ihive prospectus december 2014

Innovation Hive (iHive) is the #1 Science and HealthTech Startup Support Programme We advance Health Tech Startups market entry through our FREE Accelerator

with FREE Mentor support throughout and introductions to Investors. Startups Apply Now

1 Executive Summary 1

2 iHive Vision 2

3 What We Do 5

4 About Us 8

5 Startups Opportunity 13

6 Partner Opportunity 15

7 Investor Opportunity 17

8 Next Steps 20

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1.1 FOREWORD

This document is a prospectus for Innovation Hive (or iHive for short). iHive delivers Accelerator Programmes to UK startup Science and HealthTech (Health and Technology) companies seeking to grow their business and secure investment.

The document provides information to allow startups, investors and business partners to decide if they wish to participate in our venture. It provides a description of what we do, how we do it and our values. It also explains the outcomes each group can expect from participation and how to get involved.

iHive identifies appropriate Science and HealthTech startup entrepreneurs seeking up to £150,000 investment and rapidly provides those entrepreneurs with skills to enable them to present their business effectively to investors and grow sustainably. We run an Accelerator involving a “cohort” of up to 25 startup HealthTech companies and for up to four cohorts a year. A cohort remains together for around four months, from formation to pitch day.

Each cohort undergoes an intensive business growth programme. Our Accelerator includes mentoring, coaching, business skills and tailored business development support. We provide co-working space during the period to allow startups to work both separately and collaboratively. We offer yearlong Alumni support to each cohort, supporting business development.

Following each Accelerator, the members of the cohort attend a managed iHive Symposium designed to put investors and startups together in a meaningful way. Each cohort will typically have access to a ring-fenced investment pool of £3m. The iHive Symposium provides opportunities for startups to pitch to the investors who have in part, funded their Accelerator. Moving forward, investors and startups reach their own agreements on funding and business development.

Uniquely, the iHive Accelerator is free to startups. We do not seek equity in exchange for startup participation. Investors, business partners and public funding underwrite the resources required to run each programme. The role of iHive is to identify and sift appropriate startups for investors, run Accelerators and bring startups and investors together in a forum that facilitates investment decisions.

Worth noting, investment costs qualify for the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS). And a variety of options are available to investors to exclusively fund a cohort or to join with others.

To find out further information email Nicola Crossland on [email protected] or phone her on 07721 650265

More information is provided at our website www.ihive.co.uk.

THIS DOCUMENT

WHAT WE DO

Entrepreneurs are rushing to develop products that make medical care more efficient and help consumers improve their health. For many, inventing a product is easy compared with the challenge of selling it or developing a scalable business model.

That’s where we come in. Our business vision:

Brings startups and investors together in a way that meets their respective needs;

Provides advice and practical support on developing those businesses;

Provides organisational, clinical and financial quality assurance to innovations and inventions;

Provides advice on route to market and opportunities to pilot new ideas in clinical environments;

Provides business and sector-specific coaches and mentors; and

Provides academic material to support the on-going development of startups. We established Innovation Hive as a not-for-profit organisation that is unique in the startup support business. iHive is not funded by taking equity from startups, this enables us to be entirely focused on supporting UK Science and HealthTech startups seeking to open up global opportunities (the US & Europe in particular) for those startups and our investors.

2 OUR VISION

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Theme:

Patients Care Worldwide

Health Tech startups Apply

Online

Panel Members

Shortlist 50 Health Tech

startups

Panel Members Will

Shortlist 25 Health Tech

startups and 5 social

enterprise12 Week Intensive AcceleratorProgramme for 25 Health Tech startups

- Business Plan- Pitching- Finance - Marketing- Legal- HIVE Preparation

25 Mentors Support startups

HIVEHealth startups pitch

to Investors

AlumniSuccessful Health Tech startups join the alumni

1.3 D

ELIVERING

THE VISIO

NiH

ive was conceived to fulfil the vision set out

above. It is a not-for-profit business to reflect the com

mitm

ent to objectives relating to the social and developm

ental aspects of wealth

creation.

iHive off

ers a simple 4-part solution:

1 iHive Ecosystem

: The growth of a netw

ork enabling entrepreneurs to learn from

other health entrepreneurs and m

eet investors.

2 iHive Accelerator Program

me:

development and evolution of the a m

entored business program

me delivered by academ

ics and business people w

ith clinicians in support.

