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Annual report BiD Network Foundation 2013 - 1
ANNUAL
REPORT
2013
BID NETWORK
Amsterdam, April 2014
Annual report BiD Network Foundation 2013 - 2
CONTENTS
INTRODUCTION ............................................................................................................. 3
LOOKING BACK AT 2013 ........................................................................................... 4
MISSION AND GOALS ................................................................................................. 6
ONLINE PLATFORM ...................................................................................................... 6
ADVISORY SERVICES .................................................................................................. 7
MAIN PARTNERS ........................................................................................................... 9
RESULTS ........................................................................................................................ 12
PROJECT BIDX ............................................................................................................. 19
SECTOR CHALLENGES .............................................................................................. 20
COACHING PROGRAM ............................................................................................... 23
INVESTOR MATCHMAKING SERVICES ................................................................ 24
UNITED ENTREPRENEURSHIP COALITION........................................................ 27
INTERNATIONAL PARTNERS ................................................................................... 28
GOVERNANCE AND ORGANIZATION ................................................................... 33
ACCOUNTABILITY ....................................................................................................... 35
FORECAST 2014 .......................................................................................................... 40
FINANCIAL REPORT 2013 ........................................................................................ 42
RESULT ........................................................................................................................... 42
BALANCE ........................................................................................................................ 44
BUDGET 2014 .............................................................................................................. 46
FINANCIAL STATEMENTS ........................................................................................ 47
ACCOUNTING PRINCIPLES FOR FINANCIAL REPORTING ........................... 50
NOTES TO THE BALANCE SHEET .......................................................................... 53
NOTES TO THE STATEMENT OF INCOME & EXPENDITURE ........................ 58
INDEPENDENT AUDITOR’S REPORT .................................................................... 66
ACCOUNTABILITY STATEMENT OF THE SUPERVISORY BOARD ............... 67
Annual report BiD Network Foundation 2013 - 3
INTRODUCTION
A growing belief in the potential of stimulating entrepreneurship as a
means to create jobs and overcome poverty has resulted in a
considerable increase in the number of organizations operating in the
field, both in BiD Network’s home market The Netherlands and
internationally.
Because we see a growing need for financing for a growing number of
entrepreneurs in emerging markets and at the same time a growing
number of investors interested in finding these entrepreneurs and
financing their businesses, we used 2013 to sharpen up and prepare
our organization for an even more professional and efficient service
delivery to both ends of this pipeline.
We have started to expand the reach of our matchmaking services by
seeking and starting new strategic partnerships with investors and by
using competitions and local partners to locate entrepreneurs in need
of financing.
BiD Network and its funding partners recognize the importance of
continuing to reach out to entrepreneurs in the lower end of the
missing middle (USD 10,000 to 1,000,000). Women in business and
social entrepreneurs that generate impact for people and planet (i.e.
clean energy, health and safety solutions, environmental issues and
job creation) form a growing group that will provide jobs to overcome
poverty. We will increase our focus on these groups and look into
processes to support and improve our service delivery to both
investors and entrepreneurs.
Adjusting a strategy to evaluate and decide on your role in global
developments is a must in these fast times, so that’s how we kick off
2014. All staff and volunteers of BiD Network are involved in deciding
how BiD Network can best continue to serve its beneficiaries and
guarantee delivery of the best services possible.
Paul van Aalst
Chairman (a.i.) Supervisory Board
Annual report BiD Network Foundation 2013 - 4
LOOKING BACK AT 2013
To improve the effectiveness of our investor matchmaking services,
BiD Network has increased its focus on investor interests and on
generating deal flow. This meant investing in the capacity for financial
analysis and deal structuring for BiD Network and partners, and
offering integrated online solutions through the bidX online platform
for deal sourcing, business planning and investor matchmaking
services. We have adapted BiD Network’s internal organization, by
making better use of the expert resources of our daughter company
bidX on marketing and service development, and by attracting
expertise for financial modeling and deal structuring.
In March, after an internal evaluation we concluded that progress in
realizing the bidX online services was promising, but would require
extra time and budget to reach a commercial launch. We adjusted our
organization accordingly, while we started to explore new strategic
financing partnerships. In the fourth quarter it became clear that an
excellent strategic opportunity was available from one of the existing
partners of bidX, Sampoerna Mekar Pte. Ltd. By the end of 2013 we
reached a full agreement on spinning off bidX to Sampoerna with effect
from 1 January 2014. The investment by Sampoerna will speed up the
completion and launch of the bidX platform and online service
development, and provides bidX with a dedicated corporate
environment that will mature this initiative of BiD Network,
Sampoerna, and initial sponsors the Dutch Postcode Lottery, USAID
and the Department for International Development (DFID). As part of
this spin-off, bidX will be fully independent from BiD Network as of
January 2014. Thierry Sanders will move on as director of bidX while
Hendrik van Gent will continue as the director of BiD Network. BiD
Network wishes Thierry and his team success with the further
development of bidX.
These adjustments in 2013 have absorbed great amounts of energy
from the BiD Network team and siphoned away attention from project
and service delivery. This caused a material negative impact on our
results, such as the number of finance ready plans. While it was our
intention to increase our results and thus our impact, these stayed
more or less on the same level as the years before. Late 2013, the
team and partners boosted the pipeline of entrepreneurs and business
plans as well as investors through five events (Amsterdam, Kigali,
Bujumbura, Mexico and Amman) that were all more than ever focused
Annual report BiD Network Foundation 2013 - 5
on matchmaking. The team intensified contact with entrepreneurs and
investors in the process of matchmaking. Financially, BiD Network
closes 2013 with a considerable negative result of EUR 1,300,000,
mainly due to extra costs related to the strategic changes and the
financing structure of bidX development. The good news is that with
the already contracted income for 2014 and the structurally lowered
costs, 2014 is expected to close with a positive result of over EUR
400,000. In terms of outputs and results BiD Network performed less
than planned and less than in 2012, mostly due to the turbulence in
Q2 and Q3. With the outputs from the boosts in Q4 and a restructured
organization, BiD Network is now more than ready to focus on project
delivery and on providing investor matchmaking services. BiD Network
will continue to use the online services of the platform and will work
closely together with bidX in serving entrepreneurs, investors and
other clients.
Hendrik van Gent
BiD Network Director
Annual report BiD Network Foundation 2013 - 6
MISSION AND GOALS
BiD (Business in Development) Network Foundation is registered as a
Foundation under Dutch law at the Chamber of Commerce in
Amsterdam with registration number 34264155. BiD Network has its
registered offices at De Ruyterkade 107, 1011 AB in Amsterdam. The
Foundation was incorporated on 29 December 2006.
BiD Network’s mission is to contribute to sustainable economic growth
in emerging markets through entrepreneurship. BiD Network does this
by preparing entrepreneurs for investors.
Small and medium sized enterprises (SMEs) are the backbone of any
economy. By creating jobs and income, they are crucial to the
economic and social development of emerging markets. They are also
a powerful force against poverty. However, businesses often encounter
difficulties getting started or growing because they lack access to
finance and know-how.
BiD Network aims to:
Start and grow businesses in emerging markets;
Create jobs and income through these businesses;
Mobilize private capital and know-how to businesses.
BiD Network focuses on businesses in developing countries with a
financing need of USD 10,000 – USD 1,000,000. We provide
professional services to entrepreneurs, coaches, investors and financial
service providers.
BiD Network operates its services together with a network of
international partners in Burundi, Ecuador, Colombia, Indonesia,
Jordan, Kenya, Kosovo, Liberia, Mexico, Palestine, Peru, Philippines,
Rwanda, Tanzania and Uganda. These partners are business and
financial service providers.
ONLINE PLATFORM
The core of BiD Network is the web-platform www.bidnetwork.org. This
website, with around 55,000 members, offers entrepreneurs the
opportunity to participate in business plan competitions, work on their
business plan, get advice from coaches and be matched with investors.
Since mid-2011 the website was operated by BiD Network’s subsidiary
bidX. Through 2013, BiD Network and Sampoerna Mekar Pte. Ltd. have
invested in the company. BiD Network has done so through the ‘G20
Annual report BiD Network Foundation 2013 - 7
project’ funded by IFC with grants from USAID and DFID, and through
the ‘BiDx10 project’ funded by the Dutch Postcode Lottery. BiD
Network spun off bidX in January 2014 to Sampoerna Mekar Pte. Ltd.
