'Running the gauntlet' investment plans announced

The ten finalists in the East of England Development Agency's (EEDA) 'running the gauntlet' investment and education programme tonight (6.11.07) learnt what the future holds for them during the final session at Destination Growth.

Two companies look set to secure investment funding, subject to due diligence:
Norfolk based House Revolution, the online estate agent, has secured investment interest from 12 angel investors following an introduction to London Business Angels by London Seed Capital.  The company is looking to secure £500,000.  Detailed investment discussions are now ongoing with the interested parties.

In addition Bedfordshire based Pets' Kitchen, the natural pet food company has attracted the interest of Cambridge Capital Group, the private syndicate of angel investors. The company is looking for investment funding of £200,000.

A third, Layered Sound Technologies of Cambridge has intrigued Phil O'Donovan, one of the region's most successful entrepreneurs and co-founder of Cambridge Silicon Radio, who has offered to mentor Dr Katz (chief executive) through some essential next steps. 

All the finalists will benefit variously from an extensive range of in-kind services delivered by 'running the gauntlet's' partners:
. £2,000 of legal services from Taylor Vinters for all finalists
. free tailored consultancy from Sagentia for technology focused finalists
. one year free business banking from HSBC
. counselling on financial planning from Grant Thornton
. consultancy on team structuring from Bailey~Fisher Executive Search for all finalists initially, then for three another three months free counselling
. one to one consultations with Microsoft UK (selected companies)
 
EEDA has additionally pledged to fund up to £50,000 worth of investment readiness advice to help selected companies focus on how to become investment ready, as identified in investors' feedback.  EEDA will also work with those companies for whom 'proof of concept' finance or 'grant for research and development' funding would be beneficial. 

Doug Richard chairman of Library House and the competition's investor panel said:
"The access to investors and the wealth of support that EEDA and the partner organisations are offering here is outstanding.  Money can't buy this kind of help when you need it and it's all being made freely available through 'running the gauntlet'.  These companies can't lose.  If they act on the advice and stay focused I feel confident there will be more successes to come out of this year's competition over the next 6 - 12 months." 

Richard Ellis, EEDA's chairman said:
"The 'running the gauntlet' programme is all about enhancing the investment prospects of our region's entrepreneurs.  This year's finalists demonstrated just how much they have gained from this competition with partnerships forged, networks developed and funding routes identified.  We are proud to have been able to help them and look forward to helping them further in the future."

Ends

For further information please contact:
Nicholas Boole
EEDA
Tel: 01223 484564 or 07877 223280
Email: nicholasboole@eeda.org.uk

Notes for editors

1. Finalists Summary
Company Name/website Synopsis
CT Innovations Ltd
(CB3 9SY) Invented a method of representing geometric information on computer programmes.
Coracle Online Ltd
www.coracleonline.com
(CO10 7DQ) A provider of e-learning to the maritime sector
Gameware Development Ltd
www.gamewaredevelopment.co.uk
(CB1 1DP) Develops 3D software imagery for mobile applications
House Revolution Ltd
www.houserevolution.com
(NR1 1RY) An on-line estate agency
Juice Technology Ltd
www.juicetechnology.co.uk
(EN11 0EX) Develops integrated power waterproof light systems
Oaklair Ltd
www.chocolatetrays.co.uk
(NR10 4EU) Provides biodegradable packaging to chocolate manufacturers
Pets' Kitchen
www.petskitchen.co.uk
(MK44 3RZ) Produce branded natural pet food
Layered Sound Technologies Ltd
www.layeredsound.com
(CB2 9NF) Has developed revolutionary loudspeaker technology
Tp24 Ltd
www.tp24.com
(PE16 6AG) Design and develop low energy light fittings
UltraSoC Technologies Ltd
www.ultrasoc.com
(CO4 3SQ) Develop de-bugging and verification systems for computers

2. Phil O'Donovan co-founded Cambridge Silicon Radio in 1999 which listed on the London Stock Exchange in March 2004, became a FTSE 250 company 4 months later and is now the leading global provider of personal wireless technology with a turnover of well over one billion dollars per year.

