http://dl.dropbox.com/u/7094107/Insider%20Funding%20may%2021.pdf

Going to this link will download a pdf copy of the presentation to your PC.

This is a closed, invite only session directed at Business Angels. Please contact liz@hban.org for further info.

For further info. please visit http://www.hban.org/index.php/business-angel-conference-2010/

 Scottish Business Insider is launching it’s first annual business conference that will focus mainly on growth and how we can prepare our companies to begin to grow once again and take us through to a much more stable environment.

This conference will provide practical ideas, invaluable information, and will also include highly focused discussions with top level content and informed analysis, which will enable attendees to identify the best options for their business.

Other speakers include:  

Luke Johnson, Former Chairman of Channel 4 and Pizza Express

 Derek Douglas, Chairman and Chief Executive, Adam Smith Ltd View Biography

Richard Higgs, brightsolid. View Biography

Bill Farrar, Group Sales & Marketing Director, Edrington Group View Biography

Colin Temple, Managing Director, Schuh View Biography

Paul Grant, Managing Director, Mackays View Biography

Shaf Rasul, E-net Computers and Dragons Den Online view biography

“Creating Ecosystems for Angel Investors, Networks and High Growth Companies” during which he will describe

• The current ecosystem for angel investors in Scotland
• Role of the LINC Scotland, the Scottish Angel Capital Association and the services it provides
• The importance of LINC’s interaction with Scottish policy makers in helping to create a sustainable local investment community.
• How the experience gained in Scotland of building a world class angel investment community can be applied in other countries seeking to grow high potential companies.

 International business angel expert calls for co-investment fund to increase financing for early stage, high potential firms·  Co-investment fund should be designed along lines of stg£75 million fund in Scotland·        

Dublin, IRELAND – April 13^th 2010: An international expert on angel financing has called on the Irish Government to help create a multimillion euro co-investment fund in Ireland to support the development of high potential, early stage firms in a range of high-tech sectors, from information technology to life sciences.

 Nelson Gray, who is a board member of LINC Scotland, the Scottish national angel investment network, said the Irish Government needed to actively consider setting up a fund similar to the stg£75 million Scottish Co-investment Fund (SCF), managed by Scottish Enterprise and used to support indigenous, early stage enterprises in Scotland. Mr. Gray – who was speaking in Dublin at a seminar organised by the Halo Business Angel Network (HBAN), the national network for angel investing in Ireland – said the Irish Government should use the new, early stage funds, announced by a number of Irish owned banks, as a foundation for the setting up of the co-investment fund.

 “Governments have to take steps to promote investment by private investors in indigenous firms in high growth industries, like life sciences, medical devices and information technology. In Scotland, we found that the establishment of the SCF, to invest funds alongside private investors, helped to bring a viable angel capital industry into being,” said Mr. Gray. “Scotland actually has an economic and demographic profile not dissimilar to Ireland’s, and we have found that the co-investment fund has, overall, had a hugely positive impact, in terms of fostering investment in local industry from business angel investors and offering a critical source of finance for early stage entrepreneurs,” he said.

 Figures from Scottish Enterprise for 2009 show that, since the SCF was set up in 2003, there has been stg£114 million invested in 154 companies, with half of this investment coming from syndicates of angel investors.  The SCF operates on the principle that any investments by business angels through a formalised syndicate will be matched under the same terms and conditions by public sector funds. The maximum investment in any one deal is approximately stg£1 million, with most deals being around the stg£500,000 mark.

Diane Roberts, National Director, HBAN, said: “What is required here is the creation of an angel capital industry in Ireland, where individual investors and investment syndicates are systematically matched with appropriate investment opportunities. The importance of this kind of investment has already been highlighted in the Government’s Innovation Taskforce report as a means of increasing the availability of financing for high potential firms”.

 Damien Callaghan, Intel Capital Director and member of the Government’s Innovation Taskforce, said: “To create the high value jobs we need, via new, innovative export-orientated companies, our entrepreneurs need easy access to risk capital. Experienced business people who invest their money and personal time into entrepreneurs’ businesses – i.e. business angels – are a fundamental element of an innovative economy”. “The Innovation Task Force recommended that the state help stimulate a strong and active business angel community. 

The Scottish example and the strong results achieved shows how this can be done in a really innovative way,” said Mr. Callaghan.

 HBAN, which was set up just last year as a joint initiative of InterTradeIreland and Enterprise Ireland, has already supported investment of more than €4 million in 21 Irish early stage enterprises, through its regional networks and investment syndicates. The 21 firms are from a range of high tech areas, including medical devices, mobile security solutions, life sciences and biotechnology solutions and software development.