ADVISORY SERVICES
BiD Network offers investment-related services to entrepreneurs and
investors and supports international partners in strengthening their
services to prepare SMEs and investors for finance. With its online
platform, BiD Network has a targeted and global tool for deal sourcing,
business planning and matchmaking for entrepreneurs, coaches and
investors. These online services are complemented by (‘offline’)
advisory services by our staff and international partners. These
advisory services are based on standardized packages developed by
BiD Network and adapted by staff and international partners to local
contexts. They range from Ready4Finance training and certification of
trainers, to support on how to source and prepare entrepreneurs for
finance and how to establish local coaching and investors networks.
Our international partners directly serve entrepreneurs, coaches and
financiers in their respective regions.
In 2013, BiD Network has offered the following services to our
international partners (see chapter International Partners):
Advisory services
BiD Network has offered our partners Advisory Services on:
Using the online platform www.bidnetwork.org and competition,
business planning, matching and moderation functionalities;
How to run a business plan competition;
How to prepare entrepreneurs and provide feedback on business
plans;
How to set up a coaching network;
How to identify finance ready business plans;
Annual report BiD Network Foundation 2013 - 8
How to set up investor networks and offer matchmaking services
to entrepreneurs.
Ready4Finance training of trainers and certification
Ready4Finance, developed by BiD Network and funded by Hivos and
FMO, is a modular training package designed for business service
providers that want to support SMEs in their start-up and growth, and
access to finance. The curriculum covers all aspects of business and
financial planning and getting access to finance. Written with investors’
requirements in mind, the courses teach entrepreneurs how to write a
business plan, choose the right financial options for their business,
value their company, structure an investment deal, prepare a suitable
exit, pitch effectively, build a management team, and negotiate with
an investor. International partners have been trained to become
certified license holders of these training. To date, over 3,000
entrepreneurs participated in Ready4Finance training sessions and 41
trainers of 10 business service providers have been certified to conduct
one or more modules.
Besides providing services to our international partners, BiD Network
delivered the following services to other clients:
International Sector Challenges
Sector Challenges are business plan competitions targeting a specific
sector or theme. These were organized in collaboration with partners
that want to promote businesses and investments in a specific sector
or country, within the framework of their CSR program. In 2013, the
fourth edition of the Women in Business Challenge took place in
collaboration with ING Bank, ICCO and UnitedSucces; the ICT
Challenge in collaboration with EY, TNO, eVentures Africa Fund, SEAF
and the Palestinian Investment Fund as part of the United
Entrepreneurship Coalition program was concluded; and the third
edition of the Ondernemen Zonder Grenzen competition took place, in
collaboration with NCDO, EY and De Investeerdersclub.
Coaching Program
In our coaching program BiD Network links entrepreneurs with
professionals from corporate organizations and NGOs who support
entrepreneurs in their business planning. Formal partnerships in 2013
existed with ING Bank, EY and PUM.
Annual report BiD Network Foundation 2013 - 9
Growing SMEs events
Growing SMEs events were organized in Rwanda – with an East African
focus – and in Mexico – with a Latin American focus. In Jordan, a
pitching event took place bringing Palestinian and Jordanian
entrepreneurs and investors together. Growing SMEs is an
international event which aims to explore and share the latest trends
in developing, growing and financing SMEs in emerging markets; while
bringing together and matching entrepreneurs and investors.
Investor Matchmaking Services
BiD Network has an international network of around 250 investors and
supports this network to identify finance ready viable business
propositions. BiD Network supports entrepreneurs to prepare a ‘ready
for finance’ business and financial plan, an elevator pitch and investor
factsheet and to identify an investor.
MAIN PARTNERS
Dutch Postcode Lottery
The Dutch Postcode Lottery (Nationale
Postcode Loterij) has been a main partner
of BiD Network since 2008. The Dutch
Postcode Lottery was established in 1989.
It aims to support organizations working
to create a fairer, greener world by raising
funds and increasing public awareness
with the help of a lottery. Since 2008, BiD Network has received a total
of EUR 5,145 million.
“BiD Network demonstrates that entrepreneurship and poverty
reduction can go hand in hand, and makes effective use of the new
opportunities provided by the internet.” - Marieke van Schaik –
Managing Director Dutch postcode Lottery
Dutch Ministry of Foreign Affairs
The Dutch Ministry of Foreign Affairs
has been a main partner of BiD Network
since its establishment in 2007. It
emphasizes private sector development
as the key to economic growth, and as
one of the most important means towards poverty alleviation. Between
2007 and 2010 the Dutch Ministry of Foreign Affairs funded BiD
Annual report BiD Network Foundation 2013 - 10
Network directly. Since 2011 BiD Network has received funding from
the Dutch Ministry of Foreign Affairs through the MFSII United
Entrepreneurship Coalition with SPARK Foundation.
One of the Ministries’ employees stated the following:
"BiD Network is a very young dynamic organization, able to respond
quickly to new developments and opportunities. The assistance from
BiD and partners is very much appreciated by entrepreneurs. BiD
Network has developed into a well-known organization in The
Netherlands mobilizing hundreds of volunteers for coaching, screening
and jury membership. BiD Challenges have resulted in a large number
of business plans submitted by entrepreneurs."
SPARK
Since 2011, SPARK and BiD Network have
been coalition partners in the United
Entrepreneurship Coalition, a five-year
program funded by the Dutch Ministry of
Foreign Affairs (MFSII). This program focuses on strengthening
business service providers and supporting SMEs in Burundi, Kosovo,
Liberia, Palestine and Rwanda. SPARK, founded in 1994, develops
higher education and entrepreneurship so that young ambitious people
are empowered to lead post-conflict societies into prosperity. SPARK
works closely with a range of local partners to build cooperative, locally
sustainable networks of support for promising entrepreneurs.
IFAD
The International Fund for Agricultural
Development (IFAD), a specialized
agency of the United Nations, was
established as an international financial
institution in 1977 as one of the major
outcomes of the 1974 World Food Conference. The conference was
organized in response to the food crises of the early 1970s that
primarily affected the Sahelian countries of Africa. It resolved that "an
International Fund for Agricultural Development should be established
immediately to finance agricultural development projects primarily for
food production in the developing countries."
The goal of the IFAD is to enable poor rural people to improve their
food and nutrition security, increase their incomes and strengthen their
resilience. IFAD also acts as an advocate for poor rural women and
men. IFAD’s multilateral orientation provides a strong global platform
Annual report BiD Network Foundation 2013 - 11
for discussing rural policy issues and increasing awareness of why
investment in agriculture and rural development is critical to reducing
poverty and improving global food security.
International Finance Corporation
The International Finance
Corporation (IFC), a
member of the World
Bank Group, is the largest global development institution focused
exclusively on the private sector in developing countries.
Established in 1956, IFC is owned by 184 member countries, a group
that collectively determines our policies. IFC’s work in more than a 100
developing countries allows companies and financial institutions in
emerging markets to create jobs, generate tax revenues, improve
corporate governance and environmental performance, and contribute
to their local communities. IFC’s vision is that people should have the
opportunity to escape poverty and improve their lives.
Annual report BiD Network Foundation 2013 - 12
RESULTS
During 2013 BiD Network and bidX offered joint services on the platform of
bidnetwork.org. In view of the envisaged migration to the new platform of bidX,
limited resources were spent on the development of new functionalities on
bidnetwork.org. Maintenance and customer support was provided as usual, to
ensure quality service provision. Customer requests were handled by the bidX
customer services team within 16 working hours and received an average client
satisfaction rate of 90%.
Despite cost cutting measures and the restructuring of the organization, key
targets were realized up to the same level as 2012. Like in 2012, the percentage
of entrepreneurs who submitted a full business plan after having created an
application was low. This may partially be related to the complexity and
extensiveness of the business plan template. In the design of the business
summary template for the bidX groups we have adapted this. At the same time
we, as well as jury members for our competitions, noticed a raise in quality of
business plans submitted.
In a period of 7 years our network of business coaches has expanded rapidly to
1,795 voluntary coaches by the end of 2013. A number of coaches have been
very active, supportive and committed for a longer period and some of the
coaches were active in the past. In 2014, BiD Network will adapt the coaching
services to ensure we can dedicate our time optimally to serve our active group
of coaches who are supporting entrepreneurs to get ready for finance.
