Finance Yorkshire Welcome

Finance Yorkshire John Watson- Director

Finance Yorkshire Why 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

Finance Yorkshire Agenda John Watson, Director, Finance Yorkshire Alex McWhirter, CEO, Finance Yorkshire James Farrar - Local Enterprise Partnership Seedcorn Case Study – Hugh Rudden, Fullsun Photovoltaics Business Loans Case Study – Kevin Hollinrake, Vizzihome Equity Linked Finance Case Study – Paul Stark, Aerocover Questions & Answers

Finance Yorkshire Alex McWhirter - CEO

Finance Yorkshire What 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

Finance Yorkshire Our 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

Finance Yorkshire Our investment performance so far investments totalling over £39 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

Finance Yorkshire Investment Profile

Finance Yorkshire Investment 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

Finance Yorkshire Investment performance by location...

Finance Yorkshire Investment performance by location...

Finance Yorkshire Investment performance by sector... Sector Analysis – All Funds SectorApplication Process (%)Investments (%) Business Services12%18% Engineering / Industrial products / Materials24%25% Financial Services1% Healthcare / Pharma / Bioscience14%7% ICT / Software / Telecoms / Media21%12% Leisure / Hospitality1%2% Renewables / Energy / Cleantech6%7% Consumer / Food & Drink6%10% Other15%18%

Finance Yorkshire Investment 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

Finance Yorkshire Three portfolios Seedcorn Finance Business Loans Equity Linked Finance

Finance Yorkshire Seedcorn 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

Finance Yorkshire Case 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

Finance Yorkshire Business 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

Finance Yorkshire Case Study – The Beautiful Meme  Designers and writers that specialise in rebranding and advertising  £40,000 Business Loan to help the company expand its portfolio  The finance has enabled the company to employ a new designer and copywriter and meet additional overhead costs

Finance Yorkshire Equity 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

Finance Yorkshire Case study - Envirodoor  An international manufacturer and supplier of specialist and hygienic doors  £600,000 Equity Linked investment to support the company’s marketing, recruitment and research and development programmes  Looking to grow its distribution network and to build relationships with key partners

Finance Yorkshire has: completed 346 investments Invested a total of £39.43m Seedcorn Finance – 44 investments totalling £7.93m Business Loans – 270 Investments totalling £15.00m Equity Linked Finance – 32 Investments totalling £16.50m Finance Yorkshire Portfolio performance to date..

Finance Yorkshire Our 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

Finance Yorkshire James Farrar The York, North Yorkshire and East Riding Local Enterprise Partnership

Vision: Grow Business Faster Small Business Growth Strong Voice for Local Business Major Growth Opportunities Inward Investment Potash Agri-Innovation The LEP Plan

Small Business Growth Delivered to date: - 1,300 Business Supported - £2.2m Skills funding secured - 18,000 Businesses engaged sources of support promoted - 73 Business Mentors attracted - 39 Networks in partnership - Business Support Seminars - Online Webinars developed Good quality, easily accessible business support not reliant upon public funding Businesses who get external help perform better than those that dont

Major Growth opportunities FERA Science & Innovation Campus Potential 800 Jobs York Potash £2.5bn Investment £2.5m Whitby Business Par c.4000 jobs Drax £700m Biomass Conversion £1bn Carbon Capture & Storage

Forward Strategy 5 Year Growth Strategy A compelling vision for the region - Taking opportunities - Addressing barriers Central Govt Single pot European Funding Public / Private partnership Small businesses key to growth of our economy LEP best placed to coordinate Business support

York Means Business website York Means Business web portal is supported and led by the York Business Team of the City of York Council. The site offers start-ups, growing, established and relocating organisations and businesses a wealth of information and signposting to appropriate knowledge, funding, assistance and support.

Finance Yorkshire Seedcorn Fund Testimonial Hugh Rudden, Fullsun Photovoltaics

Finance Yorkshire Business Loans Testimonial Kevin Hollinrake, Vizzihome

Investee Business

Weekly Sold Report Investee Business

How it Works 1.Information from the Internet 2.Covers England, Ireland, Scotland and Wales 3.Very accurate – 97% UK Agents 4.2m records each week 5.Data added, cleansed and de-duped weekly 6.Sales data from Aug 08 7.Lettings data from May 09 Investee Business

Current users

Full Property List – For Sale Investee Business

Property History Investee Business

Vizzihome Data USPs Scale: largest database of UK homemovers known Quality: very high quality data through algorithms and de-duplication policies Change: constantly evolving and updated Permissions: DPA compliant Accessibility: easy to use and simple to supply Investee Business

Why use this data? Home moving data is very powerful: – Average householder spends twice as much on home in year 1 than in any subsequent year – Average of £8,000 spend in first 3 months; £15,000 in first 12 months – Approx 1.3m home owners move every year, spending £2.2bn on associated household goods – 75% of consumers polled would welcome relevant marketing Investee Business

What for? ActivityDefinitionCost per record AcquisitionMarketing to those who are not existing clients/customers to acquire new business 10-20p RetentionOverlay data with existing database to market to existing clients/customers with the aim of retaining business whilst stimulating sales 20-50p HygieneDetecting and removing data which is out-of-date, redundant or incomplete 5p Investee Business

Why Finance Yorkshire? For more information on Vizzihome please contact : Will Lownsbrough, Commercial Director Investee Business

Finance Yorkshire Equity Linked Finance Testimonial Paul Stark, Aerocover

The investment journey Investee Business

The spin out Investee Business

The introduction Investee Business

The Process ApplicationMore Info Investment MeetingsAcceptance Negotiations and DD Completion Investee Business

Challenges

Experience

Finance Yorkshire Future work… Work collaboratively with the York, North Yorkshire and East Riding 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

Finance Yorkshire Making an application Call us to make sure it’s eligible or make enquiry via website An Investment Manager will contact you to discuss. Complete Application Form & the supporting information when advised by the Investment Manager.

Finance Yorkshire Q & A Finance Yorkshire Ltd is a company limited by guarantee (Registered No ). Finance Yorkshire Ltd ( ) 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.