3 iHive sym

posium: An orchestrated event

where the netw

ork of startups, investors, funders and key opinion leaders m

eet in order to take their businesses to the next level.

4 iHive Alum

ni: A natural progression within

the iHive H

ealth EcoSystem, w

here all players can continue to learn from

each other, seek advice and share inform

ation for the accelerated greater good.

The iHive Accelerator Program

me is a

cohort-based, modular, m

entor driven program

me designed to m

eet the needs of H

ealth Tech startups. Delivered by academ

ics, business people and investors this 8-part program

me over 8-12 w

eeks enables entrepreneurs to access first rate education across academ

ic and business disciplines. But it also enables them

to meet like-m

inded entrepreneurs in the sam

e sector to share best practice, stories of success and m

isfortune and progress. These skills should enable them

to drive their business, make

decisions and work w

ith their teams to best

prepare for applying investment to execute

growth.

Our approach is to:

Identify 150 H

ealth Techshortlist 90 via three cohorts of 30 per annum

capable of developing 90 successful H

ealth Tech com

panies; Rapidly provide those 90 entrepreneurs w

ith skills that w

ill allow them

to present their business effectively to investorsa m

anaged investment event; and

Provide the 90 startups w

ith business and netw

orking support for a year to maxim

ise their potential success.

iHiveCrowd – access to crowd funding.

iHive Academy, accelerate your

academic quali�cations.

The iHive Journey

www.ihive.co.uk

25

25

25

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THE HEALTH ENVIRONMENT

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1. Source: The World Bank, Health Expenditure 2010-2014, total (% of GDP): Total health expenditure being the sum of public and private health expenditure.

Fifty years ago, the UK National Health Service (NHS) consumed some 3% of gross domestic product (GDP). The latest World Bank figures indicate UK public spending on the NHS is more than 9% of GDP whilst the US tops the world charts at an astounding 18% of GDP.

Health spending is rising worldwide. This means that whilst there are budgetary pressures there are also increasing business opportunities. Historically, the key drivers of health and long-term care spending included an increase in the size of the population, growth in national wealth, increases in the costs of providing care, and developments in medical technology. The ageing of the population and lifestyle issues are also other key factors.

Reflecting projected cost pressures, in late 2014, the NHS published its “Five Year Forward View” mapping out a future health vision for UK health. The plan sets out the way the health services will change over the next five years to close the widening gaps in the health of the population, quality of care and the funding of services.

The plan identifies health issues that are common across the world. It describes various models of care that could be provided in the future and seeks to encourage all those involved in the delivery of health services to realise the potential benefits in areas such as “disease prevention; new, flexible models of service delivery tailored to local populations and needs; integration between services; and consistent leadership across the health and care system”.

The Five Year Forward View is intended to change the focus of UK health services. It identifies, amongst other things, a need for integration between hospital and primary care providers, an increased need for innovation, new products and better service all designed to meet an annual funding gap of £30 billion by 2020/21. Globally, this adds up to a significant market opportunity for those able to offer innovative solutions.

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FEATURES OF OUR BUSINESS

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Our funding is derived from investors, business partners and public sources that, in combination, provide the resources required to run each Accelerator. The benefit of this business model is three-fold:

We offer fledgling startups support regardless of their attitude to seeking investment; We attract mentors that add the right value (rather than mentors with a vested interest); and Unlike other Accelerators, we leave your startup whole. So rather than releasing equity to fund you way through iHive Accelerator, you can release your equity to investors for your launch, additional mentored support and/or sustainable growth.

We deliver iHive’s Accelerator in the form of “cohorts” a term we use throughout this document. By “cohort” we mean up to 25 HealthTech startup businesses undertaking a shared three-month Accelerator supported by mentoring and coaching. The majority of organisations forming each cohort will be seeking investment and are prepared to give up some of equity in order to secure that investment. That investment will be for future growth and agreement will be made directly with investors. In each cohort, we include up to five organisations that simply may not want immediate investment or may want invest-ment in ways other than via equity, such as social enterprises.

We design each cohort so startups typically have access to ring-fenced investment pool of £3m. As noted earlier, this is investment for startup growth not to finance the Accelerator. Anticipated average investment is £150,000 per startup. For investors, there are flexible packages available ranging from exclusive funding of a cohort to joint funding with other investors. For example, five investors may jointly fund a cohort with each providing £600,000 for investment purposes. Each of the five would also pay their share of the Accelerator running costs. Participation as an investor comes with benefits too and in several forms:

Association with a not-for-profit Accelerator designed to enable companies to gain traction The increased employment this often brings, The benefits to the ecomony, healthcare and corporate social responsibility.

