funding for innovation for creative and cultural enterprises (brighton)
TRANSCRIPT
Funding for Innovation for Creative and Cultural Enterprises
22 September 2015
Introduction
Sophia Woodley, Design ManagerGolant Media Ventures
#createinnovfund
Wireless and twitter
Wifi: 68 Middle Street
Password: thund3rstorm
Twitter:• @golantmedia• @68MiddleSt• #createinnovfund
Agenda11.00 Arrival, mingling, coffee and tea11.30 Welcome – Sophia Woodley11.40 The funding landscape - Patrick Towell12.00 Growth Accelerator: Business growth and Access to Finance – Richard Cooper12:30 Growth Accelerator: Growth Through Innovation – Roya Croudace13.00 Lunch1.40 R&D tax credits – Patrick Towell1.55 Private finance - John Spindler (Capital List)2.20 Creative KTN – Tom Campbell2.40 European funding – Sophia Woodley3.00 Tea break3.15 Case Studies: Business Models – Patrick Towell, Sophia Woodley, Mandy Berry3.35 Introduction to working session - Patrick Towell3.40 Working session 4.20 Feedback from working session4.30 Case study: Financing a media distribution platform – Cinegi - Mandy Berry4.50 Summing up and thanks5.00 Time for the pub!
Introduction
Patrick Towell, Chief ExecutiveMandy Berry, Founder DirectorGolant Media Ventures
#createinnovfund
Who we are
An innovation agency for creative, cultural and digital sectors
• Coaching & mentoring • Training & development• Advice & support • Commercial & public benefit• Funding • Business models • Intellectual property• Service & experience design • Data exploitation• Organisational change • Content distribution
#createinnovfund
Who we work for, with, funded by
http://www.golantmediaventures.com/projects
Funding landscape
• UK & EU• Public & private• Equity, debt, crowd, P2P…• Understand media/creative/entertainment or…
#createinnovfund
What innovation funding needs
• Compelling market opportunity– Market dynamics, focus, segmentation– Sizing, growth justification– Competitor analysis and positioning
• Clear portfolio of products, services, content, experiences…• Identifiable and defensible IP (and other intangibles)• Business models
– Value proposition– Revenue models, pricing, profitability– Delivery models, partnering, costs– Channel/distribution strategy
#createinnovfund
Richard Cooper and Roya CroudaceOn behalf of GrowthAccelerator Now part of the Business Growth Service
#createinnovfund
Introduction to the Business Growth ServiceRichard Cooper & Roya Croudace
What is the Business Growth Service?
Business Growth Service
Closely linked to:
To be eligible, all businesses must fit the European Union definition of an SME:• Based in England• Registered in the UK• Fewer than 250 employees• Turnover below £40M OR balance
sheet < £34M
The growth need of a business will determine the Business Growth Manager assigned to them on their growth journey.
What does the Business Growth Service do?
We Identify growth barriers, provide a dedicated Business Growth Manager and tailored support to those businesses who have the right level of ambition, capability and capacity to improve and grow.
This support includes coaching, consultancy, mentoring, training, access to finance and export advice
Growth Accelerator
Business Development
• Stepping back to see the bigger picture and developing a growth strategy which exploits opportunities for greater business success
• Assessment of current direction vs. future vision• Could involve :• Business planning• Strategic planning• Improving performance and efficiencies• Recruitment and people management
• Access to specialist finance support for investment readiness
• Review and assistance with financial performance.
• Assistance with funding options including debt and/or equity funding
• Introduction to appropriate funders. Access to GrowthAccelerator's Investor Relations team.
Complemented by two tickets
Access to Finance
Introduction to Investor Relations
Investor Relations is a unique service available only to Business Growth Service participants on the Access to Finance stream.
Primarily work with coaches and companies towards the end of their intervention and works on connections to funders.
A team of four based in London, but with national responsibility.
Role of Investor Relations team
Manage national relationships with funding providers, covering debt, equity and grant funding
Represent Business Growth Service in the external finance community and the service's views on UK funding landscape
Handle all Opportunity Note submissions and have a review and refine process – act as objective sounding board
Manage the weekly Review Group meetings
Circulate deal flow to external finance providers and make requested introductions
Responsible for the GrowthShowcase platform
Our funding contacts
Over 250 personal relationships with national funding providers
What do our funders think of us?
“The deals presented to me through the Investor Relations team have proved to be high quality, sufficiently investment ready and extremely targeted to my criteria…my best source of deal flow.”
