regional business support and funding...• prototyping • process ... innovation masterclass with...

F I N A N C E I N 2 0 2 0

Regional Business Support and Funding

REGIONAL BUSINESS SUPPORT AND FUNDING:

• CIOS Skills Hub and Growth Hub

• BIG Productivity (grant)

• Community Led Local Development (grant)

• CIOSIF (loan and equity)

• Acceleration Through Innovation

• The AeroSpace Cornwall Programme

• Marine-i

• Access to Finance

• Cornwall Chamber

PKF Francis Clark, Nicola Cornish

REGIONAL BUSINESS SUPPORT AND FUNDING

The situation with regional business support over the past couple of

months has been interesting with:

• Increased attention on local authorities and growth hubs as centres for

information on business support and funding (and in the case of local

authorities a source of funding)

• The LEPs and business networks paying an important role in putting

forward the case for their constituent network (and for keeping business

owners connected/ in contact with peers)

• Arguably some regional funding initiatives becoming “crowded out” at least

in terms of media presence by the UK Government backed initiatives

This section contains material specific to Cornwall and Isles of Scilly but we are keen to replicate for other

areas where we have an office.

Cornwall and

Isles of Scilly

Growth & Skills Hub

HOW CAN GROWTH HUB HELP…

Your Business?We work with local companies, including

self employed people and not for profit

organisations, signposting them to the

right guidance and support

We will explore your opportunities and

challenges, then point you in the right

direction to help your business work

smarter and grow.

FREEbusiness

review

01209 708660

ciosgrowthhub.com

https://www.ciosgrowthhub.com/the-growth-skills-hub

HOW CAN SKILLS HUB HELP….

Your Team?Staff development has the power to

boost efficiency and make your people

shine.

We can help you nurture your talent and

make your business thrive.

We’ll uncover the skills your business

needs, now and in the future, and use

our expert knowledge to find the right,

cost effective learning and development

opportunities to bridge any skills

gaps.

“…digital marketing, leadership &

management, apprenticeships, HR,

administration, book keeping, customer

service, sales, information technology…”

FREE

skills

review

01209 708660

ciosskillshub.com

https://www.ciosgrowthhub.com/the-skills-hub

Free, independent and

impartial

business and skills support

that comes recommended

Information Classification: CONTROLLED

Business Investment for

Growth Productivity

Website: https://www.businessinvestmentforgrowth.co.uk

Twitter: @big_cornwall

Facebook: @BusinessInvestmentforGrowthProductivity

LinkedIn: BIG (Business Investment for Growth) Productivity


Aims

To provide support to at least 175 businesses;

To create at least 175 new jobs (40 of which level 4 or above);

To offer a tailored investment package to meet the needs of new and established Cornish businesses;

To provide a non-financial advisory support to businesses to access new markets, improve their processes and thus significantly improve their productivity;

To offer grants between £2,500 - £150,000 (up to 45% intervention rate)


Eligibility questions

Is the business based in Cornwall?

Is the business a small or medium size enterprise?

Is the business an Undertaking in Difficulty?

Does the business operate in an ERDF sector?

Does the business intend to increase their productivity and create at least one new job position?

Is the business trading or intend to trade more than 50% outside of Cornwall?

Is the project expenditure eligible and not classed as “business as usual”?

Have other sources of finance been considered?


Excluded sectors and activities

Fishery and aquaculture sectors

Primary production, processing and marketing of agricultural products

Coal, steel and shipbuilding sectors

The synthetic fibres sector

Generalised (school age) education

Banking and insurance companies

Retail businesses (generally deemed to provide ‘local’ services and supporting them risks displacing other small retailers)


Types of grants

Micro grants up to 10K

Small grants - between £10K and £25k

Medium grants - between £25K and £50k

Large grants - between £50k and £150k


Process

Website based solution with a dedicated client area

Expression of Interest – eligibility check, company and financial status check

Full Application – project description, procurement, financial, policies

Appraisal/Approval

Claim – grant payment

Reporting – outputs, progress

Community Led Local Development


What is CLLD?