We charge a fee to recover the costs of each Accelerator and all investment into startups qualifies for the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS).

The iHive Symposium at the end of each Accelerator provides the opportunity for startups to pitch to Investors who part-funded the iHive Programme. Investors and startups reach their own agreements on funding and further business development.

Our role is to identify and sift appropriate startups for investors, and partners who fund each programme, to run the Accelerator and to bring startups and investors together in a forum that allows investment decisions to be made solely by investors and startups themselves.

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3 OUR DELIVERABLES

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iHive is a not-for-profit business, to reflect the commitment to our objectives of social development and equitable wealth creation. We recognise not all startups will want immediate investment or may want investment in ways other than equity. However, our Accelerator shares the same developmental pathway as those that do seek investment.

First, we Source, Sift and SelectWe find and sift UK Science and HealthTech startups using criteria defined by partners and investors. This is significant as supporting sustainable companies makes for the best results. We adopt rigorous selection processes that mean our investors can be confident only the best will make it through. Targets for each cohort are agreed with investors and partners ranging from a focus on businesses that address a wide-range of health issues, specific disease prevalence or emerging sectors. We attract startups largely through inbound campaigns featuring social media, content marketing, events and referral marketing. We also have links with health bodies and academia, both a healthy source of startups. Applicant recruitment is targeted principally at healthcare entrepreneurs, startup businesses operated by clinicians, clinical researchers and social enterprises.

Our typical targets are:

Entrepreneurs and organisations with ideas for delivering disruptive science, clinical and health solutions that may be combined with technology and/or device based medical-technical ideas; Businesses that have been established for no more than 2 years; Organisations with fewer than five principals; and With annual turnover typically not exceeding £250,000.

Successful applicants will demonstrate the potential and desire to create a healthcare market-improving product, commit to completing the 3-month Accelerator and attending the iHive Symposium to network and/or seek investment.

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Then we Deliver AcceleratorsEach cohort will have its own outcomes unique to that cohort, but within iHive’s overall approach. All cohort members will be equipped with the skills and knowledge required to pitch effectively to investors. Key features of the programme are:

Shared learning and maximised networking opportunities, each cohort will undertake a highly focused 3-month programme to foster the skills and knowledge required to build and manage a sustainable business and to "sell" that business to investors; A multi-faceted business and personal development programme applying online, personal, group, one-to-one, master-class activities. There will be a heavy emphasis on mentoring, coaching and delivery of business development; and

Investor and partner participation throughout the programme focusing on business growth, routes to markets, opportunities to trial and test concepts, ensuring startup ideas are “investor-ready”. Content will be a balance between immersion in learning and providing opportunities to test out ideas with mentors bringing experience of science, clinical, business and technical networks that will be valuable to participants.

Finally, we hold an iHive Investor Symposium A managed day-long event where each startup will meet the investors who funded the programme, pitch for their slice of the £3m available to each cohort and meet key health industry opinion leaders that could assist them take their business to the next level. Key features of this day are:

Each startup will be allocated “pitch space” at the iHive Symposium. Expert support will be provided on the production of appropriate material, AV, slide stack, pitch management etc. Potential investors will attend the Symposium having received advanced guidance on each cohort member’s present and having, where appropriate, provided mentor support during the 3-month programme;

The day’s programme and interactions will be tightly choreographed to maximise time utilisation of investors and allow startups to demonstrate the skills and knowledge learned during the cohort programme, never more needed as each startup pitches to investors; and

As part of the Symposium, iHive will organise participation of iHive Partners drawn from the health sector although not in a way that will distract the core function of startup/investor interfacing. Their participation will provide supporting external interest to startups and investors and Partners will typically include public and private sector health bodies and networks, government and research bodies and health-related academic institutions.

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WH

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Ultimately, we provide the iHive Alumni A year of support within a network that enables entrepreneurs to learn from other, meet investors and interact with existing startup ecosystems and businesses. The iHive Alumni also provides a pathway to acquire accelerated qualifications, through the iHive Academy, in a learning environment designed to encourage intensive and productive exchange of knowledge. Key features are: Following the iHive Symposium, all cohort members completing the programme and the iHive Symposium will join our network that enables entrepreneurs to learn from each other, meet investors and interact with the existing startup ecosystems and businesses. Each cohort will add to an interconnected network that produces a multitude of productive relationships and connections within the cohort and beyond; and Options for startups to participate in further facilitated peer learning which is used throughout the programme and creates a strong basis of trust between members.

