Weekly Wrap Up: Steering tech coverage in the right direction

It looks like soon Britons won’t have to worry about driving home from the pub after having had a few too many. At least that’s what the Daily Mail coverage of the UK Government’s decision to allow driverless cars to be tested on public roads suggests.

In case you missed this story, the self-driving vehicles that will be seen in the UK as of next summer are like traditional cars but can also sense their environment and navigate without human input. The driverless cars that will be tested on UK roads, however, will be required to have a fully qualified test driver who could take over, should anything go awry.

Still, the Daily Mail jumped on the news, writing that occupants of driverless cars, “…won’t even need a driving license. And even those now considered ‘unfit’ to drive will be eligible.” In the same article, the writer eventually concedes that current laws actually prohibit this, but not without mentioning that this could change in the future.

And it wasn’t just the Daily Mail that presented driverless technology in the most horrifying way possible. The Telegraph responded with a headline asking, “Driverless cars sound great, but can we stop the sat nav driving us off bridges first?”

This headline refers to concern about whether vehicles controlled by software can be hacked, causing cars to crash into each other or “drive off a bridge”. Then again, human driven cars already crash and there’s no software update that will ever prevent this.

The press coverage of this new technology demonstrates how much the media enjoys a good technology scare story. Findings by the Pew Research Centre, an American think-tank, support this theory: research shows that the press has a tendency to express wariness about the effects of technology on our lives. In other words, it’s common for the press to take the “robots are taking over” angle when it comes to reporting on technology. This is certainly true for the coverage of driverless cars in the UK, and exactly why it’s especially important for technology to be presented in a way that showcases the benefits, of which there are usually many.

The truth about driverless cars is that they won’t just make life easier by perhaps allowing people to have a few drinks before getting behind the wheel, or reading, surfing the internet and even taking a nap all while driving – these cars will actually save lives.

In reality cars with a human driver behind the wheel are the real danger: a staggering 90% of car crashes are caused by human error. That is one of the main reasons the UK insurance industry supports driverless technology.

Consider airplanes for a moment: It’s a well-known fact that you are much more likely to die in a car crash on the way to the airport than you are in a plane crash. That’s mainly due to the fact that airplane technology has advanced considerably in recent decades that planes basically fly themselves on auto-pilot, except at take-off and landing. In recent years almost all plane crashes have been due to human error, not the auto-pilot.

Furthermore it’s not just airplanes that have been improved by technology: Driverless underground systems already exist all over the world. And while this technology was met with resistance, it has proven to be safe and cost efficient.

In addition to significantly improving safety, driverless cars would be a boon to the British economy if this technology was developed here and exported. The industry is expected to be worth £900 billion by 2025, which is why the UK government wants to embrace the technology. The value of British car exports has nearly doubled in the past decade, but it could become vital to embrace driverless technology in order to maintain this momentum.

In short, driverless cars are poised to significantly improve our lives. However the negative media coverage seems to be having a significant impact on public opinion: 48% of the population would be unwilling to “drive” an autonomous vehicle, according to a survey by the price comparison website uSwitch.com. Of those surveyed, 16% were “horrified” merely by the idea of a driverless car.

There is an important lesson in the media coverage of driverless cars for tech companies: technology is an easy target for scaremongering. This is true not just for driverless cars, but all technology that will result in significant change, regardless of whether that change is positive or negative. When the media gets a hold of a good scare story, the facts can often become muddled. So the best approach for tech companies is to get ahead of the story and steer it in the right direction because even when it comes to reporting the facts, it’s almost always human error that results in disaster.



This week Abchaps attended the CIPR Speaker lunch where Chris Blackhurst of the Independent and Evening Standard was guest speaker. The event was very informative, discussing topics ranging from the future of journalism to current affairs. We also enjoyed an evening at the 48 Group Club Chinese New Year Icebreaker dinner.



Cantor Fitzgerald announced Deven Sthankiya as new managing director in its debt capital markets team. This appointment sees him move from HSBC. Edison, the investment intelligence firm added David Stoddart, Victoria Pease and Sara Welford to its research team. Finally, Robin Wilson, previously of Rightmove, was appointed Taylor Wessing’s new chief operating officer.



“Scare story” – the media’s tendency to take an issue wildly out of context in order to generate headlines.



Held almost every year since 1854, The Royal Photographic Society’s International Print Exhibition is the longest-running display of its kind in the world. With plenty of novelty on show, the photography ranges from documentary to natural history. The exhibition is free to view for people attending Royal Albert Hall performances or can be visited for free by the general public between 10am and 1pm on Saturday February 14.

