Finance Wales Investing in life sciences

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Finance WalesInvesting in life sciences
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Who are we?

• The Finance Wales Group comprises
• Finance Wales
• FW Capital, our non Welsh fund management
  business
• xénos, our business angel network
• Commercially independent company providing
  investment funding to SMEs in Wales
• Invests private/public funds

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Our investments (m)
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Finance Wales funds

• Funds we are currently investing
• Wales JEREMIE Fund - 150m
• Wales SME Investment Fund - 40m
• Wales Technology Seed Fund - 7.5m
• Wales Micro-business Loan Fund - 6m
• Wales Property Development Fund - 10m
• Wales Capital Growth Fund - 20m
• Consistently invests over 30m per annum in Welsh
  companies
• Total funds under management in excess of 400m

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Finance Wales Venture Capital Funds
What are looking for? Entrepreneurial teams
seeking to transform big ideas into game-changing
companies.
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Seed Fund details

• 5m over five year investment period
• Investment of 50k - 150k
• Operated under De Minimis (must be cumulated)
• Structure
• Convertible Loan notes with conversion discount
• Straight equity if existing or new co-investors
  participating
• Focused on technology based businesses
• Start ups, University and NHS Spinouts, Large co
  spin offs
• Pan Wales coverage

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Venture Fund details

• Investment of 150k - 1m
• Structure
• Determined by requirements of opportunity
• Can invest along or alongside coinvestors
• Technology focus
• High growth potential IP-based companies
• Pan Wales coverage

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Our co-investors
20 Co-investors 63 investment rounds
31.7m co-investment
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Desirable attributes

• A compelling idea that reflects a deep
  understanding of a big problem or opportunity,
  and offers an elegant solution. And
• A strong core team, not a world-class,
  all-gaps-filled team. But the founders have to
  have the credibility to launch the company and
  attract future talent that is needed to fill the
  gaps. Winning over investors depends on your
  people skills, not just your technical prowess.

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Desirable attributes

• Market opportunity - you should be targeting a
  technology sector that is not already crowded,
  where there is a significant problem that needs
  to be solved, or an opportunity that has not been
  exploited, and where your solution will create
  substantial value.
• Technology with a robust and sustainable
  advantage (and IP?) which attracts plenty of
  customers with plenty of money that desperately
  need it or want it.

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Desirable attributes

• Competitive advantage Your product/service must
  have advantages that address all forms of
  competition, and that can sustain these
  advantages over several years.
• Financial projections well articulated
  projections demonstrate that you understand the
  economics of your business. They should explain
  what drives your growth, what drives your profit,
  and how your company will evolve over the next
  several years.

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Desirable attributes

• Validation key questions
• Is there good evidence that your solution will be
  purchased by your target customers?
• Do you have an advisory board of credible
  industry experts?
• Do you have a co-development partner within the
  industry?
• Do you have beta customers to whom investors can
  speak?
• Do you already have paying customers?
• What other brand name validators can you offer?
• The more credibility and customer traction you
  have, the more likely investors are going to be
  interested.

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- Ultrasound training simulators
Co-investment of 725k with Fusion and IP Group
Series B round of 300k to drive US sales
Follow on round of 75k to develop new
applications

• Cardiff University spinout with R D support
  from Welsh Government

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• Academic research project gt International
  business (10yrs)
• FW first investment in 2009 systems development
• 2013 sales 1.6m. 2014 forecast sales 3.2m
• Established US office and global distribution
  partners
• Leveraged c. 2.5m of private investment
• Employs 16 staff, WG HPS, Smart grant, R D
  tax credits
• Recruited US based chairman
• 2nd generation systems and software
• 100 systems across 12 Countries
• Exit 2-3 years?
• Early OEM interest

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Thank youAny questions?

• Dr Melanie Goward
• melanie.goward_at_financewales.co.uk
• 029 2033 8112