Due to the implementation of strategic changes some of our results are lower
than expected. This includes the number of finance ready plans. At the end of
2013 a new matchmaking strategy was developed, which will be implemented in
2014. In 2014 our portfolio management will be improved by allocating more
efforts and resources to this service for investors and ready for finance
entrepreneurs, which we identified as one of the key values our organization can
add within the worldwide SME support sector.
Remarkable are the online results achieved by our international partner BBIN in
Burundi, a country where the internet penetration is still relatively low. Other
positive outcomes are the matches made in the Philippines and Kenya, countries
where efforts of BiD Network and our international partners to build up an
investor network as well as matchmaking services are truly paying off.
Thanks to the growing success of the Women in Business Challenge, 43% of all
full business plans were submitted by woman entrepreneurs; whereas in the
period from 2005 – 2012 the average percentage was 26%. Some other facts
about the full business plans submitted in 2013:
Annual report BiD Network Foundation 2013 - 13
69% of the plans were submitted for a registered business; 31% of the
plans were submitted for an unregistered business.
57% concerned a start-up business and 43% an established business;
Amounts of finance needed were ranging from USD 10,000 – 50,000
(23%), USD 50,000 – 100,000 (17%), USD 100,000 – 500,000 (37%)
and more than USD 500,000 (23%).
Most plans submitted were for businesses in the services sector (34%),
followed by agriculture, forestry and fishing (18%) and manufacturing
(16%).
From 2005 to 2012 BiD Network surveyed entrepreneurs who benefited from our
services during the previous year, to collect information on their business
progress. Due to increased monitoring efforts in 2013 we received a 68%
response rate, compared to 51% in 2012. Of all respondents to our surveys we
know that more than 1,000 SMEs supported by BiD Network have started or
grown in between 2005 and 2013, creating over 6,000 jobs.
BiD Network aims to achieve results efficiently, maximizing the jobs created and
businesses started or grown per EUR of budget spent. The average costs per job
created are EUR 3,154 (BiD Network expenses of EUR 2,378,684 in 2012
resulted in 754 jobs) and the average costs per SME started or grown are EUR
13,363 (BiD Network expenses of EUR 2,378,684 in 2012 resulted in 178 SMEs
started or grown). bidX and BiD Network share the non-financial KPIs and
impact results, but apply their own financial results and efficiency ratios.
Annual report BiD Network Foundation 2013 - 14
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PROJECT BIDX
BiD Network uses the web-platform www.bidnetwork.org. This website with over
55,000 members offers entrepreneurs the opportunity to participate in business
plan competitions, work on their business plan, get advice from coaches and be
matched with investors.
Since mid-2011 the website is operated by BiD Network’s spin off company bidX.
bidX shares the office with BiD Network. BiD Network and the Sampoerna Mekar
Pte. Ltd. have invested in the company. BiD Network has done so through the
G20 project funded by IFC with grants from USAID and DFID, and through the
BiDx10 project funded by the Dutch Postcode Lottery. BiD Network spun off bidX
in January 2014 to ensure further investment in the platform. BiD Network will
continue to use the platform and will focus on delivering the best matchmaking
results for its projects using the platform.
bidX bv
BidX bv (bidX) is a web services company. It operates the community
www.bidnetwork.org and develops the new www.bidx.net white label multi-
community platform. BidX is a “Software as a Service” (SaaS) company, since it
offers its services based on subscriptions to clients via the internet. BidX offers
its web-services to entrepreneurs, to intermediaries that serve entrepreneurs, to
mentors and to financiers of SMEs. During 2013 bidX has worked closely with
her shareholders, BiD Network and Sampoerna Mekar PTE Ltd. to serve joint
clients.
The mission of bidX is to facilitate the start, growth and finance of SMEs in
emerging markets via internet services. BidX aims to be the largest pipeline of
emerging market SMEs seeking finance, making a significant impact in emerging
markets.
The 2010 business plan described three objectives for the start-up phase of
bidX:
to be the most effective platform for emerging market entrepreneurs and
investors;
to be more effective in financing SMEs than normal financial institutions;
to reach a break-even point within four years. This is in 2016, earlier may
be possible.
The most significant results in 2013 were:
The successful launch of bidX’s new competition system for the bank
Banorte and New Ventures in Mexico in May of 2013.
Annual report BiD Network Foundation 2013 - 20
The launch of the first bidX group (portal) for our first client, the Clean
Cookstoves Alliance.
The launch of the 5th Women in Business Challenge, operated by BiD
Network with support of ING.
While working on the development of www.bidx.net , the servicing of
entrepreneurs, investors and mentors on www.bidnetwork.org continued.
Web development activities in 2013
www.bidnetwork.org saw 8,900 members applying and 2,700 new business
proposals being submitted. Despite the activity on the site, in terms of web
development the website was maintained only by repairing minor issues. All web
development efforts went into the development of www.bidx.net and the
functionality of online white label groups. These groups are essentially
Wordpress websites which have bidX community functionality built into it. All the
Wordpress portals (“groups”) are connected by a common database. More
information about the groups can be found here: www.bidx.net/groups.
SECTOR CHALLENGES
Women in Business Challenge
The 4th edition of the competition was again supported by ING and built on the
successes of the three previous competitions, attracting close to 300
participants. Of these participants the 50 most promising businesses were
chosen and matched to professionals - mainly from the ING coaching program -,
and almost 100 business plans were submitted. Our expert jury selected five
finalists: Lauren Thomas with Mozambikes from Mozambique; Dr. Sanjeevani
with Mobile Dental Clinic from India; Jazmin Chi for LevGrow from Mexico; Dulce
Martinez for Fabrica Social from Mexico and Affiong Williams for Healthy Snacks
from Nigeria, who were invited to The Netherlands to participate in a Women in
Business week in September 2013, where they benefited from training sessions,
Business-to-Business (B2B) and investor meetings and financial consultancy
from EY experts. The final event took place at the headquarters of ING. The
Women in Business Challenge 2012-2013 was won by Affiong Williams for her
business REEL Fruits. Her market based approach, innovative thinking and
dedicated enthusiasm convinced the jury to grant her EUR 5,000 prize money
raised by Happietaria.
Annual report BiD Network Foundation 2013 - 21
Read more: http://www.bidnetwork.org/en/news/5-finalists-women-business-
challenge-2013
Ondernemen Zonder Grenzen
The 4th edition of Ondernemen Zonder Grenzen, or Business without Borders, a
business plan competition for Dutch entrepreneurs with ambitions in emerging
markets, was launched in June 2013, together with partners NCDO, EY and De
Investeerdersclub. The launch event attracted close to 130 participants who had
the opportunity to learn more about doing business in developing countries, and
to network with investors and
potential business partners. The
entrepreneurs had the
opportunity to benefit from
coaching services – 24 were
matched with EY professionals -
as well as a Summer School. Of
the 113 participants, 43
submitted full business plans.
Accordingly, 13 finalists were
selected. The final event was held in De Rode Hoed in Amsterdam. The winners
were African Clean Energy, Rural Spark, ENEWA, Africa Sustainable Aquaculture
and Jiro-Ve. Two additional special prizes were awarded: The EY coaching prize
was won by Jiro-Ve and the public prize by Martono & Company.
Read more: http://www.bidnetwork.org/en/news/ondernemen-zonder-grenzen-
businessplan-competition-finals
ICT Challenge
Entrepreneurs from Burundi, Kosovo, Liberia, Palestine and Rwanda, the
countries supported by the United Entrepreneurship Coalition, could participate
in the ICT Challenge. This competition was organized by BiD Network, in
collaboration with EY as coaching partner, TNO as event partner and investment
partners eVentures Africa Fund, SEAF and the Palestinian Investment fund. Five
finalists were selected: Henri Nyakarundi from Rwanda for African Renewable
Energy Distributor; Innocent Munyaneza from Rwanda for Hoziyana Group;
Fabrice Mutekano from Burundi for E-Burundi.com; Salah Ahmed from Gaza strip
for Avatar and Amos Sando from Liberia for Amoscom. The finalists were invited
to an ICT business week in The Netherlands or to the Growing SMEs East Africa
in Rwanda, where investor meetings, training sessions and an event took place.