– angel investor
“The pre-vetting and high quality propositions presented through Investor Relations make it much easier for us tosay yes…it goes to the top of the pile.” – EIS fund
“When I see a referral come through from your team, I can assume I am going to like it. If you think it's one for us, chances are we will do the deal.” – Bank
Leadership and Management
• Up to £2000 match funding available for senior managers to undertake leadership and management training
• Available for any training linked to the growth objectives of the business
• Senior managers with strategic responsibility for the direction of the business are eligible
Innovation
Pains or challenges?
...we are beginning to saturate existing
markets – we need to find something new
to continue to grow.
…don't see that the
organization needs to
change & adapt to
support & stimulate
innovation.
…our new products are
late to market & suffer
performance problems.
…we’ve become a lot
more efficient but we’re
struggling to come up
new product concepts &
to innovate.
…we’re too focused on
the day to day to
concentrate on
developing new
products.
…our people aren’t
capable of creating &
leading new product
concepts.
...we have a great
idea, but can’t afford to
do it.
…we’ve been growing but
we think our culture is
stifling further innovation
Growth through Innovation
An innovation is the implementation of a new or significantly improved product, service or process, a new marketing method, or a new
organizational method in business practices, workplace organisation or external relations.
Organisation for Economic Co-operation & Development (OECD)
Growth through Innovation
• How to generate new ideas• Understand customer needs• Creating competitive products & services• Collaboration & partnering for innovation• Developing an innovative organisation• Understand, protecting & exploiting IP• Finding & winning grants for innovation
Growth through Innovation – New themes
• Innovation strategy
• Develop the right commercial model & route to market
• Managing innovation projects
Growth through Innovation - Framework
IP Audits
IP Audits – What does it cover ?
It’s a long list including:1. Granted patents & pending patent applications2. Registered trade marks & trade mark applications3. Registered designs & design applications4. Unregistered trade mark rights, including trading names and branding5. Domain names6. Potentially patentable inventions, registrable trade marks, registrable designs7. Technical know-how8. Other forms of confidential information, including trade secrets & other commercial information 9. Potential sources of copyright (e.g. databases, websites, promotional materials, product Information, internal
documentation)10. IP-relevant contracts (e.g. licences, franchises, joint venture agreements, material transfer agreements)11. Known or likely sources of other IP rights, e.g. database rights, plant variety rights
Growth through Innovation – IP Audits
• Integrate IP into business strategy• Identify opportunities to use IP to generate income/value• IP risk management • Internal IP management strategies inc employee contracts etc. • Audit delivered by an IP Professional• Client contribution £400 (inc VAT)• £2,600 (inc VAT) IPO grant towards £3,000 (inc VAT) Audit
Design Mentoring
Typical problems solved by the Design Mentoring (Design expert coaching & Design Intensive) part of the service are around:
• Design Strategy • Understanding the Users • Developing Future Products & Services• Developing a Competitive Brand• Maximising Brand Visibility • Consistent Brand Articulation
Plus workshops & masterclasses & a grant up to £3,150.
Logo Packaging
Web
Retail
Service
Product
People
Advertising
Thank YouRichard Cooper & Roya [email protected] [email protected]
Funding for Innovation for Creative Enterprises
22 September 2015
Patrick Towell, Chief ExecutiveGolant Media Ventures
#createinnovfund
R&D tax credits
Have you ever…
• Solved complex technical or scientific challenges even though at the beginning you weren’t certain how?
• Dealt with unexpected problems along the way?
• Spent more time and money on it than you intended?
• Needed to put in more effort and money to exploit what you learnt and get a return on investment?
#createinnovfund
R&D tax credits
What do you need to do?
• Have activities that are liable to corporation tax
• Work out which costs you can legitimately claim – what HMRC will consider ‘proper’ R&D
• Have your accountant submit each R&D tax claim as part of an annual return
• Consider consulting lawyers if you have had other public funds or aid, such as SEIS or Innovate UK funding.
Financing an Ambitious Start-up
John Spindler CEO of Capital Enterprise
43@capenterprise
…to start you need..
@capenterprise 44
No 1 source of Finance…
@capenterprise 45
Your Money, the money you can borrow, your family and friends money…
Sound advice is…
Don’t Raise… …unless
• Can’t launch a product into market without external funds..
• Need to get big fast to compete.
@capenterprise 46
“There is an opportunity gap when the scope for growing income at a very fast
rate is limited for those who have too little to invest , but expands dramatically for
those who can invest a bit more.”- i.e. to win requires scale
Banjaree &Duflo- Poor Economics
@capenterprise 47
..only raise to SCALE..
0 2 4 6 8 10 12 14 16
-20
-10
0
10
20
30
40
50 Start-up Growth Pathway
Period
Net I
ncom
e
… and the world is changing…
..So a Start-up in want of investment needs..