Another exhibition, promising to be extremely thought provoking, is Mapping the City at Somerset House. This display of cartographic representations will allow you a glimpse of how more than 50 internationally recognised artists, from the graffiti and street art scenes, view the home towns they use as their canvas. Using digital technologies, illustration, sculpture, paintings, video presentations and even performances, its a very contemporary way to view cities from around the world.

Are you fan of Sunday’s involving kicking back and watching a good film? Head to the Barbican cinema where there’s a screening of The Hound of the Baskervilles (1921), with a live piano accompaniment by Neil Brand.

Follow us on Twitter @AbchurchComms

The A-Z of Generation Y

Recently we’ve seen several press articles on the tastes, working habits and culture of those categorised as ‘Generation Y’. Why all the fuss? Why should we turn our attention to this demanding demographic? At first glance, it just seems experts are advising we change working environments to play to their strengths, and, in many ways, protect businesses from Gen Y’s weaknesses.

Dave Baxter wrote an article in The Business Reporter, distributed by City AM, stating that Generation Y, generally considered those born between 1980 – 1990, are often described as "collaborative, workshy, digitally savvy and anti-authority”. These are, of course, generalisations, but looking around the City, each of these ‘Millennials’ (as they are otherwise known) that I spy undoubtedly demonstrates, at times, most of these characteristics. And the scary bit? In workplaces across the world they are starting to climb the career ladder.

This new workforce breed will undoubtedly affect how companies and leaders operate and manage their teams. Let’s consider what this could mean for employers in the communications industry…

Collaboration

The possibility for collaborative working methodologies is undoubtedly a positive. Working in silos would almost be an oxymoron for any natural-born communications professional. As new sources of information emerge and communications channels constantly evolve, resources need to be pooled to ensure optimal internal communications, in order to deliver the best quality of service to your clients. Collaboration in the workplace also improves the creativity of content, allowing more perspectives to shape the final product. This is essential when vying for column inches or coverage for smaller companies in an increasingly crowded marketplace.


Digitally Savvy

Last week, Morgan Stanley gave the green light to its Brokers to post self-authored content on firm-approved Twitter profiles. The majority of journalists are also active Twitter users. In fact, with hundreds of emails and calls a day, often the most responsive and standout way to get in contact is via the social media platform. If financial journalists and advisors are using it, surely the platform is perceived as influential? Could the content even influence a share price? If communications professionals have grown up using social media, tweeting an equity story is as natural as putting something down the RNS, or indeed arranging a night out. It’s probably therefore a good thing to have Millennials as members of the team

Anti-authority

But let’s not tweet before we can talk. An anti-authoritarian attitude can be difficult to manage and, more importantly, to teach. But for Millennials, it’s more a case of a lack of awareness of authority. Due to the more regimented family lives of generations past, young people were taught, ‘only speak when you are spoken to’. However, due to the flexibility and fluidity of modern family units, relationships are more relaxed at home, which can often translate to the workplace. This modern mentality means that Generation Y simply do not feel constrained or restricted by authority, so are not afraid to voice opinions. Their creative and often well-educated minds are therefore freer to help shape a company’s strategy and business decisions. Maybe that’s not a bad thing?

At the end of the day, Generation Y is becoming a more senior and dominant demographic in the workplace. Surely it would be better to facilitate their preferences and habits in order to make the most of their strengths? A diversity of skills is an asset to any business. It can lead to the evolution of a new differentiator or USP.

But then again maybe I would say that?

I was born in 1990. Oh and workshy is just a rumour!

Stephanie Watson

Follow us on Twitter @AbchurchComms

Weekly Wrap Up: A Flow of Israeli IPOs

Is London well positioned to capture the next wave of Israeli tech IPOs?

There has been hype and a buzz in the City this week about the number of Israeli tech companies that are currently eyeing a listing in London. Companies include digital advertising company Matomy who now has ten global offices in Israel, Spain, Germany, Mexico, San Francisco and New York and employs 400 people. The Company is looking to raise £60m which will value it at between £200 and £300m. Another is digital advertising Company, Marimedia.

Israel, dubbed the 'start up nation', is the second largest source of innovation after Silicon Valley and is the third largest source of listings on New York’s NASDAQ. Global tech companies, Apple, Google, Intel and HP have been building up their research and development operations in Israel, making the country a major tech hub in its own right. Its leading tech companies have engineered cutting edge medical technology such as Given Imaging, a producer of swallowable camera pills.

Inspiring Innovation
Source: Oliver Thompson - Flickr CC

News of foreign tech companies, particularly from this innovative market, choosing to come to London to list is welcome news; London must do all it can to attract these companies. For too long London has failed to do so due to the lack of fund managers and analysts focusing on tech. Many argue that London’s capital markets are too immature in this respect when compared to NASDAQ or even NYSE, and until London sees a consistent number of tech companies floating successfully on the London Stock Exchange (LSE) then investors will continue to go to the US to tap into its attractive infrastructure, analysts and flourishing IPO market. Was it presumptuous of Joanna Shields, Tech City Chief, to claim in October 2013 that London had reached parity with New York when one of the most exciting companies and gaming giant, King chose to float in New York last year?

