What is the primary purpose of this deck?

This is an ecosystem overview deck presented at a 'Finance in Dorset' event in March 2017. It was designed to educate local business owners on the various types of funding available, including traditional bank debt, asset-based lending, grants, and crowdfunding. It is not a pitch for a single company but rather a guide for SMEs in the South West of England.

What are the specific lending criteria for SMEs mentioned?

According to slide 5, mainstream banks were looking for leverage between 2.5x and 3x EBITDA. For asset-based lending (slide 7), inventory finance typically required a £250k+ loan size and offered 60% NOLV (Net Orderly Liquidation Value), while plant and machinery loans started at £100k+ for up to a 3-year term.

How did the Brexit referendum affect the 2017 funding landscape?

Slide 6 notes that banks remained 'open for business' following the referendum. However, slide 18 indicates a sense of urgency regarding European funding, noting that 11 'calls' for ESIF funding across the South West were issued on December 16, with most requiring responses by February 17, 2017.

What role does crowdfunding play in this ecosystem?

The deck positions crowdfunding as a viable alternative and co-investment partner. Slide 13 shows examples where Seedrs and Perkbox raised £2.5m and £1.8m respectively alongside institutional investors like Woodford and Draper Esprit. Slide 21 notes that equity crowdfunding accounted for 15.6% of all UK seed and venture-stage equity investment in 2015.

What economic data is provided for the Dorset region?

Slide 4 shows that Dorset's full-time gross weekly pay was £504.0, which was slightly lower than the Great Britain average of £540.2. Slide 22 tracks 'General Economic Optimism,' showing a significant dip in late 2008 and a recovery leading into 2016, with 54% of respondents feeling 'more optimistic' by December 2016.

Finance in Dorset Pitch Deck Teardown: A Regional SME

The Finance in Dorset deck is not a traditional startup pitch but a collaborative informational presentation by PKF Francis Clark, Seedrs, and the Dorset Growth Hub. It serves as a strategic map for regional SMEs seeking capital in the wake of the Brexit referendum. The deck highlights a diverse funding ecosystem, ranging from traditional bank lending (leveraged at 2.5-3x EBITDA) to the burgeoning alternative finance market, which reached £3.2 billion in 2015. It provides granular data on Dorset's business stock, noting that 89% of enterprises are micro-businesses. For founders, the deck is a…

Key takeaways

Dorset's business landscape is dominated by micro-enterprises (0-9 employees), accounting for 89% of all enterprises (Slide 3).
Bank lending for SMEs in 2017 typically capped leverage at 2.5 - 3x EBITDA (Slide 5).
The UK alternative finance market grew to £3.2 billion in 2015, with equity-based crowdfunding representing 15.6% of seed and venture-stage investment (Slide 21).
Asset-based lending for property requires a minimum loan size of £250k+ and is typically available for a 5-year term (Slide 7).
Dorset was allocated £471m through the European Structural & Investment Funds (ESIF) for the 2014-2020 period (Slide 18).
The Dorset LEP area received a Growth Deal 3 allocation of £19.46m for infrastructure and research projects (Slide 19).
Invoice finance is presented as a more scalable solution than traditional overdrafts for growing sales volumes (Slide 8).
Business Angels are cited as ideal for 'proof of concept' stages but require a clear exit strategy and existing traction (Slide 17).

Introduction and Regional Context

Slide 1: Title Slide

The presentation is titled Finance in Dorset , presented by James Robinson, Partner at PKF Francis Clark on 2 March 2017 . The imagery of a compass suggests a guiding role for the firm in navigating the financial landscape.

Slide 2: Overview/ Background

This slide sets the scope of the session. It references the government's 'Finance and support for your business' tool, which listed 506 schemes at the time. It also notes that the ICAEW identified 362 lending institutions in the UK. The presentation covers mainstream banks, debt alternatives, equity sources, grant funding, and tax reliefs, spanning from 'Start Up Loans to a public listing.'

