How To Grow London S Microsme

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Elfreda Pierce
3 years ago
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1 GROWING LONDON S SMES London Regeneration Fund London Co-Investment Fund London Growth Hub

2 LONDON REGENERATION FUND

3 WE DRIVE AND SHAPE GROWTH IN LONDON S TOWN CENTRES AND HIGH STREETS

4 WE MOSTLY DO THIS THROUGH DELIVERY OF PLACE- BASED REGENERATION PROJECTS

7 HIGH STREETS PLACES OF WORK PLACES OF LEARNING

12 LONDON REGENERATION FUND

13 ENCOURAGE PROACTIVE STEWARDSHIP

14 ENABLE GOOD GROWTH

15 PILOT CHANGE

16 SECURE AND CREATE OPEN WORKSPACE

17 INTENSIFY PLACES OF WORK

18 WHO CAN APPLY? Boroughs Sub- regional partnerships Town teams and BIDs Workspace providers Community groups and charities

19 ERDF FUNDING An additional 50 per cent of total project value to support SMEs (Priority Axis 3) A single combined bid Workshop in September 2015

23 LRF TIMELINE JUL Fund launched Regeneration Bootcamp AUG SEP High Street Network event ERDF workshop OCT Submission deadline NOV Appraisal DEC Winners announced

24 YOUR EXPERIENCE? WHAT S WORKED AND WHAT HASN T? Encourage proactive stewardship Enable good growth Pilot change Secure and create open workspace Intensify places of work

25 THE TYPE OF THING THE LEP SHOULD BE SUPPORTING? Encourage proactive stewardship Enable good growth Pilot change Secure and create open workspace Intensify places of work

26 OTHER INTERESTING PROJECTS YOU VE HEARD OF? Encourage proactive stewardship Enable good growth Pilot change Secure and create open workspace Intensify places of work

28 Finance Gap Unsuccessful/ unresolved 35% Partial finance All the money Attempted to access external finance 2bn finance gap. Only 32% of start-ups were able to access the finance they needed.

29 Company Development Stage Activities Funding Requirements Seed Market research, product design, business plan, pitch Funding Sources < 100,000 Credit cards, personal loans, family & friends, grants Risk Ultra High Start-up Product development, marketing, revenue growth, staff, workspace 100,000-1m 500k - 2m Angel investors Angel syndicates/ Micro VCs High Growth/Expansion Marketing, sales, distribution network, employees, operations, premises 5m - 20m 20m+ VCs Private Equity Medium Exit Successful IPO, mergers and acquisitions, buyouts unlimited Private Equity, Company revenues Low

30 25m GLA monies to be invested in over 150 companies over the next 3 years 50m will be leveraged in through the private sector jobs will be created 130m GVA generated Returns to be realised within 8 years Double bottom line

31 How do we deliver this? Through an arms-length organisation, Funding London, which was set up by the LDA in Supported by Capital Enterprise, a not-for-profit association for providers of enterprise support in London Investments are made in conjunction with partners

32 Venture Capital Money provided by investors to start-up firms and small businesses with perceived long-term growth potential.

33 Types of Venture Capital Type Characteristics Typical amounts Case Study Angel HNWI 10k - 100k Reggae Reggae Sauce - 50k from Dragon Angel Syndicate A group of HNWI 10k - 3m Blu Wireless - 2m from LBA Micro-VC Fund Company, Holding Fund structure 250k - 5m Playfair Capital VC Fund Private Equity Company, Holding Fund structure Company, Holding Fund structure 5m+ Eventbrite - $6.5m from Sequoia Capital 1m -?bn Alliance Boots - $25bn

34 Our Co-investment Partners

35 First 6 months 2.1m invested to date 15 companies 11.5m of investment leveraged in from private sector Co-investment multiple of 4.4x (target is 2.9x) 21 jobs created* 500+ applications through the website

36 Our investments Dojo - 155k in a 800k funding round. Expand operations beyond central London. Desktop Genetics - 220k investment. Bioinformatics company aiming to revolutionise the way genetic engineers work together.

37 Our investments Urban Massage - 240k in a 1.1m funding round. Increase numbers of staff. Flat-Club - 146k in a 1m funding round. Marketing.

38 Questions? Website: Maggie Rodriguez-Piza, Chief Executive Funding London

39 LONDON GROWTH HUB

50 Feedback Questions: 1. How could we improve the current site? 2. What would be your top 5 areas of business support for the Growth Hub to focus on? 3. Do the current sector categories work for you? 4. What else would you like to see the London Growth Hub do?

CfEL Equity Scheme Data

CfEL Equity Scheme Data Summary CfEL manage a range of VC schemes providing equity finance targeted towards high growth potential SMEs on behalf of the Department for Business, Innovation and Skills (BIS).