Product development help for SMEs has arrived!
Jun 05 2002
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Small businesses with strong, strategic plans for growth could benefit from a new DTI-funded scheme devised by the National Business Angels Network (NBAN).
Called Corporate Venturing UK, the scheme, which will launch on 18 June, is designed to bring together large corporate firms and smaller companies with a view to developing and commercialising the smaller companies’ products.
The scheme is actually based on a "dating agency" Small companies will be invited to register on the Corporate Venturing UK website and provide information about themselves and their future product plans.
Companies will be asked to select an adviser from a list provided and they will then be matched to larger companies in their field by the NBAN.
Nick Cox, director of the scheme, says that it is as much about forming beneficial partnerships between small and large firms as it is about the input of equity.
Cox believes that the commercial experience of a larger company would benefit an SME in the development and commercialisation of its products, an area where most small companies lack expertise and experience.
Another major advantage, says Cox, is that the larger company "shares the risk" involved in a new product. This could enable development of products that might otherwise not be possible.
Technology companies are the most likely to gain from the service, believes Cox, but he has had interest from companies in other sectors, including the food industry.
To become involved in the project initially, SMEs will be charged a fee (starting from around £200) to enter their business propositions on the site.
SMEs will also be charged a fee by the adviser who helps them broker a deal with a larger player. While Cox warns smaller companies that the scheme is not likely to prove "a cheap option" initially, he says that the long-term benefits that could accrue may make the initial investment very worthwhile.
The website, www.corporateventuringuk.org, goes live on 18 June.
Companies wishing to find out more about it, or the National Business Angels Network should visit the website at www.nationalbusangels.co.uk or phone 020-7329 2929.
(5/6/02)
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