Nonetheless, London has been making positive steps to capture this market and the most attractive sector for growth. The LSE launched the “High Growth Segment” (HGS) in March 2013 with the goal of enticing firms to the market; companies wouldn’t have to comply with the usual free-float rules and would also be able to list by selling as little as 10% of their equity. This initiative has been received positively by fast growing companies, and according to Marcus Stuttard, Head of UK primary markets at the LSE, there is a rising interest in the broader IPO market. It is hoped that the arrival of Facebook and Google as established presences in East London will bring a new wave of commercial expertise. The government has also launched its Future Fifty scheme, designed to attract and support online entrepreneurs to push the UK into the front of the global race in this respect. These are all great initiatives, but more will be needed to ensure that London successfully rides the next wave of Israeli tech companies looking to IPO.



Abchaps welcomed Mazars Finance and Corporate Finance teams into our offices and heard about their focus on Israel, as well as their specialist sectors: media, technology and telecoms. We also entertained some special guests at Chelsea, who were victorious over Newcastle 3-0 at Stamford Bridge.



Love wasn’t the only thing in the air this week; promotions and new appointments were also on the cards at a number of top City firms. Our friends at Cavendish Corporate Finance appointed Joe Stelzer as a managing partner after four successful years at the Company.

Octopus Investments announced that Debu Purkayastha is to be their entrepreneur-in-residence at the fund management Company. No doubt he will use his previous experience at Google to drive the business forward with his keen eye for exciting new opportunities. In the legal domain, Pinsent Masons have also now appointed Michael Ruck as a senior lawyer in its corporate crime team.

Finally, following our client Lighthouse Group’s announcement last week that Rowan Dartington had been brought on board, the Group have also appointed Mark Evans as business development director, moving over from his senior executive position at Pearl Assurance.



'BitTag' – In a week where the burgeoning BitCoin industry was writ large across our newspaper headlines, our tech-loving friends over in East London introduced the ‘BitTag’ concept. BitTags are physical price tags that provide the consumer with a real-time indication of an item’s price according to market fluctuations, displaying both local currency and BitCoin value.

“Darling, you’ve left the BitTag on my valentines day present. This may have been a pricey gift at Harrods, but you could have got it at a knock-off price with BitCoin, you cheap…”



It’s the big Valentine’s Day today, so whether you have been struck by Cupid’s love arrow or are single and ready to mingle, the City is hosting numerous options for both love and lust...

Instead of gazing longingly into each others eyes over a candlelit dinner, get physical with some couples’ aqua zorbing or a ‘Lovers Leap Bungee Jump’! 

For you singletons, fear not – love could be found exploring the beautiful and the ugly at the Natural History Museum’s Valentine’s Day Night Safari. Alternatively, head to Bounce club for its anti-val, strictly no kissing, just ping pong night of partying!


Follow us on Twitter @AbchurchComms

Tech Roundtable with Alistair Crane

Abchaps recently hosted 10 tech-loving City high fliers at our office. Everyone, without exception, around the table had first-hand experience of an Exit of some kind. We were fortunate enough to have Alistair Crane, Executive Vice President of Monitise Create, to co-host the event, following his starring role on Abchat just before Christmas. Alistair is widely considered as one of London’s top young entrepreneurs. He took his own start-up, Grapple Mobile, through a successful exit when sold to Monitise in September 2013. Alistair was the perfect candidate to chair the roundtable as we gained insights into the trends, opportunities and anxieties of those in the tech start-up space.

All guests agreed that there was a lack of funding from the banks available to early stage start-ups. The papers are littered with stories of how the Government plans to boost SME funding, but what about financial help for those who just have a really great idea? Those ideas need financial support to become the next big thing, and whilst there is undoubtedly a lot of over zealous non-starters out there, we must remember that one or two of those will be the next Twitter or maybe the next Grapple.

3D printing Source: www.engadget.com

There was a feeling that beyond the banks, there is also a lack of options for those embarking on small capital raises. Tech start-ups can bump into the right people, operating in the right place at the right time and pick up the first £500,000 - £1m required to commercialise or expand. But if they don’t come across the people in the know, how are they supposed to gain access to capital?

It was proposed that the answer lies in the little black books of a few well-connected individuals in the City. A guest rightfully asked who now actually owns those leather-bound, pocket-sized and extremely coveted collections of paper? The consensus was that it was only through building relationships, getting out there and meeting both the more experienced players and indeed their successors, can anyone succeed.

