£1m lure for entrepreneurs prepared to run the Library House gauntlet
The East of England Development Agency, venture capitalists Create Partners and Library House, supplier of data and research on innovation based companies, have teamed up for a second year to prod entrepreneurs into "Running the Gauntlet".
It is a competition for entrepreneurs in the East of England region, including the Cambridge Cluster, offering a £1m investment from Create, the private investment fund managed by Create Partners,
Last year’s competition saw three 3 firms getting a share of £1m and other entrants learning about growing a business and securing investment funding. One of successes was Camrivox Ltd, a designer, developer and manufacturer of products for Voice over Internet Protocol solutions.
The competition is based around The Gauntlet, a web-based investment readiness tool developed by Library House and the London School of Economics. It works like a virtual investor, putting companies through their paces by testing them against questions that investors would typically ask. It also has relevant content and gives users feedback on the potential of their ideas and the strengths and weaknesses of their business proposition, making it an integral part of the business development process prior to the critical first meeting with an investor.
Library House chairman Doug Richard said: “Generally speaking, it is not until entrepreneurs have presented to investors and been knocked back that they understand where they went wrong – and then it’s often too late.
"The Gauntlet aims to change that by offering entrepreneurs the chance to wise up before they even make approaches. It provides a confidential, critical and credible insight into what the company needs to do to position itself as a viable investment opportunity. Many users have described it as an invaluable reality check.”
New for this year’s ‘gauntlet’ is a more comprehensive learning programme with free advice and services. Benefits start with The Gauntlet (which normally costs £299) and include access to a dedicated helpdesk staffed by the business support team at Business Link. There is also £250,000 worth of in-kind services available from sponsors - Bailey Fisher- Executive Search, Grant Thornton, HSBC, Mudhut Communications, Scientific Generics, Taylor Vinters and The Commercialisation Company - delivered through a combination of one-to-one clinics and first come first served master classes for entrants with additional in-kind services for short listed and winning companies.
Shortlist to present to panel
A shortlist of 50 companies will be chosen to pitch to the panel of investors, chaired jointly by Mr Richard and Create Partners CEO Boyd Mulvey (pictured).
Last year, a number of investors chose to co-invest alongside Create. Ten of the 50 companies will be invited to pursue discussions with Create and other any other interested investors. The winners will be announced at EEDA’s business event on 14 November 2006.
“CREATE sees a huge number of businesses looking for funding," Mr Mulvey said. "The majority are just not ready or haven’t understood the way investment funding works. Many businesses are based around innovative ideas but lack the right team, market knowledge or structure. Last year businesses benefited greatly from running the gauntlet and we hope to see even more promising investments in this year’s competition.”
Richard Ellis, EEDA’s chairman said the main aim was to prime businesses about the options available and equip them better for successfully approaching investors if they so choose.
The deadline for entries is 10 September 2006. See www.runningthegauntlet.com
11th May 2006
