Intermediaries

Where can I get further support?

It is common practice to approach the various sources of finance via an intermediary. Intermediaries can help identify the most appropriate sources of finance for individual projects/companies, and potentially fast track the application process by virtue of their individual connections and relationships, and knowledge of regional activities.

Depending on the relationship between the applicant and the intermediary, and the level of support required, the services provided may be free, subsidised, or on commercial terms. Commercial terms are likely to be a combination of fees, an element of contingency payment on successful securing of funds, or the allocation of an equity stake in lieu of payment.

The four main types of intermediary are:

Technology Transfer Offices (TTO) - are located within most universities and Public Sector Research Establishments (PSREs) and are responsible for undertaking all activities associated with the identification, documentation, evaluation, protection, marketing and licensing of technology and IP management. A key role is to form a bridge between academia and industry. Often they will have responsibility for negotiating industrial research contracts as well as supporting potential company spin-outs. Typically TTOs are organised in one of the following ways: team within a University Department; wholly owned limited company; department within the University; Public Limited Company.
Business Incubators and Science Parks - aim to provide support services tailored to the needs of start-up companies. Often they are focused around one or more specific industrial sectors. These services will often include small, low-cost serviced office units; business coaching and mentoring; proximity to relevant institutions (e.g. Universities, PSREs); assistance in fundraising and grant bid preparation.
Business Support Networks - are first and foremost networks and their services can vary from a relatively informal process of meetings and seminars, through to providing a forum where inventors, entrepreneurs, investors, advisors and industry can meet and do business. To facilitate this they may offer directly, or signpost to providers of, business coaching, investment readiness training and investment presentation ('pitchfest') events. They tend to be non sector specific, and often regionally focused.
Corporate Finance Brokers - help businesses prepare for investment (preparing Investment Memorandums and other documentation, for example), and making introductions to investors. Many are small city boutiques which offer a relatively bespoke service and focus on larger deals (often £5m and above). There are also organisations geared to making introductions to business angel networks.

Intermediary	Examples	What they offer	What they cost
Technology Transfer Offices	Most Universities and Institutes of Higher Education	TTOs can offer advice and guidance and will have broad experience and contact networks. They can often mentor their companies through fundraising and assist with administrative matters such as template legal agreements. The depth of expertise and resources available varies widely across institutions.	TTOs often make no formal charge. However, they are accountable to the parent organisation (such as the university) and their task is to maximise value for the parent, rather than to serve the company. They will therefore often take the lead role in negotiating the shareholding for the parent organisation in any fundraising activity and this may not always be aligned with the aspirations of the founding team.
Business Incubators	Carbon Trust virtual incubators LIFE-IC and AMP Energy Technology Centre, East Kilbride Fife Energy Park Performance Engineering Technium Sustainable Technologies Technium	Incubators range from the predominantly physical (serviced offices) to the wholly virtual (with an emphasis on coaching and fundraising). Incubators can offer start-ups easy access to a wide range of infrastructure at low cost and often have close associations with regional and industry specific sources of funding. They can provide invaluable advice and support in the fundraising and negotiation process.	Most incubators offer a menu of services. Office services will be in line with local market norms, mentoring may be free or at nominal cost, and fundraising help may involve some level of success fee.
Business Support Networks	Connect Midlands SETsquared Solent Synergy Business Link Knowledge Transfer Networks.	Business support networks potentially offer access to experienced, often high quality, business coaching. Because they filter proposals and coach candidates, they often have good credibility with investors. They will often play a matchmaking role between member companies and investors and can provide invaluable advice and support in the fundraising and negotiation process.	Procedures vary but are often based on a relatively small signing fee together with fee based on a percentage of funds raised. Individual pitching events may be charged for.
Corporate Finance Brokers	Beer & Partners Turquoise International Close Brothers Capital SCF Strata Technology Partners.	Corporate finance brokers offer skilled and experienced help in preparing the documentation for fundraising and providing introductions to investors. Their credibility and contacts may open certain doors, and they can substantially reduce the management distraction of fundraising.	Typically they will seek some level of signing fee or retainer, together with a success fee - possibly in the region of 5% of funds raised.

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