Read more: http://www.bidnetwork.org/en/news/5-finalists-ict-challenge-2013
Annual report BiD Network Foundation 2013 - 22
Annual report BiD Network Foundation 2013 - 23
Student challenge
The BiD Student Challenge 2013 was a fourth time collaboration between Aureus
(VU University), BiD Network Rabobank and Solving Efeso. Seventy students
from different business related studies, coming from universities around the
Netherlands, reviewed 20 business plans of BiD Network entrepreneurs.
Together with their assigned coaches the groups worked on providing feedback
on the plans and suggestions on how to make improvements for the
entrepreneurs. BiD Network organized a master class to train the students on
basic structures in business plans, on what investors want and on pitching. To
put the master class into practice the students were asked to prepare a YouTube
pitch video presenting their improved business plan to the jury and potential
investors.
Generación Impacto
Banorte and New Ventures México partnered in 2013 with bidX and BiD Network
to organize Generación Impacto - a business plan competition for impact
enterprises focusing on training and capacity building. bidX supplied the
competition software through its partner Skipsolabs. The project was a success,
attracting over 700 participants. The online platform catered well for the needs
of the initiative: http://www.generacionimpacto.com.
Clean Cookstoves Investment Community
In September 2013, with the support of bidX and BiD Network, the Global
Alliance for Clean Cookstoves started an online platform for their investment
community. For this they used the bidx group functionality and the experience
has helped us to test and improve the tools. It was the first group bidX ever
launched: https://cleancookstoves.bidx.net/. This project also allowed the
integration with the Skipsolabs competition software that the Global Alliance for
Clean Cookstoves used to manage two of their business plan competitions:
http://investment.cleancookstoves.org/en/.
COACHING PROGRAM
BiD Network works together with 1,795 Dutch and international coaches.
Coaches are professionals who have knowledge about business development,
financial planning, or marketing and sales and who have a personal or
professional interest in SME development in emerging markets. Coaches
voluntarily support entrepreneurs in writing their business plans; on average 20
hours during a period of 3 months per entrepreneurs. One BiD Network staff
member is dedicated to match coaches and entrepreneurs and to support
coaches in their job. BiD Network offers various trainings to coaches and
organizes events where they can meet each other. Coaches and experts are
registered on www.bidnetwork.org. The volunteers are not rewarded financially
for their services. In 2013, 206 coaches supported entrepreneurs in their
business planning. In addition, around 100 local volunteers, among which
Annual report BiD Network Foundation 2013 - 24
students and coaches, actively supported entrepreneurs at our events to get
ready for their meetings with investors and other businesses.
This year, EY and ING were our main coaching partners for Ondernemen Zonder
Grenzen (EY), the ICT Challenge (EY) and Women in Business (ING).
INVESTOR MATCHMAKING SERVICES
Investor Matchmaking services
In 2013, BiD Network worked out a strategy to further strengthen and
accelerate its matchmaking services. This plan will be implemented in 2014. A
few staff members were trained in financial analysis and modelling, and at the
end of 2014 it was decided to hire an extra matchmaker. Investor matchmaking
services were offered to entrepreneurs with finance ready plans, and our
matchmakers were involved in a number of dedicated matchmaking projects.
Clean Cookstoves Investment Community
The goal of the Investment Community project of the Global Alliance for Clean
Cookstoves was to get 12 entrepreneurs pitch ready for deal rooms in
September and October (in New York and Nairobi). The activities as part of this
project were to conduct a business plan gap assessment, a financial plan
assessment, the assessment and creation of a factsheet, a pitch deck, and a
financial request.
The project has resulted in 12 pitch ready entrepreneurs by early September, 4
entrepreneurs pitching their business proposition in New York City in September
2013 and 4 entrepreneurs meeting with investors in Rwanda in November 2013
(the Global Alliance for Clean Cookstoves replaced the Nairobi event was with
the Growing SMEs East Africa event in Rwanda after the terror attack in Nairobi).
Of the entrepreneurs we worked with in Rwanda, two have signed NDA's with
investors, and one has continued working with BiD Network in looking for
finance.
Enhancing Food Security in the Horn of Africa through diaspora
Investment in Agriculture
In March 2013, BiD Network has signed an agreement with the International
Fund for Agricultural Development (IFAD) to implement a project called
“Enhancing Food Security in the Horn of Africa through Diaspora Investment in
Agriculture Programme” (Project number I-R-1442-BIDNF). The main objective
of the project is to facilitate finance for businesses in the food and agricultural
sector in South-Central Somalia, Somaliland and Puntland. The finance will
primarily come from the Somali diaspora, but also from other investors
interested in business opportunities from these regions. The project should leave
behind a replicable and sustainable structure and intermediaries that can
continue to finance Somali SMEs after the end of the project in 2017.
Annual report BiD Network Foundation 2013 - 25
In 2013, BiD Network, with support of Collert Consulting based in the
Netherlands and in Somaliland, conducted a quantitative survey among 400
Somali diaspora to investigate whether diaspora investors would be willing to
invest in Somali businesses, a question that 88% of the respondents answered
positively. In addition, BiD Network signed a Memorandum of Understanding
with the Dahabshil Bank to explore and design a financing mechanism for Somali
enterprises. The design and testing will start in 2014. In 2014, also a call for
proposals will be launched for start-ups and established businesses in South-
Central Somalia, Somaliland and Puntland and investors will be invited to sign up
for our matchmaking services.
Growing SMEs: Connect. Exchange. Invest.
Growing SMEs is an umbrella matchmaking concept under which different unique
events geared towards access to finance find a place. After several international
editions organized in the Netherlands, from 2011 onwards also regional editions
of the Growing SMEs concept were organized, for instance in Colombia, Rwanda
and Mexico.
Growing SMEs East Africa (Kigali, Rwanda)
Over 400 people attended the second edition of the Growing SMEs East Africa
conference, among which 44 financiers. Of the participants 60% was Rwandan
and 40% from abroad; a total of 27 nationalities from 13 countries were
attending the conference.
During the conference, the first “Get in the Ring” battle took place at which 9
Rwandan entrepreneurs pitched in front of 7 financiers (BRD, BPR, FinaBank,
Annual report BiD Network Foundation 2013 - 26
Business Partners, Grofin, BDF and De Investeerders Club). The investor
marketplace was opened by the Minister of Commerce Dr. Francois Kanimba. At
the marketplace, 34 entrepreneurs from East Africa presented their businesses
to interested investors. This resulted into a total of 21 follow up meetings.
International investor meetings were carried on (with investors that pre-
screened the entrepreneurs and expressed their interest in one to one follow up
meetings), live at the conference, and also through Skype.
In addition to that, 78 speed dating sessions took place at which 14 staff
members of 6 Rwandan banks (Fina, BPR, Equity, KCB, BRD, I&M) met with 17
pre-selected Rwandan entrepreneurs. This added to a total of 78 dating sessions
between banks and entrepreneurs. They exchanged info on their financial
products and requirements and the entrepreneurs got to pitch their businesses.
JCI Rwanda organized a round table on policy issues related on entrepreneurship
and business environment during the Growing SMEs conference. A survey has
been carried out among different financial institutions in Rwanda about the
products they offer in order to be able to give proper advice to entrepreneurs on
what is available in terms of finance in Rwanda.
Growing SMEs was a featured event of the Global Entrepreneurship Week and
embedded in a BiD Network business week for entrepreneurs from different
countries who attended Ready4Finance training sessions, B2B and investor
meetings. In the same week, NABC organized a Dutch trade mission to Rwanda,
facilitating connections between Dutch and Rwandan businesses.
Growing SMEs Latin America (Mexico)
In 2013, BiD Network’s international partner Fundación E decided to dedicate the
year to organizing the Growing SMEs Latin America event. The State of Veracruz
hosted us and several other organizations enthusiastically supported the
initiative. Ten selected entrepreneurs from Argentina, Colombia, Ecuador, Peru
and Mexico were highlighted at the event. Around 1,500 participants joined us
and had the opportunity to attend interesting conference sessions, exchange
propositions, receive advice and make investment connections.