Slide 3: Business stock in Dorset

Using data from the ONS Inter-Departmental Business Register, this slide breaks down the Dorset economy. Micro-businesses (0-9 employees) make up the vast majority of the stock, with 27,955 enterprises representing 89% of the total. Large businesses (250+) account for only 0.3% (95 enterprises). This data justifies the presentation's focus on SME-specific funding solutions.

Slide 4: Earnings

This slide analyzes gross weekly pay. Dorset's full-time average of £504.0 is compared to the South West (£505.0) and Great Britain (£540.2). The slide notes a significant gender pay gap (£557.6 for males vs £445.8 for females) and highlights that lower earnings combined with high housing costs represent a regional challenge.

Traditional and Asset-Based Lending

Slide 5: Bank Lending – recent experiences

PKF Francis Clark provides observations on the 2017 banking climate. Key metrics include leverage of 2.5 - 3X EBITDA at the upper end for SMEs. The slide notes that while rates remain low, there is significant variation in bank approaches, with some focusing on relationship-based lending while others attempt to streamline processes for small businesses.

Slide 6: Summary of Banking

A high-level summary stating that banks are 'keen and open for business' despite the Brexit referendum. It emphasizes that businesses must be 'properly prepared' to secure funding and that the range of lending partners is wider than in previous years.

Slide 7: Quick guide to Asset Based Lending (ABL) solutions

Inventory: 60% NOLV, £250k+ loan size, requires an existing invoice finance facility. · Plant & Machinery: 60% of market value, £100k+ loan size, up to 3-year term. · Property: 60% of market value, £250k+ loan size, up to 5-year term.

Slide 8: Overdraft Vs. Invoice Finance

A conceptual graph illustrates that as sales grow, a fixed overdraft limit becomes insufficient. Invoice Finance is shown as a flexible line that scales directly with sales volume, providing a larger 'black area' of available working capital compared to the 'red line' of an overdraft.

Equity and Crowdfunding

Slide 9: What are the different types of crowdfunding?

A transition slide introducing the alternative finance section of the presentation.

Slide 10-11: SME Development Stages

These slides map funding types to the business lifecycle. The progression moves from Pre-seed (Friends and Family, Rewards-Based Crowdfunding) to Seed (Accelerators), Early-Stage (Business Angels), Growth (Venture Capital, P2P Debt), Expansion (Private Equity), and finally Maturity (IPO).

Slide 12: Co-Investment Examples

This slide demonstrates the synergy between institutional and crowd capital. It cites two specific deals:

£7.5m from Woodford/Augmentum + £2.5m from Seedrs = £10m total. · £2.5m from Draper Esprit + £1.8m from Perkbox crowd = £4.3m total.

Slide 13: Efficiency

A visual metaphor using a streamlined car to represent the efficiency of modern fundraising processes, likely referring to the digital nature of crowdfunding platforms.

Slide 14: Team Importance

A slide featuring the cast of 'The A-Team' with the question 'Do you have your team in place?' This emphasizes that for equity investors, the human capital is as important as the business model.

Slide 15: Seedrs Conclusion

A 'Thank you' slide for the Seedrs portion of the presentation, including the Twitter handle @ChrisRea28.

Slide 16: Pros & cons of Business Angels

Presented by Angels Den , this slide notes that Angels are good for 'proof of concept/MVP' and provide mentoring. However, the 'cons' include the fact that Angels don't advertise, and founders must have a clear 'exit' strategy and existing traction.

Public Funding and Regional Growth

Slide 17: European Programme 2014 - 2020

This slide details the £471m allocated to Dorset via the European Structural & Investment Funds (ESIF). It mentions a 'revolving door' of funding calls and notes that many had a deadline of 17 February 2017, suggesting the presentation was intended to help businesses catch the final windows of EU-aligned support.

Slide 18: Growth Deal 3

Details a £19.46m allocation for the Dorset LEP area. Specific projects include:

Orthopaedic Research Institute at Bournemouth University. · Boosting productivity for Dorset tourist attractions. · Wallisdown Connectivity (commuter road upgrade). · Lansdowne area transformation in Bournemouth. · Gillingham Access to Growth. · Holes Bay housing site (up to 1,350 new homes).

