bringing investments to gnss how can the two meet? · 2010-12-02 · bringing investments to gnss...
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Bringing Investments to GNSSHow can the two meet?
1 December, 2010
SpaceTec Capital Partners GmbHSendlinger Strasse 22D-80331 Munich
Phone: +49 89 45 16 09 80www.spaceteccapital.com
horn@spaceteccapital.com
1
About SpaceTec Capital Partners
Remote Sensing
GeoData
Navigation
Communi-cation
SatelliteInformation
Business
Integrated Applications
Traffic
MobilitySecurity
Climate
Logistics
Environment
RiskTelematicsResources
...
IT
Process automation
InternetSoftwareHardware
horn@spaceteccapital.dewww.spaceteccapital.de
Independent partnership backed by private investors. Based in Munich (Germany)
2
SpaceTec Capital PartnersServices Lines & Client Base
InvestingVenture Capital
AdvisingInstitutions
Coaching Start-ups
Aristo Telemed AG
3
Our Coaching Portfolio
Start-up/ Project Business AreaSpaceTec Role
Coaching Fundraising/Investing
High precision digital vector maps and applications
X X
Internet-sealed transport container and tracking
X
Mobile activation of locks (vehicles, buildings, PCs etc.) X
Eco-intelligent driving algorithms (CO2 Tracking in Fleets)
X X
Location Based Services for B2B customers (Truck, Automotive)
X X
Telemonitoring of patients X X
Outdoor navigation system for Blackberry (hiking, running, tourism)
X X
Ground-Air broadband laser Communications
X
Aristo Telemed AG
= Galileo Masters Winners*
*
*
*
4
Types of Financing for GNSS Entrepreneurs in Europe
• Own Capital - will often not get you very far …
• Friends & Family – you can only ask them once
• Bank Credit – if you have something which can serve as security
• Grants / Research Funding - FP7, ESA, …: need partners, luck, patience
• Public Funds - co-financing instruments by member states or regions)
• Business Angels – very useful but difficult to find
• Venture Capital - “smart money” in exchange for many shares
5
The Venture Capitalist Community thinks in broad categories – no radar for GNSS specificities yet!
• Investing > 1 MN Euro per investment
• Early stage investments are rare exceptions
• Currently focus on Location Based Services and mobile advertising , using IP and broadband infrastructure
• Not yet engaging on infrastructure and regulated applications (e.g. logistics, transport, security)
• Little experience in working with public institutions and space authorities
Source: EVCA/PEREP Analysis
605600
403
No. of companies
6
(Apr’10)
7
Business Angels are helpful in early stages – but engaging them systematically is very difficult
Profile: • Former successful entrepreneurs who want to further their wealth and work
with teams they like• Wealthy individuals who do not like fund instruments
Strengths:• Trust-based & gut-feeling investment• Fast decisions• Willing to take more risk (also in early stages)• Provide coaching and network • Flexible investment time horizon• Ideal candidates for public co-investments
Challenges:• Some bias for regional/nearby investments• Very heterogeneous community• Not systematically engaged by GNSS community
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Seed-RoundIdea / Invention Incubation A-Round
“Interest”“Awareness”
“Office & Network”“Business Services”
“Near Public Money” > € 1.000k
The GNSS Funding Chain Instruments and its GAPS
Business AngelsOther
Incubators
Regional State Funds
No
n-S
pace
Bu
sin
ess
Pla
n
Co
mp
eti
tio
ns
ExitBSeed-Round
FP7
Pro
gra
mm
e
EU Risk Capital Fund for SME in GNSS ?