Annual report BiD Network Foundation 2013 - 27
UNITED ENTREPRENEURSHIP COALITION
2013 was the 3rd year in which SPARK and BiD Network collaborated in the
United Entrepreneurship Coalition, a 5 year program funded by the Dutch
Ministry of Foreign Affairs supporting entrepreneurs and business support
centers in Burundi (BBIN), Kosovo (BSCK and BC Zvecan), Liberia (BSC
Monrovia), Palestine (Birzeit University Najjad Zeeni Center of Excellence,
Business and Technology Incubator at the Islamic University of Gaza and
Business Women Forum Palestine) and Rwanda (JCI Rwanda).
In 2013 new trainers of international partners were trained in the Ready4Finance
curriculum, or existing trainers were trained in the more advanced modules. Due
to travel restrictions the training and certification of our partner in Gaza took
place through Skype.
Annual report BiD Network Foundation 2013 - 28
BiD Network also continued to support partners in the area of investor
matchmaking and the establishment of business angel networks. In particular
Birzeit University, BSC Kosovo, BSC Monrovia, BTI and JCI Rwanda have gained
more experience in preparing entrepreneurs for finance and matching them with
investors. In Liberia, an investor trip was organized, which resulted in a
partnership agreement between BSC Monrovia and two funds to utilize BSC
Monrovia’s network for deal flow. In Palestine, Birzeit University established a
partnership with the Arabreneur investment fund and investors network. In
Kosovo, an investor matchmaker was hired by BSCK and BiD Network. In
addition, JCI Rwanda and the Palestinian partners were closely involved in the
organization of events primarily aimed at matchmaking.
National and regional business plan competitions were organized in all countries.
BiD Network and partners organized an ICT Challenge for the five countries and
international partners were involved in the worldwide Women in Business
Challenge. These competitions were supplemented with training and coaching for
entrepreneurs.
In 2013 we have seen a significant increase in the online results in these
countries as compared to earlier years of the program. A limited number of plans
however reached the ready for finance level, where entrepreneurs can access
our investor matchmaking services. Two matches were made in Rwanda and two
matches in Kosovo, for an average investment size of USD 102,000.
At the end of 2013 online groups were developed for the international United
Entrepreneurship Coalition partners of BiD Network.
Highlights in 2013 were the MSME Conference and Investor Trip to Liberia, the
Sharaka Pitching Event in Jordan and the second edition of the Growing SMEs
East Africa conference that took place in Rwanda.
INTERNATIONAL PARTNERS
In 2013 BiD Network collaborated with international partners in several countries
that launched local competitions, organized Ready4Finance and other training
sessions and events for entrepreneurs and investors or that were involved in
investor matchmaking services. International partners from Argentina, Ecuador
and Colombia received no funding for activities from BiD Network anymore, but
entrepreneurs from these counties participated in the Growing SMEs event in
Latin America.
Annual report BiD Network Foundation 2013 - 29
Burundi (United Entrepreneurship Coalition)
2013 proved a good year for BBIN and Burundi with 3 investor marketplaces
organized in Bujumbura and 22 Burundian entrepreneurs attending the Growing
SMEs East Africa conference in Kigali. For the first time ever in Burundi, BBIN
managed 2 online business plan competitions. The international ICT challenge
attracted 49 online applications from Burundi and the SHIKA competition saw
202 entrepreneurs applying.
BiD network trained 4 new
Ready4Finance trainers in the first half of
the year, moreover BBIN staff were
trained on the use of the online platform
and management of competitions, which
resulted in a gigantic increase in the
number of website visits, hits, online
members and online business
applications. These positive
developments were also a fruit of BBIN’s marketing strategy that raised
awareness of their programs and services.
Liberia (United Entrepreneurship Coalition)
BSC Monrovia multiplied its efforts in 2013, they reached out to entrepreneurs
and investors like never before. This was done through a number of different
activities and new programs.
BSC Monrovia provided Ready4Finance training to hundreds of entrepreneurs
through the MSME Conference and within the framework of 4 business plan
competitions. BiD Network certified 4 trainers in Ready4Finance modules. BSC
Monrovia organized a number of workshops and round tables to promote
entrepreneurship, and laid out the milestone for rural entrepreneurship
development by launching the first ever business plan competitions in Harper
and Gbarnga.
Additionally, BSC Monrovia reinforced their efforts in matchmaking by organizing
an investor trip to Liberia which enables international financiers to identify
potential businesses for investment. It is currently facilitating negotiations
between investors and entrepreneurs. During the Global Entrepreneurship Week,
4 Liberian entrepreneurs participated in the Growing SMEs East Africa
conference.
BSC Monrovia has become a landmark for entrepreneurship in Liberia, in 2013 it
partnered with numerous organizations, banks and government bodies to
promote the development of the private sector.
Annual report BiD Network Foundation 2013 - 30
Rwanda (United Entrepreneurship Coalition)
In September 2013, 37 young entrepreneurs were trained in business planning
using the Ready4Finance training modules. The certification of participants after
business planning completion was on September 15, 2013. 17 out of the 37
young entrepreneurs requested for
further support and an advanced training
was organized on October 18, 2013.
In November 2013, during the Global
Entrepreneurship Week, JCI Rwanda
organized the second East African
edition of the Growing SMEs conference
and BiD Network week, with a “Get in
the “Ring” pitching battle and speed
dating with banks.
Kosovo (United Entrepreneurship Coalition)
BiD Network’s local partners Business Support Centre Kosovo (BSCK) and
Business Centre (BC) Zvecan organized the Kosovo Spring and the Kosovo Fall
Challenge. 270 applications and 64 full business plans were submitted. The
partners trained and coached the participating entrepreneurs. Networking
sessions as well as extensive promotions efforts via newspapers, social media
and flyers made entrepreneurship a big topic in Kosovo. BC Zvecan has found a
matchmaking partner in Mercy Corps through which two entrepreneurs received
USD 66,360 in 2013.
An investor matchmaking project was launched in January 2013 and has started
in September due to a lengthy process of hiring an investor matchmaker. A list
of potential investors has been accumulated to initiate an investor network for
Kosovo.
A new Business-to-Business (B2B) service was piloted by BC Zvecan for North
Kosovar companies being linked to Serbian companies to exchange best
practices and to explore options to establish business relations. BSCK has
provided winners the option to get linked to businesses in The Netherlands, a
very attractive offer for Kosovar companies to realize business growth.
Palestine (United Entrepreneurship Coalition)
In Palestine BiD Network worked with the Business Women Forum Palestine
(BWF), the Birzeit University Center of Excellence and the Business and
Technology Incubator of the Islamic University of Gaza (BTI).
BWF conducted two business plan competitions for women entrepreneurs. In
May, BWF's competition was selected by the European Training Foundation as
one of the world's best practices to encourage entrepreneurship and build the
Annual report BiD Network Foundation 2013 - 31
capacities of female entrepreneurs.
Birzeit University conducted one business plan competition. BiD Network further
supported the center in exploring the opportunities to set up a local investor
network. This resulted in an agreement between Birzeit University and Mena
Apps to launch a $1 M venture capital investment fund and a related Business
Angel Network. 8 entrepreneurs from the university network were trained to
pitch their plan to the fund management. They will be supported to become
finance ready in 2014.
In the second half of the year, 5 staff members of the Business and Technology
Incubator at the Islamic University in Gaza started the process to become
certified trainers of advanced Ready4Finance courses. Due to travel limitations,
the training was conducted via Skype and will be concluded in the beginning of
2014.
To introduce Palestinian entrepreneurs to investors, BiD Network, together with
her Palestinian partners and the Business Development Center in Jordan,
organized a pitching event in Amman during the Global Entrepreneurship Week
in November. Each partner selected and supported 2 entrepreneurs to pitch at
this event. Entrepreneurs from BWF and BZU participated in training and
networking sessions around the event.
Due to the relatively limited applicability of BiD Network services in the local
context, BiD Network has decided to discontinue its advisory services and
financial support to partners in the Palestinian Territories from 2014 onwards.
BiD Network will offer the partners their own group on bidX and will continue to
offer matchmaking services to viable businesses. Partners will also stay involved
in the promotion of the 5th edition of the Women in Business Challenge.
Tanzania
Our partner SEED has participated in preparing entrepreneurs for the Growing
SMEs East Africa conference, worked on establishing a business angel network
for Tanzania and has established a local coaching network counting 18 verified
coaches to assess business plans out of 124 applicants. SEED has been a strong
partner for the Women in Business Challenge and has conducted BiD Network’s
Ready4Finance training for entrepreneurs.
