Cheshire East: Business Growth Lunch Presentation

Cheshire East ‘Helping your business grow’ lunch event

Alderley Park6 December 2016

Hilary CentelegheSenior Growth Manager – Growth team

Business Growth Hub

Agenda• 12.00pm – Welcome and agenda, Hilary Centeleghe, Senior Growth Manager, Business Growth Hub • 12.10pm – Welcome and introduction to the Business Support offering, Philip Kerr, Senior Investment Manager, The Skills and Growth

Company • 12.15pm – Guest speaker – Growth: Katie Bancroft, Managing Director, Talent HR

• 12.30pm – Guest speaker – A2F: Elizabeth Thomas, Co-Founder and CEO, Alderley Analytical • 12.45pm – Q&A

• 12.55pm – Closing remarks • 01.00pm – Lunch and networking

• 02.00pm – Event close

Our Support Services – Cheshire EastGrowth ServicesBusiness Strategy

MarketingRestructuring/change

managementNew premises & planning

Meet the buyer

Access to FinanceInvestment readiness

Introduction to specialist lenders

Innovation Support Access GM & Cheshire Life Sciences FundCollaboration with R&D facilities e.g. HEIs

Innovation coachingInnovate UK

EEN/Boost4Health

Cheshire Manufacturing Growth Service

• Grant fund for SME manufacturers.• Impartial manufacturing expertise to assess opportunities.• Recommendations to unlock growth and achieve improvements in

productivity and competitiveness. • Revenue grant for additional consultancy support. • £10K projects with 30% grant.• In-scope Projects: Innovation, sales strategies, business systems,

operational efficiencies and excellence.

Contact us to find out moreMARK RENSHAWAccess to Finance Advisor – Cheshire EastMobile: 07714 765998Email: [email protected]

Phone: 0161 359 3050

Email: [email protected]

www.businessgrowthhub.com

@bizgrowthhub +Businessgrowthhub Business Growth Hub

Contact us to find out moreCHRIS GUNNINGBusiness Growth Advisor – Cheshire EastMobile: 078315 543604Email: [email protected]

Phone: 0161 359 3050

Email: [email protected]

www.businessgrowthhub.com

@bizgrowthhub +Businessgrowthhub Business Growth Hub

Philip KerrSenior Investment Manager

The Skills and Growth Company

Performance Framework

Philip KerrSenior Investment ManagerThe Skills & Growth Company


Everyone deserves the opportunityto succeed and every business the opportunity to thrive.

Performance

Skills & Employment

Innovation & Growth

Business Support& Investment

Business Functions

• Top 100• HGSMEs• Rural Business• Inward Investors


Local Knowledge & ConnectionsDedicatedAccount Managers

• Single point of contact• Detailed analysis and Growth Plan• Fast-track access to support

Intro toCouncilServices

• Planning & Assets• Regulatory Services• Highways & Parking

CommercialPropertyService

• Property finding service• Bespoke research and analysis• Advice on business rate discounts


Enabling Development

• Growing Places Fund• Enterprise Zones• Inward Investment

Providing Specialist SupportAccess toBusinessFinance

• Sourcing commercial finance• Support with funding applications• External funding providers

Innovation& GrowthExpertise

• Bespoke business planning advice• Identify challenges and opportunities• Access specialist programmes

MeetingYourNeeds

• Travel planning service• Energy and resource efficiency • Selling to the public sector

Skills &TrainingSupport

• Training Needs Analysis• Advice on Apprenticeship Levy• Engagement with local schools

Sector Specific SupportManufacturing

• Manufacturing Support Service• Product Development Expertise• Process Improvement

Creative &Digital

• Digital 20:20 • WEAVE ‘Sector Taskforce’• Digital Growth Fund

LifeSciences

• GM & Cheshire Life Science Fund• Science Corridor Enterprise Zone • BioHub – managed workspace

Rural &AgriTech

• Business planning• Identifying relevant funding streams• Help with application process

Case Studies

www.skillsandgrowth.co.ukTwitter: @SkillsandGrowth

Katie BancroftManaging Director

Talent HR

A Story of Growing Talent

Katie Bancroft, Managing

Director

A Single Idea…#hrwithpersonality

#notapushyrecruiter

Expectations…

The ‘Learning’ Points Identity, ideas and intelligence Marketing to the market Focus with absolute clarity

‘The Talent partner of choice’A Single Mission

Thank you

Elizabeth ThomasCo-Founder and CEOAlderley Analytical

ALDERLEY ANALYTICAL

Investment for growth

Elizabeth ThomasCEO

2014 Winner of the Cheshire East “Start up of the Year” award

About Us• Alderley Analytical is a strategically well placed, specialist, bioanalytical Contract Research

Organisation (CRO) offering value enhancing, differentiated services to a range of clients. The company has GLP/GCP (regulatory) accreditation

• A USP for the company is the ability to take in-depth bioanalytical knowledge of a drug from the discovery phase and, with GLP/GCP accreditation, into the development (clinical) phase ensuring early knowledge of the molecule is not lost. To date this has been the domain of larger, more generalist, less flexible CRO’s

• The company was set up (in Alderley Park) in Jan 2014 by 4 industry experts with over 100 years experience in tier 1 CRO’s and top ten Pharma who identified the above gaps in the CRO market, backed up by market research


Technology – Investment from world largest instrument manufacturers

• We have access to industry leading instrumentation and “next generation” instruments providing us with a competitive edge.

