MANCHESTER
16/05/2019
WELCOME FROM UKBAA
RODERICK BEER
Managing Director
UKBAA
# ConnectedInvesting
@UKBAngels
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WE ARE THE TRADE
BODY FOR EARLY
STAGE INVESTING
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193 MEMBERS FROM
ACROSS THE INDUSTRY
W E L O O K A F T E R
A N G E L G R O U P S
Over 15,000 angels
represented by these groups
V C F U N D S
From micro funds to major
PE funds
O N L I N E P L AT F O R M S
And all the major crowd
funding platforms
A C C E L E R ATO RS
Including incubators and
universities
A S S O C I AT E S
Including government
agencies, royal societies,
corporates and
intermediaries
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14
30
49
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CORE AIMS
O U R W O R K C E N T R E S A R O U N D F O U R
C O N N E C T I N G
H e l p i n g o u r m e m b e r s
d e v e l o p v a l u a b l e
r e l a t i o n s h i p s
R E P R E S E N T I N G
C h a m p i o n i n g t h e v i e w s a n d
i n t e r e s t s o f o u r i n d u s t r y
P R O M O T I N G
R a i s i n g a w a r e n e s s o f e a r l y -
s t a g e i n v e s t i n g
E D U C AT I N G
S e t t i n g t h e i n d u s t r y s t a n d a r d
o n b e s t p r a c t i c e
T o b r i n g m e a n i n g f u l h e l p a n d s u p p o r t t o t h e e a r l y - s t a g e
i n v e s t m e n t c o m m u n i t y
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ANGEL E-LEARNING COURSE
T h i s n a t i o n a l , i n d u s t r y - b a c k e d p r o g r a m m e b r i n g s t h e i n s i g h t s a n d e x p e r t i s e f r o m 2 2 e x p e r i e n c e d a n d l e a d i n g
A n g e l i n v e s t o r s f r o m a c r o s s t h e U K .
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OPERATE SIX ANGEL HUBS
ACROSS THE UK
W E A L S O
W e ' r e r o l l i n g o u t o u r h u b s r i g h t a c r o s s t h e U K w i t h f i v e f u r t h e r h u b s p l a n n e d f o r 2 0 1 9
W W W. A N G E L H U B S .O R G
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DEALSHARE
PLATFORM
T H E U K B A A
H e l p i n g t o f o r m c o - i n v e s t m e n t r e l a t i o n s h i p s a r o u n d d e a l s i n a
f r e e , o n l i n e e n v i r o n m e n t
Share your deal with fellow investors to help
build and close your round
A D D D E A L S
Search for deals by key criteria and reach out
to discuss details
B R O W S E D E A L S
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INTRODUCTION FROM INNOVATE UK
IAN CAMPBELL
Executive Chair
Innovate UK
# ConnectedInvesting
@UKBAngels
New Innovation
Finance Pilots
Ian Campbell, Interim CEO, Innovate
UK
Connected Investing
Manchester 16th May 2019
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Challenge Led
Industrial Strategy
Challenge Fund
Responsive
Smart Grants
Business Growth Pilots: Innovation Loans & Investment Accelerator
Knowledge Transfer Partnerships
Managed Programmes: Procurement, DMCS & CCAV, Late-stage (e.g APC)
How do we fund?
Innovation loans
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For businesses on the edge of greatness
We are running a pilot programme of loan competitions to
the end of 2019. The programme is aiming to ensure that
businesses can access funding at all stages of innovation.
Up to 50 million available
for business innovation
projects near to market
Offered through competitions
to UK SMEs that want to scale
up by developing new services
Can be used for late-stage
R&D projects not yet at the
point of commercialization
Delivered by Innovate UK
Loans Ltd, a wholly-owned
subsidiary of Innovate UK
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Affordable, flexible and patient
Single
Applicant
SMEs only
Up to 100% of
project costs
Later stage R&D
Loan size
100k to 1m
Low interest
rate
3.7%
Flexible & patient
Up to 10 years
years
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Innovation Loans
50m pilot programme
5 competitions completed 2 sector-based and 3 'open'
400 applications received, seeking 200m in loans
50m committed / 68 borrowers / 17.6m drawn
Delivering innovation loans
Delivering innovation loans
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Investment accelerator
The Industrial Strategy identified
our investment accelerator model
as a new approach to finance
innovation, highlighting the
potential for it to scale up.
Investment accelerators bring together
Innovate UK grant funding for innovative
projects and VC and Angel equity investment
in businesses to support growth through
innovation.
Investment Accelerator Model
FAIL
100%
FUNDED
GRANT +
EQUITY
FAIL
FAIL
Meets
Quality
Below
Quality
Not
Investable
Investable
Innovate UK
Assessment
Investor Due Diligence
Applications
Applications
Innovate UK led:
Working with multiple
investors to increase
investment capacity &
activity in a specific sector
Investor led:
One investor lead using
an Innovate UK grant
'sub-fund' to catalyse
additional + follow-on
funding within a strategic
framework
Closed IA competitions:
Health & Life Sciences
and Infrastructure

