Comments for Meteorical http://www.meteorical.co.uk Enhancing Business Success through successful Interventions (Financial, Time, Experience, Skills) Thu, 15 Dec 2011 13:38:14 +0000 hourly 1 http://wordpress.org/?v=3.2.1 Comment on What did the Business Angel Network do for us? by Leo Dunne http://www.meteorical.co.uk/2010/05/what-did-the-business-angel-network-do-for-us/#comment-638 Leo Dunne Thu, 15 Dec 2011 13:38:14 +0000 http://w3.meteorical.co.uk/?p=164#comment-638 You also need to understand the difference between an angel network that provides services that are regulated by the FSA and those that are not. If a network is regulated by the FSA then it can act more like a Venture Capitalist Fund or a corporate finance broker. If it is not, then it may be limited in what it can and cannot do. It's worth looking at different networks to see what else they offer to their investor members. Do they run workshops and seminars of topics that keep their members informed about the latest developments? And do the subject areas cover the life of an investment rather than just the making of an investment? You also need to understand the difference between an angel network that provides services that are regulated by the FSA and those that are not. If a network is regulated by the FSA then it can act more like a Venture Capitalist Fund or a corporate finance broker. If it is not, then it may be limited in what it can and cannot do.
It’s worth looking at different networks to see what else they offer to their investor members. Do they run workshops and seminars of topics that keep their members informed about the latest developments? And do the subject areas cover the life of an investment rather than just the making of an investment?

]]> Comment on More grants available… by Brian Dorricott http://www.meteorical.co.uk/2011/10/more-grants-available/#comment-617 Brian Dorricott Fri, 07 Oct 2011 14:25:02 +0000 http://www.meteorical.co.uk/?p=591#comment-617 Hi David, I don't have a definitive answer. However I would expect that if there were two outside investors (who could become members of the BBAA and therefore be a syndicate) then their investment may be matched by the fund. I think that at least one of the investors would need to have some "experience" demonstrable in the BA world though and some connection to the industry of the company they are investing in. I hope this helps, Brian Hi David,
I don’t have a definitive answer. However I would expect that if there were two outside investors (who could become members of the BBAA and therefore be a syndicate) then their investment may be matched by the fund. I think that at least one of the investors would need to have some “experience” demonstrable in the BA world though and some connection to the industry of the company they are investing in.
I hope this helps,
Brian

]]> Comment on More grants available… by David Wragg http://www.meteorical.co.uk/2011/10/more-grants-available/#comment-615 David Wragg Fri, 07 Oct 2011 10:13:24 +0000 http://www.meteorical.co.uk/?p=591#comment-615 Brian As ever your blogs are very informative and topical. Do you know whether an MBO team would qualify under the Angel Co - Investment fund? Just to save my time ploughing through the detailed rules! Many Thanks David Saffery Champness Brian
As ever your blogs are very informative and topical. Do you know whether an MBO team would qualify under the Angel Co – Investment fund?

Just to save my time ploughing through the detailed rules!

Many Thanks

David
Saffery Champness

]]> Comment on More grants available… by Dave Raval http://www.meteorical.co.uk/2011/10/more-grants-available/#comment-614 Dave Raval Thu, 06 Oct 2011 14:00:03 +0000 http://www.meteorical.co.uk/?p=591#comment-614 Brian, I head up the Entrepreneurs Fast Track service in Carbon Trust. This has been running for over a year and builds upon previous programmes we have offered for almost ten years. In that time, we've supported over 300 start-ups, who have subsequently leveraged over £130m in private investment, and which represents a 13:1 ratio of private-led Green Growth money to taxpayers' spend. It is also a popular service -in the past year, we have had over 1000 applicants. So, it is not new! As a former entrepreneur myself, I also designed the service to keep bureaucracy to a minimum: we do reject many applicants but we do so quickly, and mostly by telephone, without them having to set pen to paper with any form of application form. Those that 'make it' will have had to fill out an application form, but it is not onerous. It is therefore not bureaucratic. Finally, we have offered grants across the UK but budgets available from our funders for this do vary. You are correct that right now all the other Entrepreneurs Fast Track services are available in Great Britain, but that grants are only available in Wales. As budgets change, we will continue to update our website to reflect this. Brian, I head up the Entrepreneurs Fast Track service in Carbon Trust. This has been running for over a year and builds upon previous programmes we have offered for almost ten years. In that time, we’ve supported over 300 start-ups, who have subsequently leveraged over £130m in private investment, and which represents a 13:1 ratio of private-led Green Growth money to taxpayers’ spend. It is also a popular service -in the past year, we have had over 1000 applicants. So, it is not new!

