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Liverpool Seed Fund injects £200k into innovative software company
- 13th November 2007 Innovative health screening company receives £1/4m funding from the Liverpool Seed Fund  Photo shows L-R Paul Hunter and Christian Zuniga (Gemini) Lorna Green (Liverpool Ventures) Darren Gowling and Rajesh Sharma (Liverpool Seed Fund). A company that has developed an innovative health screening service has been backed to the tune of £1/4m by Merseyside Special Investment Fund’s Liverpool Seed Fund. Gemini Biomedical Limited has created a pharmacy-based integrated medical screening service called HealthTrack to assess individuals applying for life cover and private health insurance policies. Trained healthcare assistants collect basic information such as weight, height and blood pressure and use a new oral swab test to collect a blood derived fluid found in the gums. This technology replaces the traditional blood test and can detect a variety of conditions including HIV and hepatitis. It can also confirm an applicant’s drinking, smoking and drug taking habits. The information is then entered into a web-based database platform and can be viewed immediately by the insurance company. Where laboratory results are required these are automatically fed into the system updating the report. The Liverpool Seed Fund has injected £250k into the business to fund bringing the service to market in the UK. Trials in Dublin have already been successful and the service will shortly be available across the rest of Ireland. The company has been supported throughout the funding process by Liverpool Ventures. Gemini was set up in 2004 by Managing Director Paul Hunter who runs the business with co directors Nigel Bradshaw and Gill Corkish. The company has recently relocated from premises in Runcorn to Merseybio. Mr Hunter said: “Most insurance companies in the UK currently use doctors or nurses to carry out health screening which can be slow, expensive and inconvenient. We can reduce the time taken to obtain this medical information by from weeks to days and cut the cost". “We are also developing the mouth swab test further to increase its sensitivity and expand the range of tests that can be performed. If successful this could provide non invasive tests for illnesses such as diabetes, cancer and heart disease". "The backing from the Liverpool Seed Fund means we now have the money to market the service in the UK and we are currently working with three leading pharmacies with a view to rolling out the HealthTrack service here.” Darren Gowling, Investment Director of the Liverpool Seed Fund said: “Gemini has developed a cost effective, accurate and efficient alternative to conventional screening procedures and we believe there are additional markets that could also use this service. The business has excellent commercial potential.” Lorna Green, Business Consultant with Liverpool Ventures said: “Gemini has already received plenty of interest in both its screening service and development of the oral sample technology. The directors’ individual skills are complementary and they are experienced in the medical and insurance sectors. We look forward to continuing to work closely with the team at Gemini through the next phase in the company’s development.” Corporate finance advice was provided by Acorn Capital Partners. Legal advisors involved in the transaction were Kate Richards Halliwells (Gemini) and Andrew O’Mahony from Brabners Chaffe Street (Liverpool Seed Fund). MSIF invests £800k into Liverpool educational software company - 4th September 2007 
Photo Shows L-R David Hesketh (Taecanet) with Tim Scott and Mark Borzomato (MSIF) Merseyside Special Investment Fund has invested £800k to support the further expansion of a Liverpool software company. Taecanet, based at Liverpool Digital, specialises in technology that delivers curriculum based online learning services to schools. The funding includes £540k from MSIF’s £40m Venture Fund and £260k from the Liverpool Seed Fund which continues to support the business following previous investments totaling £750k. Taecanet was set up by technology experts Ian Nairn & John Davison and relocated from Wiltshire to Merseyside. Since its launch in 2005 around 500 schools across the UK have subscribed to the service including all schools covered by Knowsley MBC. The company offers a subscription based e-learning service aimed at primary and secondary schools. For each national curriculum subject Taecanet uses expert practising teachers to create 'learning journeys' which are specifically designed to retain pupils' interest, concentration and ability to retain information. Managing Director David Hesketh said: "Recent research published shows that schools using Taecanet can improve their SAT results – which measure children’s ability - by up to 50%. We work very closely with teachers to develop the product and have recently added two new subjects to the range. We have also introduced “Virtual Classroom” which allows teachers and pupils who are geographically dispersed to participate in shared classroom activities. Next year we will launch “E-Assessment” which provides automated “levelling” and is aimed at further easing the burden on teachers". “We now want to grow from 500 to 2000 schools and widen our global customer base. We already have two international schools in Prague and Beijing but there are also opportunities for licensing deals in India and China.” Mark Borzomato, Investment Director of MSIF’s £40m Venture Fund said: “We are delighted to be supporting Taecanet. Its range of unique products have received excellent reviews from users and industry commentators and we are excited by the growth prospects both in the UK and global markets.” Darren Gowling, Investment Director of The Liverpool Seed Fund said: “Taecanet is run by a strong and driven management team. We will continue to work closely with them and look forward to supporting them through the next phase in their development.” Staff levels have grown from three in 2005 to over 20 and this figure is expected to double again over the next three years. Legal advisors involved in the transaction were John Spofforth of O’Connors (MSIF) and Neil Kelly of PFK (Taecanet). Commercial due diligence was undertaken by Sparrowhawk and Heald and management due diligence by Mkonsult. Darren Gowling, Investment Director of the Liverpool Seed Fund gives an insight into what the fund looks for prior to making an investment. 