Uganda
In Uganda BiD Network’s partner IRIS continued to offer consultancy and
training services to its network of entrepreneurs. Two radio talk shows were
organized at which business opportunities and risks were discussed. The BiD
breakfast grew into a signature event with attendance numbers growing to
between 15 and 30. One of the breakfasts was attended by a business angel
from The Netherlands. IRIS has been included in the mentoring program of
Annual report BiD Network Foundation 2013 - 32
Enterprise Uganda/ Youth Business International. Specific training sessions on
tax were organized in collaboration with the Uganda Revenue Authority.
Peru
Our partner Instituto Invertir has conducted a Peru wide roll out of the
Ready4Finance training program called Ignite. In this program, entrepreneurs
are trained and different revenue models are tested, aiming to make this a
sustainable SME service for Invertir. The main objectives of the program are to
generate entrepreneurial capabilities and encourage entrepreneurship in Peru; to
generate business capabilities in early-stage businesses; to connect SMEs with
investors, clients or potential relevant partners to their business development;
and to generate an SME-oriented training model that can be replicated.
During the first half of the project a total of 268 entrepreneurs and SME owners
have been trained during 63 training hours in Lima, Piura, Chiclayo and Trujillo.
So far Invertir charged participants an average of EUR 24.76 for 3 hours of
training. The training sessions have resulted in the start of 2 businesses and 14
strategic alliances.
Philippines
Our partner PBSP mainly focused on investor matchmaking services for previous
BiD Challenge Philippines participants. This has resulted in new investment
partnerships and in 3 investor matches, whereas a few more are expected in
2014. In addition PBSP spend time on extensive monitoring of all businesses
supported. No competition has been organized in 2013, but preparations have
taken place to launch a Water Challenge in 2014.
Jordan
In the beginning of the year, the Business Development Center (BDC) Jordan
actively promoted the Women in Business Challenge.
Building upon the earlier established contact with BiD Network's partners in
Palestine, BDC took on the challenge to organize a pitching event for Palestinian
and Jordanian entrepreneurs in Amman. BiD Network and BDC intensively
worked together in the build-up for this event. In order to select entrepreneurs,
BDC successfully ran a business plan competition, resulting in an increase of
business applications from Jordan. BiD Network advisors conducted a
Ready4Finance Pitching and Types of Investment training to prepare the
selected entrepreneurs.
Mexico
In 2013, BiD Network’s Mexican partner Fundación E dedicated the year to
organizing the Growing SMEs Latin America conference in Veracruz.
Annual report BiD Network Foundation 2013 - 33
GOVERNANCE AND ORGANIZATION
In February 2013 a restructuring of the organization took place that resulted in
the integration of bidX and BiD Network processes for sales and fundraising,
online and offline service development, project implementation and finance and
operations. This led to a more effective steering of the online services
development and better use of strategic funds.
When it became clear that income generation on online service development was
not likely to be generated before 2014, a second necessary restructuring,
including significant cost management measures, took place in June 2013. As a
result several staff and free-lance staff members were laid off, in particular in
the field of service development. Staff capacity for the delivery of contracted
projects was maintained in line with projects’ needs. At the end of the year it
was also decided to continue with only one director.
Transparency and efficiency
BiD Network receives funds from donors and other parties. In these relationships
trust plays an important role. We operate in a professional manner and report
transparently about when and where we spend the funds granted to us. BiD
Network strives to work as efficient as possible while executing all tasks and
activities.
Internal monitoring
All project managers monitor their projects periodically. In these evaluations
they closely look at real versus planned costs. If real costs are higher than
planned, project managers will aim to reduce other project costs. Periodically,
project managers report to the Board of Directors about the status and progress
of their projects. Each month, management reports are shared and discussed
within the Board of Directors and with the BiD Network staff. On a quarterly
basis, the Board of Directors reports to the Supervisory Board about programs
and results. The Supervisory Board oversees and is accountable for the overall
organizational objectives and results and monitors the efficiency of operations.
Project partners
Projects are being executed by internal specialists and/or project partners. In
the development phase of a project we look closely at how to achieve the best
results possible and who can execute which activities. BiD Network uses project
partners for the execution of several, mainly international projects. When
choosing a project partner, BiD Network first evaluates the capacity of the
partner. Rights and obligations are written down in a partnership agreement
between BiD Network and the partner. In this agreement, a reference to the
sanction, anti-corruption and anti-fraud policies of BiD Network is included.
Annual report BiD Network Foundation 2013 - 34
Sanction policy
BiD Network’s partnerships are based on collaboration and equality. All
agreements have to be approved by both parties and collaboration entails rights
and obligations. The sanction policy of BiD Network contains procedures and
actions to be undertaken when project partners do not honor the signed
agreement. Sanctions can be taken when:
There is considerable doubt about fraud or corruption with or by the
project partner;
The partner organization has not fulfilled or not met one or more of the
conditions mentioned in the agreement, such as timely reporting on
program and financial results, quality of reports, etc.
The results lack behind due to underperformance by the project partner.
In 2013 BiD Network has not inflicted any sanctions to one of the project
partners.
Anti-fraud and anti-corruption policy
BiD Network keeps high standards with regards to our accountability. To meet
these high standards it is important to have clear guidelines for all employees
and volunteers on how to act when fraud is being detected or considerable doubt
exists about fraud and/or corruption. BiD Network maintains a ‘zero tolerance’
policy when it comes to fraud and corruption. Employees and volunteers must
act honestly and with integrity. The anti-fraud and anti-corruption policy includes
responsibilities for all employees on how to act when fraud or corruption is
detected.
In 2013 there were no incidents reported about fraud or corruption.
HR policy and operations
At the beginning of 2013 a light 360 degrees feedback process for evaluation
and learning was introduced and appreciated by Board of Directors and staff.
Staff development was planned in accordance with the organizational
development. Many staff members had ambitions and activities scheduled, and
together with the organization they invested in sales, investor matchmaking,
strategy development and HR legal administration. Development was largely
done on the job with support from external experts. Two staff members enjoyed
external training at the Rotterdam School of Management and ISBW.
The staff policies of BiD Network were reviewed and integrated with bidX’ staff
policy.
In the course of 2013 there has been a decrease of 2 FTEs, from 16.5 FTE to
14.5 FTE. At the end of 2013, BiD Network employed 11 people, of which 9
women and 2 men. Most staff members employed part-time.
Annual report BiD Network Foundation 2013 - 35
2013 2012
Total employees end of year 11 20
Average number of FTE staff 14.5 16.5
In 2013, two staff members were posted in Rwanda. The other staff members
were based at BiD Network’s headquarters in Amsterdam, The Netherlands.
They did however frequently travel to the different countries in which BiD
Network operates.
BiD Network works together with 1,795 voluntary coaches.
Absence through illness
The absence due to illness was 6.99% higher than in 2012 (2.23%). This was
caused by two pregnancies and a long term illness. This has had a considerable
impact on the organization. The employee concerned has started a reintegration
program. The absence due to illness excluding pregnancies was 3.76%. This was
1.82% higher than the previous year (1.94%).
Organogram 2013
ACCOUNTABILITY
BiD Network’s governance structure consists of a Board of Directors responsible
for the day-to-day operations, reporting to and supervised by a Supervisory
Annual report BiD Network Foundation 2013 - 36
Board. The Supervisory Board is responsible for overseeing the operations,
budget and plans of the foundation.
Board of Directors
In 2013, the Board of Directors of BiD Network consisted of one director
responsible for business and service development and one director responsible
for delivery and operations. Due to long term illness of one the directors an
interim director was appointed in January 2013. Per January 2014, BiD Network
will continue with one director.
Name Function Start date End date
Thierry Sanders Director business and service
development
01-01-2008 21-01-2014
Cily Keizer Director delivery and operations
01-06-2010 31-12-2013
Hendrik van Gent Interim director delivery and
operations
09-01-2013 11-12-2013
Hendrik van Gent Director 11-12-2013
Thierry Sanders
Thierry Sanders founded BiD Network in 2004, while being a program manager
at NCDO, a Dutch expertise and advisory center for citizenship and international
cooperation. He also founded Unseenproducts bv, the Dutch Design in
Development Foundation, the www.mdgscan.com and published the first guide
to Venture Capital for SMEs in developing countries. Prior to that he was general
manager of EcoSecurities plc., the world’s largest carbon trading company. He
served as a partner in several CSR consultancy firms. Thierry Sanders was
business developer of BSO-Origin (Atos-Origin) in Asia and in The Netherlands,
and implemented an ERP system at Fair Trade Original and Oxfam-Novib. He
started his career as a research officer at the Institute for Development Studies,
University of Sussex, UK.
