European Investment Fund

EBAN Winter University 31 oct 2008, Luxembourg Henri-François Boedt This presentation was prepared by EIF. The information included in this presentation is based on figures available for Oct 2008. Any estimates and projections contained herein involve significant elements of subjective judgment and analysis, which may or may not be correct. Agenda

„ EIF at a glance „ An active role in European venture capital „ About the CIP-GIF programme „ Some noteworthy investments „ Some important ingredients of a venture fund „ Business Angel initiatives

1 EIF at a Glance

1. EIF at a glance EU specialised financial institution for SMEs,

2. An active role in European acting through: Venture Capital (fund-of-funds), venture capital Guarantees for SME portfolios and financial engineering 3. About the CIP-GIF programme

4. Some noteworthy investments Authorised capital: 5. Some important ingredients AAA (Standard & Poor’s) EUR 3bn of a venture fund Aaa (Moody’s) EIB: 63.6% 6. Business Angel initiatives AAA (Fitch) EU: 27.4 % Fin. institutions: 9 %

Geographic location: Working in “enlarged” union Breaking traditional finance boundaries: Turkey, Western Balkans, and South-Eastern Europe Continuing to diversify portfolio with further investments in NMS and Southern Europe

2 Investing a Broad Range of Public and Private Resources

BMWi - 1. EIF at a glance ERP 2. An active role in European venture capital NEOTEC EUR 965m EUR 4bn EUR 450m 3. About the CIP-GIF EUR 1.1bn programme At 31 Dec 2007 Revolving (CIP) DAHLIA 4. Some noteworthy investments

5. Some important ingredients of a venture fund

6. Business Angel initiatives Up to EUR 1bn

To be committed to venture capital funds and guarantees in the EU and Candidate Countries…

…and generate a substantial return on equity

3 Under EIF Management at end September 2008

1. EIF at a glance

2. An active role in European venture capital Total 3. About the CIP-GIF Vehicles programme signatures 4. Some noteworthy investments

5. Some important ingredients VENTURE of a venture fund EUR 4.6bn 290 funds 6. Business Angel initiatives CAPITAL

GUARANTEES EUR 11.7bn 189 operat.

TOTAL EUR 16.3bn

4 Venture Portfolio Overview

■ Balance portfolio Geographic spread between expansion 1. EIF at a glance capital and start-up- Central and 2. An active role in European venture capital /early-stage Eastern Rest of 3. About the CIP-GIF Europe 5% programme France 13% Western 4. Some noteworthy Portfolio biased German Europe 13% investments ■ y towards technology 5. Some important ingredients 7% of a venture fund (59% in ICT & life 6. Business Angel initiatives sciences) Spain 8%

■ Around 30% of portfolio in multi-country funds Multi-countr y UK 15% 32%

■ Track record in backing Italy 7% new teams in Central and Eastern Europe

5 Competitiveness & Innovation Framework Programme (CIP) „ Purpose 1. EIF at a glance

2. An active role in European venture capital „ Encourage the competitiveness of European enterprises

3. About the CIP-GIF programme „ Support innovation and entrepreneurship activities

4. Some noteworthy investments „ Provide better access to finance 5. Some important ingredients of a venture fund

6. Business Angel initiatives „ Promote the increased use of renewable energies and energy efficiency

„ The European Commission has mandated the management of the CIP financial instruments to EIF

„ CIP budget - total envelope for VC and Guarantees : EUR 1.1bn to be invested over a period 2007-2013

6 CIP Venture Capital

1. EIF at a glance „ Two windows

2. An active role in European venture capital „ GIF 1 = early-stage 3. About the CIP-GIF programme „ GIF 2 = expansion stage 4. Some noteworthy investments

5. Some important ingredients „ Focus of a venture fund 6. Business Angel initiatives „ SMEs in Participating Countries „ Participating Countries „ EU, EFTA, EEA countries, other participating countries

7 COUNTRIES COVERED BY CIP GIF 11 DEALS SIGNED for over EUR 110m

1. EIF at a glance •BaltCap Private Equity Fund 2. An active role in European venture capital •Capricorn Cleantech Fund

3. About the CIP-GIF •Inventure programme •360 Capital One 4. Some noteworthy investments •Fountain Heathcare Partners 1

5. Some important ingredients •UMIP of a venture fund •Dritte SHS Technologie GmbH 6. Business Angel initiatives & Co. KG Fund •Pentech II •Albuquerque •The Chalmers Innovation Fund •Serena Capital

8 Chalmers Innovation Capital A fund building on the Chalmers Innovation system to build and grow start-up companies

1. EIF at a glance

2. An active role in European venture capital EIF Co-investors 3. About the CIP-GIF programme

4. Some noteworthy investments “Fund” Seed Investors •Investments at commercial terms Management team Federal funds 5. Some important ingredients •Investments in existing TTO start- of a venture fund •Incubator professionals Regional funds (industrial background) ups and new start-ups (both 6. Business Angel initiatives Other public/private funds •Investment professionals university IP based spin-outs as BAs, VCs, … •Maximum autonomy well as start-ups attracted and grown by the incubator)

“Pre-seed funding” “Seed funding” “Post-seed funding”

Tech Transfer Pre-Incubation Incubation Alumni companies process

9 Investment case for EIF

1. EIF at a glance „ Size and quality of deal flow 2. An active role in European venture capital „ The university generates an important flow of innovations 3. About the CIP-GIF programme „ The region is a well functioning entrepreneurial ecosystem 4. Some noteworthy investments „ The TTO delivers 5. Some important ingredients of a venture fund „ Breadth and depth of team 6. Business Angel initiatives „ Track-record in developing start-ups „ Invests before and at company creation „ Potential to have a significant impact „ Develop start-ups better and faster „ Capture a larger share of the value created

Chalmers Innovation’s team is

10 key in all these aspects “Important ingredients”

1. EIF at a glance „ Co-investors at fund level 2. An active role in European venture capital „ EIF investment ‘pari passu’ with private investors 3. About the CIP-GIF programme „ Governance 4. Some noteworthy investments „ Alignment of interest 5. Some important ingredients of a venture fund „ Professional and stable management team 6. Business Angel initiatives „ Deal flow and track record

Investment decision taken by EIF on purely commercial basis

11 BA’s play an important role in many Venture Capital funds

1. EIF at a glance „ Many fund have a strong business angel component 2. An active role in European venture capital „ Either BA’s represent an important part of the investors in the 3. About the CIP-GIF programme fund (e.g. e-capital)

4. Some noteworthy investments „ Most venture capital funds work with angels as e.g. Venture 5. Some important ingredients Partners, other forms of association, or ad hoc on certain of a venture fund deals 6. Business Angel initiatives

12 Envisaged configurations

1. EIF at a glance < pls. refer to EIF for further information > 2. An active role in European venture capital

3. About the CIP-GIF programme

4. Some noteworthy investments

5. Some important ingredients of a venture fund

6. Business Angel initiatives

13 Contact

European Investment Fund 96 boulevard Konrad Adenauer L-2968 Luxembourg Tel.: (+352) 42 66 881 Fax: (+352) 42 66 88 200 www.eif.org

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