As a former entrepreneur myself, I also designed the service to keep bureaucracy to a minimum: we do reject many applicants but we do so quickly, and mostly by telephone, without them having to set pen to paper with any form of application form. Those that ‘make it’ will have had to fill out an application form, but it is not onerous. It is therefore not bureaucratic.

Finally, we have offered grants across the UK but budgets available from our funders for this do vary. You are correct that right now all the other Entrepreneurs Fast Track services are available in Great Britain, but that grants are only available in Wales. As budgets change, we will continue to update our website to reflect this.

]]> Comment on How to find informal investment… by Oakleigh Wood http://www.meteorical.co.uk/2011/09/how-to-find-investment/#comment-606 Oakleigh Wood Tue, 20 Sep 2011 12:50:35 +0000 http://www.meteorical.co.uk/?p=552#comment-606 Great blog, from my modest start-up I would agree. VC and Angels don't look for standard companies, they seek fast growth/return. And I understand why, so many companies just don't make it. So I guess the question is "how can gov make it easier to start companies", and "how can the education sector and UK plc give start-ups the skills-knowledge-culture to survive". If most UK businesses are sub 5 staff, surely the way out of recession is to help small businesses grow. If growth is your aim, your customer is key. One thing to action whatever size of organisation is to map your customers' journey, here is a simple plan to start you on your way http://bit.ly/nVBbCD Oakleigh http://customerservicemeasurement.com/ Great blog, from my modest start-up I would agree. VC and Angels don’t look for standard companies, they seek fast growth/return. And I understand why, so many companies just don’t make it.
So I guess the question is “how can gov make it easier to start companies”, and “how can the education sector and UK plc give start-ups the skills-knowledge-culture to survive”. If most UK businesses are sub 5 staff, surely the way out of recession is to help small businesses grow.
If growth is your aim, your customer is key. One thing to action whatever size of organisation is to map your customers’ journey, here is a simple plan to start you on your way http://bit.ly/nVBbCD
Oakleigh
http://customerservicemeasurement.com/

]]> Comment on 6 Reasons Why “Exits” Don’t Work by Clive Stevens http://www.meteorical.co.uk/2011/09/6-reasons-why-exits-dont-work/#comment-596 Clive Stevens Tue, 06 Sep 2011 13:54:43 +0000 http://www.meteorical.co.uk/?p=534#comment-596 Hi Brian - Your email said exits were dying. I'm not sure about that, I'm guessing they are going dormant (rather than extinct) for many of the reasons in your article (and on exit multiples will be much less currently anyway). I have come to the conclusion that the old 30% + investor returns are now rare and so I'm thinking of putting more emphasis into the enjoyment of involvement with the business but at a lower rate of return. Of course I might be deluded, if so could someone point it out to me so I can learn. Thanks. Hi Brian – Your email said exits were dying. I’m not sure about that, I’m guessing they are going dormant (rather than extinct) for many of the reasons in your article (and on exit multiples will be much less currently anyway). I have come to the conclusion that the old 30% + investor returns are now rare and so I’m thinking of putting more emphasis into the enjoyment of involvement with the business but at a lower rate of return. Of course I might be deluded, if so could someone point it out to me so I can learn. Thanks.

]]> Comment on The Earth moves for SWAIN… by Brian Dorricott http://www.meteorical.co.uk/2011/08/the-earth-moves-for-swain/#comment-592 Brian Dorricott Fri, 02 Sep 2011 13:30:06 +0000 http://www.meteorical.co.uk/?p=386#comment-592 Within two weeks of writing this article Bruce Colley left <a href="http://www.swain.org.uk" rel="nofollow">SWAIN</a> (and joined <a href="http://www.pegasusfunding.co.uk/index.html" rel="nofollow">Pegasus Funding</a>) and Kevin Wood and Stpehen Dilley have joined the team. The two new team members will be helping prepare companies for investment while Phil will take on the role of Investor Management. Within two weeks of writing this article Bruce Colley left SWAIN (and joined Pegasus Funding) and Kevin Wood and Stpehen Dilley have joined the team. The two new team members will be helping prepare companies for investment while Phil will take on the role of Investor Management.