• Team, Tech & resources that is FIT for the task of creating an awesome company
• Product that is the best solution FIT for the target customers problems.
• Business Model that is FIT to be scaled.
• Smart Ass Team
• with a Kick Ass Product
• With a Business model that can “capture” a Big Ass Market
( Jeff Clavier 3 Ass-es rule)
+ Capital Efficient to create a repeatable and scalable business.
@capenterprise 50
Idea to Tech Business- Three Chasms
@capenterprise 52
Idea
Problem/ Space
Exploration
Design/ Prototyp
e
Beta Test
Adapt/ PivotX2
Launch
Bootstrap- FFF
Innovation AwardsStart-up Loans
Crowdfunding i.e. Kickstarter
Seedrs/ CrowdcubeSEIS
Super Angels/ Angel Groups
Early Stage VC’s
Start-Up Funding road –map
Pre-Accelerators
Hackathons/ Hatcheries/ Meet-ups
Accelerators
Accelerators
Funding Product Development & BETA Testing
Grants & Awards General• Technology Strategy Board ( R&D Funding) - http://www.innovateuk.org -
http://www.innovateuk.org/content/competition/grant-for-rd-single-business.ashx• Knowledge Transfer Networks- www.innovateuk.org • IC Tomorrow- https://connect.innovateuk.org/web/ictomorrow • NESTA- http://www.nesta.org.uk/ • London European Enterprise Network- http://www.een-london.co.uk • EU Funding for SME R&D - http://www.eurostars-eureka.eu/what.do• EU Funding for R&D collaborations:
http://ec.europa.eu/research/participants/portal/page/calls • Knowledge Transfer Partnerships funding support-
http://www.ktponline.org.uk/ktp-what-will-it-cost-my-business • J4B- Portal for grant finding http://www.j4b.co.uk
@capenterprise 53
Crowdfunding (Reward)Crowd funding Platforms- Reward based Crowdfunding platforms will help you to raise funding to build a proto-type and market test a great idea or product. Great for pre-selling cool tech hardware.
• www.kickstarter.com • www.indiegogo.com • www.hubbub.com • www.crowdfunder.co.uk • http://spacehive.com • http://crowdshed.com • https://www.banktothefuture.com
@capenterprise 54
Funding the Runway…?
• How much/ little money is needed to build and test MVP/ demonstrate viability. ?
• Usually required to fund co-founder “Ramen” salary
• Going to need a Budget, Cashflow forecast and “burn rate”
55@capenterprise
@capenterprise
Need less than £10K to get to Build and test MVP?
-Sources of Grants- www.j4b.co.uk -Competition funding £1000 issued to 10+ businesses per month- http://www.shell-livewire.org -Princes Trust http://www.princes-trust.org.uk/need_help/enterprise_programme.aspx -£1000- £20,000 Enterprise Loans for Under 25’s- www.startuploanslondon.co.uk or www.startuploans.com -New Enterprise Allowance Scheme – Check who delivers the scheme in London by e-mailing Capital Enterprise.-Community Development Finance Associations- http://www.cdfa.org.uk - Also check out North London Community Finance- ELSBC Access to Finance – Business Plan support for those looking to raise up to £10KSoft loans for Creative Businesses- http://www.creativeindustryfinance.org.uk/
Need Less than £10K to Launch a
business
No Funds
Grant- www.j4b.co.uk
Unemployed? New Enterprise Allowance Scheme
Self Fund
BorrowWrite a simple
Business Plan & 12 month cashflow
Community Development
Finance Institution
Start-Up Loan Bank
56
Accelerators In SE England
http://www.f6s.com/
https://capitallist.co
Investment Readiness Test
@capenterprise 58
Are you Investment Ready?
@capenterprise 59
@capenterprise 60
1Idea Stage
2 Commitmen
t Stage- Secure Co-Founders
3FFF funding round –Build & Beta Test Minimum Viable Product
4Seed Investment Round (Angels + Early VC’s)- Prove Business model & acquire metrics to prove scalability
5 Series A Round (Angels, VC’s & Strategic Investors) – Go for scale, build out team, technology- EXECUTE
6 Exit
(Average 7 years and after many rounds) – Trade Sale or IPO
££££££££££££££
How Start-Up Funding Works Why 100% of Nothing is worth Less than 10% of something
big
Investment Essentials
@capenterprise 61
Round Amount Purpose London Pre-Money Valuation Guideline
Source of Investment What investors like to see
Pre Seed £25K-£150K (SEIS eligible)
Assemble Team/ Build & Test MVP/ Proof of Concept R&D
Zero- £500K Own Money/ FFF/ Crowdfunding/ SEIS Funds/
TSB
Unfair Advantages
Seed £150-£350K BETA Test/ Launch into Beachhead/ Proof of Product
Solution Fit
£500K-£1.5m Business Angels/ Crowdfunders/Seed VC's/
Co-Investment Funds
SMART Team- Early Evidence of Product/
Solution Fit- Validating customers/ users
Super Seed (Bridging
round)
£500K- £1m Working Business Model/Proof of Product/
Market Fit/ Demonstration of Growth
£1.5M-£4m Super Angels/ Seed VC's Product Solution FIT Proved- Early
Indications of Product-Market Fit ( i.e.
