Does the Green Growth Platform need to be Funding Platform? 11/18/2017 9:48 AM Does the Green Growth Platform need to be Funding Platform? Green Growth Conference 2017 Business Funding Workshop Mark Hadley – Isis Environmental Limited © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Difficulties with Grants GGP currently monitors grants for Innovation, R&D, Business Growth & Renewables By far the vast majority of these require ‘Match Funding’ typically offering 40% grant Fine for businesses with established cashflow & retained profits, but hopeless for start-ups and young lean businesses This is a common issue faced by SME’s in developing their business growth plans Q. Can we develop a comprehensive funding route map, incorporating resource providers?

Difficulties in raising funding Access to finance is important for growth and productivity Debt financing gap for businesses lacking track record & collateral Equity Gap for high growth potential SMEs SMEs may not fully understand benefits of raising finance or likelihood of success, which ultimately means they do not apply for finance. Businesses sometimes lack experience and expertise to raise finance

The Conventional Finance Escalator

The Brave New World Many SME’s and MicroBiz have turned to crowdfunding to raise seed finance or launch new products ZOPA the world’s 1st P2P lender has raised £1.8b since 2005, and £700m last year alone ZOPA was not accepting new investment as lack of demand by end December 2016 Maybe not enough creditworthy Co’s to satisfy the lending requirements of the new platforms FCA is in process of granting authorisation to P2P lenders at present

Crowdfunders & P2P lenders In 2015, approximately 20,000 SMEs raised alternative finance through online channels Receiving £2.2 billion in business funding, equivalent of 13.9% of new bank loans

Why is loan demand falling? Entrepreneurs often resistant to outside intervention in their businesses and were against the idea of borrowing, even to fund growth. One of the main factors behind this reluctance was the fear of banks or other lenders having too much control over their business, such as having the ability to alter or re-negotiate lending conditions.

Can you help us? I have devised a simple game we can all play here today If you have a smartphone please use your browser to find Kahoot.it and we’ll play a game You will need to enter the Kahoot number in a minute into your phone and give yourself a nickname We are going to try and capture some information, the scores are anonymous BTW I’ll hopefully download the results later for the GGP and we’ll discuss the findings afterwards