Slide 19: Dorset Growth Hub

An introductory slide for the Dorset Growth Hub, featuring logos for the European Union, Dorset County Council, and the Department for Business, Energy & Industrial Strategy.

Slide 20: Alternative Finance Market Data

An infographic stating the UK alternative finance market grew to £3.2 billion in 2015. It notes that 1.09 million people invested or lent via online platforms, and 254,721 individuals/projects raised funds. Specifically, equity-based crowdfunding represented 15.6% of seed and venture-stage investment.

Slide 21: General Economic Optimism

The final data slide shows a chart of 'Net position (% optimistic minus % pessimistic)'. While optimism plummeted in 2008, it reached a peak in 2014. By December 2016, 54% of respondents reported being 'more optimistic' about the economy than three months prior.

What Works and What is Missing

What Works

The deck is exceptionally strong on regional context . By providing ONS data on Dorset's business stock and earnings, the presenters ground their financial advice in the reality of the local economy. The use of technical comparisons, such as the Asset Based Lending guide (Slide 7) and the Overdraft vs. Invoice Finance graph (Slide 8) , provides high utility for business owners who may not understand the nuances of different debt instruments. Furthermore, the inclusion of co-investment examples (Slide 12) validates crowdfunding as a serious pillar of the capital stack rather than just a niche alternative.

What is Missing

As a general ecosystem overview, the deck lacks specific case studies of Dorset-based companies that successfully navigated these funding rounds (the co-investment examples provided are national/London-centric firms like Perkbox). There is also a lack of current contact information for the specific grant 'calls' mentioned on Slide 17, though this is understandable given the date of the presentation. For a founder looking to use this as a template, it lacks a competitive landscape analysis and unit economics , as those are company-specific rather than ecosystem-specific.

Founder Takeaways

Founders should copy the mapping of funding types to development stages (Slide 11) . Many startups fail because they approach the wrong type of investor for their current stage (e.g., seeking Private Equity at the Seed stage). The technical breakdown of ABL (Slide 7) is also a great model for how to present complex financial options clearly. Finally, the use of macroeconomic sentiment data (Slide 21) is a sophisticated way to frame a 'why now' argument in a pitch, showing that the broader market environment is conducive to growth.

Frequently asked questions

What is the primary purpose of this deck?: This is an ecosystem overview deck presented at a 'Finance in Dorset' event in March 2017. It was designed to educate local business owners on the various types of funding available, including traditional bank debt, asset-based lending, grants, and crowdfunding. It is not a pitch for a single company but rather a guide for SMEs in the South West of England.
What are the specific lending criteria for SMEs mentioned?: According to slide 5, mainstream banks were looking for leverage between 2.5x and 3x EBITDA. For asset-based lending (slide 7), inventory finance typically required a £250k+ loan size and offered 60% NOLV (Net Orderly Liquidation Value), while plant and machinery loans started at £100k+ for up to a 3-year term.
How did the Brexit referendum affect the 2017 funding landscape?: Slide 6 notes that banks remained 'open for business' following the referendum. However, slide 18 indicates a sense of urgency regarding European funding, noting that 11 'calls' for ESIF funding across the South West were issued on December 16, with most requiring responses by February 17, 2017.
What role does crowdfunding play in this ecosystem?: The deck positions crowdfunding as a viable alternative and co-investment partner. Slide 13 shows examples where Seedrs and Perkbox raised £2.5m and £1.8m respectively alongside institutional investors like Woodford and Draper Esprit. Slide 21 notes that equity crowdfunding accounted for 15.6% of all UK seed and venture-stage equity investment in 2015.
What economic data is provided for the Dorset region?: Slide 4 shows that Dorset's full-time gross weekly pay was £504.0, which was slightly lower than the Great Britain average of £540.2. Slide 22 tracks 'General Economic Optimism,' showing a significant dip in late 2008 and a recovery leading into 2016, with 54% of respondents feeling 'more optimistic' by December 2016.