Alistair focused on the importance of having a solid ‘Team’ in the aforementioned blogpost. It became clear from the lunch though, that particularly for a young CEO, ‘The Team’ is not just defined as those directly working under the payroll of the Company. It also includes advisers and intermediaries working alongside the young entrepreneur.

An article published by Niklas Zennström in the Financial Times recently questioned whether, given the ease of collaboration now facilitated by the Internet, the HQ of a start-up needs to be in a buzzing tech hub? Alistair, for one chose not to base his Company in Tech City, instead preferring to work from Soho, the media hub of the UK. This was however, only because he wanted to be close to his clients. It seems that wherever you choose to work from, you need to be amongst at least one of the most important stakeholders of your business, whether it be that clients, investors, advisers or the best talent pool.

Wearable Technology Source: broadband4europe.com

Conversations went onto examine future trends: Are disruptive technologies the future or are the strongest players in the field those who focus on developing a pre-existing technology? Where will tech newbies such as Twitter be in five years time in relation to the firmly established giants found in other sectors? The unique business life cycle of a tech company is definitely something that investors are still becoming accustomed to. Alistair believes (he admits perhaps due to a recent visit to the ever-optimistic United States), the likes of Twitter have a definite staying power and have gained traction in a sceptical but porous market.

There is no doubt that it’s an exciting space to be in; the lunch was an excellent opportunity to hear from those who are on the ground, enjoying the highs of a fledgling sector but also coming face to face with the daily hurdles of a growth industry. One thing is for sure, talking to the tech community is invaluable, and conversation is key. No tech start-up, nor adviser, is an island. Or, as the school lunch hall suggested, a slightly awkward geek. It is an exciting, prosperous and energetic community who are already succeeding, as shown by Alistair Crane. With the right teams and support networks, the industry will, undoubtedly, continue to go from strength to strength in the coming years.

Stephanie Watson

Follow us on Twitter @AbchurchComms

Alistair Crane: Maximising Value of your Tech Start-up

THE MAN

Alistair Crane left school with nothing more than a few GCSEs. At the age of 21 he had started work for NAVTEQ, a digital mapping subsidiary of Nokia. By 23 he had co-founded the mobile app developer, Grapple. Grapple designed and created the mobile applications for global brands from McDonalds to Pfizer. It was subsequently sold in 2013 to AIM-listed company Monitise, world leading mobile payments company, for a tidy sum close to £40m. And Alistair’s take on both his personal and company’s journey is .... "It’s only just the beginning".

Alistair was kind enough to share with Abchurch some of his top tips to enhance a technology company’s journey from start-up to a mature and established industry profile.

START RIGHT

First off for start-ups? Start right. Alistair admits that the early days can be more than a little bit daunting but if you prioritise your short term goals, a plan of action can become much clearer, surprisingly easily.

THE TEAM

This starts with choosing the right people for your team. Alistair personally recruited the vast majority of his staff so that he can always guarantee that he is surrounded by trustworthy people who are passionate about the company and product. He believes there is freedom for everyone to be on their own journey, whilst contributing to the Company’s goals. Consistent belief in the product will ensure that at crucial yet turbulent moments in a business’s life-cycle, the CEO won’t need to have all the answers, as the insight and passion will come from within. In terms of leadership, there just needs to be a gesture towards how things may play out and people will be on board. There can be no grey areas in the team’s enthusiasm for the journey – you’re all in it together.

THE EXIT

Whilst Alistair is a firm believer that it is not always necessary for the CEO to hold all the answers, he believes you have a firm focus of what you ultimately want to achieve with the business; profitability, expansion or even an exit. Be that through a trade sale or an eventual IPO, you need to have an eye on the future so that you can optimise the present. More often than not this can involve positioning yourself in a certain light in-front of target audiences. When Grapple turned down all VC funding, they knew their financial position would come under scrutiny, so they had to be clever with the way they communicated their business growth.

THE BRAND

Development of both personal and corporate brands ensures that what the company does and how they do things is clearly communicated. The personal brand that Alistair has developed is undoubtedly a key factor in the growth and development of his start-up. In his own words, if he was a brand, he would be Ronseal…doing exactly what he says he will do. Such steely determination is likely a shared attribute amongst many start-up CEOs – although not all may choose the right words to describe what they do. Alistair’s choice? .... "I’ll just keep smashing through walls for as long as I can!”

Alistair is adamant that there must always be positivity surrounding the brand. Whether it’s current or ex-employees, clients, future clients or investors, they always need to think you are good people with something of value to say and do. His own experiences have taught him to be conscious of past, present and future relationships at all times and sometimes this can be down to something as simple as just offering some help.