ESF & ERDF funds

Targeted at economically under-performing areas (bottom 30% 2010 IMD)

Supports projects that:

Increase employment opportunities through skills development

Support business development

Total fund: £11.56m (ERDF and ESF)

Project delivery deadline: Sept 2022

Grants awarded through Local Action Groups:

4 Local Action Groups areas – each with a Local Development Strategy


CLLD Target Areas


Applicants and location of projects

Location of projects:

Support for individuals (ESF) – Individuals must live in target/Core areas (training provider can be located anywhere)

Business development (ERDF) – Target Areas

Applicants can be:

Businesses inc. sole traders

Social enterprises

Charities

Constituted community groups

Public sector


Types of projects and grant levels

Types of projects: Skills development and training (for Unemployed or

Inactive people)

Training to set up in business (for Employed or Unemployed people)

Equipment, E-Commerce, consultancy etc (for businesses)

Using natural and heritage assets for economic activity

Grant levels: ESF: max 80%

ERDF: max 72%; workspace max 45%Match: private or public (not EU)

No maximum amount of grant (VFM)


Examples of projects

Training kitchens: premises refurbishment & mentoring/training

Coaching & mentoring through sports & creative activities

Support for workspace development

Construction and hospitality training through larger employers

Supporting people with routes to self-employment


Any questions?

www.communityledcornwall.co.uk

[email protected]

01209 615067

Community Led Cornwall CornwallClld

Cornwall & Isles of Scilly

Investment Fund (CIOSIF)

Loan Funding

CIoS Investment Fund

Mission: to invest £40million into high growth Cornish

businesses in order to enable sustainable economic growth

Supporting ambitious and growing SMEs

Creating jobs across the CIoS region

Promoting new product development and innovation

Leveraging private investment (match funding)

Working with the wider finance community and partners

Loan Funding Available

Loans from £25k up to £1m

Loan term up to 5 years

Capital Repayment Holiday Available

Security: typically debenture & personal guarantee (partial)

Dedicated Fund Manager

Forward looking assessment

New flexibility around investment into the tourism, hospitality, and

leisure sectors, looking to assist business in these important sectors

within Cornwall & IOS that are seeking to grow

Use of Funds

Example of Debt Deals

IsoSpaces

Investment amount: £450,000

Sector: Off Site Modular Spaces

Use of funds: new staff, infrastructure, equipment and

marketing

Caterbook

Investment amount: £131,250 (2 tranches)

Sector: Property management software

Use of funds: testing & Marketing

Contact

Brent Treloar

[email protected]

Or

[email protected]

www.ciosif.co.uk

mailto:[email protected]


Raising Equity Finance:

What’s the reality?


Ralph Singleton

Head of Funds , Cornwall

[email protected]



Mission: to invest £40million into high growth Cornish

businesses in order to enable sustainable economic growth

Supporting ambitious and growing SMEs

Creating jobs across the CIoS region

Promoting new product development and innovation

Leveraging private investment (match funding)

Working with the wider finance community and partners

CIOSIF Equity Investments

Amount: £50,000 – £2million (excluding

matched private investment)

Co-finance required

Security: generally none

Arrangement fees, monitoring fees and legal

costs apply

Board observer, right to appoint a NED and

various consent rights

High growth potential SMEs

Credible business strategy with view of exit

Viable product/service; compelling market

opportunity

For activities that deliver substantial growth

impact including:

Sales & marketing activity

Hiring new staff

New product development

5 year exit strategy (longer for earlier invs?)

KEY FEATURES ELIGIBILITY

Why Equity and what we look for…

Early stage businesses where debt funding is not

suitable.

Great team – ideally with prior experience and

clear strategy to realise vision.

Scalable business model

In a sizeable market and/or niche “addressable”

market with early revenue promising but not yet

established.

Need for Growth Capital, typically used for

product development, key hires and international

expansion.

Obvious early identifiable exit route.

… and what is less interesting

A virtual business – that is unproven but looking for cash to get started.

Technology which is difficult to understand (Buffet) - and claims to have no

competition

Consultancy businesses that want to become product companies - can often

take longer than expected to deliver product and growth

Hobbyist solutions - often have limited commercial growth opportunities (narrow

markets)

Over optimistic forecasts (the J curve or hockey stick) - that lead to

underperformance during early phase of growth

Excessive valuations - making it difficult to raise equity in subsequent rounds

Pre revenue and excluded ERDF sectors – Most pre revenue investments fail

Co – Investors & Exit strategy

Co-Investors

Need independent matched investment

Can accept 20% of total raise from existing or connected parties

Can introduce like minded institutional investors

FSE Angel Network see all CIOSIF investments – free to join

Happy to work with other angel networks

Will work with Crowdfunders as cornerstone investor (but on our terms) or with corporate investors – must

have same investment criteria

Exit Strategy

Investors won’t come in until the way out is clear.

