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Investment Readiness Workshop for Renewable Energy & Energy Efficient Companies 25th March 2009 Ewan McClymont Head of Grant Services

Raising finance can be a bun fight...

Key areas -advisor’s perspective           

What stage is the business at? How much investment needs to be raised? What is the investment needed for? Does it make enough money to be attractive? Are the forecasts credible? Can the management team deliver on the plan? Does the market really exist? How dependent is the market on Govt legislation? What are the barriers to entry? Passion of founders – ‘ugly baby syndrome’ Is there an exit strategy (for the investor)?

What you can do to help yourself           

Be crystal clear on funding requirements Understand the investor’s requirements – payback, return, exit Fully understand your USP’s Demonstrate thorough market research Understand assumptions behind financial forecasts Identify management weaknesses Protect your IP Be realistic about values and assess investment risks honestly Allow sufficient time and be available Anticipate due diligence Don’t wait until the last minute to bring in advisors

Current challenges  Credit squeeze – banks have little appetite for      

unsecured lending Investor nervousness about sector Delays in obtaining planning permission Uncertain sales, market size, and demand Mixed messages about environmental impact (Biodiesel, Barrages, Wind-farms etc) Risk of government interference and market distortion Risk fears about small, early-stage or new technology companies

Possible solutions  Appoint advisors for anything that you cannot do

competently yourself  Involve us at an early stage  Be flexible and prepared to change tack  Depending on perception of risk and investment

return, be prepared to give more away  Consider alternative funding sources such as grants  Be prepared to invest your own money

Bishop Fleming Offices in Bristol, Exeter, Plymouth, Torbay and Truro http://www.bishopfleming.co.uk