£40m Cornwall & Isles of Scilly Investment Fund (CIOSIF) – some more context

Featuring Richard Wadman | 4th July, 2018

Further to my last blog post on the Cornwall & Isles of Scilly Investment Fund (CIOSIF), I have had sight of the slides used at the launch event and I share with you ten pieces of useful information from these, in terms of context for establishment and delivery of the CIOSIF:

1 Stimulus for setting up the CIOSIF (1)
  • Market gap in the provision of debt and equity finance in CIOS
  • Access to finance is a much higher barrier to growth than the English average
  • An equity gap in start-up, early stage and development capital
  • High growth businesses unable to obtain debt finance from traditional sources
2 Stimulus for setting up the CIOSIF (2) CIOS has 1% of all UK SMEs but only 0.1% of equity deals
3 Who is behind CIOSIF CIOSIF is a collaboration between the British Business Bank and the Cornwall & Isles of Scilly Local Enterprise Partnership
4 Where does the money come from A combination of ERDF, LEP and HMG grant funding
5 Fund term/ investment period (see further below) Fund set up as ten year limited partnerships, with a five year investment period

 

6 Objectives of CIOSIF
  • Mission: to invest £37million into high growth Cornish businesses in order to enable sustainable economic growth
  • Supporting growing SMEs
  • Creating jobs across the CIOS region
  • Promoting new product development and innovation
  •  Encouraging private investment (match funding)
  •  Working with the wider finance community to increase reach
7 Target audience – Loans For growing companies with a viable business proposal that is unable to obtain debt funding from the private sector due to a lack of collateral or track record
8 Target audience – Equity Companies affected by the equity gap, with approximately
50% supporting research, development and innovation
9 Eligibility – Loans
  • New and established SMEs
  • Material part of operations in CIOS
  • Viable business plan and compelling commercial potential
  • For activities that will deliver substantial growth impact including sales and marketing activity, hiring new staff, new product development and entering new markets.
10 Eligibility – Equity
  • High growth potential SMEs with existing/approaching sales
  • Credible business strategy to deliver significant growth
  • Viable product/service; clear market potential
  • Sustainable competitive advantage
  • Financial projections identifying application of funds
  • Realistic five year exit strategy

Copy of the slides can be found here.

We have provisionally arranged for the fund managers (debt and equity) to present at our October Breakfast Briefing. More details on this and other CIOSIF information will be posted onto our website in due course.

Any questions, please do not hesitate to contact my colleagues or myself.

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