Coaching and Smart Private Co-investment Open Sky Technology Fund (ESA)
Venture Capital
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Seed-RoundIdea / Invention Incubation A-Round
Financing
Expert Voices on GNSS Applications Financing at a DG ENTR stakeholder workshop
ExitBSeed-RoundFinancing
“Public funds are a means of pushing forward the investment
value chain”
“Need stronger involvement of BUSINESS ANGELS in the respective
incubation schemes”
“The GALILEO Masters competition aims at deal
flow generation”
Selected quotes from Workshop Documentation
“More PRIVATE INVESTORS are needed - ready to coach start-
up companies”
“Private Investors are not aware of the huge potential of satellite-
based applications services”
“ESA Investment Forum offers access for the investment world
to valuable deals”“The current FP system
does not allow to link R&D to markets”
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Tourism & Transport Applications: A SpaceTec Capital Portfolio Example
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Better maps for high precision navigation
Consumer Applications
Public Sector Customer need: Enhance data for pedestrian and
bicycle navigation UM solution: Consulting services for improving workflows
as well as enriching datasets using UM technologies
Agriculture
Customer need: Include farm tracks and paths for optimal farm navigation in order to improve planting and harvesting efficiency
UM solution: Matching and conflation of Navteq data with enhanced datasets
Customer need: More detail than in traditional maps for intermodal mobile navigation
UM solution: Walk&Ride app – works offline at any time/any place and delivers highly detailed maps for multimodal navigation to iPhones and iPods
Navigation Customer need: Add detailed vector data for bicycle and
outdoor navigation UM solution: Production and delivery of Navteq data
conflated with enhanced datasets
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March 08 October 08 July 09
» IP secured» Technology proven» Supplier agreements» 13 staff
» Research project» Showcase » 3 founders
» Cooperation agreements» Germany map ready» Tackling cities in Europe» 15 staff
The coaching and investment story behind
» 6 iPhone Apps
» B2B customers
» Finalist Navteq LBS Challenge
» Exit process started
Dec 10
SpaceTec Capital Partners Role: Matching Finance Partners + Co-Financing
Coaching with GNSS and relevant industry network
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Public co-financing helped to create success cases
Key Data
•Revolutionary software to display 3D geo data on the internet •Spin–off from Intrinsic Graphics (3D graphics specialist) in 2001•Location: Mountain View, CA, USA•2004: TradeSale / Renaming to ...
Start - UpSeed Expansion Later Stage
2001
•BusinessAngels
•Sony CVC•NVIDIA•Business Angels
• In–Q –Tel (CIA Fund)
2003 2004
Trade Sale
Prof
itLo
ss
Financing History & Exit
•Start-up formed in Berlin in 1999 as Gate5 GmbH•Leading provider for software and services for LBS and information on mobile devices•2000: Winner of the E-economy award•2004: additional financing round 6,5 €MN•2006: Trade-sale to Nokia•Berlin today hub for Nokia‘s LBS activities (200 staff)
Start - UpSeed Expansion Later Stage
Prof
itLo
ss
1999 2002 20042000
•BrandenburgCapital
•IBB
•Innoven Partners•Target Partners•Brandenburg Capital•IBB
Trade Sale
USA
•Founded as private IT service company in the 90s•Leading player in developing and marketing a digital map database and software. Revenue 57 MUSD •Serving China Mobile, Bing Maps, BMW and Audi •Only digital map provider in China with Category A aerial photogrammetry capability•IPO at NASDAQ raised 108 MUSD
Start - UpSeed Expansion Later Stage
Prof
itLo
ss
199x
•Sequioa•KPCB•Walden
•Private •Funding
2007 2010
IPO
2001
China
EU
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EU Institutions should close remaining gaps in GNSSinnovation funding chain to activate private funds
• Tap the innovation potential beyond the GNSS community (IT, applications)
• Make attractive for commercial players by further simplification of process
• Link R&D funds to market development
• Complement “bricks & mortar” with specialised coaching programmes
• Develop an EU-driven risk capital fund• Leverage private know-how and co-
investment as “sanity check” for public
• Cooperate closely with specialised private co-investors
• Win pure private investors for GNSS
GNSS Idea Contests
Incubation Centers and Networks
Venture Capital & Business Angels
SME Support inEU priority applications
FP7/FP8 Research Programme
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Contact
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