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4 OUR COMPANY STRUCTURE AND BOARD

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iHive is a not-for-profit organisation CIC (Community Interest Company) that receives and administers programme funding. The extent and scope of programmes depend on the funding secured. Our Board comprises individuals with knowledge, experience and understanding of:

Managing investment processes and growing successful businesses; Managing improvement programmes that deliver to required outcomes; Health and clinical environments including commissioning, procurement and service delivery; Scrutiny of business startup plans and supporting growth; Delivery of business leadership and technical skills training including involvement of a leading UK Business School; and Delivering public services with private sector context; An understanding of and the ability to support startups looking to access the USA (the biggest healthcare market) and Europe.

Our Board provides oversight of the way the programme funding is spent and for assures governance, outcomes and quality.

We have an Advisory Panel comprising sector specific academics, technologists and medical advisors together with an Operating Board responsible for finance and operational issues.

We operate a separate Limited Company that allows investor funding to be executed in a tax efficient manner. All Board and Advisory Panel members are UK-resident and all companies are registered in England.

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BOARD MEMBERS

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USMike Boseley

– Chair Extensive experience in the management of market-leading health, communication and IT businesses including corporate financial reporting with City Institutions and advice to investors in startups and acquisitions. Mike was CEO of an AIM-listed healthcare and life science company and now advises US health and technology companies seeking presence in Europe.

Nicola Crossland– CommunicationsA 25 years communications professional for health, pharmacy and information technology companies. Selected by Goldman Sachs in 2012 to join the 10K Small Business Programme and part of international Goldman Sachs’ Alumni mentored by Saïd Business School and Aston Business School.

Dr.Christine Fiddler– Startup AcquisitionA business development specialist with significant experience of supporting and evaluating startups, SME’s and community regeneration initiatives. Christine was a Cabinet Office advisor on SME issues and has worked on multi £m funding projects for Government Office, Sport England, Big Lottery, Coalfields Regeneration Trust and New Deal.

Mike Gill– OperationsAn experienced project manger with an extensive track record of delivering change programmes across the UK public and private sector. Subject matter expertise include NHS, police services, local and central government and projects have covered performance improvement, procurement and transformational change.

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BOARD OF ADVISORS

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USProfessor Mark Hart

– Academic Advisory Chair Professor at Aston Business School and Deputy Director of UK National Enterprise Research Centre focusing on small business growth. Mark has worked and published extensively in the areas of entrepreneurship, enterprise and small business development and policy and manages the Global Entrepreneurship Monitor (GEM) project in the UK, advising UK Government Departments on enterprise issues. His work on High-Growth Firms (HGFs) has been influential in shaping policy discussions and actions in the UK and Mark is currently working with NESTA and the OECD on a range of follow-up projects.

Nick Rogers– Finance and Investment Advisory ChairAn investment banker (head of corporate finance with Evolution Securities - formerly Beeson Gregory), experienced non-executive director and chairman of Oxford BioMedica plc a leading gene based biopharmaceutical company, Nick has advised on over 100 acquisitions or disposals, some 40 IPOs and in excess of 20 takeovers.

Dr Hasz Sonigra– Clinical Advisory ChairAn experienced GP with extensive commercial experience working with the Department of Health and NHS England. Hasz advises on clinic procurements and performance improvement across the health sector.

David Adams– CSR, Corporate Finance and Funding AdvisorA highly commercial corporate lawyer, David is currently a partner in a corporate finance and advisory firm. His expertise are in venture capital, corporate law, corporate finance, mergers and acquisitions, IPO, corporate governance and funding. David’s particular interest is in corporate social responsibility.

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OPERATING BOARD

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Ken MacNeill – Accelerator Delivery and Finance A finance professional, Ken delivers international programmes on financial management and governance to companies and UK and international civil servants. Ken’s forte is improving operational efficiency and effectiveness in firms and UK public sector.

Mo Hussain– Technology and MediaMo is both IT and health focused having developed and implemented media and applications such as NHS patient engagement tools that gather and understand patient voice and opinion and data exploitation tools for the NHS. Mo’s understanding of healthcare and technology equips him perfectly to support HealthTech startups.