In 2013, Thierry Sanders was also director of bidX, of which BiD Network was
major shareholder, as well as advisor to the Board of the Putera Sampoerna
Foundation.
Cily Keizer
Cily Keizer has been director of BiD Network since 1 June 2010. She brought BiD
Network a wide range of international experience in Asia (Nepal, Bhutan, Laos,
Cambodia), Africa (Ghana) and Latin America (Peru, Ecuador), as well as
extensive management experience in running multi-sector development
programs that have strong private sector development and capacity building
focus.
Annual report BiD Network Foundation 2013 - 37
Before joining BiD Network, Cily was director at Wemos, a Dutch Development
Foundation that works in the health sector. Prior to that, she worked for SNV
Netherlands Development Organizations for over 17 years, holding various
country director, managerial and advisory positions. She was responsible for
programs in the field of SME development, sustainable pro-poor tourism, micro
finance, renewable energy such as biogas, and value chain development of
agricultural and forest products.
Hendrik van Gent
Hendrik joined BiD Network in January 2013 as ad interim director Delivery and
Operations. Before starting at BiD Network, Hendrik worked with War Child
Holland from April 8, 2004 till May 1, 2013. During this time Hendrik held
different positions such as Program Manager, Marketing Manager ad interim,
Innovation Manager and was ad interim CEO between February and June 2012.
In 2013 Hendrik was also advisor for the social and sustainable investor
community BizzyBees.
Remuneration of directors
The salaries of the directors of BiD Network are based on the “Adviesregeling
Beloningen Directeuren van Goede doelen”, as drafted by the branch
organization VFI (Vereniging Fondsenwervende Instellingen). Based on these
guidelines, BiD Network has placed the function of director in a scale with a
maximum salary of EUR 98,257. The gross salary of Thierry Sanders in 2013
was EUR 48,908 (based on a part time contract of 50%, including holiday
allowances), falling within these boundaries. The gross salary of Cily Keizer in
2013 was EUR 92,200 (based on a full time contract, including holiday
allowances), falling within these boundaries. The gross salary of Hendrik van
Gent in 2013 was EUR 36,169 (based on a part time contract of 40%, including
holiday allowances), falling within these boundaries. The employment terms for
the function of director also comply with the framework as stated by the Dutch
Code for good Governance.
Supervisory Board
The by-laws of BiD Network clearly describe the separation of duties, tasks and
responsibilities between management and supervision.
BiD Network greatly values a transparent and dedicated cooperation between
the Board of Directors and the Supervisory Board. The Board of Directors
prepares the Supervisory Board meetings. At the meetings it informs the
members of the Supervisory Board about all important developments within the
organization and updates the Supervisory Board on the latest state of affairs
with regards to the implementation of the year plan, enabling the Supervisory
Board to supervise activities and results in the light of the policy laid out.
Information is provided via quarterly reports. In the fall of every year the Board
of Directors and Supervisory Board together work out the structure for the next
Annual report BiD Network Foundation 2013 - 38
year plan. Before the end of the year the plan is finalized. Every year, the
Supervisory Board verifies and approves the annual financial report. Questions
the Supervisory Board may have about the implementation of the annual plan
are discussed with the Board of Directors. The Supervisory Board may also
suggest policy changes. Annually the Supervisory Board evaluates the
performance of the members of the Board of Directors.
The most important tasks of the Supervisory Board are the appointment of the
members of the Board of Directors, supervising their performance and the
overall performance of BiD Network. The Supervisory Board actively contributes
to the development of the vision and the long term strategy of the organization.
It monitors to what extent the organization follows its mission and achieves the
planned results, and watches the efficiency and effectiveness of how the
organization is managed.
The Supervisory Board is structured in such a way that continuity of membership
is assured, while simultaneously it allows for ongoing renewal. Supervisory
Board members are appointed for three years and can be reappointed one
additional term. To safeguard its professional and ethical standards, the
Supervisory Board has drafted a Supervisory Board profile, specifying
composition, competences required, professional backgrounds and expertise
needed. This profile serves to benchmark to evaluate qualifications and
performances of individual Supervisory Board members on a regular basis.
In 2013, the Supervisory Board held 8 meetings. In addition to monitoring the
progress of BiD Network’s operations against its year plan, other important
topics were:
Verification and approval of annual accounts and annual report 2012;
Evaluation of staff capacity and restructuring of BiD Network;
Sale of the bidX shares.
The Supervisory Board members have not received any remuneration apart from
a maximum reimbursement of expenses of EUR 200 per member per
Supervisory Board meeting.
In 2013 the Supervisory Board consisted of:
Name Portfolio In Board
since
End of 2nd
term
Maarten van Dijk -
Chairman until 18
September 2013
Remuneration
Committee
23 April 2008 22 April 2014
Paul van Aalst - Remuneration 11 March 2009 10 March 2015
Annual report BiD Network Foundation 2013 - 39
Chairman ad interim
per 18 September
2014
Committee
MFSII
Alef Arendsen bidX supervisory
board
10 June 2010 9 June 2016
Herman Snelder 01 January
2013
31 December
2018
Henk van Stokkom Audit Committee
MFSII
01 January
2013
31 December
2018
Ruud Nijs Audit Committee
bidX supervisory
board
01 January
2013
31 December
2018
Maarten van Dijk
Maarten van Dijk is the founding partner of Victoria Lofts/Sequoia Residences –
a luxury real estate developer, specialized in industrial monuments. He also
owns Sarah Holding, a holding company for activities relating to consultancy,
training programs and investments, and is a partner in restaurant Brasserie NL,
with top-chef Ruben van Dieten.
He is also member of the Board of trustees for the KFI Kilimanjaro Film Institute,
and member of the Advisory Committee of Extra Talent bv.
Paul van Aalst
Paul van Aalst is managing director of SOVEC, an investment fund set up by
Dutch entrepreneurs to invest in SMEs in Africa in partnership with local
investment partners. Until February 2012 he was director of a clean energy
investment company providing business development services and investment
capital to small and growing clean energy enterprises in Africa, Asia and Central
America. He was also a member of the supervisory board of IKV Pax Christi until
the end of April 2012.
Alef Arendsen
Alef Arendsen is the founder of The New Motion, a company that aims to
eradicate fossil-fuel usage for personal transport through the promotion and
provision of charging services for electric vehicles. He founded a further two
successful companies; JTeam bv and SpringSource. These were both sold in
2009.
Herman Snelder
Herman Snelder is the director and owner of MDF Training and Consultancy.
MDF is a global training and consultancy agency, with over 25 years of
experience in international co-operation. Before founding MDF, Herman worked
as project manager for COOPIBO (BE) in DR Congo and Rwanda.
Annual report BiD Network Foundation 2013 - 40
Herman is also member of the Think Tank on the Rhineland model for different
ways of organizing enterprises with a focus on trust, relations and
craftsmanship. Businesses are considered part of and parcel society.
Henk van Stokkom
Henk van Stokkom is founder and owner of DoenDenkers since 1995. He acts for
and on behalf of charitable trusts and high net worth individuals in the area of
donations policy and responsible investing (management & implementation).
In 2013 Henk van Stokkom was also member of the Supervisory Board of
Stichting Liliane Fonds, member of the Board of Advice of the Karuna Foundation
and board member of the Sint Antonius Stichting.
Ruud Nijs
Ruud Nijs co-founded TheRockGroup in 2012. TheRockGroup uses a pragmatic
(‘make it work’) approach to offer tailor-made solutions for mainstreaming
sustainability in corporations and organizations, commercializing young ventures
(mainly by offering Corporate Finance solutions), and creating solutions for
complex societal issues. He worked as Director of Corporate Social Responsibility
and Executive Vice President of Financial Logistics at Rabobank, as Managing
Director for Europe, the Middle East and Africa at Fair Isaac and HNC Software,
and as Senior Executive Vice President at ABN AMRO. He is also Board member
for the Society for International Development Dutch Chapter (SID) and is
member of several (regional) investment committees.
