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).