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Stop Press 2 September 2011

 

Stop Press

5 August 2011

  "To found a great empire for the sole purpose of raising up a people of customers may at first
  sight appear a project fit only for a nation of shopkeepers. It is, however, a project altogether
  unfit for a nation of shopkeepers; but extremely fit for a nation whose government is influenced
  by shopkeepers.
"      - Adam Smith, The Wealth of Nations

Reviving the economy is widely seen as developing the modern equivalent of a nation of shopkeepers - small businesses that can grow and become the new global players over time, generate employment and be fast moving and adaptable to the demands of its customers and the economy. Financing the private sector recovery is the most important thing we can do today and although the government is showing some initiatives in this area they are failing to be influenced by the shopkeepers who understand on a practical level what is needed and too often rely upon rhetoric; without any commercial experience themselves, they adopt policies which miss much needed practical applications.

Over 20 years since Beer & Partners was established, we have always seen our role as providing a channel through which investors can invest in companies of their own choosing in the “S” of the SME sector and hopefully participate in the next big thing. Personal knowledge of a company is a key part of intelligence based investment and investors can operate with a better familiarity with SMEs than with investment in large multi-national companies with their exposure to a much broader level of international risk.

Investing in small companies is high risk but with potential high returns. Banks have never been major participants in funding early stage businesses. Our role is to provide you with a selection of companies, rigorously filtered from over the 3,000 that we review each year, down to just over 100 that we think will appeal to many of you.

We don’t always get it right but do try through experience and a well developed process to ensure that we present you with only the best opportunities that come our way. If you are aware of any companies – early stage or requiring expansion or replacement working capital, we would be delighted to hear from them.

 Mike Weaver, CEO
Beer & Partners Limited

 

CURRENT OPPORTUNITIES
 

  

Events Diary

(click on title for full event details)

 

SME Finance Clinic
Manchester
6 September 2011
4pm - 6pm

SME Finance Clinic
Birmingham
22 September 2011
4pm - 6pm

" Enter the 'Dragons' Den' "
Angel Investor Meeting with PKF
Leicester
27 September 2011
4pm - 6pm 

 'Access to Finance' Seminar
Birmingham
28 September 2011
8am - 11am

" Enter the 'Dragons' Den' "
Angel Investor Meeting with PKF
Nottingham
25 October 2011
4pm - 6pm  

London Investment Fair
London
8 November 2011
10am - 4pm

 'Securing Finance' Seminar
London
[Date & Times TBC]

 

Please keep an eye on our Events Page for further information.

 

 

 

News

 

Angels at Aston Martin 


We teamed up with our friends at Aston Martin for a third time during August.

The day was split between three company presentations and an 'Aston Martin Experience', which included a tour around the Gaydon factory and workshops... and a drive in the cars!
 
Lawrence Fenelon, Beer Associate, commented on the response to the presentation from his medical diagnostics client:
"The meeting was very successful for my client - one investment made already and several more in the pipeline for September."

This angel investor event has proved to be extremely popular each time; we hope to run another next year. Watch this space for future announcements!

 
 
 

  Next Investment Fair on
Tuesday 8th November

The third and final Investment Fair of 2011 is taking place on the 8th November.

For over 10 years, Beer & Partners have been running the Investment Fair, attracting up to 200 of our private investors and institutions wishing to invest between £50,000 and £2m. The doors open to our investors at 10am and close at 4pm.

If you know of anyone who might be interested in coming along to the Fair as an Exhibitor, please Click Here for further information.

If you would like to come along as an Investor, further details can be found on our website; please Click Here.

 

 

 Associate Spotlight

Paul Bryant

Paul represents Beer & Partners in South Wales and has angel investment experience as a fund-seeker, an investor and an adviser.

A Civil Engineer by profession, Paul’s early career was spent on construction sites including power stations, mines, steelworks and pipelines before he was recruited into the insurance industry as a construction insurance underwriter. He took the start-up plunge in 2002 (his first exposure to business angel investment) and raised money to co-found Scintilla, a company specialising in this technical niche of construction insurance. He successfully led Scintilla as Managing Director, including leading the company through a merger, until 2008 when he exited the business.