• Two of the world’s largest Instrument manufacturers, Waters and Thermo Fisher Scientific have set up collaborations with us and have placed some of the ‘next generation’ instruments in our lab


Why are our services needed?• Bioanalysis is the quantification of a drug in the body at a particular time. It is essential for the

pharmaceutical industry. It ultimately ensures that the right dose of medicine gets to the right patient, saving or enhancing lives.

• Increased level of outsourcing within the Pharmaceutical industry.

• Limited number of niche, specialist bioanalytical providers who also have GLP/GCP accreditationOur primary customers

• Pharmaceutical Companies• Biotechnology Companies• Clinical CRO’s• Hospitals• Academic Institutions

Human and Animal Health

New target customers• Agrochemical Companies• Cosmetic Industry• Veterinary Care• Personal Care


Our Challenges• Cost of laboratory facilities and equipment

• Building a solid customer base

• Being viewed as ‘risky’ by customers as we were new, small, potentially financially unstable

• Being viewed as ‘risky’ by potential (institutional) investors as we were new, small, potentially financially unstable. Investors not willing to consider £600K investment at this early stage.

Example of customer feedback – ‘We really like you guys and you have fantastic skills and knowledge. We would like to work with you but you would need to have at least 3 instruments and about 9 people before we could seriously consider it’


Reacting to our challenges

• Initially self-funded, short term only

• Basic Marketing, business cards, ‘flyers’

• Used our networks – calls, emails, visits

• Researched new companies/customers – calls, emails, visits

• Explored the possibility of securing £300K as a first investment


Investment - First round


• In July 2014 Alderley Analytical recognised that £600K investment would be required to create a viable bioanalytical CRO. However, we received feedback that we should look to secure a smaller amount to allow us to grow which would then provide some comfort for future investors.

• In Q4 2014 we engaged with A2F and some Institutional Investors. Pitched to Business Angels and Institutional Investors and had some interest from both groups. Speaking to colleagues in the BioHub and other life science companies it ‘felt’ that we should be looking to get investment from Institutional Investors, and look to them for follow in money.

• In May 2015, after many meetings and financial discussions, we secured £300K investment - £200K from APV (Alderley Park Venture Fund) and £100K from Spark (North West Fund for Biomedical). This was APV’s first investment.

Investment - Second Round


• First round Investment allowed the company to grow – from 4 to 6 people, 2 instruments, increased revenues

• In January 2016 we started to think about second round investment of £300K. We had received indications of follow on support for up to 50% of the amount sought £150K) from APV but Spark did not have a suitable fund so they were unable to follow on.

• Pitched again to Institutional Investors early March 2016. Had some interest but it was really slow and felt obstructive at times. We didn’t feel that this was right for us

• Contacted A2F (John Moore) on 23 March 2016 to see if they could help.

Investment - Second Round


• Several very useful coaching calls and meetings with A2F (John Moore)

• 6 minute presentation rehearsed and finalised

• Pitched to NWBA for £150K on 11 May 2016, Manchester

Outcome


• Spoke to 4 Business Angels at the end of the pitching event on 11 May 2016

• Two additional Business Angels contacted me by email in the following week. Sent out business plan and financial information to all 6 Business Angels. Meetings, more questions, more financial information. More meetings, more questions, more financial information. More meetings….

• Received offers of £350K – we had only pitched for £150K

• Secured £300K from NWBA, did not take any further investment from Institutional Investors

• Deal Signed 18 Nov 2016

Lessons Learned


• Securing investment can take a lot of time and effort

• Ask for help. There are a lot of people and sources out there, and some are here today

• Institutional Investors and Business Angels can be quite different. eg Institutional Investors may want preference shares or non dilution clauses but they might have a better understanding of your business sector. Business Angels may be more willing to get involved and help with ‘business’ experience eg sales, marketing etc

• Always consider what help you need and what help an investor can bring you

• Your requirements will probably change over time

Thank you for listening


Elizabeth Thomas

Tel: 07710 658068Email: [email protected]: www.alderleyanalytical.com

Q&A

Hilary CentelegheSenior Growth Manager – Growth team

Business Growth Hub

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