"Our business is to develop shareholder value" Early stage, technology investor, the Liverpool Seed Fund has an approach that accepts a high level of risk and acknowledges that it is often impossible to carry out the levels of commercial investigation (due diligence) that traditional venture capital investors would typically employ. However, there are some basic areas in which we would seek comfort prior to investment:
Management: it is unlikely that many of the opportunities we see will come with a complete and rounded management team. Indeed, in the very early stages this is often unnecessary as the concept – either technically or commercially – may still be unproven. We will want to understand the motivation of the existing team as we are in the business of generating shareholder value ultimately through a sale of the business or technology. Therefore “lifestyle” businesses or research and development projects will not attract the Fund. It is important that founders accept there will be adjustments to their role and additions to the team as the business progresses through different stages of development. To make an early stage business commercially viable it must have a strong management team. We have a wide network of people who have a variety of skills and sector experience and they can be used to piece together the right team to drive the company. In some cases this will result in adjustments to the founder’s role. However, we will always work closely with them throughout this process. Market appetite: the early stage investment world is littered with great pieces of technology that have never generated £1 of revenue. A question we will always ask ourselves pre-investment – “is this a problem looking for a solution?” and if we believe it is then we won’t invest. We recognise that it is often very difficult to provide concrete evidence of potential demand at the initial stages of development but asking the right questions of the market will yield some evidence to develop answers this question. Market size: we will want to understand the potential size of the problem being addressed in terms of market value. With the many difficulties facing early stage businesses, it would be hugely disappointing to overcome these hurdles and find that although the market exists and is interested in the offering, the potential returns will never justify the risks initially taken. Funding requirements: a practical consideration for the Fund is always to consider the amount of funding that we believe the business will need prior to reaching breakeven and economic sustainability. We have a finite amount of cash that can be brought to bear on individual investments. Therefore, the maxim “things always take longer and always require more money” often infulences our decision as to whether we believe an opportunity is appropriate for the Fund. Darren Gowling Investment Director The Liverpool Seed Fund £300K seed funding for Wirral carbon monoxide testing company  Photo shows L-R – Beverley Jenkins and John Stones (Detectagas) with Mike Bakewell (Liverpool Seed Fund) A company that has developed a unique means of testing Carbon Monoxide (CO) detectors has been backed by Merseyside Special Investment Fund’s Liverpool Seed Fund. Detectagas, based on the Wirral, has invented a patented method to test sensors in domestic CO detectors. A harmless gas mixture is sprayed on to the detector which is then covered in a “shroud” to hold in the gas. This ensures gas exposure is at the level and time period required for the sensor to trigger the alarm which, unlike a fire alarm which sounds the instant it senses smoke, takes samples of air over a period of minutes to avoid false alarms. Around 50 people a year in the UK die from CO poisoning and low level exposure to the gas through faulty devices is linked to a variety of illnesses including ME and Alzheimer’s as well as foetal abnormalities. MSIF’s Seed Fund has invested £300k to fund the further development of the business and Alliance & Leicester Commercial Bank also provided support. Liverpool Ventures advised Detectagas throughout the funding process and will continue to work with the company. Detectagas was set up in 2005 and is run by directors John Stones and Beverley Jenkins. The company has recently relocated from North Wales to new offices in Birkenhead. Managing Director, John Stones said “The test button on most CO Detectors checks the alarm bell but doesn’t test the sensor which has a limited life of around five years. Around six million detectors are currently fitted in UK homes and approximately 80 million throughout the USA. The sensors are not currently tested this could mean that some do not work. The test costs just £1.30 per alarm and only needs to be