1. Gaynor Dykes Grant Thornton

2. The funding landscape

3. Funding clinic Clear route?
In an ideal world a company comes on to bottom of the escalator with a proof of concept or commercialisation fund ( or possibly a grant); go on to the business angel network and also access a matched equity fund; and finish on a debt fund once they knew they could repay the debt. So quite straight forward and technically pain free experience…

4. The reality… Funding clinic The reality
Well let's just say, this is more of a representation of accompany journey when raising growth finance.
Multiple routes – angels, funds, crowd funding, venture capital; loans, invoice finance, asset finance
Not knowing the best route -
Sometimes finding themselves where they should not be

5. Funding clinic Funding landscape INVESTIGATION COMMERCIALISATION
IN THE MARKET
CONCEPT
FEASIBILITY
PLANNING
MARKET ENTRY
GROWTH
OWN CASH, FRIENDS AND FAMILY
GRANTS
EQUITY
ALTERNATIVE FINANCE (INCLUDING CROWD-FUNDING)
Here is a snap shot of sources of finance given where your company is within the company life cycle – it is a representation only as there are no hard and fast rules, however, using this as a guide can already start to focus a company's attention on raising a form of finance that is suitable for the business and can lead to time saving…classic example here are start-ups that I have seen in the last year looking at raising debt to get their product or service off the ground – given the risk appetite of banks in today's market this is a no – even start-up loans which could be here look at the viability of repayment and have tightened lending criteria in the past year.
DEBT
REVENUES
PRE-REVENUE PHASE
General representation only – industry sectors have differing characteristics

6. - Influx of start-ups / entrepreneurial spirit
Funding clinic
Market observations – general
Cultural changes
- Influx of start-ups / entrepreneurial spirit
- Increase in funding options and providers
- Knowledge gap more prevalent than funding gap
More options, same fundamentals
- More providers have entered the market, but companies still struggle to raise finance
- Importance of tax incentives to early stage investors

7. - VCs have moved away from the early stage market
Funding clinic
Reliance on angel finance at early stage equity
- VCs have moved away from the early stage market
- Emerging R&D / innovation funding gap
- Reduction in grant availability
- Recent inflows of cash, but fund managers struggle to find quality deals
Market observations
Significant innovation in response to the financial crisis
- Alternative finance products and providers emerged
- Excluding real estate loans, peer-to-peer lending recorded £881 million for the year This was the equivalent of 3.9% of new loans lent to SMEs
Banks still lending to the right businesses
UK is the world leader in equity crowd funding
- More than just the money; a powerful way to grow your brand and is now a proactive choice for many

8. Skills gap in management team Non credible financial projections
Funding clinic
Why do Funders reject proposals?
Skills gap in management team
Non credible financial projections
No track record or proof of concept
A solution without a problem
Lack of financial commitment from directors/owners
Too complex
Lack of market awareness and/or competition
No clear exit or repayment route
Inadequate financial return for an investor
Lack of security for a lender

9. And Finally… The P’s
PREPARATION
PRESENTATION
PERSISTANCE !

10. Gaynor.a.dykes@uk.gt.com 07721 606966