1. abcrs
VC’ Guide”
Workshop “Becoming Investor Ready: A VC’s Guide”
Adam Buchan
10 June 2010
abc
ASSET MANAGEMENT, CONSULTING, CORPORATE FINANCE,
INVESTMENTS, VENTURES

2. Ingenious Media
The UK’s leading media investment and advisory company
abcrs
Offers discretionary portfolio Provides strategic and Advises media and
management for private operational consulting services entertainment companies on
individuals, trusts, pensions, to companies in the media corporate sales, fund-raisings
charities and corporates and entertainment sector and all aspects of M&A
Investment products in the Provider of venture capital to
film, television, music, the media sector
games, live events and
entertainment content for
private and institutional
investors
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3. IMAC Investment Funds
abcrs
• First fund: Ingenious Ventures LLP: £25m fund. 5 investments
including 19 (“Pop Idol”), Lionhead Studios (“Fable”).
• Second fund: Ingenious Media Active Capital (IMAC) listed on AIM in
April 2006, raising £150 million.
• IMAC invests in “progressive media” - companies taking advantage of
changes in consumer behaviour, technology and regulation.
• Sectors include - television, mobile, internet/new media, music,
interactive entertainment, video games, film, print, marketing services,
publishing and broadcasting.
• IMAC takes significant minority or controlling equity investments
predominantly in unquoted media companies.
• VCT funds across Music, Live & Entertainment sectors
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4. Sources of Funding
Stage of Funding Description Sources of Funding
abcrs
Angels Local govt grants,
Seed Small amounts, prove business idea incentive schemes
Pre-Profit Working capital for businesses selling RDAs, central
product but not yet profitable govt funds
Venture
Growth/Development Expansion capital (additional offices, new Capital
service offerings)
Banks
Private
MBO/MBI Management team finding new backers to Equity
buyout existing shareholders
Leveraged Buyout Large acquisitions heavily funded by bank
debt
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5. Sources of Funding
abcrs
Different sources of funding look for very different things:
Banks
• Less focus on overall value of business
• Visibility of cashflows
• More focus on downside scenarios, secure loan against fixed assets etc
• Less control clauses
Venture Capital / Private Equity
• Equity position so focused on overall value of the business & exit
• Likely to take more active role in runnign the business (seat(s) on Board etc) & more
significant control clauses
Central Government Funds (ECFs etc)
• Increasingly modelled on venture capital processes
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6. Venture Capital – Investment
Criteria
abcrs
Market Mgmt Team
• Size • Track record
• Growth • Diversification
• Maturity • Chemistry
• Barriers to Entry
Competition Company
• Product differentiators • IP (owned, defensible, monetisable)
• Financials (historic & projections)
• Funding Requirement
• Valuation
– Comparable transactions
• Future exit
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7. Examples
REVIEW CENTRE
• User-generated consumer review website
• IMAC invested June 2008
abcrs
What attracted us: Opportunity:
• IP – database of consumer reviews • Update user interface
• Large, established user base – Increase user base
• Highly geared – Increase a.r.p.u.
• Diversify revenue
– Other verticals
– Price comparison
OUTSIDE LINE
• Digital marketing services agency
• IMAC invested March 2007
What attracted us: Opportunity:
• Market • Diversify revenue:
• Mgmt team – Type of clients
– Service offering
• Build senior mgmt team
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8. abcrs
VC’ Guide”
Workshop “Becoming Investor Ready: A VC’s Guide”
Adam Buchan
10 June 2010
abc
ASSET MANAGEMENT, CONSULTING, CORPORATE FINANCE,
INVESTMENTS, VENTURES