UK Oil and Gas Industry Venture Capital Fund. Nova Technology Fund 1.SUBSTANTIAL IMPACT ON COSTS OR HSE IN THE NORTH SEA 2.BRITISH IDEAS TO BRITISH PRODUCTS.

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Presentation transcript:

UK Oil and Gas Industry Venture Capital Fund

Nova Technology Fund 1.SUBSTANTIAL IMPACT ON COSTS OR HSE IN THE NORTH SEA 2.BRITISH IDEAS TO BRITISH PRODUCTS 3.CASH RESOURCE TO SMES 4.TECHNICAL & BUSINESS MENTORS

What VCs Want INNOVATIVE PRODUCTS / SERVICES EXPERIENCED MANAGEMENT TEAM PROPRIETARY IPR CLEAR ROUTE TO MARKET SUSTAINABLE BUSINESS PROPOSITION EXISTING REVENUE STREAM

What about my company? Some companies are life-style businesses (Good living & job satisfaction but unlikely to supply the growth & ROR) Entrepreneurial businesses have aspirations and good potential for growth. (They have experienced and ambitious teams)

Normal Development is about 6 years to a Mature Company SEED YEAR 1YEAR 2YEAR 3YEAR 4YEAR 5YEAR 6 START- UP EARLY STAGE EXPANSION MATURITY GROWTH SIZE

Business Development Focus (High Growth Means Rapid Change) Technology Operations Marketing Competition SeedStart-upEarly StageExpansionGrowthMaturity Relative Importance

Source of leads

Clusters of Innovation

Innovation in the North East 40% BELOW UK MEAN (DTI) 33% LESS SPEND ON R&D (DTI) 32% LESS GRADUATES IN WORKFORCE (DTI) HISTORY OF HEAVY INDUSTRY OVER RELIANCE ON INWARD INVESTMANT POLITICAL FOCUS ON JOBS NOT INNOVATION OR VALUE

Type of Company

Age of Company

Technology

Typical Company Profile Based in Aberdeen, Edinburgh-Glasgow belt or London area Less than 3 years old Independent, not a member of a trade federation High proportion of university graduates in team 15% chance of a university spin-off Probable SMART award

Rejections (Commercial)

Guidelines for Success Stick to the knitting Common philosophy, goals & quality standards Avoid information overload Build your team Cash flow Anticipate problems Keep investors & advisors informed Watch your costs Do not anticipate sales Develop a network Look for opportunities but discuss with investors.

VC Investment – Scotland £ millions: Jan 2000-April 2002

Ready to use Mature Technology Technology Maturity Idea Research Development 30% 70%

Business Needs Ranking (Subsurface)

Business Needs Ranking (Wells)

Business Needs Ranking (Facilities)

Nova Technology Fund Barry Hood Nova Technology Fund Exploration House Aberdeen Offshore Technology Park ABERDEEN AB23 8GX Tel: Fax: