LIFT helps raise the stakes

Revolutionary concepts can be problematic, especially when they require seed capital, but one Belgian researcher has found that the services of the LIFT (Linking Innovation Finance and Technology) helpdesk were particularly helpful in his quest for venture capital investment. ...

Revolutionary concepts can be problematic, especially when they require seed capital, but one Belgian researcher has found that the services of the LIFT (Linking Innovation Finance and Technology) helpdesk were particularly helpful in his quest for venture capital investment.

A researcher on the European Commission's ESPRIT programme, Mr Hans Manhaeve, announced that he had developed a revolutionary way of testing computer chips. Seeing the business opportunity this presented, he was advised to approach the LIFT helpdesk for assistance in getting his venture off the ground.

'I got a lot of information from LIFT,' he says. 'Using LIFT, I could find potential investment groups. They gave me assistance in fine tuning my business plan.' A few weeks later, Mr Manhaeve attended the LIFT seminar 'Getting your business presentation right'.

As a result of LIFT's involvement, Mr Manhaeve was able to present a convincing and viable plan to potential investors which gave the investor community the confidence to support his revolutionary idea.

Within six months, Mr Manhaeve had succeeded in securing 0.75 million euro to finance the set up of his company, Q-Star Test NV. Three venture capitalists provided the funds, together with some private investors.

His company already employs four people with further expansion planned. 'The next step is to take up our position in the market and try to become the market leader.' Further details on his company's progress can be found at:

URL: http://www.qstar.be

Q-star is just one of the companies that has benefited from LIFT's involvement. Part of the European Commission's Innovation and SME programme, results for the first year of operations suggest that LIFT's services are appreciated. Around half of the 1,000 LIFT customer contacts during this period have been with entrepreneurs. Of these, around 23% have come back to LIFT for help after their first contact with the helpdesk and 66% of them have benefited from on-line support, including business plan screening. To date, 21% of repeat customers have gone on to receive advice from the service on possible sources of specialist funding.

LIFT has already provided information to researchers and entrepreneurs from all member states of the European Union, including the accession countries. Although the majority of enquiries have so far come from Italy (12%) the United Kingdom (13%), Germany (15%) and Belgium (15%), LIFT is in increasingly active contact with entrepreneurs elsewhere.

Based in Luxembourg, LIFT can be accessed directly by researchers and entrepreneurs who need assistance with the commercialisation process. A multi-national team of innovation, business support and financial specialists offers the following products and services:

- an infopack: a comprehensive information package including a self-assessment tool to help entrepreneurs assess their venture, a document on how to prepare a technology-based business plan and a guide to innovation finance:

LIFT's 'Assessing your venture' tool kit enables entrepreneurs to check their business proposals against a number of criteria including market potential for the product or service, adequacy of the business plan, calibre of the management team, status of intellectual property and the definition of financing requirements.

A major step in persuading financial institutions and investors to support a new business is producing a clear and convincing business plan. Developing this can take several months and it is important to start as soon as possible with any available information, which can be updated. The business plan should cover all aspects of the venture including the market, the product, marketing strategy, manufacturing strategy, sales forecasts, management and the financing requirement.

LIFT's 'Preparing a technology business plan' is specifically designed for technology-based ventures and helps entrepreneurs to address all the key issues. LIFT can provide assistance by directing enquirers to appropriate sources of professional support (e.g. marketing, technical or financial) that are available to them locally.

Once the business plan is completed, the next question that the entrepreneur has to consider is how to secure the necessary funding. The choice of funding will depend on a number of factors including the stage of development the venture has reached and the nature of the business and funding requirement.

'Financing innovation - a guide' provides an overview of the various sources of funding which are available to entrepreneurs, depending on their particular circumstances, and a directory of contact points for the organisations concerned.

- seminars and workshops to better understand the financial world and its requirements:

Presenting an effective business case in a convincing way is a major factor in securing venture funding. Would-be entrepreneurs can test out their presentation skills and gain feedback from investors, financiers and their peers at LIFT's 'Getting your company presentation right' seminar.

LIFT also organises seminars such as 'Introduction to innovation financing' which allow participants to familiarise themselves with the major issues surrounding the raising of finance for technology-based ventures. They also provide the opportunity to debate with other entrepreneurs as well as with people from the worlds of finance and innovation support.

- a helpdesk for individual assistance on business planning and on how to approach potential financiers and investors.

In addition to the services mentioned above, LIFT is also able to provide tailored specialist support including:

Business plan feedback: confidential screening, entailing a high level review of an inquirer's business plan. Any shortcomings or omissions are communicated to the enquirer, with recommendations for amendments and improvements.

LIFT has a database of all high-tech investors in Europe. The helpdesk can provide lists of appropriate investors. With the help of this list, enquirers can identify which specific sources of funding are most relevant to their venture.

Other advice and information LIFT can offer includes how to obtain assistance and advice from other Commission services and/or third party sources. These may range from general business advisory and information services to specialist intellectual property advisors.

In parallel with the services described above, LIFT has also established links with the different EC RTD Programmes, offering support to research contractors and Project Officers within the Commission.

LIFT's services can be helpful at any stage of the commercialisation process and there has been increasing interest in involving LIFT even at the 'concertation' stage of projects, in order to give early guidance to research contractors on the requirements for successful commercialisation.

At the other end of the spectrum, LIFT has received enquiries from established ventures seeking to attract second or third phase investment. Most enquiries from aspiring entrepreneurs though are received at the business planning stage. For those in this group, the LIFT seminars, are proving particularly helpful.

Countries

Luxembourg