Presentation delivered at the Business Slide show to Entrepreneurs looking to raise finance for their business.

1. Raising finance and the importance of business metrics John Cheney John.cheney@workbooks.com

2. What’s the process?

3. What’s the story ?

4. Importance of execution Prospects to Cash

5. Targeting Who is my target customer? Type of organisation Type of individual Motivation for purchasing How many potential prospects? Market size What do I know about them already? Using a competitor Interests Targeting

6. Marketing Which are my most effective channels for marketing? Online? Direct? What is the cost of a lead? How many leads convert into a sale? Marketing

7. Selling Sales Effectiveness How many deals can a sales person close in a period? Who are my best sales people? What’s my cost of sale? Competition Who are my competitors? Why are we winning/losing? Selling

8. Delivery Cost of Delivery Gross margin & profitability? Time of delivery How long from Order to Invoice? Can it be quicker? Delivering

9. Have an execution plan Prospects to Cash Understand the Metrics!

10. Build your plan Detailed business plan Vision, Opportunity, Market Landscape, People, Execution Investment opportunity & ROI Exit Strategy & Valuations (Comparisons) Financial Model P&L, Balance Sheet, Cash flow, Key Metrics Executive Summary 3 pages!

11. Angel Investors High Net Worth Individuals Often experienced & successful business people Typically invest between £10k – £500k per investment EIS qualification is often very important

12. Enterprise Investment Scheme A Government scheme to encourage people to investment in small businesses Key benefits Investors can get 20% income tax relief Investors can get 40% capital gains roll-over relief Qualifying gains can effectively be tax free There are rules You need to be a qualifying business You can only raise £2m at a time There are more rules... http://www.hmrc.gov.uk/eis/

13. Find Angels Where can I find them? Angel Networks (www.bbaa.org.uk) Your Networks Lawyers, Accountants Friends & Family What do Angels want? Equity stake – normally ordinary shares To see a return on their investment To back great teams Passion, enthusiasm, drive, expertise Involvement Board seat or Advisory role

14. Venture Capitalists Professional Investment firms Money from Pensions, VCTs, other institutions Funds have sizes and a life cycle Typically have investment criteria Stage: Seed, Early Stage, Growth Stage Sector: Cleantech, IT, Life Sciences, etc Geography Investment sizes reflect stage Seed £500k - £1m Early Stage £1m - £3m Growth: £5m+

15. Finding VCs Where can I find them? European Venture Capital Association - www.evca.eu British Venture Capital Association - www.bvca.co.uk What do VCs Want? Equity Stake, maybe debt Focus on Internal Rate of Return (IRR) Preference shares (different rights) Board Seat – with a fee Often syndication

16. Third Party Advisors Benefits Network of contacts Can organise road show and manage process Sounding board to validate plan Negotiate terms Downsides Cost (% of funds raised + retainer) Look for track recent track record and references

17. Closing the deal Get good legal advise!

18. Benefits & Issues Benefits Investment capital Dispassionate advise Your increased professionalism Credibility Issues Managing shareholders Risk of different views Change is shareholders status or strategy

19. What’s the process?

20. Any Questions?