Want to buy an asset that someone else wants to buy

Good companies with good cash flow will be easier to exit either via buy back or trade sale

The best reason for an exit strategy is to plan how to optimise a good situation – peak of hope!

Clarifying growth trajectory and exit point is key.

Summary - 5 key Criteria for investment

1. Market – growing, desirable, right time & high barriers

to entry(IPR, exclusivity, niche)

2. Offering – compelling market proposition &

differentiated

3. Business model – viable & scalable

4. Co-finance – is all co-finance in place?

5. Team – risk/reward, capability & composition

Innovation Acceleration

Pre start-up support

Restricted offer. Only available to those with a robust innovative idea

Intensive support – 12hrs

• Innovation Diagnostic

• 1:1 Innovation Advice

• Specialist Consultancy – e.g. legal, prototyping

• Innovation Surgeries – e.g. Intellectual Property

• Academic resources and expertise

Advanced support - Deep intervention – up to 24hrs

• IKE Innovation Masterclasses

• Innovation Strategy, Organisational and Culture change

• Student internships to address specific Innovation SME challenges

Innovation Fund

Small grants - £1,000 up to £1,500 for small pieces of work

Legal, product testing. Up to 100% intervention

Large Grants - Match funded grants, typically £2,500 - £25,000

• Proof of market/wider feasibility issues

• Proof of concept

• Prototyping

• Process Improvement / next generation

• New Product / Service to firm

• IP / Patent costs

Innovation Culture and Outreach

• Cornwall Innovation Club (includes partnership with the Chamber)

• Pop-up Innovation Centres*

• Pop-up on the road*

• IKE Innovation modular workshops

• Business Collaborations/Networks

• Innovation Studio - online digital tools platform (The first digital innovation platform to be built in Cornwall

and the Isles of Scilly)

*subject to review with regards to Covid procedures

Innovation Masterclass

With the aim of developing company champions and innovation working groups, businesses will gain

an understanding of the key elements of innovation and the tools to implement successful

innovation projects. The masterclass will cover:

• Creating an innovative culture

• Creating Customer Value

• MVP and Design Thinking

• Collaboration and Partnerships for Innovation

• Developing an Innovation strategy.

Contact Information

Innovation Starts Here… if you are interested in meeting with a Business Innovation Advisor contact us today.

Telephone: 01209 705 166

Email: [email protected]

Address: Acceleration Through Innovation, Pool Innovation Centre, Trevenson Road, Redruth, Cornwall TR15 3PL

Register your interest at www.aticornwallinnovation.co.uk


http://www.aticornwallinnovation.co.uk/

Information Classification: PUBLIC

The AeroSpace Cornwall Programme

Funding & Support


We are AeroSpace Cornwall

We are a dedicated team of people that are passionate about promoting research,

development and innovation in

Cornwall.

We offer technical and commercial

support for businesses looking to

develop products, services and

technologies which could add

competitive advantage to the

aerospace and space sectors.

We are funded by the European Regional Development Fund

(ERDF) and Cornwall Council.

Who are we?


Our aims.

• Increase the performance and competitiveness of local enterprises, create highly skilled jobs and launch new products into the marketplace.

• Develop the ‘innovation ecosystem’ for the space and aerospace clusters by incentivising local businesses to collaborate with other businesses and research institutions to accelerate their innovation.

• Increase the value and capability of the local space and aerospace clusters and secure ongoing investment in them

AeroSpace Cornwall will:


How we can help.

We can help your business with the following:

• Understand the market opportunity– Grants for market research reports– Grants for market engagement which covers attendance at events, conferences or

meetings with industry experts– Fully funded experts to provide market intelligence related to the space, aerospace and

data sectors

• Developing the product– R&D project grants with capital purchases and salaries – typical funding is an average of

£50K for a £100K project, but can be as large as £150K

• Supplying the market– We can pay for experts to offer guidance in developing and commercialising products or

services. It includes knowledge transfer related to technology development, supply chain competitiveness, legal services (Intellectual Property, contracts, state aid and collaboration agreements) and financial services (R&D tax credits, investment, funding).