carried out annually. “We are already in talks with a major UK gas service provider and also with Home Depot Supply which is part of the largest DIY retailer in the USA.” “The support from the Liverpool Seed Fund and Liverpool Ventures has been crucial to developing the business and we are delighted to move to Merseyside”. Liverpool Seed Fund Investment Manager, Mike Bakewell said: “No other test like this exists and Detectagas has already received a lot of interest. We believe there is a considerable global market and expect the business to do very well.” Peter Leather, a consultant with Liverpool Ventures said: “Detectagas has already been recognised at the Millenium Products Awards for its innovation. The company is run by a strong management team and we look forward to continuing to work closely with them.” Detectagas anticipates significant growth and expects to double its workforce over the next 12 months. For more information visit www.detectagas.com SUBSCRIBE TO NEWSLETTER UNSUBSCRIBE INFORMATION Liverpool Seed Fund is an MSIF Fund. MSIF funds are managed by Alliance Fund Managers which is regulated by the Financial Services Authority in the course of investment business. Liverpool Ventures 5th Floor Cunard Building, Pier Head, Liverpool L3 1DS Tel. 0151 236 0500 0151 236 4040 www.liverpoolventures.com Liverpool Ventures is a Company Limited by Guarantee in England and Wales. Company Number 04894769 Liverpool Seed Fund 5th Floor Cunard Building, Pier Head, Liverpool L3 1DS Tel. 0151 236 4040 www.msif.co.uk Registered in England: Company Number 2981031 |
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links Investment News So protect me Gemini Biomedical Taecanet Detectagas What does the Liverpool Seed Fund look for prior to making an investment? Find out more..? Detectagas – Pledge to help with carbon monoxide awareness Magnetic attraction for Merseyside - MSIF Fund of the Year LJMU Alumni Awards TV Dragon in Software City The Liverpool Seed Fund Injects £200k into innovative software company Liverpool Science Park ic2 The Liverpool Seed Fund invests in early stage businesses. Email to a colleague MSIF Fund of the Year  Magnetic attraction for Merseyside Merseyside Special Investment Fund was named Fund of the Year at the recent Insider Dealmakers Awards. The category, which was sponsored by the North West Regional Development Agency, was the only one without a shortlist due to the overwhelming number of votes secured from around the regional teams. The Award was presented at a glittering ceremony attended by around 850 guests from the North West corporate finance and business community. Mark Hughes, Executive Director for Enterprise & Skills at the NWDA said: “The NWDA was pleased to sponsor the Insider Dealmakers Fund of the Year award which was presented to Merseyside Special Investment Fund. The award recognised the fund’s ability to offer a combination of different types of funding with quality investment support alongside. The fund has benefited hundreds of businesses based on Merseyside and attracted new jobs and investment to the region.” Michael Taylor, Editor of North West Business Insider said: “The people have spoken". MSIF is clearly recognised by the corporate finance community as the best specialist regional fund for businesses which require capital for growth.” Specialist investment application and support from Liverpool Ventures TV Dragon in Software City  Doug Richard, gave a light hearted look at the investment industry and an account of his experiences and sometimes risky approach to building and selling software companies. He addressed delegates at Merseyside ICT Software City conference on 13th November. Famous for his role in BBC Dragons Den and founder of Library House and Cambridge Business Angels. Mr Richard commented, “VCs are looking for one thing and one thing only – a return on their investment. If you do want to bring a VC in, you need to recognise a mechanism of exit.” Vodafone’s Curt Hopkins reminded us that slow responses to new enquiries are a sure way to lose business and that many businesses are guilty of it. A selection of young, up and coming software companies were questioned by a panel of experts including Liverpool Seed Fund's Darren Gowling, who probed the new companies on markets, competitors, technology, ambitions. Companies presenting included Liverpool Seed Fund backed Host Telecom, which enables corporates to use mobile phones as a media for brand building in a way that has never before been available. Steve Smith Merseyside ICT Director noted the sheer quality and breadth of leading edge software developers in Merseyside and the superb facilities which they enjoy within the region, including premises and a wealth of creative, highly