THE HELP

It’s not all smashing through walls though, and Alistair explains that his experiences have taught him that value is subjective - an art not a science. He feels that start-ups must come to appreciate this if they want to make the transition to a more established industry presence. The stakeholders and influencers that can affect the financial credentials of the company may have a different perception of value to the CEO and team. Ultimately, their view can directly affect the long term trajectory of the company. He suggests that CEOs need to have partnerships with people who can both understand the value proposition and advise about how to position it. Sometimes you need a little help along the journey.

Here’s where PRs come in – they are on a journey too, and want to be good people and help. Companies like Abchurch can advise start-ups on what their content should include and how to communicate it. This includes positioning firms in front of the right investors, analysts and media, so that key audiences gain a clear insight into your company’s model and the future value you hold.

In the words of the American novelist, Don Williams jr. ...

“The road of life twists and turns and no two directions are ever the same. Yet our lessons come from the journey, not the destination.”

Stephanie Watson

Follow Alistair Crane on Twitter @AdFundAl

National Science and Engineering Week: Britain’s growing Tech Sector

This week is National Science and Engineering Week, the UK’s widest grassroots celebration of all things science and engineering. The theme this year is Invention and Discovery, a theme particularly relevant to Britain, given our great history of discovery and invention. However, recently it feels as if we have been falling behind countries such as Germany, which seems to make everything from washing machines to cars, with its multinational corporations.

The problem we have is that in recent years of the work of engineers has not gained as much respect as it has done historically. In Germany, the profession of engineering is highly respected and perceived as an aspirational career, with engineers achieving the same prestige as doctors. I share the view with James Dyson that this is not the case in Britain. Dyson believes the best time to foster the potential of an engineer is at childhood and that continuing to study mathematics beyond GCSE level is key. 90% of German students continue with maths after 16, compared to Britain where we have the lowest levels of post-16 maths study in the developed economies. A week to celebrate science and engineering is incredibly important to help generate excitement for scientific professions and guide young people to make important subject decisions for their future.

Growing Technology Sector

Google Campus

Whilst we may not currently be as pioneering at mechanical engineering as we once were, according to Matt Cowan of WIRED, the tech sector in London is a new world with talent, ambition and global success – and he thinks it’s about to explode. The biggest internet companies have recently started investing in London. Facebook has just opened its first engineering office outside the US, in Covent Garden. Google sees the potential of Britain’s tech start-ups and last year set up Campus, a seven-story building right next to ‘silicon roundabout’ that provides workspaces, free wifi and mentorship opportunities to fast-growing small businesses. No matter what people say about Google’s UK tax arrangements, it is certainly contributing directly to London’s tech community. There are other government initiatives helping this sector to boom, including the introduction of an ‘entrepreneur’s visa’, and tax breaks for early investors through initiatives such as the Enterprise Investment Scheme.

Taxing Growth

There is further to go before we feel the full benefits of this growing industry, and we need to nurture it. According to Robin Klein, venture partner at Index Ventures, at least 20-30 companies (e.g. Wonga, JustEat, Zoopla) are ready to IPO but their growth is being hampered by taxes. Index Ventures, along with the CBI, TechCity, NESTA and the City of London are calling for the abolition of stamp duty on investments in the AIM market as a straightforward way to encourage more capital into the technology sector. The London Stock Exchange is also arguing for the tax not to be applied to its new High-Growth Segment when it launches later this month. Waiving the tax would promote growth for minimal cost considering the duty on AIM shares accounts for only 3% of total stamp duty revenue. This is something George Osborne could easily announce in the budget tomorrow. It would not only garner praise from the above mentioned institutions, but also contribute to the growth that all, including the chancellor, so crave.

Current State of British Engineering



Vietinbank, Hanoi.  Built
by Foster + Partners 2010

There are positive signs that maths is becoming increasingly popular post-GCSE. Last year around 80,000 students were entered into A-level maths and this number is predicted to rise to 100,000 this summer. You could argue that Britain is experiencing a golden age of engineering. We have just built a whole Olympic Park, on time and under budget, Crossrail is creating a new railway system right through the centre of London – a huge engineering fete in its own right. Similarly HS2 has been given the go-ahead and will create a new high speed railway line from London to Birmingham and further to Scotland in the future. Internationally, our architects are often the preferred choice for new buildings worldwide (just look at Foster + Partners’ project map), creating technically innovative buildings. We engineer and build Range Rovers in Solihull that are delivered all over the world; we make vacuum cleaners and probably the best hand dryers on the planet.
Last year the Raspberry Pi computer, a British invention, was launched to international acclaim. It is a tiny computer, costing just £25, designed to be a ‘breadboard’ for people wanting to learn about computer engineering. Google is giving 15,000 of them to British schools for free to help get young people familiar with computing. Hopefully with this host of great recent achievements Britain has had on the world stage and weeks like the National Science and Engineering Week we can encourage the next generation of Scientists and Engineers and continue these successes in the future.

