Tech City LaunchpadCampaign Review
Tech City Launchpad
Campaign Review v2.1Huw Jones, Technology Strategy Board
Tech City LaunchpadCampaign ReviewTech City LaunchpadCampaign Review
Campaign Mission & Outcomes
Tech City LaunchpadCampaign Review
Campaign Mission
• Stimulate the digital and creative industries centred in the ‘Tech City’ area of London & enable these companies to move faster towards commercial success.
• Develop a creative and engaging acquisition campaign that will acquire the best of the UK’s companies interested in growing within the ‘Tech City’ area
Tech City LaunchpadCampaign Review
Campaign Outcomes• 20 companies selected for funding – each receiving a slice of £2m in match-
funding• Round 3 event
– Final 40 pitching – 2 mins each– 254 registrants, 214 attendees; inc 145 vc/angel or funding
intermediaries– Creation of final 40 company director (online and hardcopy)– Creation of ‘meet me’ boards– Creation of post-event networking ‘sticky world’
• Media outcomes• Round 2 – paper based down select process – final 40, and top 20 identified• Round 1 – Video application stage – 221 applications. All viewable/rateable
on _connect https://connect.innovateuk.org/web/tech-city-launchpad-1/overview
Tech City LaunchpadCampaign ReviewTech City LaunchpadCampaign Review
Campaign Insights: creative and performance
Tech City LaunchpadCampaign Review
Campaign Launch Video
http://www.youtube.com/watch?v=tAWpiffDX2I&feature=related
Tech City LaunchpadCampaign Review
Campaign Website on _connect
https://connect.innovateuk.org/web/tech-city-launchpad-1
Tech City LaunchpadCampaign Review
Example applicant videos
• Video uploaded to YouTube
• Embed code used on _connect website
Tech City LaunchpadCampaign Review
Round 3 – Funders’ Workshop event
“Meet me”
Project directory – “read about me”
“Fund me” –40, 8 and 2 min project pitches to audience
Tech City LaunchpadCampaign Review
Customer perspectives
“Despite the (at times) gruelling process, we'd recommend the Technology Strategy Board for anyone looking to get some government backing for their projects. Now it's time for us to chase those leads and secure the rest of the match funding. Fingers crossed!” Dagmara from Clearer Partners
Tech City LaunchpadCampaign Review
Profile directory – print
Tech City LaunchpadCampaign Review
Post-event collaboration
http://stickyworld.com/
Tech City LaunchpadCampaign Review
Profile directory –online collaboration space
Tech City LaunchpadCampaign Review
Example media coverage
Tech City LaunchpadCampaign Review
Campaign web traffic insight
Deadline for videos to be uploaded Funders’ Workshop Event
Tech City LaunchpadCampaign Review
Who’s referring site traffic?
Entrance Sources: /web/tech-city-launchpad-1
Tech City LaunchpadCampaign Review
Where did you hear about?
Tech City LaunchpadCampaign Review
Applicant demographics
Tech City LaunchpadCampaign ReviewTech City LaunchpadCampaign Review
Example CompanyPitch Slides – 8 minutes
Tech City LaunchpadCampaign ReviewTech City LaunchpadCampaign Review
+44(0)7740707235
FundingOptionsPrice comparison in small business lending
Conrad Ford
Tech City LaunchpadCampaign Review
About me
1
4
7
12
17
2005 2006 2007 2008 2009
Currently an interim executive with a firm whose technology is seen here.
Previously COO of Clearlybusiness, (Deloitte ‘Fast 500 EMEA’ member).
Built the UK’s leading credit management service by client numbers.
Chartered Management Accountant (CIMA); ~10 years in financial services.