revenues)Series A £2m-£15M+ Scale £8m- £50m VC's/ Family offi ces and
Corporate VenturesRevenues & METRICS
proving scalability.
Importance of Tax breaks
• EIS
• SEIS
• ECF’s
• Co-Investment Programmes@capenterprise 62
@capenterprise
Seed Enterprise Investment Scheme-SEIS is a tax break launched in April 2012 for UK tax payers to encourage them to buy shares in start-up companies registered in the UK The Facts: •SEIS investors can input £100,000 in a single tax year rising to a maximum £150,000 over two or more tax years in to a single company•Investors cannot control the company receiving their capital•Investors pick up 50% tax relief in the tax year the investment is made, regardless of their marginal rate.•In the 2013-14 tax year, tax payers can roll 50% of a chargeable gain in the tax year in to a SEIS with a full capital gains tax exemption (another 14%)•The business must be a start-up company -registered in the UK within 2 years of claim. •The company must not employ more than 25 workers.•The company must have assets of less than £200,000.•The company has to trade in an approved sector – generally not in finance or investment, for example, a property company raise capital as a SEIS.
SEIS is…… “a game changer”?
63
Proof of Product-Solution Fit
@capenterprise 64
Does the tech work/
product deliver?
Does it create value
for the customer?
Can You Capture
some of that Value? £££
Product Solution Fit
P/S Fit for Creative/ Content based start-ups…
@capenterprise 65
Am I talented?
Have I achieved “Critical” acclaim?
Do I create value for
my customers?
Product Solution Fit
Proof of Product-Market Fit
@capenterprise 66
• Team/ Resources/Plan
• Business Model
• Market• Technical
Does it work
Does it create Value
for the customer?
Is the Team fit and able to deliver
Can you make
money/ repeat & scale.
POC P/S Fit P/M Fit
SEIS LCIF VC
What stage is your business at?
FF
Investors tend to invest for transitions…
Capital List – The Minimum Viable Introducer
“ Showcasing and connecting Entrepreneurs to champions and
investors”beta.capitallist.co
@capenterprise 68
Send a slide deck and get introducedhttp://www.slideshare.net/slidesthatrock/how-to-pitch-a-vc-redesigned
69
Ten slides. Ten is the optimal number of slides in a PowerPoint presentation because a normal human being cannot comprehend more than ten concepts in a meeting—and business angels are very normal. If you must use more than ten slides to explain your business, you probably don’t have a business. The ten topics that an investors cares about are:
1. Summary and call to action/ what do you want?
2. Problem
3. Your solution
4. Business model
5. Underlying magic/technology
6. Marketing and sales
7. Competition
8. Team
9. Projections and milestones
10. Status and timeline
@capenterprise
Send to : [email protected]
7 Types of Early Stage Investors in SE England Market
1. Crowdfunders/ Platforms2. Tax Relieve Seeking SEIS/EIS Funds3. Government Backed ECF’s4. Traditional Angel Syndicates5. Super Angels6. VC’s 7. Strategic Investors ( Corporate Venture)
@capenterprise 70
Seed/ Early stage Investment Platforms
Crowdfunders.www.crowdcube.com www.seedrs.comwww.crowdbnk.comhttps://www.crowd2fund.com
Angel Platforms- www.angel.co - www.syndicateroom.com
@capenterprise 71
“Pay to Play” Funds. Top SEIS Funding Syndicates1. Jenson Solutions-
www.jensonsolutions.com 2. Ingenious Media-
www.ingeniousmedia.co.uk 3. Ascension Ventures-
http://www.ascensionmedia.com/ascension-ventures.php
4. Start-up Funding Club- http://www.startupfundingclub.com/
5. Ascot SEIS – www.ascotwm.com
Top Traditional Angel Syndicates
1. London Business Angels: http://www.lbangels.co.uk/
2. E100 (LBS) 3. Oxford Angels: http://
www.oxei.co.uk
4. Cambridge: http://cambridgeangels.com
5. Envestors- www.envestors.co.uk
6. Angels Den- www.angelsden.com
@capenterprise 72
Super Seed Investors
• Playfair Capital- http://playfaircapital.com • Angel Lab- http://angellab.co.uk/ • Firestartr- www.firestartr.com • Kima Ventures- http://www.kimaventures.com • Boundary Capital - www.boundarycapital.com • Venerex ( Fashion Tech- see Capital List) • Jam Jar Investments- http://jamjarinvestments.com • No 1 Seed - www.number1seed.co.uk • Angel List Syndicates – www.angel.co
@capenterprise 73
Enterprise Capital Funds.
