Identifying Project Funding - The ERA Foundation

Identifying Project Funding

Click on one of the blocks below to find out more about each investment stage:

Pre-early stage investments

The ERA Foundation may provide a small amount of funding (typically £25K to £50K) to rapidly develop a good idea, explore market opportunities, develop a business plan and identify a potential team to commercialise the idea.

The following issues will be given particular attention in selecting projects -

	The quality of the innovative research outcomes on which the proposal is based.
	A realistic awareness of the possible routes to market.
	The business acumen demonstrated by the project team in an outline business plan.

The ERA Foundation will require teams with projects supported in this way to offer The Foundation the option to invest if they reach the stage of "angel" funding.

In seeking opportunities for projects at the early stages of the commercialisation, The ERA Foundation will wish, where possible, to build on substantial research investments already made - for example those made by the Engineering and Physical Sciences Research Council (EPSRC) in such programmes as the Interdisciplinary Research Centres, or the "Follow-on Fund".

University Industrial Liaison Officers (ILOs) may be a source of ideas. The ERA Foundation will also be seeking suitable projects from outside the academic sector, through the personal networks of Directors and elsewhere.

Early stage investments

Where possible The ERA Foundation will work with other investors providing early-stage ("angel") funding. These investments may follow support for projects at the early stage of commercialisation. To help identify investment opportunities The Foundation is a member of Hotbed, Library House and Oxford Early Investments - and will also work with other independent deal makers.

The ERA Foundation's investments in start-ups and young technology companies will be based on the following premises -

	An initial first-round investment is likely to be of order £0.2M to £1M.
	The ERA Foundation will expect to invest in following rounds to protect its share of ownership, although it is unlikely to invest more than £2M in any one company over successive funding rounds.
	The ERA Foundation will favour companies with business plans that demonstrate a convincing "exit strategy" within five years (for example by flotation, trade sale, or recapitalisation), thus allowing the Foundation if it chooses to refresh its investment portfolio and help new companies.
	The ERA Foundation will wish to nominate a board member to companies it invest-in (via a co-investor if this is appropriate).

Later stage investment

The ERA Foundation is not actively seeking later-stage investments - an area already well supported by the traditional Venture Capital market.

Nevertheless opportunities may arise occasionally, where to maintian a balanced portofilio The ERA Foundation may invest at a later stage (including MBOs).

Exit strategy

The ERA Foundation will expect that any companies it invests in to have a plan for IPO, trade sale, or recapitalisation within five years of The Foundations investment. The ERA Foundation may retain its investment for longer than this, such decisions being made on a case-by-case basis.

But timely exiting will allow The ERA Foundation to recycle its funding to help other early-stage electrotechnology companies.

	Pre-early stage
	Early stage
	Later stage
	Exit strategy

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