Clearlybusiness PBT £m
Tech City LaunchpadCampaign Review
Small business lending is a substantial market: ~£800m p.a. in interest GP alone
500kNo. Term Loans
~£800mNet Interest GP
£80kAverage Loan Size
Interest GP Margin 2%
Sources: BBA & BoE (2011)
(Illustrative only)
~£200mAddressable Annually
~4 yrsAverage Term
Tech City LaunchpadCampaign Review
It’s also notably uncompetitive: 4x more likely to get a term loan from main bank than a rival
Tendency to use main bank for financing needs, %
98%80% 80%
47%24%
0%
25%
50%
75%
100%
Overdrafts Credit cards for business purposes
Commercial loans &
mortgages
Invoice Finance &
Stock finance
Leasing & hire-purchase
With another bank
With main bank
Source: Warwick Business School (2009)
Term loans
Tech City LaunchpadCampaign Review
Two notable advantages for the small businesses’ main bank
Access to client bank account data, the primary decision tool
Local relationship with client via the branch network
Tech City LaunchpadCampaign Review
Ability to generate financials (including bank data) from accounting software
Data extracted directly from small business accounting software (e.g. Sage or QuickBooks)
Tech City LaunchpadCampaign Review
Accountants are a nationwide channel, more trusted than banks
Source: Warwick Business School (2009)
Most trusted source of support & advice Nationwide launch partner identified
•Hundreds of their accountant clients surveyed on FundingOptions.
•50% of survey respondents would like to take part in a FundingOptions trial.Account
-ant or Auditor
Bank Manage
rOther
No Advice
Tech City LaunchpadCampaign Review
High-level proposition flow
IMPORT FINANCIALS
CHOOSE LENDERS
ACCEPT REQUEST
PROVIDE QUOTE
ADD PLAN & CONTEXT
COMPARE QUOTES
(TRACK STATUS)ADVISOR
LENDERS
PROGRESS WITH QUOTE
FULFIL QUOTE
(5 WORKING DAYS)
“Quotes from a range of leading finance
providers ... get the very best terms”
“Quotes from all finance providers in a standard format... easily review them with my clients”
“The precise information required by
finance providers for them to ...quote with
confidence”
REFERRAL SUCCESS FEE AS A % OF LOAN VALUE
1 2 3
Tech City LaunchpadCampaign Review
Illustrative financial profile & external factors
0% share 2% share <5% share
SageOne & QB Online
Yodlee APIs
‘Rainbow’ & ‘Verde’
Account Portability
(Note: Money-SupermarketP/E = ~50x)
“Skate to where the puck is going to be, not where it has been”
Tech City LaunchpadCampaign Review
How I intend to deliver, & where I am now
Infrastructure Managed sub-lease agreed
Platform MoU in place
Team 3 at launch, 2 in holding
Distribution Launch partner agreed
Investment ~£300k raised (including TSB)
• Phase I “Prove Concept”– Low cash burn & lead times.– ~£400k seed funding.
• Phase II “Grow Quickly”– Spend to maximise growth.– ‘Series A’-scale funding.
Area Status
DELIVERY PLANS CURRENT STATUS
Tech City LaunchpadCampaign Review
Why FundingOptions, & what am I seeking?
• Attractive target market– Large high margin market– Tech & regulatory ‘tailwind’
• Decent chance of execution– Defined revenue model– Known platform & distribution
Why invest in FundingOptions? What am I seeking?
• Investors/mentors with:-– Domain knowledge.– Industry contacts.– Valuable hands-on skills.
Tech City LaunchpadCampaign ReviewTech City LaunchpadCampaign Review
Resources & citations
Tech City LaunchpadCampaign Review
Resources and citations• Tech hub winners –Clearer partners:Framblast
– http://www.techhub.com/magazine/read/techhub-residents-win-techcity-launchpad_183.html• Tech hub winners – Contentment: Padify• http://blog.getcontentment.com/2011/08/11/announcement-weve-been-awarded-tech-city-
launchpad-funding/• Tech City Launchpad doubled to £2 million• http://www.growthbusiness.co.uk/news/business-news/1640238/tech-city-launchpad-
doubled-to-2-million.thtml• Innovative digital businesses in London’s Tech City given opportunity to pitch to leading
investors• http://www.techcityuk.com/2011/08/news-innovative-digital-businesses-in-
london%E2%80%99s-tech-city-given-opportunity-to-pitch-to-leading-investors/• Technology Strategy Board plans series of launchpad investment events to boost UK’s tech
start-ups• http://www.computerweekly.com/news/2240105331/Technology-Strategy-Board-plans-
series-of-launchpad-investment-events-to-boost-UKs-tech-start-ups• Tech City: Britain’s answer to Silicon Valley• http://ukbusinessblog.co.uk/?p=816