ECF’s • Notion Capital – SAAS specialist- See portfolio here
• Passion Capital: Early Stage, see their portfolio here.
• Sussex Place Ventures- Early stage ( linked to LBS)
• Amadeus Capital: Early and mid-stage- just launched new fund.
• Episode1: Early Stage Software Companies• Longwall – Oxford Based – Science backed Start-ups focus • Dawn Capital - Fintech and SAAS• IQ Capital – Seed and Series A
@capenterprise 74
Active Seed VC’s in SE England. Big 7
Accel Partners: Stage agnostic, see their portfolio here.
Balderton- Stage Agnostic- See there portfolio here
Index Ventures: Stage agnostic, see their portfolio here.
Wellington Partners: Stage Agnostic, see there portfolio here
Octopus Ventures: Early to mid-stage, see their portfolio here.
DN Capital : Early and mid-stage, see their portfolio here
DFJ Esprit: Early to mid-stage, see their portfolio here.
Cool Cats
• Profounders: Early and mid-stage, see their portfolio here.
• MMC Ventures - Series A Fund- Co-Investment fund with Mayor of London
• Piton Capital: Early and mid-stage specialize in market places.
• White Star Capital- Early stage – See portfolio here
• EC1 Capital: Early stage, see their portfolio here
• Connect Ventures- Early stage and very cool.
• Hoxton Ventures – New and focus on seed with next move to USA.
@capenterprise 75
Specialist FundsSocial/ Tech for Good- NESTA - www.nesta.org.uk/investments - Unltd – www.ubltd.org.uk - Big Society Capital- http://www.bigsocietycapital.com - Sources of Social Finance- http://www.bigsocietycapital.com/finding-the-right-investment - Bridges Venture Fund http://www.bridgesventures.com/social-entrepreneurs-fund - Big Issue Investment- http://www.bigissueinvest.com - Social Finance- http://www.socialfinance.org.uk - Social Investment Fund- http://www.thesocialinvestmentbusiness.org
Women
- Stargate Capital- Trapezia- http://www.stargatecapital.co.uk/trapezia_1.aspx- FSE-- http://thefsegroup.com/investors/business-angels/incito-ventures/- Aspire Fund - http://www.capitalforenterprise.gov.uk/files/Aspire%20Information%20Leaflet%20(v%202)%20Flyer%20brochure.pdf
Green- Bridges Sustainable Fund- http://www.bridgesventures.com/sustainable-growth-funds - Ingenious Media- Cleantech Fund http://
www.ingeniousmedia.co.uk/investments/investment-opportunities/clean-energy - Carbon Trust- http://www.carbontrust.com/about-us/our-investments - Low Carbon Accelerator- http://www.lowcarbonaccelerator.com - CT Investment Partners- http://www.ctip.co.uk - Wellington Partners- http://www.wellington-partners.com/wp/index.html
@capenterprise 76
Corporate Players
@capenterprise 77
Who can Capitallist introduce a start-up to...
http://capitallist.co/our-investors
@capenterprise 78
Tom CampbellKnowledge Transfer Network
#createinnovfund
ktn-uk.org @KTNUK
Tom Campbell 22 Sep 2015
Golant Media Ventures: Funding for innovation for Creative EnterpriseThe Knowledge Transfer Network
Introducing
What we do— KTN is the UK’s innovation network. It brings together businesses, entrepreneurs, academics and funders to develop new products, processes and services— We help business to grow the economy and improve people’s lives by capturing maximum value from innovative ideas, scientific research and creativity
The Knowledge Transfer Network
ktn-uk.org @KTNUK @KTN_Creative
The Knowledge Transfer Network
Connecting people to accelerate innovation
Interdisciplinary
Bringing together businesses and researchers from different sectors.
Commercial
Introducing innovators to public and private funders and investors.
Strategic
Connecting people who wouldn’t usually meet to solve innovation challenges.