Rachel Edwards– Cohort Leadership Extensive experience of delivering change and commercialisation programmes across UK public sector including significant change and procurement projects across the NHS and police services. Rachel is practiced in the design and deliver of complex projects and systems and has a wealth of contacts in the NHS.

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OUR MENTORS

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Our mentors are drawn from a range of disciplines and backgrounds including science, clinicians, financial and operational experts, technologists, academics, technicians, entrepreneurs, and investors all with track records in personal and sustainable business development.

We maintain a pool of some 50 mentors who we use regularly to support cohorts. Each startup will have a lead mentor who will be able to draw on the experiences of others within our pool to provide further specific expertise.

We also maintain an additional pool of 20-30 subject matter experts we draw upon as required. Their experiences and skills are of a specific or particular nature such as health, technical or commercial disciplines.

We have a number of business Partners who support the delivery of iHive Programme in a variety of ways. Partners are not investors but provide support to in the Accelerator. Some contribute mentors to cohorts, provide options and test-beds for routes to market or offer opportunities for startups to network with existing services that will help develop their business. Some Partners provide direct cohort funding and support iHive in the delivery of Accelerators.

The latest pool of mentors and our Partners are all detailed on our website www.ihive.co.uk/mentors; www.ihive.co.uk/partners

OUR PARTNERS

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STARTUP OPPORTUNITY

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This section provides an overview of the opportunity presented by iHive to Science and HealthTech Startups.

By applying to be part of the iHive Programme and through participation in the three-month mentor driven iHive Accelerator, you will:

Develop an effective business model;

Develop your business skills and knowledge;

Identify routes to market and opportunities for testing and piloting your ideas in an appropriate health setting;

Offer a stronger product and clearer value proposition to investors;

Have an opportunity to directly pitch for investment to the investors who part-funded your cohort, with each cohort typically having a ring-fenced investment pool of £3m and anticipated average investment of £150,000 per startup; and

Participate as part of the iHive Alumni for 12 months after your cohort’s Symposium

Science and HealthTech startup is a broad term covering great many ideas and new companies. Your idea may have not yet have been fully developed. Or you may have acquired some traction but without major clients. You may be working on something new, looking to deliver disruptive technology and/or device based science/health/clinical/ medical-technical products.

We are flexible on our definition and our criteria but generally, we would expect you to be:

A business founder, most probably with good technical skills and exercising direct control over your business;

The owner of your company, which will likely be no more than 2 years old;

Seeking investment of up to £150,000 in order to provide a basis for future business growth; and

An organisation likely to have less than five principals and turnover not exceeding £250,000.

If you don’t exactly fall into these descriptions, contact us as we are seeking innovative ideas and talented entrepreneurs. We are not constricted by our own rules if it means we miss opportunities.

Successful applicants must be prepared to demonstrate the potential and desire to create a health market-improving product. We would generally expect startups to want investment and, in most circumstances, be prepared to give up some of your equity in order to support that investment. However, we welcome applications from organisations that may not want immediate investment or may want investment in ways other than equity.

In order to ensure your commitment for participation on the iHive Accelerator Programme, you will be required agree to the payment of a refundable deposit of £1,000. This will be held in a client account and is returnable in full upon the completion of the iHive Accelerator Programme. There are no costs to startups for participation. Investors meet those costs.

ORGANISATIONAL ELIGIBILITY

5. SO YOU'RE A STARTUP?

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WHAT STARTUPS WILL RECEIVE

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1 Mentor Support - mentor support throughout your own iHive Accelerator. Your mentor will liaise with you directly enabling you to hone your idea, test your idea and draft your Business Plan. iHive mentors include healthcare executives, entrepreneurs, clinicians and investors all committed to startup success. iHive works to align your needs with a lead mentor who can support you deliver your outcomes. That matching will be a product of what you want to achieve, where you are on your journey and the investment you may need.

2 A Modular Accelerator - held over 3-month delivered by academics, healthcare professionals, entrepreneurs, business organisations and inspirational individuals able to provide genuine support startup, enabling you to best prepare for investment In addition to the programme, access to webinars, the iHive intranet and topic specific workshops.

3 Free Co-working Space - available to individuals attending each cohort throughout the day of each event. Additional space will be available on a first-come-first-serve basis, throughout the programme.

4 Build Your Network - the opportunity to mix with more up to 25 other like-minded entrepreneurs in the same sector and share ideas.

5 Commercialise Your Idea - a better understanding of the commercialisation of your idea and the development of your own business traction and/or growth plan.

