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STOP PRESS - 27 Nov 09

 Brokers seem to be gearing up with high expectations for a raft of IPO’s expected to come to AIM and PLUS markets in the first quarter of 2010. Sentiment seems to be that investor appetite is returning for small quoted companies as investors search for decent returns. We’re a little sceptical about this as many of the funds we are in contact with, have struggled to attract new money to invest. We are also concerned that if the quality of these new issues is not compelling and fail that sentiment will again nosedive- and in the current market only the best companies will attract funding.

In  the business angel sector Beer & Partners have experienced a strong increase in interest from investors this year (new investors joining us at the rate of 1 per day since January). However we have taken on fewer fund seekers as clients as we continue to try and maintain our aim of only taking on aim for quality projects (we reject 97% of the companies that approach us) and there are all too few of them out there at the moment. Good investment opportunities at sensible valuations remain hard to find.  EFG – the successor to Small Firm Loan Guarantee Scheme has received a lot of publicity and a mass of applications to banks. The result – a backlog of investable opportunities who after 3 months find out that they will not be granted EFG or that matched investment from a business angel is needed. We believe that this has slowed our deal flow down over the last few months but we are now seeing a return to normal levels of new funding opportunities of the right quality coming our way.

Michael Weaver, Beer & Partners Limited