His second start-up was in 2005 when he co-founded Construction Guarantee, another specialist underwriting company but this time in the area of performance bonds and guarantees for construction companies. Paul raised money from a private equity fund and played an angel investment role himself. He remains a shareholder and non-executive director of this company today.

Since 2008, Paul has been advising companies on raising investment, exit strategy planning and company disposals and has been an active business angel investor himself.

Paul joined Beer & Partners in the Autumn of 2010. He has three entries in this Stop Press edition (see right).Paul Bryant

Paul is married to Cathy and has a 3 year old son, Luke. Being a Welshman by birth who grew up in South Africa, he is rugby-mad and also enjoys golf, cycling and fly-fishing.

 

Click Here to Contact Paul

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NEW, PATENTED BLOOD STABILIZER
 

 

Sector:  
Funds Sought:  
Location:  
Stage:  
Ref. Number:  

Bioscience
£1.5m
London
Expansion
51378

 
  EIS Eligible

Our client has developed the first true drug for the management of Hypovolaemia (dangerous decrease in blood volume) and the maintenance of homeostasis (the stability of physiological processes within the body) which utilises synthetic versions of essential factors found in human serum, at their normal concentrations.

Patents are in place covering the formulation, manufacturing and use of the product.

Current basic products (saline, Ringer's lactate, albumin and artificial colloids) have adverse effects on the patient, but their use is essential in most operations. Around 33% of all heart by-pass surgery patients suffer some level of kidney failure, requiring dialysis and longer hospital stays. Pre-clinical models suggest that this product can reduce this percentage, ensuring better patient outcomes and a premium price for the product.

The company is working with international opinion leaders and the product is entering Phase 1 clinical trials; this fund-raising will take it through that stage. They are already in discussion with five major pharmaceutical companies and in advanced discussions with one. They confidently expected that a licence deal will be in place to provide the capital required for the subsequent phases of clinical trials.

The company is raising £1.5 million for a significant minority shareholding.

Contact: Dwight Makins - 0207 329 4884 - makins@beerandpartners.com

ENERGY NEUTRAL LODGES
 

 

Sector:  
Funds Sought:  
Location:  
Stage:  
Ref. Number:  

Property (inc. Developing)
£165,000
South West
Startup
51326

 
EIS Eligible

17,000 lodges were purchased in 2009/10, an increase of 30% over the previous year, with a capital value of Circa £2bn.

Almost all of these units are of traditional inefficient timber construction, with high running costs due to the need for both heating in winter and air conditioning in summer. This company manufactures state of the art highly efficient, (passive) modules that consume virtually no energy and are powered by a central hub, which, in turn, offers a long term income stream.

Traditional lodges cost between £75,000 to £120,000 excluding land, and this company can price match with a modern, more energy efficient product generating a net margin of 42%. To this margin can be added profits generated by supplying renewable energy via the hub, and providing site management if required by the site owner.

The principals combine relevant construction, heating and refrigeration expertise with a proven administrator of long standing commercial experience. Both have a strong sales and marketing background.

The company seeks investment of £166,000 which will be used to construct 2 demonstration lodges and a renewable energy hub. Projections suggest that the company will generate sufficient cash to repay and reward investors within 4 years if required.

Contact: Malcolm McGregor - 07795 250 103 - mcgregor@beerandpartners.com

DIGITAL MAGAZINE PLATFORM, PRIMARILY FOR IPADS, INCORPORATING READER-PROFILED TARGETED ADVERTISING
 

 

Sector: 

Funds Sought:  
Location:  
Stage:  
Ref. Number:  

Advertising, Publishing & Software
£400,000
South Wales
Early Stage
51438

 
 EIS Eligible
The company provides magazine publishers and other organisations producing paper publications:
  • with a platform for digital distribution to tablets and computers in a format specifically designed for this medium, providing a superior user experience than current ‘page-flipping’ viewers, taking advantage of advanced navigational tools and rich content;
  • with the unique feature of incorporating adverts targeted at the individual reader i.e. two readers of the same publication will view different adverts, no longer forcing advertisers to purchase space for a particular publication but rather for their target market profile across publications.
Other markets that have been identified include teamsheet and matchday programmes of sports clubs, user manuals and game guides of digital gaming companies and corporate documentation, such as annual reports and other documents with targeted circulation.
 