Richard Sowler

Follow us on Twitter @AbchurchComms

Climate Week: Innovating our way out of the problem

This week is Climate Week, Britain’s biggest environmental occasion of the year with half a million people attending 3,000 events nationwide. We at Abchurch have been playing our small part in the office by relying only on natural light this week (and we have plenty of it) – it’s quite therapeutic and I thoroughly recommend it, although with it getting dark around 5pm, you need to know when to give in!

Learning about the technology and innovation UK companies are coming up with to counter the climate change issue is one of the key things we can take away from Climate Week. On Monday, 14 companies and individuals received awards at the House of Commons for their work to tackle climate change over the past year. The innovative examples include Loowatt, a waterless lavatory system that uses anaerobic digestion to convert waste into biogas. Invented by a British company and based in Madagascar; there is a clear application for this product in parts of the world where lack of water is an issue, with an added benefit of generating power for the household. This type of innovation is essential to prevent the climate change fiasco that some people predict.

Another award winner was a documentary film called Chasing Ice, documenting a photographer’s effort to capture the effects of climate change by setting up 34 cameras across 16 glaciers in the Arctic. It really is worth a watch because apart from being visually spectacular, it was made by James Balog, a climate change sceptic until 2005 when he was sent to the Arctic for an assignment and saw for himself the extreme change in the glacial landscape since his previous visit. It also seems to have had a strong impact on viewers – an American fan of the famously right-wing and staunch global warming sceptic Bill O’Reilly says this film “has changed her life”.

Excess Meat Consumption

When it comes to concern about climate change, most people think close to home and of their own transport and energy efficiency. We do need to reduce our personal CO2 emissions, but I don’t think people realise the efficiency and inefficiency of some other products that we buy. Take meat production for example, beef is the least efficient, and pork is the most efficient. Did you know that in the USA 80% of the output from agricultural land is used to feed animals? 80% of corn, 90% of soy, 70% of wheat produced goes directly into the mouths of the animals that will go into our mouths. That’s not all: 50% of the water in America is used to irrigate the food that is fed to animals. This level of consumption is not sustainable in the long term, particularly considering the projected population increases. Research by Exeter University suggests that in order to become sustainable we need to reduce global meat consumption from 16.6% to 15% of the average daily calorie intake – about half of the average western diet.

Many organisations are promoting the concept of eating less meat - not no meat, just less. I think this is a much more workable solution of cutting down the consumption of meat per person. Most people would struggle to go fully vegetarian, so promoting eating less meat is more constructive and realistic. Meat Free Monday for example is a completely workable idea. If more people signed up to this sort of initiative we could quickly cut our demand for meat.

Reducing CO2 Emissions

There are signs that Europe is moving in the right direction in terms of cutting CO2 and making farming more efficient. The Common Agricultural Policy (CAP), the system that subsidises farmers within the EU, is undergoing reforms to align itself with the Europe 2020 strategy for smart, sustainable and inclusive growth. This includes proposals to ‘green’ the direct payments to farms by offering farmers extra money to do green good deeds. Considering the size of the CAP budget (€58 billion in 2011), this is a serious amount of money. It would encourage farmers, for example, to buy items such as an anaerobic digester that would turn cow manure into methane which would be used to generate electricity. However, in true EU policymaker fashion, this is a slow process and the exact specifications of the reforms are still unknown.

Can we afford to change?

Personally, I’m an optimist when it comes to climate change and believe that we will innovate our way out of the problem. There will come a point when renewable ways of producing energy become cheaper than their non-renewable counterparts so economically it will make sense to make the change. Solar power in particular is improving at such a rate it will soon be able to compete with fossil fuels on a cost basis, according to Google co-founder Larry Page and futurist Ray Kurzweil.

So whilst Climate Week is drawing to a close, consider the true cost to the environment of everything you consume. You could even attend an event. And with that I’m off to make a cup of tea. No, scratch that. I’ll have a tap water.

Richard Sowler

Follow us on Twitter @AbchurchComms

Impact Investment: Doing good whilst making a profit

The launch of Social Impact VCT, enables investors to invest “with both their heads and their hearts” in a tax-advantaged vehicle.

 

 

Yesterday afternoon at our offices we saw the launch of the Social Impact VCT. The fund aims to make use of the existing tax incentive scheme to create a pool of readily available investment capital immediately deployable among socially driven companies in the UK.