Precision Medicine
Open IA competitions:

Plastics in the Ocean

Audience of the Future
Regional Angel Investment Accelerator Pilots 2019
Start-ups that access grant + equity funding do better
But we need to make it easier outside London!
Source: Beauhurst
"Companies that have
received both an
Innovate UK grant and
equity investment have
a higher valuation on
average than companies
that have received only
equity investment."
Beauhurst
Confirmed 3 pilots each with a 1m allocation
Competitions are by invite only and follow engagement with one of the
following:
1. Northern Angel Hub regional angel investment accelerator pilot broad
coverage across the north
2. NE LEP Area Angel Accelerator Pilot run by Northstar Ventures and focused
on the North East
3. The SETsquared R&D Scale-up Pilot run by University of Bath (SETsquared
Partnership) with a focus on the South West, Wales and the West Midlands
Estelle Blanks from the Innovation SuperNetwork will be covering this in detail
at 4pm
Find out more:
https://www.gov.uk/government/organisations/innovate-uk
https://www.ktn-uk.co.uk/
https://www.enterprise-europe.co.uk/
https://catapult.org.uk/
https://www.ukri.org/
Customer Support Service
Email support@innovateuk.gov.uk
Phone: 0300 321 4357 (Mon-Fri, 9am-5:30pm)
LIGHTNING TALK: LATEST MARKET TRENDS
HENRY WHORWOOD
Head of Research and Consultancy
Beauhurst
# ConnectedInvesting
@UKBAngels
Beauhurst
Investment in the North
Connected Investing Manchester
16th May 2019
HENRY WHORWOOD
@henrywhorwood
Beauhurst
Since 2011:

33,000+ equity investments

51bn of investment

2000+ exits tracked
Context
State of the market
UK wide
State of the market
UK wide
State of the market
UK wide
The North
Investment since 2011
The North
Top local areas since 2018
1.
Manchester (121 deals)
2.
Newcastle (46 deals)
3.
Cheshire East (45 deals)
4.
Liverpool (40 deals)
5.
Durham (30 deals)
The North
Top investors since 2018
The North
Top sectors since 2018
1.
Fintech (21 deals)
2.
Artificial intelligence (14 deals)
3.
Big data (9 deals)
4.
Insurtech (8 deals)
The North
Big investments in 2019
1.
OakNorth (340m)
2. Wejo (19.3m)
3.
Quick Reach (7.5m)
4.
AccessPay (7m)
5.
Mojo Mortgages (7m)
Thank you
HENRY WHORWOOD
henry.whorwood@beauhurst.com
www.beauhurst.com
@henrywhorwood
PANEL 1: THE FUNDING MIX
MODERATOR
JENNY TOOTH
CEO
UKBAA
NICK EDGAR
Senior Director
Clydesdale Bank
DAVID JOHNSON
Head Of Business Development
Manchester
Ying De Group
VOLKER HIRSCH
Partner
Amadeus
DAVID SMITH
Director
Dow Schofield
Watts CF
# ConnectedInvesting
@UKBAngels
LIGHTNING TALK: HOW GRANT FUNDING DE-RISKS INVESTMENT
CHARLOTTE THOMPSON
Access to Funding and Finance
Knowledge Transfer Network
# ConnectedInvesting
@UKBAngels
How grant funding
de-risks investment
Charlotte Thompson, Access to Funding & Finance
Photo by vincenzo di giorgi on Unsplash
Grants Risk
Stage of Development
Fundamental research
Feasibility studies

Industrial research
Experimental development
Photo by "My Life Through A Lens" o
Collaborative
Photo by Jon Del Rivero on Unsplash
Competitive
Photo by Rita Morais on Unsplash
Independently
Assessed
Achieving your Goals
Having an effective plan in place
Monitoring officer
Risk register
Commercial plan & milestones
Photo by Sasha Stories on Unsplash
Crystal ball
Photo by Rita Morais on Unsplash
Funding Body
The ASK
How much funding does the business need?
What is the funding required for?
What significant change will this funding
have on the business?
Charlotte.Thompson@ktn-uk.org
Knowledge Transfer Manager, Access to Funding & Finance
Use grants to de-risk
your investment
INTRODUCING THE REGIONAL ANGEL INVESTMENT ACCELERATOR
ESTELLE BLANKS
Executive Director
Innovation Supernetwork
# ConnectedInvesting
@UKBAngels
INNOVATE UK REGIONAL ANGEL INVESTMENT ACCELERATOR
WHAT IS IT?
HOW TO GET INVOLVED?
Estelle Blanks, Executive Director, Innovation SuperNetwork
Strategic Context
Source: Innovate UK
Rationale for regional programme
The Angel Investment Partners (AIPs)
1m
Northstar Ventures
Northern Angel Hub
SETsquared
partnership
Programme Objectives
A pilot: develop, test and learn (May 2019 to April 2021)

