ASCEND
What is ASCEND ?
ASCEND is a £5m business growth fund that delivers Derby companies the investment, specialist advisors and expert business support networks needed to help you grow faster.
It is simple to find out more about ASCEND, just download and complete the expression of interest form or email us at ascend@derby.gov.uk
ASCEND has two programmes for businesses to apply for:
- ASCEND Readiness (up to £25k of Business Advisory Support)
- ASCEND Debt Fund (up to £100k of capital debt funding)
Applications are being accepted up until June 2024
Who can apply and what do you get?
Your business must:
- be located within Derby city boundaries
- be a business with a turnover of at least £100k per annum
- have at least 2 employees
- be able to demonstrate 20% year-on-year growth (or the ambition to)
- be a Ltd company
- be innovative in the product, service or business model.
There are two entry points to ASCEND. They both receive the same kind of support but at different value levels.
ASCEND Grow - for the earlier stage businesses.
As well as meeting the above general criteria these businesses must:
- be generating revenue of at least £100k per annum
- have been trading for at least 1 year
- have a minimum of 2 employees.
You can receive:
- up to £10k of 100% funded specialist advisory support that is tailored to your individual business need
- up to £25k debt funding towards capital costs.
ASCEND Scale - for the businesses a bit further along their growth journey.
As well as meeting the above general criteria these businesses must:
- be generating revenue of at least £500k per annum
- have been trading for at least 2 years
- have a minimum of 4 employees.
You can receive:
- up to £25k of 100% funded specialist advisory support that is tailored to your individual business need
- up to £100k debt funding towards capital costs.
ASCEND Growth Readiness
ASCEND Growth Readiness provides access to high-quality multi-disciplinary business support, mentoring, coaching and technical expertise to support in your business' growth ambitions.
This is fully funded support provided via subsidised advisory services.
ASCEND Grow applicants can receive up to £10k of advisory support
ASCEND Scale applicants can receive up to £25k of advisory support
The type of advisory support can really be anything that can unlock your business' growth potential.
No two companies receive the same support – it really is that bespoke!
But don’t just believe us, head to our case study page to hear from some of the current beneficiaries of the programme!
Ascend Debt Fund
Debt funding is available to eligible businesses for capital spend (items that sit on your balance sheet). This can include:
- premises fit-out costs
- purchase of new kit or equipment
- software development (where the business will own the IP afterwards).
We do charge an arrangement fee of 2% of the loan value with a minimum fee of £500.
The fund is intended to be a re-circulating finance scheme to ensure sustainability.
Loans will be provided at various rates dependent on the creditworthiness of the applicant and the level of collateralisation.
The loan is usually offered over a 3-year fixed term.
We have the ability to consider loans on an unsecured basis.
The base rate is calculated in accordance with the central commission reference rate which is updated regularly. This rate is then added to the loan margin.
Assessment of interest rates will be carried out by the Fund Management team as part of the due diligence process and its decision is final.
ASCEND application process
1. Expression of interest – this can be found on our What is Ascend page, we ask for some high-level information about your business and growth ambitions to check you meet the programme criteria.
2. Full application – once your Expression of Interest has been reviewed against programme criteria, we will ask you to complete a full application. This is a more in-depth document asking for information about your business to help us get to know your business and growth plans.
3. Panel summary – this is a report put together to support your application for a Panel decision. The panel summary validates the application and provides recommendations on the support that ASCEND may offer.
4. Panel / Steering Group decision – ASCEND Scale applicants will be asked to attend a full panel to present their funding request. ASCEND Grow applications are reviewed at a Steering Panel without any presentations needed by the business.
5. Due diligence – this stage of the process is for debt applications only. This can take up to 6 weeks and is also the part of the process where the interest rate is assessed and final terms are agreed upon.
6. Contracting – grant agreements for the advisory support can be drawn up shortly after an approved decision from the Panel.
Loan agreements will be drawn up after the due diligence process.
7. Drawing down the funds
- For Readiness support (advisory), the funds can be drawn down in arrears (meaning that the business will need to submit an invoice from the advisor and payment evidence of that invoice).
- For Debt funding, the funds can be drawn down within 3 months of the loan agreement being signed by both parties.
8. Monitoring – we know you will be busy growing your business so we will try to keep this light touch where possible, but we will be interested in following your business' growth to capture any key outputs such as job creation and investment raised.
Case study: Project D - food manufacture
Project D is an award-winning artisan doughnut bakery based in Derby. It was founded in 2018 by three friends who share a passion for food and a mission to create the ‘world’s best doughnut’. After selling their handmade doughnuts at small local markets and events they opened their first retail outlet in Derby's intu centre.
The challenge
By early 2020, Project D was selling thousands of handmade doughnuts a week and planning to extend its product range and outlets. Then the country went into lockdown, sparking some very challenging trading conditions. The business model changed to a delivery and pop-up sales service, as well as supplying essential goods to those in need during a national shortage.
The founders approached the ASCEND programme for support and advice in growing their business. They had learned a lot in setting up the business but were unsure how to move to the next step. The directors were confident that, with the right support, they could capitalise on what they had already learnt, significantly expand and create sustainable jobs in Derby.
The ASCEND effect
ASCEND advisers worked with the Project D directors to focus on long-term plans for the business and a strategy to achieve them. This led to the implementation of robust accounting procedures and financial projections alongside production and supply chain efficiencies, allowing the business to forecast and plan for growth more confidently.
As the ASCEND support progressed it became apparent that HR recruitment advice was necessary to attract new talent as well as strengthening the existing culture and development of the management team.
The result
The company moved into a larger brand new unit allowing them to significantly increase capacity. They installed a new piece of equipment with the capacity to make 300,000 sweet treats a week and tripled production. The expansion has allowed the company to operate 24 hours a day, extending its home delivery routes nationwide an undertaking that required an additional 100 new members of staff. The supply chain is now more secure, leading to far fewer shortages.
The directors recognised that the ASCEND Programme enabled them to successfully navigate this period of rapid growth, as well as providing firm foundations and expert advice to maximise the opportunities for further growth leading to additional investment and job creation in Derby.
Co-founder Jacob Watts said:
The advice and support we’ve received from the ASCEND programme has been superb. We really appreciate the knowledge and wisdom of our advisers who have enhanced us as business owners.
They told us the truth, and gave us hope and reassurance, which allowed our project to become a well-rounded, structured and secure business. We have metaphorically raised the bakery’s roof.
Contact us
If you have any questions about the ASCEND programme or want to submit an expression of interest form please email us at Ascend@derby.gov.uk