6 Pitch to Investors at iHive Symposium - at which you will meet investors and maximise your chances of securing investment, network with health sector opinion leaders, SMEs and other startups. (Free POD stand with graphics, monitor, electrics and furniture, 3 x passes for you and colleagues affording you access to this one day event including plenary and the exhibition throughout.)

7 iHive Ecosystem, Alumni and iHive Academy - be part of the iHive Ecosystem and continue to network with entrepreneurs, academics, businesses, associations and investors in the iHive Alumni for 12 months following the iHive Symposium including the opportunity to accelerate your academic qualifications in the iHive Academy.

The initial application is online. You team, your company and you idea will be assessed but typically, only one participant will be drawn from each startup (two in exceptional cases) and one place awarded on the programme per organisation.

Desire for investment is not a requisite of selection in every instance but the desire to grow with the iHive programme and attend each module within each programme is important. Typical information sought in the application process includes entrepreneur ambition for the business, the potential value/benefit to the business of the iHive programme, the nature and opportunity for the product and service and the entrepreneur’s view of risk and desire to secure investment.

An Expert Panel of academics, sector experts and investors will undertake post assessment of all online applications. That Expert Panel aims to identify appropriate startups for each iHive Accelerator cohort. Each cohort opportunity will be advertised in the iHive website and extensively through social media.

How to sign upTo find out further information Email Nicola Crossland on [email protected], or phone her on +44(0)7721 650 265.

THE APPLICATION PROCESS

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6 PARTNER OPPORTUNITY

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Our Partners are drawn from a wide range of sectors and are individuals, private sector organisations, local and national governmental bodies, academic bodies such as Universities and Foundations, NHS bodies such as NHS England, Commissioners including CCGs, Primary and Secondary care providers, health, social and third sector organisations, communications companies, business development bodies and charities.

Partners provide funding towards the running costs of iHive and direct cohort costs. Partners also play a vital role by providing mentors, advice and business development support to startups. Partners can provide specific technical input, advice on collaborative working, routes to market and assuring startup ideas by offering pilots.

“Partners” are different from “Investors” in our business model. If you seek to make an equity investment in one of the startups, you will need to go down the Investor route. There may be opportunity for Partners to work collaboratively with one or more of our Investors but this will be agreed between you.

We have identified the following key reasons Partners will want to consider iHive.

1 Publicity arising from participation in the delivery of iHive outcomes linking to Partner business objectives;

2 Achievement of corporate and social responsibility outcomes for the Partner organisation;

3 Shared participation in successful grant funding, sector-specific funding or contribution to startups complimentary to the aims and objectives of the Partner organisation;

4 Opportunity to channel HealthTech startups towards the iHive Programme and the opportunity to support growing business through mentoring, coaching, sector specific support and provision of infrastructure to support growth;

5 Potential of working with social enterprise businesses to meet organisational aims and/or corporate social responsible objectives;

6 Opportunity for collaboration with Investors and Startups during Accelerator which in turn provides business opportunities;

7 Opportunity to influence selection criteria for each cohort ensuring only sustainable ideas and businesses are accepted onto the iHive Accelerator with the opportunity to be involved in mentoring and supporting startups during the Programme itself;

8 Opportunity to share costs with other Partners such that organisational targets can be met through part-funding of iHive arrangements and appropriate use of scarce funding via a not-for-profit organisation that is focused on social and business development; and

9 Flexibility in participation and costs and investments qualify for EIS and SEIS.

WHY IHIVE

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WHAT PARTNERS WILL RECEIVE

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We provide flexible participation options that suit all budgets. We describe participation levels as being Platinum, Gold, Silver and offer a bespoke level in Bronze, designed for partners seeking to achieve certain, as yet unspecified outcomes. The matrix below indicates different levels of investment, participation and benefit.

Partners can chose a preferred level of participation and support. For example, Partners can chose to support the entire iHive operation for up to three years, to support a number of cohorts or just one. We are happy to discuss particular Partner needs to suit specific requirements. In each case, iHive provide appropriate return on Partner investment much of which is measured (we use automated marketing tools) and detailed in your final summarised report.


iHive Partner Packages Platinum Gold Silver

Logo

Logo on website Home Page

50 word website listing with linked logo Logo features on literature Noted as a Sponsor on the LinkedIn Co Page

Noted as a sponsor on Twitter

Receipt of iHive Buttons and Banners for signatures, website, digital media

Logo features in Email marketing Logo appears in iHive Email signatures

Mentor

Ability to put forward a mentor who will work closely with the

Start-ups, liaising

with them directly, supporting them in honing their Business Plan and final pitch. Added to Mentors CV. CSR. Associated with iHive. A Partner can put forward Mentors, 3, 2 or 1 dependent on their Partnership Package.