Increase the appetite and capacity for angel investment in regions

Increase the scale up potential of innovative technology companies

Increase diversity in investment
The Northern Angel Hub: Angel Investment Partner (AIP)
A significant collaboration of
four organisations have come
together to grow
Angel Investment capacity in
the north
Our AIP has access to investors
and innovative early stage tech
businesses with the ambition
and strategies needed to
accelerate a growth in capacity.
HQ: North East and Tees
Valley, Sunderland (BIC and
ISN)
Hubs: Yorkshire and North
West (North Invest)
Reach: UKBAA and angel
networks
Our AIP has reach across the North and beyond
Our investment focus is in early stage innovation and technology with particular focus on
sectors with high growth potential in the north:
Digital technologies
Subsea, offshore and energy (clean growth)
Advanced manufacturing & automotive
Health & Life sciences (ageing)
Fintech
Technology for good, social impact
Cyber security

Immersive tech/media
With a focus on high growth tech sectors
To make between 10 and 15 direct investments in early stage technology companies

Increase survival rates of supported companies linked to the combination of grant and equity support
provided to companies.

Increase the number and quality of relevant dealflow - c. 100 companies targeted by the pilot.

Increase Angel investment capacity and activity in the north

Increase diversity in both Angel investment and technology company leadership
Our ambition
Opportunity to derisk an investment opportunity by providing:
Validation of the opportunity via independent assessment of the proposed R&D project
Match funding 100% of the costs of that project with grant
An opportunity to invest earlier or to allow a proposed investment to go further
Natural catalyst to working with Innovate UK, other networks and the innovation community
Development of a more natural funding package
Opportunities for syndication and enable individual investors to consider a portfolio approach
An opportunity to build local capacity of associated angel groups
Benefits for investors
Programme of active engagement with Angels/Angel Syndicates
Use our Angel Hubs activities: Leeds and Newcastle
Angel investors information, networking and training days
Pitching events for investors
Referral process through our project manager and dealflow manager: Jordan@supernetwork.org.uk
UKBAA Dealshare Platform to allow investors to discover a curated pool of investment/grant ready
projects
UKBAA education and skills development programme
How can Angel/Angel Syndicate get involved?
How we're helping the Angels
Discounted and free access to an 8-hour online course on Angel Investing.
Angel training workshops and networking events.
Free Access to co-working spaces across the UK, including London.
12 months free membership to the UKBAA.
Lead angel identification and support:
Personalised advice and guidance, including on forming and running a syndicate

Introduction to co-funds and VCs
Mentoring from experienced lead angels
We plan to widen our highly successful diversity strategies to other minority groups and a wider geography.
The Asian Business Network are keen to work with us
Gender diversity events
scheduled for 2019:
3 Women Angel of The North
events
6 All Points North Women
Founder and Investor events
8 Women Angels Drinks
events
Diversity is key to our values
THANK YOU
Estelle Blanks
Executive Director
07752 752 880
Estelle@supernetwork.org.uk
PANEL 2: EFFECTIVE INVESTING
MODERATOR: TIM
MILLS
Managing Director
Angel Cofund
NIGEL GREENAWAY
Founder
Greenaway Scott
PETER LUSTY
Chief Executive
Manchester Tech Trust
ALEX ROTHWELL
Investment Manager
Maven Capital Partners
JESSICA JACKSON
Investment Director
GC Angels, part of The Growth Company
ELIZABETH GOOCH
Founder&ceo
The Tech Growth Factory
# ConnectedInvesting
@UKBAngels
AN OVERVIEW OF THE 100M REGIONAL ANGELS PROGRAMME
MARK BARRY
Senior Investment Manager
British Business Investments
# ConnectedInvesting
@UKBAngels
www.bbinv.co.uk
@britbusinv
Regional Angels Programme
British Business Investments
Mark Barry
16 May 2019
www.bbinv.co.uk
@britbusinv
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Programme Overview
BBI to invest up to 100m
Make commitments to delivery partners who invest BBI capital
Each commitment to be in the range of 5-15m
BBI to co-invest alongside group of angels and other early stage
investors
Early stage equity finance
throughout the UK
Focus on regions which are underrepresented by early stage equity
finance
Aiming for a well diversified portfolio
Invest via managed solutions, business angels, syndicates and
platforms
Timetable
Launched Request for Proposals in October 2018
Rolling open programme
www.bbinv.co.uk
@britbusinv
69
Programme Objectives
Increase aggregate
amount of early stage
investment
Seek to increase the supply of early stage equity investment to small
businesses throughout the UK, focused in regions that are currently
underrepresented
Promote angel investing
across the UK
Seek to raise the profile and professionalism of angel investment
activity, and aim to attract further third-party private capital alongside
angels
Generate Commercial
Returns
BBI expects to make a return in-line with market from building a well
diversified portfolio of investments
www.bbinv.co.uk
@britbusinv
70
Investment Criteria
Target Market
Growth businesses throughout the UK seeking equity finance of 100K
1.5M
Investment Strategy
Providing or facilitating early stage equity investment into growing UK
businesses, with the ability to deploy a BBI commitment of 5-15M over a
set number of years
Management Team
Experienced, credibility in early stage investing, presence in the UK market
Origination
Facilitate flow of deals, expected deployment, pipeline, diversification
Commercial Returns
Fully commercial rate of return, pre any tax incentives
Private Investor
Leverage
BBI will seek to be c.1/3 of each investment, therefore requiring 2/3 co-
investment from the private sector (with max 50% participation)
Portfolio Management
Processes in place for monitoring, reporting, follow-ons, exits etc.
Operations and
Structure
Having appropriate permissions, registrations and authorisations to
manage a BBI commitment
www.bbinv.co.uk
@britbusinv
71
Four Step Selection Process
Expression of Interest
Written submission setting out
business model, investment strategy
and addressing the investment
criteria
Formal Proposal
A further detailed submission
addressing feedback from EOI. Will
include meeting management
Due Diligence
Full commercial, financial, operational
and legal due diligence, including site
visits and background checks
Investment Committee
BBI investment team presents
proposal to the Investment
Committee
www.bbinv.co.uk
@britbusinv
72
Timeline of Events

