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Tony Goulbourn Chief Executive. Inform about SYIF Examine feedback from you How we shape the future. Objectives. 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
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Tony Goulbourn Chief Executive
Inform about SYIF Examine feedback from you How we shape the future Objectives
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 Key Messages
Business Loans £15k - £150k Andy Chaffer SBF Business Director
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 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 Business Loans £15k - £150k
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
Ample money to lend to established and early stage businesses If you have clients with funding gaps please give me a call…………….. Summary
Equity Linked Packages Mary Broadhead Investment Director
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
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
Equity Linked Packages • Up to £4.7 million available to invest by end of 2008 • Additional money is available if needed
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
Seedcorn Fund Jonathan Dixon Deputy Chief Executive
Key Goals of Seedcorn Fund • 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
Total investable value - £4.685m Seedcorn Fund • 2 portfolios: • Proof of Concept • Commercialisation • Budgets for mentoring and management support
£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) Seedcorn Fund
Collaboration model can & does work Importance of milestone investments Importance of developing management capability IP is mobile and therefore significant for inward investment Lessons Learnt
Microloans Fiona Greaves Loans Manager
A Consortium Approach • SYIF – lead. Managing agent for the investor • DonBAC: providing loan management for non-social enterprise • Key Fund: for social enterprise
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
Activity to date • BiG - £96K in 22 businesses • BiG – additional £31k approved • Donbac - £23k in 3 businessses
Tony Goulbourn • Conclusions • Feedback • Shaping the Future
Proved the market Proved the business model The Fund will create a legacy fund of circa £19 million for South Yorkshire Conclusions
Feedback • EKOS commissioned to undertake survey – August 2008 • Objective: To seek intermediaries views on SYIF's current operations and the proposed Regional Successor Fund.
Feedback - Satisfaction with SYIF • High satisfaction levels – 82% satisfied or very satisfied with overall performance • Strong endorsement of services (mentor/NED and pre-investment support)
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
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
The Contingency Fund The Successor Fund Shaping the future
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).