Entrepreneurial
Linking people with new ideas and technologies to partners and customers.
ktn-uk.org @KTNUK
Clustered communities, groups and business programmes
Focus is on bringing together groups that would not normally meet
ktn-uk.org @KTNUK
MaterialsChemistryEnvironmental Services
Agri-FoodBiosciencesHealth
ICTElectronics, Sensors & PhototonicsDefence & SecuritySpace
Built EnvironmentTransportEnergy
Creative IndustriesDigital EconomyDesign
Sustainability, H2020, International, Access to Finance, Design
Thought leadership + reports + resources
GMV's report for the KTN on innovation through co-design and data in the creative industries:
http://golantmediaventures.com/projects/innovation-from-co-design-and-data-in-the-uks-creative-industries
Creative Industries Strategy:
https://connect.innovateuk.org/web/creativektn/article-view/-/blogs/video-creative-futures-innovation-and-growth
https://connect.innovateuk.org/web/creativektn/resourcesKTN H2020 guidebook:
Brokerage events: Horizon 2020
Series of KTN brokerage and networking eventsNovember 2015
London, Brighton, Manchester, Cardiff
Join the Linkedin group:
http://www.linkedin.com/groups?about=&gid=3233422&trk=groups%2Fhome-h-share
Clustered communities, groups and business programmes
ktn-uk.org @KTNUK
Business programmes— Sustainability— Design— Horizon 2020— International— Access to funding & finance
National and local
ktn-uk.org @KTNUK
THEMATIC RESPONSIVE
THEMATIC COMPETITIONS
• Collaborative Research & Development (CR&D)
• Feasibility Study• Innovation Contests• Launchpad• Small Business Research Initiative (SBRI)• Knowledge Transfer Partnerships (KTP)
RESPONSIVE COMPETITIONS
INNOVATION VOUCHERS- designed to help businesses gain the knowledge they
need to innovate and grow.- An Innovation Voucher can help your business to work
with an external expert for the first time by paying towards the cost of their services.
- £5k for SMEs to work with ‘Knowledge suppliers’ to help their businesses address a real challenge, not just a small improvement or change to what they currently do.
- 4 rounds of funding every 3 months. Over 100 vouchers are issued each round.
RESPONSIVE COMPETITIONS
SMART GRANTS• Proof of Market
- This grant enables companies to assess commercial viability.
- Max. Grant £25k. Up to 6 months. 60% of total project costs
• Proof of Concept- A grant to explore technical feasibility .- Max. Grant £100k. Up to 18 months. 60% of total project
costs• Development of Prototype
- To develop a technologically innovative product or service.
- Max. Grant £250k. Up to 2 yrs months. - 35% of total project costs (Medium), 45% for small &
micro.
Current Open Creative & Digital Competitions
Register for our Bi-weekly Newsletter
http://www.ktn-uk.co.uk/subscribe-2/
http://www.slideshare.net/KnowledgeTransferNetwork/creative-digital-design-business-briefing-september-2015
+ Monthly Slideshare
Monthly Business Drop-in sessions
16 Sept Digital Catapult Centre, London:
17 Sept, Tech Hub, Swansea: ow.ly/RKIt6
ow.ly/QvKXP
Thank you
European Funding
Sophia Woodley, Design ManagerGolant Media Ventures
#createinnovfund
Horizon 2020
“Horizon 2020 is the biggest EU Research and Innovation programme ever with nearly €80 billion of funding available over 7 years (2014 to 2020) – in addition to the private investment that this money will attract... Horizon 2020 is the financial instrument implementing the Innovation Union, a Europe 2020 flagship initiative aimed at securing Europe's global competitiveness.” (Source.)
#createinnovfund
Horizon 2020
Types of Horizon 2020 ‘Action’:• Research & innovation actions
– R&D creating new knowledge or testing feasibility– “At least three legal entities from at least three different Member States or associated
countries.” – 100% of eligible costs
• Innovation actions – New or improved products, processes or services, including testing pilots– “At least three legal entities from at least three different Member States or associated
countries.” – Includes “Fast track to innovation”:
http://ec.europa.eu/programmes/horizon2020/en/h2020-section/fast-track-innovation-pilot-2015-2016
– 70% of eligible costs
• SME instrument– Can be for single SMEs– Usually 70% of eligible costs
Horizon 2020: SME Instrument
• For single or groups of highly innovative SMEs with international ambitions• Phase I (proof-of-concept): Scientific/technical feasibility & commercial potential
– Activities: risk assessment, market study, user involvement, partner search, IP management– Output: feasibility report, with more detailed business plan– Around 6 months– €50,000
• Phase II (development & demonstration): Make business idea market-ready– Activities: demonstration, testing, prototyping, piloting, scaling-up, design, market replication– 12-24 months– €500,000-2.5m
• Phase III: Commercialisation– “Investment readiness support, help with accessing risk finance and customers, and Enterprise
Europe Network are available to help business commercialising the innovation resulting from phase 2.”
