Toolkit structure
The scheme involves the business being helped receiving a "wrap-around" of the necessary skills and connections to promote and enable growth.
In order to be sustained, this "wrap-around" must remain with the company long term, and so needs to be intrinsically attached to the business.
The company may not be aware of its options or be able to specify these needs however, and the options often have to be introduced via the CoVentures process. The activity can be illustrated as below, in the form of a gap which needs to be filled with added value if progress is to be made.
CoV currently focuses on business in the environmental goods and services sector which is a regionally important sector. It will therefore be well placed to support the economic impact aims of the University of Exeter’s Environment and Sustainability Institute (ESI) as it comes on stream. The ESI aims to contribute to the University’s aspiration of attracting significant additional investment into Cornwall to support the economy via the formation and development of high added value companies with high quality, new jobs, in high growth new sectors.
Of particular note are the following features:
- The University can both generate deal flow and offer company support in specialist and niche areas. This can be driven by University of Exeter Knowledge Transfer activities (through the ESI), in addition to the CoVentures process via its intervention mentors creating new companies and projects to satisfy perceived gaps in the market and to make good use of available entrepreneurial talent.
- A key relationship with the Business Support Simplification Program product suite and business support staff. The mission of CoV is seen as additional, supportive and integrated with the existing Business Support Simplification Products.
- Gateway criteria for CoVentures are identified and companies selected are approved by the board of UECE Ltd according to the criteria below.
Gateway criteria for identifying clients and projects
| Potential | Low | Medium | High |
|---|---|---|---|
| Job creation |
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| Environmental benefit |
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| ESI impact |
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| Potential for success |
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| Potential for fees |
What we don't do
It is important to understand what CoVentures is not trying to achieve. Although our mentors operate in a hands-on venture capital mode, we are not following the US venture capital model, which assumes that a high percentage of early stage investments will fail. The UK does not have the capital base or upside on which the US model relies so a risk reduction approach has to be followed. In most cases, our companies will anticipate an investment exit and so must be prepared and structured accordingly.
CoVentures will not act as a fund-raising broker (an FSA area), instead working within the company to fundraise. CoVentures needs to look fully professional to the outside world stakeholders in terms of branding, mentor skill set, marketing and all external communications. Corporations, financial investors target companies, and the University of Exeter stakeholders must perceive that they are dealing with a value-delivering, innovative, ethical, and commercial organisation of the highest standard.
