelo
£1M – app that builds personalised investment
portfolios aligned with investor values.
Fundsurfer
£500k – UK based fintech and brokerage company
Lettus Grow
£3M – design advanced technology for indoor
growing that delivers a step-change in product
efficiency for both markets
Natural Aptitude
£650k – enables the real-time construction of
bespoke geospatial smartphone apps via drag
and drop interface
Payaca
£500k – enables independent tradespeople to
connect their customers with finance at the best
rates without requiring FCA authorisation.
Synalogik Scout™
£1.25M - assists security analysts in the
finance industry to counter fraud.
Vocavio
USD$5M – software that automatically and
objectively assesses speech communication
performance of teams working in high stress
– high workload environments.

67. Raising Q2 2019 – raising £400k – 250k
Engine Shed is a trading activity of The Science Research Foundation whose mission is to stimulate sustainable and inclusive economic growth as an honest broker.
Engine Shed does not give advice on the risks of investment and is not authorised to carry on investment business under the Financial Services and Markets Act 2000 (‘the Act’).
Before investing in a project about which by Engine Shed, potential investors are strongly recommended to take advice from a person authorised under the Act who specialises in advising on investments of this nature.
Engine Shed is not recommending in any way any business or investment opportunity, merely public highlighting information it is aware of.
iExport
£300k - Making exporting easy through a super–
connected SaaS platform
GoodSixty
£250k – help independent markets,
food stores & artisan producers thrive online.
LUX Rewards
£300k – app for discovering local fine dining
restaurants and collecting points.
Codices
£400k– tools and shows for the next generation of
live interactive gameshows
Lambda Stretch
£250k – Developing a coating for Photovoltaic
(PV) panel glass to increase the power by up to
10%.
MiHeart
£350k – operational mobile e-health management
solution. Sigma Polaris
£250k – provides HR talent assessment & pre-
employment support software.Watmuff & Beckett
£330k– Dragons Den backed, established &
profitable Soups, Risottos & Broths company
based in Frome
Helm Tickets
£300k - self-service ticketing platform that
powers thousands of events, selling tickets in
65+ countries.

68. Raising Q2 2019 – raising £170k – 60k
Engine Shed is a trading activity of The Science Research Foundation whose mission is to stimulate sustainable and inclusive economic growth as an honest broker.
Engine Shed does not give advice on the risks of investment and is not authorised to carry on investment business under the Financial Services and Markets Act 2000 (‘the Act’).
Before investing in a project about which by Engine Shed, potential investors are strongly recommended to take advice from a person authorised under the Act who specialises in advising on investments of this nature.
Engine Shed is not recommending in any way any business or investment opportunity, merely public highlighting information it is aware of.
Shower in a can
£60k– Anti-bacterial dry shower foam which kills
the bacteria that causes body odour and drys
naturally
The Bio Factory
£150k – manufactures and manages innovative
waste management systems for refugee camps
BeforeStores
£150k– new approach to global e-commerce
MindHarp
£150k – enables anyone to play and explore
carefully composed musical sounds simply by
tapping buttons.
NeuroAI
£170k – hardware start-up developing high-
performance devices for Artificial Intelligence
(AI).
OneSub
£150k – fully-automated digital stack which
downloads and reads thousands of news articles
daily into an AI knowledge model.

69. What next?
1. Pick up one page summaries // check
https://techspark.co/sginvest/
2. Read and share the Quarterly Investment in Brief
(newsletter) tomorrow
3. Put the next event in your diary…

70. Quarterly
Investment
Briefing
For your diary:
Thursday 12th September, 16:30
Venue – Engine Shed
@EngineShed_BB
#QIBriefing