3 2 1

Publicity

Noted as a sponsor in press releases Publicity around the launch of the initiative and the iHive Ecosystem Publicity around the Accelerator Programme Including a documentary (possibly taken-up by a TV channel) posted to You Tube throughout as a story. In discussions.

Symposium

1, 2 or 3 Free delegate places at iHive symposium. Opp to meet KOLs, all startups and SME's looking to secure funding dependent upon your Partnership Package 3 2 1

Logo on banners at the event

Logo features on Holding Slide of all Presentations POD stand with graphics, screen and furniture at iHive Symposium Key Note speaker slot Logo appears on the set

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7 THE INVESTOR

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As stated in the executive summary, the latest World Bank figures indicate UK public spending on the NHS is more than 9% of GDP whilst current US spending sits at 18% of GDP. Health spending is rising worldwide. National budgetary risks are leading to increasing business opportunities as globally, many countries are seeking fast to market, cost effective and scalable solutions.

As the NHS “Five Year Forward View” highlights, there is a need for different models of care in future. There is a sustained push to develop new delivery methodologies that will need to be underpinned by better integration and smarter application of scare resources. The NHS funding gap alone is projected to be £30 billion per annum by 2020/21. Globally, this adds up to a significant market opportunity for those able to identify early opportunities.

Research undertaken by the Economics and Strategy Group, Aston Business School on behalf of the UK Government concludes current practices used to bring startups and investors together in the UK lag behind other countries, particularly the US. That research also concludes the way investors and startups come together is a key determinant of future potential success for both.

We have taken Aston Business School research and developed an approach, we believe, better meets the needs of investors and HealthTech startups. Our approach addresses acknowledged weaknesses in existing sector Accelerators and addresses respective motivational factors of both parties. Taken that in combination with a simple and tax efficient means of investing, we believe iHive offers an unrivalled opportunity to invest in Science and HealthTech startups.

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WHY iHIVE

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We design each cohort so startups will typically have access to ring-fenced investment pool of £3m. We anticipate average investment to be £150,000 per startup but the extent of your investment in any one startup will be a matter for you and the startup.

We offer flexible packages in terms of cohort funding so that you can exclusively fund a cohort if that is what you want or you can join with other investors to jointly fund a cohort. A single investor can provide the £3m investment pool and meet Accelerator running costs. Alternatively, in way of example, five investors may come together to jointly fund a cohort with each providing £600,000 for investment purposes and each of the five meet their share of Accelerator running costs.

We have identified the following key reasons Investors may want to consider iHive.

1 The iHive business model ensures investment arrangements are agreed with startups at the pre-Accelerator stage in order that investors secure a better investment return;

2 All startup equity is available to investors with no loss of value associated with other Accelerators and introduction agencies;

3 A simple service bringing cohorts of accelerated and investor-ready startups to a single day event within four months;

4 Allows investors to define and shape the target startups for each cohort meaning investment can be tailored effectively with flexibility offered in the funding of cohorts including single/multi-investor and public/private options;

5 Investor input during Accelerator provides early flagging of key investment targets;

6 Cost effective delivery with all costs and investments qualify for EIS and SEIS; and

7 iHive’s approach to social enterprises contributes to corporate social responsible aims including options for investors to mentor startups throughout the Accelerator;

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WHAT INVESTORS WILL RECEIVE

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The overall outcome of investing in iHive is the delivery of cohorts of investor-ready Science and HealthTech startups to investors using a one-day event within 5 months. That Symposium will be tightly managed to allow effective interaction between startups and investors. The format will be tailored to investor’ needs allowing the targeting of startups.Investors:

1 Can control and shape the formation of each cohort reflecting the extent of funding provided for that cohort - investors who contribute 100% to costs have 100% control.

2 Provide coaches, mentors, master classes and support to the Accelerator allowing early flagging of key investment targets.

3 Will have exposure to subject matter experts and mentors including clinicians and healthcare professionals who understand routes to market and opportunities for pilots, partnering and market opportunities.

4 Can give on-going business development support for startups invested with opportunity for investors to participate and contribute to the Ecosystem in order to maximise potential.

