Groove Musical Experience

A Message from Lord Pickles and Lord Blunkett, followed by Groove Musical Experience's best practice article

The ability to listen and learn from one another has always been vital in parliament, in business and in most aspects of daily life. But at this particular moment in time, as national and global events continue to reiterate, it is uncommonly crucial that we forge new channels of communication and reinforce existing ones. The following article from Groove Musical Experience is an attempt to do just that. We would welcome your thoughts on this or any other Parliamentary Review article.

Blunkett signature Rt Hon The Lord David Blunkett, MP
Pickles signature Rt Hon The Lord Eric Pickles, MP

www.groovemenow.com

1GROOVE MEDIA AND ENTERTAINMENT |
BEST PRACTICE REPRESENTATIVE
Chairman Alex Worrall
A member of the public joins
a virtual Steve Harley on stage
Established in 2013, Groove Media and Entertainment
creates world class 3D sound and vision holographic
experiences. Based in Knebworth, its technology enables
virtual performances from music icons at festivals, casinos and
venues globally, and it has the potential to be applied to film,
TV and education. Chairman Alex Worrall discusses how the
organisation gained finance to start its venture.
Just because you cannot immediately raise the funds for your project, it doesn’t
mean that your idea isn’t good. It may mean that you need to either present
the idea differently or that you need to think about funding it differently. It’s
strange that the way we globally trade and interact with each other has changed
immeasurably over the past decade, yet the way we raise finance hasn’t.
Companies that were no more than a dream ten years ago are now the dominant
disrupters with huge financial resources. Listening and watching to films
subsequently of these now business gurus, it’s apparent that they also had trouble
getting their concepts adequately financed at the time. While all this disruption
has been happening, our attitude to raising funding has probably worsened. The
traditional funders have become much more risk averse and, instead of looking
towards the businesses of the future, they focus on large established businesses
where their returns are more certain and the costs of becoming involved can be
more readily offset.
FACTS ABOUT
GROOVE MEDIA AND
ENTERTAINMENT
»Chairman: Alex Worrall
»Founded in 2013
»Based in Knebworth
»Services: Holages, 3D vision
and sound content, hologram-
related products
Groove Media and
Entertainment
THE PARLIAMENTARY REVIEW
Highlighting best practice
2| GROOVE MEDIA AND ENTERTAINMENT
Establishing Groove Media
and Entertainment
At Groove Media and Entertainment
we had a great idea. In fact, the idea
was so large and the disruption that
it could cause was so big, that it was
difficult to grasp. We are attempting
to change the way that we view 3D
images and listen to sound. I have
floated three start-up companies onto
the AIM stock market and built up
another from just 30 people to several
thousand employees before selling it to
a huge German conglomerate. In each
case I was either told by financiers to
show them something similar, or, more
often, I was asked why it hadn’t been
done before if it was such a good idea.
I don’t think any ideas are
fundamentally new. What is often
new is the way that old ideas are
implemented. Since the financial crash
there has been a large fear factor
setting into investment banks and
money-lending institutions. As a result,
they have become so risk averse that
they are a stifling factor for innovation.
As they do what they always have,
we get what we always have – little
ornothing.
GrooveME needed to raise a lot of
funds to achieve our objective. We had
no security other than the personal
security of the directors, which the
traditional funders always want to
get their hands on, even though
this is always counterproductive
because it gives the entrepreneur
one more headache. The strategy
that we employed was to break
the business down into constituent
verticals and then form subsidiaries
for those verticals. We then set about
finding suitable equity or license
partners for those subsidiaries. These
partners could actively participate and
contributefunding.
Our vision posited that, as this wasn’t
going to be a lifestyle company, it
was important to get as much help
as necessary as quickly as possible.
The cake, if successful, would be big
enough for everyone. By setting up
subsidiaries, it could easily be mutually
agreed to shut down a partnership
if it wasn’t working. Of course, we
kept the controlling shareholding to
Our founding shareholder
and first hologram –
Sir Bob Geldof
You are only
three
conversations
from the
person you
need to speak
to
3GROOVE MEDIA AND ENTERTAINMENT |
BEST PRACTICE REPRESENTATIVE
make sure that no one ran rogue. It
really is a near truth that you are only
three conversations from the person
you need to speak to. So, although
the ideal partner may not be known
to you, he or she is out there. As a
result of the contacts of contacts, we
established our Indian operation.
In terms of our 3D ZoneME sound
system, we knew that, in order to
provide a “true2life” experience, it
should have 3D sound to match its
3D images. We didn’t know whether
this actually existed, so we set about
searching the internet for anything
resembling 3D sound. In an obscure
corner of the web was a reference to
a Salford University student writing his
PhD paper on the subject of 3D sound.
This person now has his doctorate
and is head of our ZoneME subsidiary
with a 25 per cent shareholding.
Simply by using social media tools,
online intelligence and internet
communications, it is easier than it
has ever been to reach new talent and
conduct research.
Suitable financiers are hard to
come by
We had a core base of shareholders
who we knew would drive the
company forward, but centrally we
needed to raise the money to develop
the product the company needed.
We have had a number of financing
requests turned down, but we took
heart that if JK Rowling was turned
down many times on her first Harry
Potter book, then GrooveME could
ultimately be just as successful as her
once we got over the line.
We needed a far wider base of
shareholders than it was possible to
get from the founding shareholders or
from friends and family. Our message
needed to be spread by word of
mouth to a larger audience than that
which we could call upon. We looked
at crowdfunding, which was good,
but we made the mistake of pitching
the initial price too high and the
quantity of shares too big to make the
packageattractive.
The crowdfunding initiative was pulled
when we realised its error. We then
purchased a failed company – making
sure that the debts were hived off
first – to provide that much enlarged
shareholder base. We agreed to
provide the new shareholders, of
which there were more than 250, with
a tiny proportion of the GrooveME
shares. Most importantly we could
interact with the new shareholders
without all the legal problems of
share offers. After we had introduced
ourselves to our new shareholder
base, many of them wanted to invest
and join our journey, and in turn they
introduced us to their contacts.
Obtaining EIS approval from HMRC
was a massive boost as it gave some
degree of assurance to investors,
minimised their risk and gave them
an opportunity to participate in a
tax-free exit. The government scheme
really does do what it says on the tin –
reward enterprise initiatives. When the
project is successful, and everyone is
making a good return, it costs nothing
to say thank you to those people
who have given parts of their life to
helpyou.
The
government
scheme really
does do what
it says on the
tin – reward
enterprise
initiatives
Our patented 3D sound

