Tech City Launchpad Campaign Review v2.1

Tech City LaunchpadCampaign Review

Tech City Launchpad

Campaign Review v2.1Huw Jones, Technology Strategy Board

Tech City LaunchpadCampaign ReviewTech City LaunchpadCampaign Review

Campaign Mission & Outcomes

Campaign Mission

• Stimulate the digital and creative industries centred in the ‘Tech City’ area of London & enable these companies to move faster towards commercial success.

• Develop a creative and engaging acquisition campaign that will acquire the best of the UK’s companies interested in growing within the ‘Tech City’ area

Campaign Outcomes• 20 companies selected for funding – each receiving a slice of £2m in match-

funding• Round 3 event

– Final 40 pitching – 2 mins each– 254 registrants, 214 attendees; inc 145 vc/angel or funding

intermediaries– Creation of final 40 company director (online and hardcopy)– Creation of ‘meet me’ boards– Creation of post-event networking ‘sticky world’

• Media outcomes• Round 2 – paper based down select process – final 40, and top 20 identified• Round 1 – Video application stage – 221 applications. All viewable/rateable

on _connect https://connect.innovateuk.org/web/tech-city-launchpad-1/overview

Campaign Insights: creative and performance

Campaign Launch Video

http://www.youtube.com/watch?v=tAWpiffDX2I&feature=related

Campaign Website on _connect

https://connect.innovateuk.org/web/tech-city-launchpad-1

Example applicant videos

• Video uploaded to YouTube

• Embed code used on _connect website

Round 3 – Funders’ Workshop event

“Meet me”

Project directory – “read about me”

“Fund me” –40, 8 and 2 min project pitches to audience

Customer perspectives

“Despite the (at times) gruelling process, we'd recommend the Technology Strategy Board for anyone looking to get some government backing for their projects. Now it's time for us to chase those leads and secure the rest of the match funding. Fingers crossed!” Dagmara from Clearer Partners

Profile directory – print

Post-event collaboration

http://stickyworld.com/

Profile directory –online collaboration space

Example media coverage

Campaign web traffic insight

Deadline for videos to be uploaded Funders’ Workshop Event

Who’s referring site traffic?

Entrance Sources: /web/tech-city-launchpad-1

Where did you hear about?

Applicant demographics

Example CompanyPitch Slides – 8 minutes

Conrad@FundingOptions.com

+44(0)7740707235

FundingOptionsPrice comparison in small business lending

Conrad Ford

About me

2005 2006 2007 2008 2009

Currently an interim executive with a firm whose technology is seen here.

Previously COO of Clearlybusiness, (Deloitte ‘Fast 500 EMEA’ member).

Built the UK’s leading credit management service by client numbers.

Chartered Management Accountant (CIMA); ~10 years in financial services.

Clearlybusiness PBT £m

Small business lending is a substantial market: ~£800m p.a. in interest GP alone

500kNo. Term Loans

~£800mNet Interest GP

£80kAverage Loan Size

Interest GP Margin 2%

Sources: BBA & BoE (2011)

(Illustrative only)

~£200mAddressable Annually

~4 yrsAverage Term

It’s also notably uncompetitive: 4x more likely to get a term loan from main bank than a rival

Tendency to use main bank for financing needs, %

98%80% 80%

47%24%

Overdrafts Credit cards for business purposes

Commercial loans &

mortgages

Invoice Finance &

Stock finance

Leasing & hire-purchase

With another bank

With main bank

Source: Warwick Business School (2009)

Term loans

Two notable advantages for the small businesses’ main bank

Access to client bank account data, the primary decision tool

Local relationship with client via the branch network

Ability to generate financials (including bank data) from accounting software

Data extracted directly from small business accounting software (e.g. Sage or QuickBooks)

Accountants are a nationwide channel, more trusted than banks

Source: Warwick Business School (2009)

Most trusted source of support & advice Nationwide launch partner identified

•Hundreds of their accountant clients surveyed on FundingOptions.

•50% of survey respondents would like to take part in a FundingOptions trial.Account

-ant or Auditor

Bank Manage

rOther

No Advice

High-level proposition flow

IMPORT FINANCIALS

CHOOSE LENDERS

ACCEPT REQUEST

PROVIDE QUOTE

ADD PLAN & CONTEXT

COMPARE QUOTES

(TRACK STATUS)ADVISOR

LENDERS

PROGRESS WITH QUOTE

FULFIL QUOTE

(5 WORKING DAYS)

“Quotes from a range of leading finance

providers ... get the very best terms”

“Quotes from all finance providers in a standard format... easily review them with my clients”

“The precise information required by

finance providers for them to ...quote with

confidence”

REFERRAL SUCCESS FEE AS A % OF LOAN VALUE

Illustrative financial profile & external factors

0% share 2% share <5% share

SageOne & QB Online

Yodlee APIs

‘Rainbow’ & ‘Verde’

Account Portability

(Note: Money-SupermarketP/E = ~50x)

“Skate to where the puck is going to be, not where it has been”

How I intend to deliver, & where I am now

Infrastructure Managed sub-lease agreed

Platform MoU in place

Team 3 at launch, 2 in holding

Distribution Launch partner agreed

Investment ~£300k raised (including TSB)

• Phase I “Prove Concept”– Low cash burn & lead times.– ~£400k seed funding.

• Phase II “Grow Quickly”– Spend to maximise growth.– ‘Series A’-scale funding.

Area Status

DELIVERY PLANS CURRENT STATUS

Why FundingOptions, & what am I seeking?

• Attractive target market– Large high margin market– Tech & regulatory ‘tailwind’

• Decent chance of execution– Defined revenue model– Known platform & distribution

Why invest in FundingOptions? What am I seeking?

• Investors/mentors with:-– Domain knowledge.– Industry contacts.– Valuable hands-on skills.

Resources & citations

Resources and citations• Tech hub winners –Clearer partners:Framblast

– http://www.techhub.com/magazine/read/techhub-residents-win-techcity-launchpad_183.html• Tech hub winners – Contentment: Padify• http://blog.getcontentment.com/2011/08/11/announcement-weve-been-awarded-tech-city-

launchpad-funding/• Tech City Launchpad doubled to £2 million• http://www.growthbusiness.co.uk/news/business-news/1640238/tech-city-launchpad-

doubled-to-2-million.thtml• Innovative digital businesses in London’s Tech City given opportunity to pitch to leading

investors• http://www.techcityuk.com/2011/08/news-innovative-digital-businesses-in-

london%E2%80%99s-tech-city-given-opportunity-to-pitch-to-leading-investors/• Technology Strategy Board plans series of launchpad investment events to boost UK’s tech

start-ups• http://www.computerweekly.com/news/2240105331/Technology-Strategy-Board-plans-

series-of-launchpad-investment-events-to-boost-UKs-tech-start-ups• Tech City: Britain’s answer to Silicon Valley• http://ukbusinessblog.co.uk/?p=816

Tech City Launchpad Campaign Review v2.1

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