5 Can take advantage of scalable and tax efficient packaging tailored to individual investment requirements with options for exclusive fund or collaborative funding.

6 Are offered flexibility in participation and costs and investments that qualify for EIS and SEIS.

7 Will partake in and be associated with a not-for-profit programme that sources public as well as private sector funding with opportunities for meeting Corporate Social Responsibility targets.


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To find out further information, and to discuss taking part in iHive, please contact us on the following:

Nicola CrosslandCommunicationsm: +44 (0) 77 2165 0265p: +44 (0) 1564 840005e: [email protected]: www.ihive.co.uk

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https://www.linkedin.com/company/5348792?trk=tyah&trkInfo=tarId%3A1417679282560%2Ctas%3Ainnovation%20hive%2Cidx%3A1-1-1

https://www.facebook.com/innovationhive?ref=ts&fref=ts

https://twitter.com/iHiveUK

Important Disclaimer

This Company Overview for Investors (CO) has been provided to the reader by iHive Limited (or the “Company”). This CO is confidential and is for distribution only to a limited number of companies or persons and its professional advisers selected by the Company for that purpose. This CO has been provided to you solely for your information and may not be reproduced or redistributed, in whole or in part to any other person.

iHive Limited is a company registered in the United Kingdom. Whilst the information in the CO has been prepared in good faith, neither the Company nor any of its representatives, officers, employees, advisers or agents shall have any liability whatsoever to any investor in relation to any errors, omissions or miss-statements (except statements made fraudulently), or for any representations and warranties (expressed or implied) in relation to any investments or otherwise. Nothing in this paragraph shall exclude liability for any representations or warranties made fraudulently.

The contents of this CO have not been approved by any authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”).

This CO is published solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or investment product.

This CO may not contain all material information concerning the Company and its prospects and the reader should not use it as the sole basis for making investment decisions and should independently evaluate any investment decisions and associated risks. No information set out or referred to in this CO shall form the basis of any contract. The reader is solely responsible for their investment decisions. In the preparation of this CO, whilst all reasonable care has been taken to ensure that the facts stated herein are accurate and that the forecasts opinions and expectations contained herein are fair and reasonable, Neither Tribune or its advisors nor any of its respective members, officers, employees or associates makes any representation or warranty, express or implied as to the accuracy or completeness of the information or opinions contained herein and shall not be in any way responsible or liable for the contents hereof and no reliance should be placed on the accuracy, fairness or completeness of the information contained in this document. No person accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Nothing in this paragraph shall exclude liability for any representations or warranties made fraudulently.

Any opinions, forecasts or estimates herein constitute a judgment as at the date of this CO. There can be no assurance that future results or events will be consistent with any such opinions, forecasts or estimates. Furthermore, the information contained in this CO is subject to updating, completion, revision, further verification and amendment. In providing this information, the Company undertakes no obligation to provide the recipient with access to any additional information or to update this information or to correct any inaccuracies therein which may become apparent and reserves the right, without prior notice, to alter the terms and or mechanics of any proposed placing or to terminate any negotiations with any recipient of the CO at any time.

This CO is exempt from the general restriction in section 21 of the FSMA on the communication of invitations or inducements to engage in investment activity on the grounds that it is being distributed in the United Kingdom only to persons of a kind described, in the FSMA 2000 (Financial Promotion) Order 2005, as Investment Professionals, Members and Creditors of Certain Bodies Corporate, High Net Worth Companies, Sophisticated Investors and Self Certified Sophisticated Investors. This CO is directed solely at persons who fall within such exemptions and must not be acted upon by persons who do not fall within such exemptions.

The distribution of this document in jurisdictions outside of the UK may be restricted by law and therefore persons into whose possession this document comes should inform themselves about and observe any such restrictions. Any such distribution could result in a violation of the law of such jurisdictions. Neither this CO nor any copy of it may, subject to certain exemptions, be taken or transmitted into the US, Canada, Singapore or Australia or distributed to these countries or to any national, citizen or resident thereof or any corporation, partnership or other entity created or organised under the laws thereof.

iHive

Trading offices: 1 East Poultry Ave, Clerkenwell, London EC1A 9PTRegistered offices: Second Floor, Windsor House, 40/41 Great Castle Street, London W1W 8LU, United Kingdom

ihive prospectus december 2014

Documents

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appropriate startups

business skills

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free accelerator

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