June 2018: UKBAA Global Summit, Liverpool

July 2018: BBI/UKBAA Angel Roundtable Event, FBH
October 2018: Launched Request for Proposals
November 2018: UKBAA/HMT Roundtable, Manchester
December 2018: UKBAA Future Forward Event, London
UKBAA/IUK Manchester (16/05), Bristol (21/05)

July 2019: BBI/UKBAA workshops re legal, regulation, administration.
www.bbinv.co.uk
@britbusinv
73
Angel networks and syndicates
- Networks and syndicates can be informal groups of business angels, often loosely
formed, operating under the self certified sophisticated investor safe harbour, investing
on a deal by deal basis. There are estimated to be over 40 angel networks in the UK.
Equity platforms
- Equity crowdfunding platforms allow retail investors to invest in many opportunities,
often alongside venture capital funds and lead angel investors. The three largest players
in the UK are Crowdcube, Seedrs and Syndicate Room.
Angel Funds/Managers
- There are an increasing amount of new EIS funds, which have a dedicated fund
manager to manage committed capital to invest into EIS eligible opportunities.
Investors in such funds can be angel investors, however they tend to be passive high
net worth individuals. EIS funds can invest on a bilateral basis or also club together with
a syndicate or platform.
Types of Applicants to Date
British Business Investments is the trading name of British Business Investments Ltd, the commercial arm of the
British Business Bank. British Business Investments Ltd is a wholly owned subsidiary of British Business Bank plc,
registered in England and Wales. (registration number 09091930, registered office at Steel City House, West Street,
Sheffield, S1 2GQ). It is not authorised or regulated by the PRA or FCA. British Business Bank plc is a development
bank wholly owned by HM Government and is not authorised or regulated by the PRA or FCA. British Business Bank
plc and its subsidiary entities are not banking institutions and do not operate as such.
A complete legal structure chart for British Business Bank plc and its subsidiaries can be found at www.bbinv.co.uk
www.bbinv.co.uk
@britbusinv
No representation, express or implied, is made by British Business Investments as to the
completeness or accuracy of any facts or opinions contained in this presentation and
recipients should seek their own independent legal, financial, tax, accounting or regulatory
advice before making any decision based on the information contained herein.
No part of this presentation should be published, reproduced, distributed or otherwise made
available in whole or in part in any jurisdiction where to do so would be unlawful.
PANEL 3: REGION IN FOCUS
GORDON BATEMAN
Founder
Investor Ladder
JAMES BEDFORD
Head Of Investment Partnerships
Tech Nation
PATRICIA KEATING
Director
Tech Manchester
SUE BARNARD
North West Senior Manager
British Business Bank
ALEX WILSON
Investor
Nvm Private Equity
ANDY DAVIDSON
Head Of Business Relations
Northern Powerhouse
Partnership
# ConnectedInvesting
@UKBAngels
CLOSING REMARKS
JENNY TOOTH
CEO
UKBAA
# ConnectedInvesting
@UKBAngels
THANK YOU!
Join our upcoming events at connectedinvesting.ukbaa.org.uk
# ConnectedInvesting
@UKBAngels