Tony GoulbournChief Executive

Objectives

• Inform about SYIF

• Examine feedback from you

• How we shape the future

Key Messages• 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

Andy ChafferSBF Business Director

Business Loans £15k - £150k

Business Loans £15k - £150k• 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

Investments by year

0

0.5

1

1.5

2

2.5

3

3.5

4

2003 2004 2005 2006 2007 2008

Year ended March

£M

SBF

• 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

Business Stage Rebate Net Rate

Established & Profitable

4% 8%

Established 2% 10%

Early Stage No rebate 12%

Business Loans Interest Rates

Summary• Ample money to lend to established and

early stage businesses

• If you have clients with funding gaps please give me a call……………..

Equity Linked Packages

Mary BroadheadInvestment 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

0

1

2

3

4

5

6

7

2003 2004 2005 2006 2007 2008

Year ended March

£M

Cap/Dev

Investments by year

• 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 DixonDeputy Chief Executive

• 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

Key Goals of Seedcorn Fund

Seedcorn Fund• Total investable value - £4.685m

• 2 portfolios: Proof of Concept Commercialisation

• Budgets for mentoring and management support

Seedcorn Fund

• £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)

Lessons Learnt

• Collaboration model can & does work

• Importance of milestone investments

• Importance of developing management

capability

• IP is mobile and therefore significant for inward investment

Microloans

Fiona GreavesLoans 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

Amount of Loan Details Business Location

£15k - £50k

(exceptionally up to £100k)

Sole traders, partnerships, limited companies

Doncaster (immediate travel to work area)

£1k - £15k Unsecured. Loans in name of owners of business

South Yorkshire

£500 - £15k BiG Business Loans. Unsecured. Loans in name

of owners of business

& social enterprises

Sheffield

Activity to date

• BiG - £96K in 22 businesses

• BiG – additional £31k approved

• Donbac - £23k in 3 businessses

Tony Goulbourn•Conclusions

•Feedback

•Shaping the Future

Conclusions

• Proved the market

• Proved the business model

• The Fund will create a legacy fund of circa £19 million for South Yorkshire

Feedback • EKOS commissioned to undertake

survey – August 2008

• Objective: To seek intermediaries views on SYIF's current operations and the proposed Regional Successor Fund.

• High satisfaction levels – 82% satisfied or very satisfied with overall performance

• Strong endorsement of services (mentor/NED and pre-investment support)

Feedback - Satisfaction with SYIF

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

Shaping the future

• The Contingency Fund

• The Successor Fund

www.syif.com01709 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).