Date post: | 20-Aug-2015 |
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Economy & Finance |
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What is EquitySpark?
• A crowd funding business
• Raises funding for:
๏ university research projects
๏ university spinoffs
๏ university science park companies
Funding & Return
• £250k required to fund first 12 months
• Cashflow positive thereafter
• Valued attractively at £2m pre-money now
• Will seek exit within 3 to 5 years at valuation of £20m
• Investors will get 10x return
The Research Problem
• Universities are hotbeds of research
• But research projects don’t always get government funding
• They often have no other source of funds
• So deserving projects are left to wither and die
The Spinoff Problem
• Some university research projects should be spun out into companies to exploit their discoveries
• These spinoffs face significant challenges in raising early stage finance
• If easier funding were available, more would attempt to spin off
The Science Park Problem
• University Science Parks are hotbeds of innovation
• They contain startups at the forefront of technology (some are university spinoffs, some are not)
• These startups face significant challenges in raising early stage, and subsequent rounds of finance
The Answer
• Crowdfunding via EquitySpark
• It raises money for University-related enterprises
• It raises money from University alumni (and other angel investors)
Business Model
• Commission on funds raised
• Commission on funds managed (nominee investments)
• Advertising
• Licensing the crowd funding software platform
The University Research Project Market
• UK Research Councils funding for 2012/13 was £1.5bn
• Average application success rate 30%
• Implies £3bn of research not funded in 2012/13
The University Science Park Market*
• Number of locations: 71
• Number of locations under development: 8
• Number of tenant companies: 3,300
• Estimated annual turnover of tenants: £5.5bn
*UK Science Park Association
University Alumni
• Millions of university alumni out there
• University alumni have better employment, earn more, and have more disposable income than non-graduates
• Survey of alumni found that those who remained informed of innovation in their university (10%) would become involved if the barriers to doing so were lessened
Win-win
• Get projects & spinoffs funded quicker and easier
• Access to wide range of angels
• Free service
• Easier fundraising
• Quicker fundraising
• Wide pool of investors
• Unique investment opportunities
• Support university-associated SMEs
• Feel-good factor
University Entrepreneur Alumnus
Financial SummaryBa
lanc
e ca
shflo
w
£-225,000£-152,500
£-80,000£-7,500£65,000
£137,500£210,000£282,500£355,000£427,500£500,000
7-14 9-14 11-14 1-15 3-15 5-15 7-15 9-15 11-15 1-16 3-16 5-16
Monthly Forecast
Jul Oct Jan '15 Apr Jul Oct Jan '16 Apr Jul
Monthly Income - £5k £10k £17k £37k £57k £92k £123k £152k
Monthly Cost £33k £17k £29k £30k £33k £33k £33k £33k £38k
Balance cashflow -£32k -£71k -£144k -£191k -£201k -£148k -£15k £207k £441k
Already Engaged with Universities
• 21 May Birmingham Science Park Pitch to 34 companies offering pre-registration to EquitySpark crowdfunding
• June Wolverhampton University EquitySpark to assist in the launch of Wolverhampton’s new Science Park providing mentoring and crowdfunding for 6 companies (their first spinouts)
• 10 July UK Science Park Association (UKSPA) 30 year Summit Dr David Hardman MBE (chair of UKSPA) will endorse EquitySpark as UKSPA crowdfunding partner
Strong Team
Simon Farrell Commercial Director
• 15 years in IT & Business Development
• Senior roles in financial service
• Barclays, Lloyds, RBS and Deutsche Bank
Simon Strojan Founder, CEO
Kabir Walker CTO
• Independent Consultant at RBS
• Project work stream lead at HCL
• Director at Red Button Recruitment
• Head of Compliance at Sanctuary Personnel
• Royal Navy
• Independent Consultant at RBS
• CEO Head Porter
• Environmental Economist, Natural England
• PhD, Univ of Wales, MPhil, Cambridge University
Road Map
Build equity crowdfunding platform
Pre-launch University Science Park crowd funding service Birmingham Science Park (Aston) will be the first to be offered the service
Gain FCA approval & licence Equity crowdfunding service goes live Extend service to other science parks
Develop University fundraising platform
Research crowd fundraising service goes live
Complete June AugJulyComplete
Contacts
Dr Simon Strojan +44 7533 380 093
Simon Farrell +44 7447 001 941