• Includes coaching in parallel with phases 1 and 2, provided via the European Enterprise Network• http://ec.europa.eu/research/participants/docs/h2020-funding-guide/cross-cutting-issues/
sme_en.htm
Horizon 2020: Work Programmes 2016/17
• Will be officially adopted and published mid-October 2015
• ICT-20-2017: Tools for smart digital content in the creative industries • ICT-21-2016: Support technology transfer to the creative industries • ICT-22-2016: Technologies for Learning and Skills • ICT-23-2017: Interfaces for accessibility • ICT-24-2016: Gaming and gamification
• CULT-COOP-08-2016: Virtual museums and social platform on European digital heritage, memory, identity and cultural interaction.
• CULT-COOP-09-2017: European cultural heritage, access and analysis for a richer interpretation of the past.
Creative Europe 2014 – 2020Budget: €1.46 billion
€823 million56.3%
€455 million31.1%
€184 million12.6%
MEDIA Culture Cross Sector
• Creative Europe is the European Union's programme to support the cultural, creative and audiovisual sectors.
• From 2014-2020, €1.46 billion is available to support European projects with the potential to travel, reach new audiences and encourage skill sharing and development.
• Creative Europe’s Culture sub-programme supports the cultural, creative and heritage sectors.
• Creative Europe’s MEDIA sub-programme invests in film, television, new media and games.
What is Creative Europe?
• Film and TV professionals
• Video game developers• Distributors• Sales agents• Audiovisual training
providers• Organisers of festivals,
markets and networks• Film education
specialists• Cinema exhibitors
• Visual arts
• Theatre• Opera• Circus• Literatur
e• Music
MEDIA Culture
Who does Creative Europe support?
Organisations/companies working
in the film, television and new media sectors.
Funding, training and networking opportunities
available for:
Organisations/companies working
in the cultural, creative and heritage sectors.
Funding available for mainly collaborative projects
involving organisations across all art forms, such as (but not
limited to):• Dance• Fashion• Heritage• Design• Architecture• Interdisciplin
ary
What does Creative Europe support?MEDIA
• The wider circulation of European films and TV programmes, including innovative models of distribution
• European focused training courses, festivals and industry events
• Funding for the development of projects for cinema, television and digital platforms (including video games)
• The Europa Cinemas network• Film literacy and audience development initiatives CULTURE
Support for a wide range of projects including:• International dance networks• Collaborative projects on disability arts and live
performance• Pan-European digital opera projects • Translation of fiction from one European language
to another • Audience development projects• Network of theatre for early yearsAnd much more… www.creativeeuropeuk.eu/funded-projects
Free advice and support to help the UK’s cultural, creative and audiovisual sectors to access funding from Creative Europe. www.creativeeuropeuk.eu
Where can I go to find out more?
Cardiff
MEDIACulture
Belfast
MEDIAGlasgow
Creative Scotland
Arts Council of Northern Ireland
Edinburgh Creative ScotlandCulture
Welsh Government
MEDIACulture MEDIA
LondonBritish Film Institute
London British Council & Arts Council EnglandCulture
Manchester British Council & Arts Council EnglandCulture
Where to find further guidance?
• Creative Europe Desk UK: http://www.creativeeuropeuk.eu – Culture Breakfast seminar in London, 28 Oct:
http://www.creativeeuropeuk.eu/events/culture-breakfast-seminar-london-2
• Horizon 2020 UK: https://www.h2020uk.org/who-can-help • Enterprise Europe Network UK: http://www.enterprise-europe.co.uk • Creative KTN:
https://connect.innovateuk.org/web/creativektn/horizon-2020-creative-industries-funding
Business Models
Patrick Towell and Sophia WoodleyGolant Media Ventures
#createinnovfund
The Live & Digital R&D project explored the questions – can digital technology be
used to:• capture and distribute small-scale
theatre productions economically and effectively to reach new audiences?
• retain the unique intimacy, engaging quality and ‘liveness’ of performances?
• facilitate a viable and sustainable business model around this?
