Entrepreneurship and ideas funding

Incubator Programme (Carbon Trust)
The Carbon Trust can refer early-stage companies, who have developed innovative carbon-saving technologies with real commercial and technical promise, into their co-funded incubators. The incubators will provide strategic and business development consultancy, advice on corporate finance, legal advice, management team recruitment and mentoring, market research and engagement and guidance on intellectual property protection. The Carbon Trust provides up to £70K of advisory support per accepted start-up/spin-out company, paid directly to the incubator partners for services provided to the company being incubated. The incubator operates on a virtual basis – there is no physical space – and works with companies across the UK. Applications are accepted throughout the year and should be made directly to the Incubator partners listed on the Carbon Trust’s website.

Venture Capital (Carbon Trust)
Carbon Trust Investments acts as a co-investor in early-stage low carbon technologies and provides venture capital finance for UK-based investments. Typical investments range between £250k-£3m per deal as a minority stakeholder alongside private sector investors on the same terms. If you have a technology that has commercial potential, have a completed business plan and have potential co-investors in place then you may be interested. No application deadline is mentioned on the website.

Venture capital instruments (European Investment Fund)
EIF's venture capital instruments consist of equity investments in venture capital funds that support SMEs, particularly those that are in their early stages of development and those that are technology-oriented. To support its remit, EIF has significant means available for investment, with a current portfolio of in excess of EUR 4.4 billion invested in 299 venture capital funds and an objective to invest substantially more over the next years.

NESTA VENTURES and NESTA CAPITAL (NESTA)
NESTA is the National Endowment for Science, Technology and the Arts investing in early-stage, innovative UK-based companies across different sectors. NESTA invests in two ways: direct investment in clean-tech companies (NESTA VENTURES) and indirect investment (i.e. limited partner or co-investor) through third-party funds (NESTA CAPITAL). NESTA VENTURES’ target level first investment is around £250,000 and the technologies funded should have target markets of at least £100m. NESTA CAPITAL invests in early-stage funds as a limited partner or co-investor. They may also consider acting as a cornerstone investor. Each year, NESTA CAPITAL aims to make two to three investments, ranging from £1-3 million. No deadlines are mentioned on the websites.

Entrepreneurship and Innovation Programme (EIP) (European Commission)
Around €430 million has been allocated to this programme supporting innovation (including eco-innovation) and SMEs in the EU. With a budget of € 2.17 billion for the overall period of 2007-2013 the programme aims to achieve its objectives through a number of actions with the two key ones being ‘CIP Eco-innovation funding’ (see below) and ‘Access to finance for SMEs through "EU financial instruments".

CIP Eco-innovation funding (European Commission)
Funding under the Competitiveness and Innovation Framework Programme (CIP) addressed to organisations that have developed an environmental product, service, management practice or process which has a proven track record, yet is not fully marketed due to residual risks. Eligible projects need to be innovative, have substantial positive impacts on the environment and demonstrate a European added value and an international project dimension. Priority areas are the fields of materials recycling, building & construction sector, food & drink sector and green business & smart purchasing. The next call for proposals under this programme is expected in April 2010.

Low Carbon Seeds Fund (Carbon Trust)
The Low Carbon Seed Fund aims to take equity stakes in companies raising up to £1m, where the equity gap is most severe. The fund is focused on identifying early stage cleantech investment opportunities that emerge both from the Carbon Trust Incubators as well as from other dealflow sources. The fund may invest up to £500k in any UK-based clean energy business that meets the fund’s investment criteria. The total investment transactions will typically be between £500K and £1.5m. The fund must invest alongside other commercial investors on a pari passu basis.

Clean Energy Fund (Carbon Trust)
Carbon Trust Investments directly invests into clean-energy technology businesses through its Clean Energy Fund. Following its establishment in May 2002, it has been one of the most active UK investment funds in the sector. We typically invest between £250k and £3 million in a business, with the average transaction-size being between £500k and £10 million. The fund must invest alongside other commercial investors on a pari passu basis. The fund is advised by the Carbon Trust’s fund advisers CT Investment Partners.

Biosciences and biotechnology related grants (BBSRC)
Biotechnology and Biological Sciences Research Council (BBSRC) is one of seven Research Councils that work together as Research Councils UK (RCUK). It is funded from the Government's Department for Business, Innovation and Skills (BIS). This grants guide includes information on eligibility, terms and conditions of grants, and details of BBSRC funding schemes.

BBSRC follow-on funding (BBSRC)
Biotechnology and Biological Sciences Research Council (BBSRC) is one of 7 Research Councils that work together as Research Councils UK (RCUK). It is funded from the Government's Department for Business, Innovation and Skills (BIS). The follow-on funding is for ‘proof of concept’ at the very early stage of turning research outputs into a commercial proposition. It funds work to convert an idea into a robust business plan where a route to commercialisation is clear, for example a spin-out (seed or venture finance) or licensing opportunity. Typically grants are for £80K-120K normally over 12 months. The next application deadline is 20 January 2010.

BBSRC biotechnology young entrepreneurs scheme (BBSRC)
Biotechnology and Biological Sciences Research Council (BBSRC) is one of 7 Research Councils that work together as Research Councils UK (RCUK). It is funded from the Government's Department for Business, Innovation and Skills (BIS). The Biotechnology YES (Young Entrepreneurs Scheme) is an innovative competition developed to raise awareness of the commercialisation of bioscience ideas among postgraduate students/postdoctoral scientists.

Business angels
Business angels are private individuals who are very wealthy and will buy a stake in your business in exchange for cash that goes into the business so it can be used for investment and growth. As with Venture Capital these investors are looking for very high returns on their money. They want to back a business that could be the next Google or Body Shop. Business angels usually also offer to help you with growing your business. They help in all sorts of ways from becoming someone who helps you run the business to someone who just makes a few phone calls to introduce you to the people you need to know, especially new customers.Most business angels invest between £25,000 and £100,000 in a business. Some invest £250,000 or more. Sometimes they invest together in a syndicate which will usually be led by one of the investors. They look to invest for between 5 and 10 years, though occasionally they manage to sell out earlier than that. They are often the first investors fast growing companies will have and often invest when a company is at too early a stage for Venture Capitalists. The best way to find business angels is through your local angel networks. There are networks in every region of the UK and can be found by talking to BusinessLink and local business people or people in the industry your business is in. Many of the networks can be found by approaching the British Business Angels Association.

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