www.groovemenow.com

The Parliamentary Review Publication, in which this article originally appeared, contained the following foreword from The Rt Hon Theresa May MP.

The Rt Hon Theresa May MP's Foreword For The Parliamentary Review

By The Rt Hon Theresa May MP

British politics provides ample material for analysis in the pages of The Parliamentary Review. For Her Majesty’s Government, our task in the year ahead is clear: to achieve the best Brexit deal for Britain and to carry on our work to build a more prosperous and united country – one that truly works for everyone. 

The right Brexit deal will not be sufficient on its own to secure a more prosperous future for Britain. We also need to ensure that our economy is ready for what tomorrow will bring. Our Modern Industrial Strategy is our plan to do that. It means Government stepping up to secure the foundations of our productivity: providing an education system that delivers the skills our economy needs, improving school standards and transforming technical education; delivering infrastructure for growth; ensuring people have the homes they need in the places they want to live. It is all about taking action for the long-term that will pay dividends in the future.

But it also goes beyond that. Government, the private sector and academia working together as strategic partners achieve far more than we could separately. That is why we have set an ambitious goal of lifting UK public and private research and development investment to 2.4 per cent of GDP by 2027. It is why we are developing four Grand Challenges, the big drivers of social and economic change in the world today: harnessing artificial intelligence and the data revolution; leading in changes to the future of mobility; meeting the challenges of our ageing society; and driving ahead the revolution in clean growth. By focusing our efforts on making the most of these areas of enormous potential, we can develop new exports, grow new industries and create more good jobs in every part of our country.

Years of hard work and sacrifice from the British people have got our deficit down by over three quarters. We are building on this success by taking a balanced approach to public spending. We are continuing to deal with our debts, so that our economy can remain strong and we can protect people’s jobs, and at the same time we are investing in vital public services, like our NHS. We have set out plans to increase NHS funding annually by an average by 3.4 percent in real terms: that is £394 million a week more. In return, the NHS will produce a ten-year plan, led by doctors and nurses, to eliminate waste and improve patient care.

I believe that Britain can look to the future with confidence. We are leaving the EU and setting a new course for prosperity as a global trading nation. We have a Modern Industrial Strategy that is strengthening the foundations of our economy and helping us to seize the opportunities of the future. We are investing in the public services we all rely on and helping them to grow and improve. Building on our country’s great strengths – our world-class universities and researchers, our excellent services sector, our cutting edge manufacturers, our vibrant creative industries, our dedicated public servants – we can look towards a new decade that is ripe with possibility. The government I lead is doing all it can to make that brighter future a reality for everyone in our country. 

British politics provides ample material for analysis in the pages of The Parliamentary Review 
The Rt Hon Theresa May MP
Prime Minister