 

 

Social Impact VCT features:

1. Support the growth of socially motivated companies which make a distinct positive contribution to improving UK society
2. Capital preservation and predictable cash flows due to focus on established companies and companies whose revenue streams are wholly or partially underpinned by delivery contracts
3. 30% income tax relief in year of investment, tax free dividend and capital gains.
4. Planned Exit: return of capital planned for years 6,7 and 8
5. Dividend planned from year 2 onwards.

The VCT will be managed jointly by FSE Fund Managers and Social Finance. It will focus on profitable and/ or growth companies delivering measurable social impact. As part of the launch we heard from the following two socially motivated companies.

CREATE Foundation is a company aimed at providing a place where people can rebuild their life and hope, in the form of work. It is a “for more than profit” company, this means they run a great business, but profits are ploughed back into training, work experience and jobs for people who need them most. In January 2011, they became only the second company to be awarded a Big Society Award by David Cameron.
CREATE is a social enterprise, and this means that it applies “capitalist strategies to achieving philanthropic goals.” The government defines social enterprises as businesses with social objectives whose surpluses are reinvested in the business or in the community, rather than maximising profit for shareholders and owners.

Another example of a social enterprise is Bromley Healthcare, a new community interest company founded of 800 people who will deliver a wide range of NHS Services to people of all ages. From health visiting to district nursing, school nurses to specialist nurses, their nursing services help new parents to care for new born children and older people to continue living at home through care and support. In addition to this broad range of nursing services they also have a wide range of therapy services for adults and children. This includes speech and language therapy, physiotherapy and occupational therapy.

Both Create and Bromley Healthcare are examples of companies that would benefit from Social Finance’s VCT and would in return offer duel level benefits for the investors (both financial and social).

This is a relatively new asset class, but it is growing. However there is still a problem surrounding the understanding of it. What is needed is the development of a clear message to outline to potential investors the financial returns available from social investments as well as the social benefits delivered. It is not philanthropy, but investment with “twice” the return both financially and socially.

Follow us on Twitter @AbchurchComms

Apple is world’s most valuable firm

- Steve Jobs is the man-

Recent uncertainty in the stock market yesterday helped Apple to overtake Exxon Mobil to become the world’s most valuable company. However, the innovative work of Steve Jobs should not go unnoticed.

Apple briefly pipped Exxon on 9 August 2011 when the Company’s share price dipped due to a fall in the price of crude oil; a direct result of the market’s concern over The United States’s debt crisis and the increasing threat of a double dip. The USA is the world’s biggest consumer of crude oil and as a result, Exxon Mobil’s share price has seen a 20pc drop since reaching a year high of $87.98 in April 2011. On the other hand, Apple is a blossoming evergreen, with the Company’s share price having almost quadrupled in the last four years. 

City workers, journalists and consumers are questioning how Apple is managing to expand at a time when other companies and even sovereign states are struggling to stay afloat. Could the simple answer be the work and vision of Apple CEO, Steve Jobs…?

The California based tech company is enjoying rapid expansion, with every results announcement continuing to boast record growth upon record growth. Furthermore, analysts do not expect this growth curve to plateau, as most still hold buy recommendations on Apple, despite the prospect of the deepening slowdown in the world economy. In fact the only time Apple’s share price did begin to level-out was in January 2011, when reports in the press stated Jobs had been taken ill again; arguably a marked testament to the markets’ faith in their CEO.

The argument that technology will continue to develop and demand will never dwindle is true, but Apple has to be acknowledged for its innovative products – the recognition of which should go to Steve Jobs. When Jobs was reinstated at Apple in 1997, he inherited a company worth $2billion. Apple was trailing behind Dell and the world of electronics was wholly dominated by Microsoft. Today the company is worth $341.5bn.

As the Internet became more widely accessible, Job’s first priority was to rebrand Apple. The company reacted and introduced the pretty coloured iMac computers. Over the years, this evolution has continued, with the iMac leading to the iPod, then to the iPhone and most recently, to the iPad. In just 14 years Steve Jobs has changed consumer computing, the entire music industry, mobile communications and brought tablet devices to the market (a concept one might have thought belonged in an H G Wells novel not too long ago).

The upcoming autumn launch of iCloud is yet another example of the company and Steve Jobs’s innovation. Jobs spotted that the proliferation of hand held wireless devices has led to businessmen and consumers being ‘online’ all the time, and as a result, there is increased demand to access and backup data through cloud based services. iCloud will actually overservice these consumer needs; further differentiating Apple from competitors such as Microsoft and Dell, and in turn, increasingly encroaching upon Google’s territory.

