Investing as a collective, since 2011.
ESM Investments was incorporated in 2011 by Steven Morris. Based in Stirling, Scotland, it is a club of private investors who invest together in technology companies in Scotland and the North of England.
Founded by a founder.
ESM was founded by a technology entrepreneur who built and sold his own company. In 2007, Steven Morris sold ETV Interactive — the hospitality IPTV business he founded in Stirling — to iBAHN, and stayed on as a director until 2011.
ESM Investments was incorporated that year. It exists to put early-stage finance behind technology companies in a market Steven has described as under-served — one where too many companies were heading to London and overseas for the funding they needed.
“The market is under-served for early stage finance. More companies are going to London and overseas to get the funding they need, and London-based investors are heading north knowing these companies want it.”
The club model.
The syndicated approach to investing in early growth stage companies is well proven and established, particularly in Scotland. It’s renowned for adding value beyond money. The ESM approach lends expertise to companies seeking help beyond money. Companies seeking investment from ESM typically require sums of money ranging from £100k up to £1m. The money being invested is used to help bring a product to market, refine an existing product to become a better fit for its chosen market and in some instances help companies expand their operation by adding new product lines and/or open up new geographic markets.
Companies that approach ESM for investment will have a team in place that has worked with each other and the team will have a strong desire to achieve their goals and ultimately give shareholders a return on their investment.
What we look for.
Three things, in every company members back.
- 01The right management teamWe back management teams that have high energy and a determination to succeed. A team led by someone who has demonstrable leadership skills, the right attitude and a need to win. Also a team that can clearly define the company’s value proposition.
- 02A large market & differentiated productA market big enough to build a substantial company within and a product offering that is clearly differentiated.
- 03Defensible IPWe ideally look to back companies with defensible intellectual property.
From introduction to investment.
- 01
Initial due diligence
Before a company is invited to pitch.
- 02
Pitch at an ESM member event
Members indicate in principle whether they wish to proceed.
- 03
Deeper due diligence
Supported by a sector or domain expert and general business advisory input.
- 04
Investment panel
Presentation to an investment panel consisting of sector experts and experienced investors.
- 05
Post-investment monitoring
Financial, operational & technology reports, board representation or board attendance rights and bi-annual shareholder updates.
Where investment opportunities come from.
Inbound enquiries for investment come from the team’s long-established contacts and networks, a UK-wide referral network, and the wider ESM member group. More recently from social media networks.