qualified people. Liverpool Seed Fund has already invested in: Med Tech, Science, ICT. Detectagas – Pledge to help with CO Awareness  Detectagas Carbon Monoxide Test Kits Tragic accidents can be avoided by simple precautions. Detectagas have pledged to back actions to raise awareness of the dangers of Carbon Monoxide poisoning. Managing director John Stones attended a series of high profile meetings at the House of Lords and Welsh Assembly in October and has undertaken to modify their own website so that it can be used as valuable information resource including a check list of symptoms for the public to take to their doctor. Lord MacKenzie speaking at the House of Lords, said: “ One life lost due to CO poisoning is one too many. These tragic incidents can be avoided with simple precautions. Let's make this winter a safe one. I urge the industry to continue raising awareness of the dangers of CO. “ John Stones commented: “Detectagas have been at the forefront of carbon monoxide issues since 1992. Annually checking of the sensor on Carbon Monoxide detectors is a very simple precaution which really can save lives. Our next goal is to enter the US market. Liverpool Ventures is supporting Detectagas in our plans to generate sales through DIY store distribution networks in the US. We have chosen the US as our prime market because there are 85m carbon monoxide detectors installed, compared to 6 million in the UK. We are engaging in some very promising meetings with a large US distributor". Carbon monoxide is produced by the incomplete combustion of any fossil fuel, including gas, solid fuel and wood. LJMU Alumni Awards - Cue for next generation of Liverpool entrepreneurs  Picture shows left to right Neil Johnson from Gravity Cue and Malcolm Stewart from Liverpool Ventures. The first Liverpool John Moores Graduate Entrepreneurs awards at Parr Street Studios in October announced Neil Johnson of Gravity Cue as the Winner of the Liverpool Ventures sponsored Innovation Award category. Gravity Cue is the first legal innovation in cue sports for 200 years and could revolutionise cue sports globally. His innovative product, was developed after working with LJMU’s Engineering Development Centre and Commercialisation team. Runners up for the award, which recognises business excellence and innovation, were Activity Box and Guardian Rock. Activity Box provides educational but fun resources for children’s groups such as Beaver Scouts. Guardian Rock is a climbing safety device that can be placed and removed with just one hand. British Army personnel have already shown interest in this innovative product. Malcolm Stewart, from Liverpool Ventures, awarding the prize said: “Liverpool’s entrepreneurial culture is the strongest it’s been for a long time and this is due, in part, to the talent base within our universities. Liverpool John Moores University is very connected with industry and the wider world and it’s vital that we continue working together to support and encourage the city’s enterprising students.” LJMU set up the new awards to recognise the efforts of LJMU entrepreneurs and the support the University receives from Liverpool’s business community in helping turn ideas into commercial reality. With more than 50 companies already established, and on average ten more being set up every year, Liverpool John Moores University (LJMU) is ranked in the top ten UK universities for business start-ups. Other awards presented on the night were:
Liverpool Seed Fund has made 54 investments Liverpool Science Park ic2 
Specialist accommodation for new and existing businesses in the knowledge economy sector will be part of the next phase of development for Liverpool Science Park. Peter Leather from Liverpool Ventures joined civic and business leaders for the turf cutting ceremony on 25th October and said “A number of the companies which I deal with from Liverpool Ventures are relocating from outside of Merseyside. The presence of attractive, purpose built, specialist accommodation for science and technology businesses enhances the Merseyside package in addition to introductions to equity funding from Liverpool Seed Fund.” The next phase of Liverpool Science Park will comprise 40,000 sq ft of specialist fit for purpose accommodation of which 10,000 sq ft will be laboratory compatible. Dr Sarah Tasker, Chief Executive of LSP, said: “Liverpool Science Park's mission is to grow the city’s knowledge economy by retaining knowledge-based companies and attracting companies from outside the region." “Working closely with our partners in the city council, John Moores University and Liverpool University, our second phase of development means that we are on-track to create a world-class innovation hub in Liverpool's city centre." |