• Want to expand into Cornwall?– Are you a start up? We can offer you fully funded grants for up to £10,000– Not in Cornwall yet? We can help pay for travel and accommodation to meet key people

and see business premises in Cornwall. Also independent feasibility studies


Who we work with.

AeroSpace Cornwall works with:

Manufacturing and engineering businesses who are, or

aspire to be, part of the space / aerospace supply chains.

Digital businesses such as those developing software

applications in the satellite communications, earth

observation, navigation and meteorology areas.

We work with a broad mix of businesses from many

different sectors, such as mining, manufacturing, software,

and technology, and all have a link to space or aerospace


Contact Us.

If you want your business to benefit from the funding and support on offer, contact:

[email protected]

07496 840668

www.aerospacecornwall.co.uk


http://www.aerospacecornwall.co.uk/

Marine-i enters a new phaseVision: Marine-i provides leadership and a focal point to galvanise and support business-led and market-driven Research, Development and Innovation.

• The new programme is focussed on accelerating development of innovative product ideas, working closely with businesses to the stage at which their products can be demonstrated and can be commercialised.

• Builds on the success of the initial Marine-i phase 1, which ran between 2017 –end of 2019. The new programme runs until the end of 2022, takes Marine-i to the next level, and has a fresh emphasis.

• Partnership - University of Exeter, University of Plymouth, Offshore Renewable Energy Catapult, The Cornwall College Group, Cornwall Marine Network, and Cornwall Development Company.

• Total Funding: £5,519, 710. ERDF: £4,146,161. Public Match: £596,639

What stays the same as the first Marine-i programme?

Our Aim – to create a sustainable and innovative marine technology sector in Cornwall, where businesses can thrive and succeed in global markets well into the future

Our Mission – “Marine-I should be mindful of the challenge posed by Climate Change, the need to transition to a Low Carbon Economy and the need to manage Changing Coastal Processes. The Marine-I programme should prioritise RD&I leading to Marine Technology Processes, Products and Services with the potential to have a significant impact in the Low Carbon Energy markets and other growth areas within the Ocean Economy, notably those associated with new technology addressing the Clean Marine agenda and Coastal Adaptation.” MI2 Strategic Partner Board

Our Alignment – we remain aligned with key regional, national and global strategies relating to the marine technology industry

The offer to businessesComprehensive RD&I support through engagement with world class research expertise – This accelerates the stage at which you can demonstrate your product and take it to market. We will listen to your ideas and then work closely with you to develop them – enabling the best support from our team.

Access to an exceptional range of test facilities. Including flagship test facilities for ocean engineering based at University of Exeter, University of Plymouth and Offshore Renewable Energy Catapult

Graduate placements to work in your business at a subsidised cost, for a period of 3,6 or 9 months.

Outreach programme. Marine-i regular events bring together thought leaders from industry and research experts to discuss market challenges and potential solutions, and access to national supply chain improvement initiatives.

Increased profile for your business. Marine-i case studies have featured in marine technology media around the world. You too can benefit from profile raising through taking part in Marine-i.

Grant support. Grant funding support is available through Marine-i for selected projects.

Key areas - Marine and offshore energy - Marine technology - Aquaculture technology - Novel Mooring systems / component development- Marine operations and maintenance strategies- Autonomous marine systems - Applied optimization - Optimization of Floating Platform design- Health/condition monitoring

Key Subsectors - Energy efficiency and generation - Wind/Wave/Current loading - Mooring design and analysis - Reliability and statistical methods - Material and mechanical behaviour. - AI and Data Science

Key Skills - Analytical/computational modelling and analysis - Experimental modelling and analysis - Hydrodynamic experimentation - Mechanical experimentation (performance characterisation, reliability and fatigue) - Marine data measurement and analysis - Environmental/Marine resource characterisation - Optimization - Machine learning & artificial intelligence

Software Capabilities - Ansys - SWAN- MATLAB - Python - Nemoh - SolidWorks- OpenFOAM- Orcaflex WAMIT

Accelerating business growth

The world class RD&I expertise and the outstanding test facilities available through Marine-i have already enabled:

• Many exciting new product developments and • Opening global market opportunities for

Cornish businesses.