 About Halo Business Angel Network (HBAN): HBAN is an all-island umbrella group for business angel networks, dedicated to the promotion of angel investment and supporting the early stage entrepreneurial community in Ireland. HBAN operates regionally through the Dublin, Cork, Waterford, and Galway Business Innovation Centres (BICs) who each run local angel networks. Collectively HBAN actively works to increase the number of angel investors involved in investing in early stage companies and supports the formation of new and existing angel networks, both regionally and internationally, and within industry sectors. HBAN, which is a joint initiative of InterTradeIreland and Enterprise Ireland, also acts as a voice to Government, stakeholders, business and the media to promote the interests and needs of the angel investment community. Further information is available at: www.hban.org.  

For further information contact:Diane Roberts, National DirectorHalo Business Angel NetworkT:         01 665 0420E:         diane@hban.org 

The seminar set out lessons learned in Europe, and Especially Scotland on how to develop and grow local early stage investment communities in developing countries. Local investment communities are essential to support growth in knowledge based industries, and in attracting larger venture fund investors from overseas to support latter stage growth.

The Inter-American Development Bank is an international organization established and headquartered in Washington, D.C., United States, in 1959 to support Latin American and Caribbean economic and social development and regional integration by lending mainly to governments and government agencies, including State corporations. The IDB is the largest multilateral source of financing for the Latin America and the Caribbean region.

Ø      How do business models evolve

Ø      Developing business models that are attractive to investors

Ø      Case study examples of how adjusting business models has resulted in exeptional success.

They worked together as founders of the Edinburgh based biopharmaceutical company, Bioenvision Ltd, which they transformed from a virtual start-up operation to a NASDAQ National listed biotech company in just over four years.   Their success culminated in the acquisition of Bioenvision for $345 million in 2007 by Genzyme Corporation.

They continue to work together, and have invested since the sale of Bioenvision in a number of innovative high growth companies within the biopharmaceutical sector before deciding to formalise their investment activity in the ACI syndicate.

Hugh Griffith, CEO and gatekeeper of the recently formed syndicate, says “There are many areas of medicine that urgently need new and effective treatments, or better ways of delivering established medicines.  These are often overlooked initially by the large pharmaceutical companies for a variety of reasons including total market potential.  However, they are ideal areas in which biotechnology companies can develop innovative, first-in-class and best-in-class products and rapidly exploit the commercial opportunity.  This gives companies the exciting opportunity to bring new therapies to market and make a real difference to the treatment of serious illnesses.”

Alida Capital is looking to invest in companies which have clinical data from Proof of Concept studies, and have identified a clear regulatory strategy to marketing approval.  Potential investees should have products which target areas of unmet medical need, with strong scientific and medical rationale, with patents granted or close to grant.

ACI will invest between £50k and £1 million in any one company, and expects to be able to apply the expertise of its core members to help investee companies with their product development, regulatory, and commercial strategies.  The syndicate will consider co-investment with other angel syndicates for larger deals, and is a member of the LINC Scotland SCF Co-Investment Group.

The syndicate’s members have strong networks throughout Scotland, and work directly with many of Scotland’s leading academic, medical and developmental institutions, where a number of potential investment opportunities have already been identified.  In addition, their international experience should enable the syndicate members to channel inward capital investment from outside Scotland.

Alida Capital expects to invest in one or two Scottish companies with SCF co-investment per year (and in others outside Scotland), to create a portfolio which will include some six Scottish ventures at different stages of development over a four year period.  To achieve this level of investment it will be necessary for ACI to consider approximately 20 new proposals each year, of which it is envisaged up to four will be taken to detailed due diligence.

Alida Capital are currently not accepting unsolicited proposals as these could affect their capacity to fully evaluate existing opportunities.  In the future, the majority of deal flow will be sourced through syndicate members, who will carry out initial screening, and through referrals from known third parties.  Alida Capital is in the process of completing its first investment into a Scottish based biopharmaceutical company dedicated to the commercialisation of innovative, rationally designed medicines that meet its criteria of addressing significant unmet medical needs.

Nelson Gray, a non executive director of LINC Scotland where he chairs the good practice group, and European Business Angel of the year in 2008, will be working with Alida for an initial 12 month period acting as advisor.

Contact:  Hugh Griffith

0131 248 3660

www.alidacapital.com

Nelson Gray’s talk to the West of Scotland Business Club on Equity Funding – 1 October 2009