Yorkshire Association of Business Angels

Yorkshire CONCEPTRaising finance to grow your business

Tuesday 4 March 2008Crowne Plaza Hotel, Leeds

Barbara GreavesManager

Yorkshire Association of Business Angels (YABA)

• Started in 1995• Membership organisation

- 128 Angel members (private investors)- 45 Associate members (corporate)

• Investment pot of c£18m in Yorkshire• Supported by Yorkshire Forward• Not for profit introduction service

Consider Business Angel Equity Finance

• Immediate cash with no security required• No repayments until exit• Pay dividends if agreed only when in profit• Common goal to grow the business• Strategic partner – support & advice• Active partner at times• Proven experience & credibility

What do the Angels look for ?

• Patented product/niche market• High Growth business potential• Management team• Return on investment• Exit strategy

What can you expect ?• Someone who has business expertise and potentially

has contacts in the market• Possibly a syndicate of Angel investors sharing the

high risk at this very early stage• Angels looking for co-investment routes such as the

Viking Fund to benefit from the due diligence • Average YABA investment £50,000 which can

leverage further finance• 10% of opportunities succeed in getting investment

From prototype stage

Kwik Pipe LtdPatented water pipe lining system• Needed working capital• Investment in tooling & machinery • £50,000– 1 Angel Investor• £20,000 – Yorkshire Forward grant

Green technologyGSPK Multifuel Ltd

Dual fuel converter – LPG and diesel for HGVs offering lower carbon emissions and costs

• Finance for further product development and sales and marketing

• £25,000 – 1 Angel investor• £75,000 – leveraged industry and

grant funding

York University Spin-outRAPITA Systems Ltd Worst-case execution time software analysis tool

for embedded systems used in the automotive, avionics and telecommunications industries

• Viking Fund and YABA co-investment in 2005• £100,000 second round funding secured in 2007

One investor said “ the academic track record of its founders is extremely impressive. Added to that is the fact that the company has already started to secure its first orders with products that will make a real cost and time saving to its customers.”

New product launch & export drive

• Single Use Surgical Ltd• Second round funding to

increase working capital• Large syndicate of Angels“We’ve benefited greatly from the

experience of the Business Angels which has meant that we were well prepared to manage the company’s growth,”

www.susl.co.uk

How to access Angel finance • 2 page Executive summary

published on the YABA extranetFortnightly email alert to angel membersFee £50

• 5 minute presentation at a YABA Investment Forum Held every other month with 30-40 angels attending Fee £35

Guidelines on the YABA website www.yaba.org.uk

Summary

Yorkshire Association of Business Angels can help you to reach 128 Business Angels in the

region at one time at very little costand

Business Angelsnot only bring

moneybut also

skills and experienceto support your business

Yorkshire Association of Business Angels

1 Hornbeam HouseHornbeam ParkHookstone Road

HarrogateHG2 8QT

tel 01423 810 149fax 01423 810 086

Barbara Greaves and Charlotte Atkinsonadmin@yaba.org.uk

www.yaba.org.uk