Recording partnersMarketing partnersSponsorsDistributorsSales agents
Production/ post prod Exploitation/ sales
IP frameworkDistribution network
Original production
New content for venuesAdditional ways to see production Access for remote audiences
B2B B2CDirect and indirect relationships
Public screenings – digital and satelliteHome ent DVDs etc
End AudiencesList from ACE segmentation
Cinemascommunity, cultural and commercial non cinema venues
Capture - filming and post production
Additional performance costs – actors, venue etc Rightsholders fee
from distributors and sales agents
DVD sales
Touring Theatre company
Business model chart of accounts• Profit and loss AND balance sheet structure reflects that this
is venture requiring risk capital and planned to make a profit• Exploitation of film across multiple platforms & windows –
and ancillary rights (eg soundtrack) and spin-off products (merchandise)
• What the original producer(s) of the performance take as a fee can significantly effect the profit of the film
• The costs of ‘producing’ – management, executives, commercial negotiations, business affairs (legal) – need to be factored in
• There will usually be multiple investors – and multiple other rightsholders with a share of profits – rights/profit share require administration
Data tells you how well you do at connecting ‘people’ to ‘stuff’… and what impact that has
People
• Board• Staff• Ticket-buyers• Artists• Cafe-users• Web users• Social media
followers
• Partners• Influencers• Students• Media• Funders• Educational institutions
Stuff
• Products and services• Content• Experiences• Creative works
Organisationalperformance
(Connecting people to stuff)
Direct impact
Social impact
Data
Hierarchy of value in ‘knowledge assets’(with apologies to Nathan Shedroff)
Knowledge
Information
Data
Wisdom
Levels of working with data
Comprehension
Coherence
Completeness (availability)
Information design
Information engineering
Information architecture
Creating meaning and ultimately valueCreation
Message:
Multiple filter
Category:Regular café wifi users
Event attendees:Only once
Interest:contemporary
classical
“Come to a low-keygig at our café!”
Multiple filter
Have donated more than £50 before
Have not donatedin the past year
Have attendedan event in
the past year
“Please keep supporting the performances you love.”
Message:
The existing process – spaghetti
This is why it doesn’t work now
Working session
• Type of enterprise– Film/TV production– Digital production
(games/TV/mobile)– Publishing (books/mags)– Major arts, culture, heritage– Smaller arts, culture, heritage– Ad/marketing agency– Food, fashion, or design– Public body
• Target demographic– Children– Young people– Middle age– Older people
• Market– UK– International
• Type of content/data/technology
• Revenue model• Current revenue• Stage of growth
– Concept– Prototype– Early stage– Growth– Expansion
• Funding already acquired
Mandy BerryChief Executive, CinegiFounder Director, Golant Media Ventures
#createinnovfund
DIGITAL FILM DISTRIBUTION SERVICEANY VENUE CAN BE A ‘CINEMA’
MANDY BERRY, CHIEF EXECUTIVE
HOW IT WORKS
• Filmed media rights management
• Secure distribution
• Web-based platform and desktop app
• Download over public internet using standard broadband
• No proprietary kit
• Screening in full HD
…“as easy as home entertainment”
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Film societies Village halls Arts centres
Pubs/hotels
Touring circuits Theatres Independent cinemas
Colleges Community centres
VENUES AND PROMOTERS OF ALL KINDS …AND MORE!
WorkplacesTourist attractionsHigh street pop-upsFestivalsOutdoor public spacesSports & leisure venuesSocial clubs, church halls
VENUES/PROMOTERS
CINEGI PLATFORM – B2B WEBSITE
Catalogue – packaging, programming & booking
Paperless box office & admissions reporting
CINEGI PLATFORM – CINEGI PLAYER
Download Manager
In-venue Playout
• As easy to use as a catch-upTV service
• No special training required
CINEGI IPE-
Busi
ness
Secu
re d
igita
l del
iver
y
Brand
IP
Web application design &
software
IP
Catalogue
IP
Customer
database
IP
Media, metadata
& collateral
IP
Player design
& software
IP
DEVELOPMENT & FUNDING JOURNEY
Public funding & corporate support 2011-12
VC Investment 2014
- Research into audiences and alternative venues
- Business modelling for alternative content
Public funding 2013
- Gap finance
- Market analysis, product strategy, business planning
- Management & administration resources
- Platform & player built
- Team in place
- Initial content secured
- Private beta in South West
- Funding from public funders and commercial partners
(no equity/rights taken)
- Proof of concept – created technical, commercial &
legal blueprintInnovation support all stages 2010-14
Digital R&D Fund for the Arts
• Keep it simple
• Be open
• Partnerships
• Leverage your funding
• Tenacity
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KEY SUCCESS FACTORS
Get in touch!
Building resilience and agility• Innovation and realising opportunities from digital• Making new revenues, reaching new customers• Distribution strategy and organisational change
Designing new products and services• Realising the full value of content & data• Devising new entertainment, cultural & information propositions• Developing creative, technical and business solutions
Getting value from data• Making data a strategic asset• Using data to realise your creative and commercial ambitions
Public funding and private financing• Securing funding from a mix of funders• Being investment ready – proposition & business model
Patrick Towell patrick.towell@golantmediaventures www.golantmediaventures.com @golantmedia
Thank you for attending!