Slide 1SMEs contribute strongly to employment growth and innovation
Business Angels have taken over from Venture Capital as the main source of risk finance for early stage businesses
Business Angels have limited capacity
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Objectives
To improve the quantity and quality of business angel investing in England and so to:
Create or safeguard between 5,000 and 9,000 long-term high-quality jobs
Encourage new business angels through more attractive network propositions
Invest in and support high growth companies
Attract a target of at least £2 of private money for every £1 of public money invested.
To recycle public funding to create a lasting legacy
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Methodology
Acting as a private investor within ‘partner’ networks and syndicates. Access to all deal flow on the same basis as other investors.
Making rapid decisions in the way a business angel would be able to, but
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Methodology 2
Able to invest up to c.£1m in any one company in any 12 month period or up to 50% of the total investment in a round
Modest fee paid to syndicate manager on completion of a deal. Manager then responsible for information flows
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Investment Decisions
An investment committee to reflect that this is not a VC fund and that it is administered but not ‘Fund Managed' by CfEL
CfEL will:
Any glaring omissions in DD e.g. customer referencing
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Network/Syndicate Role
Fund would be open to all networks or syndicates (Partners) that meet its standards. Guidance will be developed on this but essentially need to produce an investment paper that demonstrates DD and structure and be able to sign up to legal agreements
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CfEL Role
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Initial Bid Partners
The initial bid partners represent a cross section of the angel investment community. They have helped to put this bid together and are potential partners of the fund.