TCI Pathway - Access to finance for business owners

TCI Pathway - Access to finance for business owners

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  Access To FinanceFor Business Owners April 2016
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  Where is themoney? • It is a combination of the forms of funding: • Debt • Crowdfunding / Peer to Peer • Equity
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  Debt • Debt canbe accessed from many avenues including angels, venture capitalists, banks, national schemes. • Banks provide interest based but need extensive business plan checks to access • VCs can fund with interest based Debt and less or no equity • They can have more lenient repayment terms if the business plan shows succession • The above relies on a Business Plan to attract any lender – TCI Pathway can assist with Business Planning making it easier for you to access funding
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  Crowdfunding • Businesses usecrowdfunding to raise money from multiple sources typically through an online platform. • Most are incentive based but some can be equity based • No limits to how much can be raised but relies upon effective campaigning • Some examples Kickstarter www.kickstarter.com Indiegogo www.indiegogo.com Seedrs www.seedrs.com
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  Benefits • Validation -Crowdfunding validates your idea and gives you confidence, it proves that people like your idea and will pay or contribute to make it happen. • Funding - You can unlock other funding for charities and community groups this maybe grants, for businesses it could be Debt, investors or a pre-cursor to an equity crowdfunding campaign • Advocates - Crowdfunding is for life, not just for fundraising. The people who support you and your great idea become a part of your journey and make incredible ambassadors for your project in the future. • Marketing - When you create and launch your project you have to really think about how you are going to market your idea. So Crowdfunders learn vital skills when fundraising - they learn how to become superstar marketeers too! • Get valuable market research and feedback • Initial traction through pre-orders • Lots of PR and marketing • Create new partnerships • Potentially get new customers • Build brand through loyalty • Build investor confidence
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  Success Stories Target£600,000 £681,230raised Equityonoffer20.92% Investors543 Daysleft9 Securing backingfor a new product Pebble: E-Paper Watch for iPhone and Android $100k in 2 hours Hi Kickstarter, We're absolutely blown away by your support. We have received hundreds of messages, so it will take us a little while to respond to them. Thanks so much! Eric and the Pebble team Equity Renovagen has developed and patented a portable solar energy system up to 10x more powerful than existing solutions. The system can be delivered via air pallets or standard shipping containers and can power a 120 bed medical facility. This was offered via Crowdcube based on Share Capital and reached113% of its target John is now in the process of meeting is investors and taking is project forward with the funding he’s secured Investors were given a range of options from contributing a £1 for a mention on thieve site to investing hundreds of pounds for a watch that had not been developed let alone ready for market. This allowed Pebble to develop, test and arrange manufacturing and take it to market with pre-sales guaranteed. Customers investing up to 2 years before receiving the actual finished product – It was so successful that they have just release an updated watch (2016) using Crowd funding knowing it builds a market whilst gaining upfront investment.
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  Angels • Angels fundbusinesses in their earliest stage or what’s known as seed funding. • Some examples where angels can be found www.angelsden.com www.venturegiant.com
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  Equity • Venture equityis a far more common form of funding. • Typically involves a venture capitalist who invests in a company in return for some equity • Weighs heavy on the valuation of the company based on asking amount • Famous examples include BBC’s Dragons Den
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  Equity • Ownership/Participation =Potential Interference • High Growth and Exit Plans • Like IPR Based Business • High Risk – High Return Expectations • Expensive to Arrange • Modest Service Costs • Investment Agreement • Non-Executive Director (s) required • £5k to £millions – This may be difficult to access without a robust Business Plan TCI can help you sort out your Business Plan and search for those who may be interested in Providing Equity
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  Summary • If youwant to grow your business, then finance is available • Ask your bank – don’t assume they wont lend • Apply for grants • Consider alternative sources of debt and equity finance
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  To find ourmore or get some assistance in accessing a range of funding opportunities Visit TCI at http://tcipathway.co.uk/ Or Phone Safaraz on 0121 707 0550