3. EEDA - the East of England Development Agency (EEDA) is the driving force behind economic development in the six counties of the East of England: Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk. The vision for the East of England is to create a leading economy, founded on a world class knowledge base, creativity and enterprise to improve the quality of life for all who live and work here.  For further information visit www.eeda.org.uk

4  'Running the gauntlet' is part of EEDA's 'finance for innovation' portfolio aimed at helping entrepreneurs in the East of England turn their innovative ideas into business growth.  For further information about the other types of support available see www.eeda.org.uk/financeforinnovation.
5 Running the Gauntlet: Investors
 CREATE
CREATE Partners Limited is a fund management company that is focused on providing value beyond capital. CREATE addresses the early stage funding gap between angels and mainstream venture capitalists and invests in companies focusing on emerging business opportunities that seek early international expansion.  The team has significant experience in dealing with medium sized companies, including strategic reviews, flotations, fund raisings, MBOs, mergers and acquisitions.

Since its establishment in 2000, CREATE has built a reputation for successfully implementing an innovative investment approach to meet the needs of investors seeking international diversification in specialist private equity funds. In recognition for its high quality focus on early stage investments, CREATE was awarded 'Equity Gap Fund of the Year' in September 2006 by a panel comprising leading UK venture capital and private equity investors.
CREATE Partners Limited manages The Create East of England Fund, a £20m venture capital fund that has since 2003 made 33 investments across various sectors ranging from seed capital to MBO.  CREATE Partners Limited is authorised and regulated by the Financial Services Authority. CREATE is a member of the BVCA.  www.createpartners.com

Low Carbon Accelerator
Low Carbon Accelerator is a closed-ended investment company created to invest in a portfolio of fast-growing low carbon businesses. The Company listed on the AIM Market of the London Stock Exchange on 11 October 2006, raising £44.5 million.  The Company's investment objective is to provide Shareholders with an attractive return on their investment primarily through significant minority (predominately 25 per cent. and above) holdings in a diverse portfolio of unquoted private companies providing low carbon products and services. The Company will initially invest principally in companies based in the UK, Scandinavia, Germany and California which provide low carbon products and services across Europe and the USA.
 
NW Brown Group
NW Brown & Company Ltd works closely with the business angels' community and has been operating the Great Eastern Investment Forum (GEIF) for over a decade - a network of business angels across East Anglia.

IQ Capital Fund is a £25 million early stage venture fund that partners exclusively with select expert business angels to invest in seed and early stage high-tech businesses, as well as fast growing companies in more traditional sectors throughout the UK.   The Fund ensures that each investment is supported by an experienced sector expert, an 'IQ Angel', both financially and with hands-on strategic and operational advice.  IQ's focus is upon the 'intelligent capital concept' whereby small businesses have an enhanced prospect for growth with the provision of specialist guidance and tutelage from a seasoned industry expert.

IQ Capital is closely integrated with partner business networks GEIF, OION (Oxford) and SWAIN (South West England). 

NW Brown Group Limited was founded in Cambridge (UK) in 1974 and has grown alongside the city's thriving economy, offering private and corporate clients a comprehensive range of financial services.  NW Brown's investment arm currently manages four seed and early stage investment funds totaling £40m, including the IQ Capital Fund, and has invested in over 35 companies over the last five years. 

SEP
SEP is one of the largest venture capital firms in Europe, with over £300 million under management. With offices in Glasgow and London, SEP focuses on investments in information technology, healthcare & life sciences and energy related technology businesses.  Our specialist sector teams invest in companies throughout the UK in financings of up to £30m.

SEP's particular experience with early stage companies has given the firm a reputation in the industry for identifying companies with the highest potential at an early stage and working with them to realise that potential as they face the challenges of building a successful international business.  In the last year, around 75% of SEP's investments were in early stage companies, with the firm leading or co-leading around 90% of the investment rounds it is involved in.  This ensures it is in the best position both to make the deal happen and to support the company going forward.

5 European Social Fund (ESF)
Running the gauntlet is supported by the European Social Fund which supports human resource development under objectives designated by the European Union. EEDA deals exclusively with Objective 3 funds which cover the entire East of England and which aim to assist people along the pathway to employment, retain jobs that could be threatened by industrial change and to build the capacity of organisations to support communities working towards these goals.

6  Running the Gauntlet: Commercial Partners
'Running the gauntlet' has nine commercial partners who offer a wide range of in-kind services and advice to entrants throughout the programme at no charge.   They draw on their extensive knowledge in specialist areas to provide advice aimed at making entrants business propositions attractive as an investment opportunity.  The nine partners are: Bailey Fisher, Cambridge Marketing College, Grant Thornton, HSBC, Microsoft UK, Mudhut Communication, Sagentia, Taylor Vinters, The Commercialisation Company