First stage development is complete and the company is in beta testing with 6 magazine titles. Commercial launch, including being live in the Apple app store, is programmed for October or November 2011.
 
The management team includes a former MD of a £20m business in the printing sector, a sales director with 25 years experience in magazine printing sales and an IT director with 20 years of relevant development experience.
 
The new funds will be used to employ developers, a sales force and for marketing initiatives.
 
The exit intention is by means of a listing or trade sale from Year 4 onwards.

Contact: Paul Bryant - 07824 665 604 - bryant@beerandpartners.com

SCALING UP AN ESTABLISHED WOODFUELS BUSINESS TO CAPTURE THE RAPIDLY EXPANDING DOMESTIC BIOMASS HEATING MARKET 
 

 

Sector:  
Funds Sought:  
Location:  
Stage:  
Ref. Number:  

Environmental & Energy
£200,000
South Wales
Expansion
51373

 
  EIS Eligible

The market for wood pellets and briquettes, used in boilers and burners, to the domestic and small business market is set to expand exponentially following the recent introduction of Renewable Heat Incentives (RHI) for a period of 20 years.

The company plans to invest £200,000 in a new, higher-tech pellet mill as the first stage of a 5 year plan to scale up nationally with 11 mills spread throughout the UK.

The business model is based upon the local sourcing of raw materials and smaller scale production serving a regional geographic target market. The case for local production has been proven in a number of countries as larger scale production introduces inefficiencies in terms of acquisition and transportation of raw materials and is sometimes associated with a reduction in the quality of pellets, less relevant when supplying power stations but particularly relevant to the domestic heating market.

Investors have the opportunity to back the management team’s ability to execute a project well within their competencies and take a substantial stake in a venture with relatively low market risk. Investor involvement is sought in assisting and advising during the high growth phase of the business.

A share buy-back can be offered in as little as 2-3 years with the possibility of a longer-term investment horizon.

Contact: Paul Bryant - 07824 665 604 - bryant@beerandpartners.com

ONLINE SOCIAL & EDUCATIONAL NETWORK FOR 5-13 YEAR OLDS, BEING RAPIDLY ADOPTED BY PRIMARY SCHOOLS 
 

 

Sector:  
Funds Sought:  
Location:  
Stage:  
Ref. Number:  

Education
£300,000
South Wales
Startup
51445

 
  EIS Eligible

The company has developed an on-line ‘walled garden’ social and educational network for 5-13 year olds. Access to the network is offered through schools initially followed by a direct offering to parents.

  • It is a communication platform for children to interact socially with others around the world; learning IT skills, languages, social skills and gaining cultural awareness.
  • It is a platform for teachers to deliver education formally and informally, to interact with children electronically, to promote their schools and to build relationships with other schools.

Over 50 schools in 4 countries have subscribed since going live in June 2011.

Security and anti-bullying features include teacher-controlled access, pre-written Q&A interaction and photo uploads requiring teacher approval. The company has been commended by, and is working closely with, various online child protection organisations.

User features include online chat, sending gifts and postcards, moderated scrap-book sharing, games, automatic translations to encourage interaction across cultures, school twinning and a host of teacher resources such as lessons and quizzes. The system allows for mixed physical and mental ability usage.

The company is now in a position to accelerate the roll-out to schools and seeks investment for building sales teams to capitalise on its first mover advantage and for continuing functionality enhancements. Investor participation would be welcomed in the areas of international sales in the education sector as well as in scaling technology businesses.

Contact: Paul Bryant - 07824 665 604 - bryant@beerandpartners.com xxx