drs. ing. jan dexel

EU - Israel Seminar on Technology Transferwith an Emphasis on Clean Tech

Financial “horses for courses” in early stage high tech ventures

25-26 November 2012

drs.ing. Jan DexelDirectorate General Enterprise & Innovation

Dutch Ministry of Economic Affairs

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The new Dutch Innovation and Industrial policy landscape

• Organizational changes• Ministry of Economic Affairs

• Policy changes• Shift in financial approach;

• Budget cuts• From subsidies to (soft)loans, risk capital & garantees• More emphasis on tax measures: corporate tax

reductions, WBSO (wage tax reduction for R&D) and RDA (tax reduction for R&D-investments)

• Shift in focus of research and innovation, focus on nine top sectors and development of revolving innovation fund.

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Economic Top sectors

Focus on the nine economic top sectors of the Dutch economy

• Water• Food• Horticulture• High tech• Life sciences• Chemistry• Energy• Logistics• Creative industry

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DE NL EU-27 OECD

PrivateR&D(%GDP2010)

1,89 0,89 1,18 1,68

Public R&D (%GDP2010)

0,93 0,96 0,73 0,72

Scientific publications (p1000 inhab.)

1,14 2,00 1,39 1,20

Patent applications (pbln GDP)

7,0 6,4 3,8 ---

New/improv’dproducts (% turnover 2008)

17,4 8,9 13,3 ---

Labour productivity 92 100 85 74

0

0,5

1

1,5

2

DE NL EU-27 OECD

0

0,2

0,4

0,6

0,8

1

DE NL EU-27 OECD

0

0,5

1

1,5

2

DE NL EU-27 OECD

0

2

4

6

8

DE NL EU-27 OECD

0

5

10

15

20

DE NL EU-27 OECD

0

20

40

60

80

100

DE NL EU-27 OECD

Dutch situation (1)

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Dutch situation (2)

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Typical forms of finance

“grants” / subsidiesSoft / hybrid loans

risk capital - mezzanine finance -garantees

Innovation process and finance

Economic added value

Technicalrisk

high

low

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Risk

profile

high

low

Loans

Subordinated loans / mezzanine

Banks

FFF Informals

Venture capitalists Private Equity

BMKB GO

Growth facility

FOM

ROM

Seed capital

Micro Credits

Innovation credit scheme

“Right horse for the right course in the financial landscape”

Positioning of schemes in portfolio: risk profile versus maturity phase of company/organisation.

Risk capital

Prepare Start Growth Expansion Consolidation

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Afbakening en begrippenkader

Developments in the Dutch venturecapital market for early stage high-tech SME’s.

BA-pledge

funds

“Side-car” funds of later stage funds

New boutique funds and CV

New early stageventure capital

funds

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Developments of the Dutch venture capital market:the impact of the seed capital scheme.

249,8

102,5

0

50

100

150

200

250

2005 2006 2007 2008 2009 2010 2011

Invested venture capital

Raised venture capitalIn mln.€.

cumulative.

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Some portfolio companies

Jan 29, 2010Merus closes EUR 21.7 million Series B financing and enters

option agreement with the Novartis Option Fund.

Layar maker of augmented reaility applications

Robust and reliable in-stream river and tidal

energy technology

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Investment in Energy and environment

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Source: EVCA/PEREP_Analytics

Capital markets

4.5%

Corporate

investors

11.3%

Family offices

2.9%

Fund of funds

11.8%

Pension funds

12.2%

Insurance

companies

5.4%

Government

agencies

9.9%

Private individuals

17.7% Banks

16.8%

Endowments and

foundations

1.6%

Other asset

managers

5%

Academic

institutions

0.4%

Sovereign wealth

funds

0.1%

Fund of funds

16.4%

Government

agencies

56.9%

Corporate

investors

9.1%

Pension funds

2.0%

Private individuals

7.3%Insurance

companies

1.0%

Endowments and

foundations

1.2%

Family offices

1.4%

Banks

1.7%

Sovereign wealth

funds

1.0%

Capital markets

1.9%

The shifting sands of the investor

base in European venture capital

2007

TO

LARGE

SHARE !?

Decrease of more than 40 % !!

0

50

100

150

200

250

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Early-stage

Later-stage

Growth

Buyout, rescue/ turnaround and replacement capital

Total investment

2007 2008

2009 2010 20112008

H1 2011

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