We now aim to build further on this success and help more businesses accelerate their growth.

Funded by: Delivered by:

Funding for your businessHeather Coupland


BenefitsFully funded support – no fees to pay

Delivered by professionals who will explore the best options for your business needs

Working with you to build the strongest application possible

Discretionary grants to provide essential legal and accountancy advice


Financial Readiness Grants

50%, up to £7,500 grant, of costs incurred in the process of getting your business ready to access finance or for post-investment support:

Professional services such as accountants, solicitors or consultants

Video production and marketing campaigns for crowdfunding campaigns

Post-investment employment of a Non-Executive Director

Charges associated with seeking angel investment

Significant Financial Employee Grant

20%, up to £10,000 grant, of the full salary or recruitment costs of a senior finance role meeting the following criteria:

Defined period – up to 12 months

Specific finance related project

Minimum salary level equivalent to £30K per annum

Higher education qualification

Discretionary A2F Grants


a2fcornwall.co.uk01872 300 386

Delivered byFunded by

Cornwall Chamber of CommerceConnecting Business in Cornwall and Isles of Scilly

Member Benefits

Cornwall Chamber of Commerce is a not for profit organization that exists to simplify doing business in Cornwall. Our primary goal is to help our members find new customers and suppliers both in and out of Cornwall.

Whether you’re looking to make new contacts, put your business in the spotlight or save money, Cornwall Chamber of Commerce membership can help you accomplish your business aspirations.

You can find more information on our website or by clicking here

Promotion:• Upload events, news, job vacancies & offers to

the Chamber website • FREE listing in the Online Members Directory

Connectivity:• Over 70 events a year (now online)• Member to Member Introductions

Have your Say:• Be part of a regional lobbying voice via BCCSW • Take part in the Quarterly Economic Survey – the

UK’s largest independent business survey

Credibility: • Be part of a trusted International Network, CCoC is

one of 53 accredited Chambers in the UK • Use of the Chamber Logo on your website

Support: • Personal account manager • Host / Attend Free workshops • FREE Export and International Trade Advice

Discounts:• Chamber Primary Health Plan• Chamber Roadside Assistance • Chamber Foreign Exchange • 50% off Export Documentation

https://www.cornwallchamber.co.uk/member-benefits

Every member of Cornwall Chamber of Commerce gains access to all the member benefits.

Membership starts from as

little as

£17+VAT

a month

Not yet a member but interested in becoming one?

Contact Darren Buckley

[email protected]

Membership Package

Already a member and would like to know how you can make the most out of your membership?

Contact Mirren [email protected]

Businesses within Innovation Centres £210.002 - 9 employees £250.00

10 - 49 employees £350.0050 - 249 employees £550.00250 - 499 employees £750.00500 - 999 employees £950.00

1000 employees and above £1,250.00

Start-up business £210.00Sole Trader £210.00

Charity £150.00Not for profit £ 265.00

Member Testimonials

“Will Take Away a Lot”

“You have done an amazing job supporting businesses through this

time”

“You have helped me get through this”

“Really good to have this discussion”

We are here not only to support business but you as an individual

“Have receive more than a 500% return on our membership investment “

“We derive a great deal of benefit from being a

member of Cornwall Chamber.”

“We have gained significant financial savings, For example, we receive a

60% discount on AA membership for our fleet as part of the benefits

package”

“Being a member of Cornwall Chamber is extremely positive

all round.”

Contact Us The Team

CEO: [email protected]

Operations / Export: [email protected]

Membership: [email protected] / [email protected]

Events: [email protected]

Marketing: [email protected]

Accounts: [email protected]

@cornwallchamber

@cornwallchamber

@cornwallchamberofcommerce

Website: www.cornwallchamber.co.ukEmail: [email protected]








http://www.cornwallchamber.co.uk/

CIOS LEP

CIOS Skills Hub and Growth Hub

CIOSIF (loan and equity)

BIG Productivity (grant)

Community Led Local Development

Acceleration Through Innovation

The AeroSpace Cornwall Programme

Marine-i

Access to Finance

Cornwall Chamber

THANK YOU…

© copyright PKF Francis Clark, 2020

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01392 667000

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regional business support and funding...• prototyping • process ... innovation masterclass with...

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