]]> Comment on 7 Sources of Investment Leads for Investors by James Routley http://www.meteorical.co.uk/2011/08/7-sources-of-investment-leads-for-investors/#comment-502 James Routley Tue, 23 Aug 2011 17:20:14 +0000 http://www.meteorical.co.uk/?p=418#comment-502 <strong>SouthWest Founders</strong> is also a great place to meet with tech entrepreneurs in the Southwest and find out about who's doing what. We have over 300 members who meet informally over a few (free) beers on the second Wednesday of each month and talk about start-up businesses. The membership is tightly controlled but investors are always welcome and we value your experience and advice as much as your money! We have a 'no selling' rule, which means you're unlikely to be directly pitched at on the night (unless you specifically ask for it), but you will get to know about what's happening on the tech scene locally and meet with some great people. Details of how to get involved are on the <a href="http://swfounders.com" rel="nofollow">website</a>. SouthWest Founders is also a great place to meet with tech entrepreneurs in the Southwest and find out about who’s doing what. We have over 300 members who meet informally over a few (free) beers on the second Wednesday of each month and talk about start-up businesses. The membership is tightly controlled but investors are always welcome and we value your experience and advice as much as your money!

We have a ‘no selling’ rule, which means you’re unlikely to be directly pitched at on the night (unless you specifically ask for it), but you will get to know about what’s happening on the tech scene locally and meet with some great people.

Details of how to get involved are on the website.

]]> Comment on What’s Crowd Sourced Funding? by Chris Smith http://www.meteorical.co.uk/2010/12/whats-crowd-sourced-funding/#comment-35 Chris Smith Fri, 03 Jun 2011 18:34:00 +0000 http://w3.meteorical.co.uk/?p=218#comment-35 This is a very helpful summary of alternative sources of funding to what was the traditional market of banks and private equity groups. In times where both have dramatically cut-back just when investment is so desparately needed by British entrepreneurs to get their ideas off the ground and ultimately get UK plc back off it’s knees. Using crowdfunding it’s quite possible that the general public could well save the day – just as when the UK government sold off it’s nationalised assets back in the 80’s; where’s Sid! This is a very helpful summary of alternative sources of funding to what was the traditional market of banks and private equity groups. In times where both have dramatically cut-back just when investment is so desparately needed by British entrepreneurs to get their ideas off the ground and ultimately get UK plc back off it’s knees. Using crowdfunding it’s quite possible that the general public could well save the day – just as when the UK government sold off it’s nationalised assets back in the 80’s; where’s Sid!

]]> Comment on Should I work for Sweat Equity? by Kalyan http://www.meteorical.co.uk/2010/07/should-i-work-for-sweat-equity/#comment-34 Kalyan Fri, 14 Jan 2011 15:58:00 +0000 http://w3.meteorical.co.uk/?p=180#comment-34 Time is money and the way you need to calculate is based on opportunity cost. In the amount of time you spend for building sweat equity, you maybe missing out on other things. This could be making money flipping burgers or moonlighting for cash, undergoing formal training, seearching for better opportunities or even spending time with your family. There are tangible and intangible benefits you give up. You need to find the cost of what you give up and calculate how much money would compensate you and give you sufficient profit. Then you need to accommodate risk factors and calculate how much money you are realistically going to make from that sweat equity when you choose to exit. Then find which is higher, what you give up in opportunity cost or what you will get from that sweat equity. Invariably you will see that the person who benefits the most from the sweat equity is the entrepreneur. My strong recommendation is that if you wish to sweat do it for your own company rather than someone else’s. Time is money and the way you need to calculate is based on opportunity cost. In the amount of time you spend for building sweat equity, you maybe missing out on other things. This could be making money flipping burgers or moonlighting for cash, undergoing formal training, seearching for better opportunities or even spending time with your family. There are tangible and intangible benefits you give up. You need to find the cost of what you give up and calculate how much money would compensate you and give you sufficient profit. Then you need to accommodate risk factors and calculate how much money you are realistically going to make from that sweat equity when you choose to exit. Then find which is higher, what you give up in opportunity cost or what you will get from that sweat equity.

Invariably you will see that the person who benefits the most from the sweat equity is the entrepreneur. My strong recommendation is that if you wish to sweat do it for your own company rather than someone else’s.

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