As Dominc Rushe in the Guardian comments: “One of Jobs’s early goals was to surpass Dell”. Apple have done just that. In 2006 their market capitalisation was $72.13bn vs Dell’s $71.97, and by May 2010 Apple’s market cap was $3bn greater than Microsoft’s.  Now the technology giant’s market cap is rivalling oil companies. [1]

The soon to be launched iCloud service and the eagerly anticipated iPhone 5 will continue Apple’s dominance of consumer electronics under Jobs, with stores worldwide having flocks of dedicated followers queuing up overnight eager to get their hands on the latest Apple product.

When Steve Jobs decides to retire, the board at Apple has some task on their hands to replace him. It will not be easy.

Jamie Hooper

---

[1] Pg 24 Guardian 10 August 2011

Follow us on Twitter @AbchurchComms

A view on: Life Sciences

We are about to welcome a new Abchap into the fold. He is a Life Science specialist and will be joining Abchurch as a Director. So why are we strengthening our Life Sciences team when the sector has struggled for so long? His viewpoint is that Life sciences is coming out of hibernation; “the London and European markets have seen an increase in life sciences financings over recent months and there is also strong and deep venture financing available for the correct companies.” It is certainly true that there has been an increase in interesting medical device companies and small biotechs coming through our doors. The gap that big Pharma is creating by dismantling non-essential internal R&D capabilities is ready to be filled by innovative, nimble companies with unique and interesting products. These are the types of companies that we like to work with.

According to a report in today's Times, the UK has a thriving life sciences industry, with four out of the top six universities in the sector in the UK. 10% of global pharmaceutical spend is in Britain and our academics are second only to the US in publishing research in the field. While we are one of the smallest nations in the EU, two fifths of European biotechs are based here. This success, Ian King notes, is down to close collaboration between industry, academia, the health service and the Government. There is a nod to the City, which has provided finance for industry and encouraged academia to understand the value in its IP and commercialise it. In the past ten years alone, more than 200 companies have been successfully spun out of bioscience departments in the UK, generating revenues of over a billion pounds.

Recently a journalist asked one of our clients – a spin out itself – “why wouldn’t a Pharma company just buy you? It would be cheaper for them in the long run than licensing your products.” And our client replied quite simply that they would be swallowed up; the innovation, the ability to quickly pursue interesting projects, the speed at which R&D can take place in a small, focussed company, would simply be lost and the big companies recognise this. It’s a view that more than one client has expressed and makes it increasingly attractive for the giants to partner with smaller companies to take advantage of their agility. It’s attractive to the small companies too, giving them sales clout and the financial ability to continue to develop their products and technologies, both of which can be extremely costly.

With so much promise, it seems to me a little unfair that Life Sciences has had such a hard time in recent years. Healthcare is – technically – a defensive industry and with advances in the field – from drug discovery and development, to devices and analytical technology – moving as fast as they are, it seems that good communications in the sector are just what the doctor ordered.

Simone

Follow us on Twitter @AbchurchComms

E&Y Entrepreneur of the Year Awards

Last night I attended the Ernst & Young Entrepreneur of the Year Awards as a guest of E&Y. The Hilton was populated on Tuesday night with private equity companies and entrepreneurs running high-growth businesses typically backed by venture capital or private equity.

And the winners were...

Retail & Consumer Products
Sportswift Limited, a retailer of greetings cards and related products, trading as Card Factory

IT Services
Achilles Group, risk monitoring company

Business Services
Healthcare Locums, health and social care staffing company

Science & Technology
PayPoint, cash and internet payments company

Social entrepreneur
Steve Howard, Climate Change Organisation (launched in 2004 with 20 CEOs, Tony Blair and half the UK cabinet)

Media, Entertainment and Communications
Betfair, the world’s largest betting community and the pioneer of the betting exchange model

Master Entrepreneur
Michael Spencer, ICAP, the world’s leading interdealer broker and provider of post trade services to the wholesale financial markets

Young Entrepreneur
Arnab Nasu, Durham Scientific Crystals Limited

Support Services
Senergy Holdings, helps clients find technical and process solutions which enable the development of oil, gas and alternative energy projects

Consumer Services
Dr JD Hull Associates, the largest provider of private specialist dental care in the UK

Overall winner progressing to Monte Carlo for International Entrepreneur of the Year Awards 2010 is Michael Spencer, ICAP. I am already angling for an invitation!

I gained much insight into the workings of the entrepreneur’s minds with the common denominators being
- the ability to make things happen
- being persistent

In this difficult economic climate, it is clear that the surviving companies are those with solid market drivers and those that are cutting costs and investing in growth.

The evening was made especially fun with Master of Ceremonies Joanna Lumley who relayed her own entrepreneurial story with her hard-won, historic victory on behalf of the Gurkhas. Alluding to this success, David Mellor, while presenting one of the awards, said: “Why should Boris be the only blond bombshell in Whitehall….”

Heather



Follow us on Twitter @AbchurchComms