Case Study 2

A company set up to supply measurable friction surfaces to the aviation and military market places. The Director/Shareholder had spent 2 years researching, developing and gaining patents on the products and selling on a limited basis. The company had insufficient funds to complete the development of the commercial application and tackle the market.

Design: Net Communications

Hosting: Consult-X Limited

Assignment Brief
To develop the Business Plan, ascertain funding required and raise the agreed funding. The Director/Shareholder had exhausted his limited funds and had minimum assets to provide security. The Funds would therefore have to be raised by a combination of Grants, Private Equity and unsecured borrowing.

The Assignment
The detailed budgets were reviewed and revised and the final funding requirement agreed at £400,000. An application for a grant under the DTI's Small Firms Merit Award for Technology (SMART Award) was made and processed through the extensive "due diligence" required. Negotiations were opened with a syndicate of investors who agreed to provide £350,000 based on a successful outcome of the Grant application.

The Outcome
The DTI awarded a grant of £45,000 (50%) towards the development of the commercial application of the product and within two weeks the Investor's Syndicate provided Private Equity Funding of £350,000.