2. Tony Goulbourn Chief Executive

3. Objectives Inform about SYIF Examine feedback from you How we shape the future

4. Key Messages 469 investments totalling £50 million Momentum of investment continuing Additional £4 million injected by Yorkshire Forward £10 million to be invested up to end of 2008 Contingency Fund from January 2009

5. Andy Chaffer SBF Business Director Business Loans £15k - £150k

6. Core market remains funding the gap in projects for established businesses For early stage deals depends on certainty of forecasted income Investment amount reflects risk and we look to package deals with other funders

7. Business Loans £15k - £150k Up to £1.3 million available to invest by end of 2008 which provides headroom Additional money is available if needed

8. Investments by year

9. Headline rate remains 12% but retained rebate concept Rates are fixed for term of the loan Interest Rate Rebate available dependent on risk subject to meeting on-going conditions (Includes Management Accounts, QPR’s, Dividend Covenants etc) Business Loans Interest Rates

10. Business StageRebateNet Rate Established & Profitable 4%8% Established 2%10% Early Stage No rebate12% Business Loans Interest Rates

11. Summary Ample money to lend to established and early stage businesses If you have clients with funding gaps please give me a call……………..

12. Equity Linked Packages Mary Broadhead Investment Director

13. Equity Linked Packages Equity linked packages from £100k to £2.5 million All stages considered Returns linked to perceived risks Syndication with other investors possible

14. Equity Linked Packages Performance to date 82 investments in 44 companies £22.2 million invested to June 2008 Some exits achieved already, more in the pipeline

15. Equity Linked Packages Up to £4.7 million available to invest by end of 2008 Additional money is available if needed

16. Investments by year

17. Mezzanine loans for established, profitable businesses (may include a small equity upside) Equity packages for earlier stage or riskier proposals ( minority stakes only) Terms of investment are structured to fit each individual deal Types of investments

18. Seedcorn Fund Jonathan Dixon Deputy Chief Executive

19. To enhance the SYIF product range To increase the level of investment in early stage knowledge based businesses To test the market, delivery mechanisms and financial instruments Key Goals of Seedcorn Fund

20. Seedcorn Fund Total investable value - £4.685m 2 portfolios:  Proof of Concept  Commercialisation Budgets for mentoring and management support

21. Seedcorn Fund £2.5 million invested £2.1 million committed for investment by the end of the year Additional investments of £1.2 million anticipated before end of 2008 (funded from interim fund)

22. Lessons Learnt Collaboration model can & does work Importance of milestone investments Importance of developing management capability IP is mobile and therefore significant for inward investment

23. Microloans Fiona Greaves Loans Manager

24. A Consortium Approach SYIF – lead. Managing agent for the investor DonBAC: providing loan management for non-social enterprise Key Fund: for social enterprise

25. Microloans Simple access & low bureaucracy for the client Intensive support process for the client Cost effective delivery for the Investor (BiG) Managed with a commercial focus

26. Amount of LoanDetailsBusiness Location £ 15k - £ 50k (exceptionally up to £ 100k) Sole traders, partnerships, limited companies Doncaster (immediate travel to work area) £ 1k - £ 15kUnsecured. Loans in name of owners of business South Yorkshire £ 500 - £ 15kBiG Business Loans. Unsecured. Loans in name of owners of business & social enterprises Sheffield

27. Activity to date BiG - £96K in 22 businesses BiG – additional £31k approved Donbac - £23k in 3 businessses

28. Tony Goulbourn Conclusions Feedback Shaping the Future

29. Conclusions Proved the market Proved the business model The Fund will create a legacy fund of circa £19 million for South Yorkshire

30. Feedback EKOS commissioned to undertake survey – August 2008 Objective: To seek intermediaries views on SYIF's current operations and the proposed Regional Successor Fund.

31. High satisfaction levels – 82% satisfied or very satisfied with overall performance Strong endorsement of services (mentor/NED and pre-investment support) Feedback - Satisfaction with SYIF

32. Feedback - SYIF & the Finance Gap Finance gap greatest for new starts (89%) & for early stage businesses (76%) Exists even for established small businesses (62%) & for medium & larger businesses (37%) SYIF helps meet the gap through its products e.g 74% for small business fund

33. Feedback - The Successor Fund Awareness is high (76%) Value as a regional resource recognised (96%) Should address areas of greatest market failure (early stage, new starts and technology based businesses) Two thirds say not sector prioritisation

34. Shaping the future The Contingency Fund The Successor Fund

35. www.syif.com 01709 386 377 South Yorkshire Investment Fund Ltd is a company limited by guarantee (Registered No 3936065). South Yorkshire Investment Fund comprises three sub funds, the South Yorkshire Investment Capital Fund, the South Yorkshire Investment Development Fund, which are each managed by YFM Venture Finance Limited, and the South Yorkshire Investment Small Business Fund, which is managed by Finance South Yorkshire Ltd. YFM Venture Finance Limited (Tel 0113 294 5000) and Finance South Yorkshire Ltd (Tel 01709 386 377) are each authorised and regulated by the Financial Services Authority. South Yorkshire Investment Fund also provides a number of services, which are not regulated by The Financial Services Authority. These include the pilot Seedcorn Fund, BiG Business Loan Fund, Mentorbank and access to the Donbac Microloan Fund. BiG Business Loan Fund is managed by Donbac Finance Ltd (company registration No. 01925556) and Key Fund Yorkshire Ltd (Tel 0114 242 8900).