Audit committee
As a committee within the Supervisory Board, the audit committee monitors the
functioning of internal planning, control and risk process and BiD Network´s
financial management, following the by-laws for the audit committee.
Selection, Appointment and Remuneration Committee
As a committee within the Supervisory Board, the Selection, Appointment and
Remuneration (SBRC) Committee is responsible for proposing the selection,
appointment and remuneration criteria for the Board of Directors and
Supervisory Board and the monitoring of their performance of management and
supervisory board, following the by-laws for the SBRC committee.
FORECAST 2014
In 2014, BiD Network will focus on delivering matchmaking results through our
projects funded among others by the Dutch Ministry of Foreign Affairs, IFAD, the
Dutch Postcode Lottery and IFC. Based on the efforts and results in 2013, a
targeted matched amount of USD 4 million is set. Services will be more tailored
towards meeting investors and the financing of smaller SMEs in the missing
middle, for which it is more difficult to access finance.
Annual report BiD Network Foundation 2013 - 41
BiD Network will benefit from cost restructuring and the sale of its daughter
bidX, allowing the organization to work more effectively and more efficiently and
to become financially much healthier with a budgeted positive result of
EUR 383.700 (see budget). There are no special expenses foreseen in 2014 for
VAT and repositioning of BiD Network.
New business has come from the International Fertilizer Development Centre
(IFDC) and a number of proposals are being presented to donors and clients.
The organization has a temporary negative equity position per 31 December
2013, due to the restructuring of BiD Network and the expected expenses of the
Bidx10 project, of which income was accounted in 2011. The liquidity forecast
for 2014 confirms that no liquidity problems are foreseen in 2014, despite the
negative equity position at 31 December 31 2013. This is mainly because
contractual payments for various projects are received in advance. BiD Network
will be able to meet all grant obligations.
Annual report BiD Network Foundation 2013 - 42
FINANCIAL REPORT 2013
RESULT
The result for 2013 is EUR 1.3 million negative (as compared to EUR 1.0 million
negative in 2012). The budgeted result was EUR 186,300 positive. In 2013, the
following additional costs have led to a negative result:
Grant bidX for project BiDx10 EUR 714,505 (*)
Sales tax adjustment 2010 to 2013 EUR 168,500
Integration BiD Network and bidX EUR 90,100
Investment in matchmaking EUR 88,600
Severance payments related to restructuring EUR 81,500
Other additional costs EUR 80,000
Additional costs caused by ill employee EUR 42,500
Total EUR 1,265,705
*) In 2011, BiD Network received a grant from Dutch Postcode Lottery for the
project BiDx10. The subsidy was fully received and recorded as income in 2011
and spent in 2012 and 2013. The amount unspent in 2011 and 2012 was EUR
714,505 on 31 December 2012. In 2013, the project has been completed.
Through the appropriation of the result, the project costs will be withdrawn from
the allocated funds “BIDx10”. The other costs will be further elucidated herein
below under expenditure.
Income
BiD Network’s total income increased from EUR 2.2 million in 2012 to EUR 2.8
million in 2013. This is EUR 0.5 million higher than the budgeted income of EUR
2.3 million. The increase is mainly explained by a grant received from the IFC
coalition. The G20 project funded by the IFC coalition was mainly carried within
the services of bidX.
Own fundraising
BiD Network’s own fundraising increased from EUR 0.2 million in 2012 to EUR
1.1 million in 2013. The increase is mainly caused by a grant received from the
IFC coalition. Compared to the budgeted own fundraising, realized own
fundraising was EUR 0.6 million higher. The 2013 budget did not include the IFC
coalition grant.
Efforts of thirds
The income received in 2013 by efforts of thirds amounts to EUR 539,000. This
is more or less the same as last year and as the amount budgeted for 2013. The
Dutch Postcode Lottery decided in 2011 to grant BiD Network an annual amount
of EUR 500,000 for a period of five years. The 2013 grant was received as
agreed.
Annual report BiD Network Foundation 2013 - 43
Government subsidies
The income from government subsidies compared to last year decreased by
16.8% from EUR 1.3 million to EUR 1.1 million. The realization is equal to the
budget. The year 2013 was the third year of the MFSII program funded by The
Dutch Ministry of Foreign Affairs.
Other
Other income received amounts EUR 126,000. This is more or less the same as
last year as well as the amount budgeted for 2013.
Expenditure
The total spending increased with 72% from EUR 2.4 million in 2012 to EUR 4.1
million in 2013. An overview including the specification and distribution of costs
to the BiD Network objective can be found in the financial statements. Compared
to the budgeted expenditure of EUR 2.1 million, in 2013 BiD Network spent EUR
2.0 million more than budgeted.
In 2013, EUR 3.8 million was spent directly on the organization’s objective. This
is 134% of the total income. In the previous year, 97% of the total income was
directly spent on BiD Network’s objective.
The amount of grants and contributions provided to our national en international
partners, increased from EUR 0.3 million in 2012 to EUR 1.9 million in 2013.
Compared to the budgeted amount of EUR 0.3 million, this is EUR 1.6 million
higher. The increase is mainly caused by two grants to bidX. These grants were
received from the Dutch Postcode Lottery and the IFC coalition, for two different
projects.
In 2013 the organization has invested extra in matchmaking for an amount of
EUR 88,600.
Also the organization has decided to integrate BiD Network and bidX services.
This integration aimed to offer integrated solutions to donors and customers with
bidX online platform through a so called eco-system proposition. The costs of
this integration were EUR 90,100.
In 2013, we remained well below the by CBF recommended fundraising costs
percentage of total costs of 25%. In 2013 we spent EUR 41,700 on own
fundraising, which is 4% of the income realized by own fundraising (as
compared to 20% in 2012). The organization aims to allocate funds received as
much as possible to the main objectives of the organization and to keep any
costs relating to the acquisition of income as low as possible.
The costs of management and administration increased from EUR 168,000 in
2012 to EUR 273,000 in 2013. The increase was mainly due to the increase in
Annual report BiD Network Foundation 2013 - 44
staff costs related to the strategic changes and the preparation of the spin-off of
bidX, as well as to temporary replacement of senior staff on sick leave.
Due to the negative result at the end of 2013, BiD Network’s equity position on
31 December 2013 was EUR 352,000 negative. The reorganization and strategic
changes in 2013 must ensure that a positive equity position can be achieved
again. The Supervisory Board and Board of Directors have decided that a small
continuity reserve will be rebuilt over time, and that the majority of funds can
be allocated to the objectives of the organization.
In 2013 a repositioning has taken place. This repositioning has led to a
restructuring of the organization which made 11 employees redundant.
Severance payments made related to the reorganization amount to EUR 81,500.
In 2013 the tax authorities have ruled that it was not allowed to deduct the
complete amount of advance taxes. Over the period of 2010 until 2013 only
21% of the advance taxes could be deducted. In total BiD Network had to repay
an amount of EUR 248,500 to the tax authorities.
BALANCE
Securities and cash
The Supervisory Board together with the Board of Directors have decided to
make the funds BiD Network received available for projects for which
expenditure depends on the progress, which is less secure than transferring it to
a deposit or savings account. Periodically, the Supervisory Board evaluated the
liquidity position.
Equity
Due to the negative result at the end of 2013, BiD Network’s amount of equity
on 31 December 2013 was EUR 352,000 negative. The reorganization in 2013
must ensure the recovery of a continuity reserve in 2014 to ensure
organizational stability for the future. The Supervisory Board and Board of
Directors have decided to ensure the availability of a small continuity reserve in
future, so that the majority of funds can be allocated to the objectives of the
organization. The continuity reserve is meant to cover short term risks and to
guarantee that the organization can fulfill its long term obligations. The
organization aims to build a continuity reserve that will cover a maximum of
50% of the organization’s fixed operational costs. According to the CBF norm the
continuity reserve may not exceed 1.5 times the annual costs of the work
organization.
In 2014, the Supervisory Board and Board of Directors will reanalyze the
organization’s risks, and the period which they intend to cover in the analysis.
On the basis of this analysis, specific risks will be controlled or closed.
Annual report BiD Network Foundation 2013 - 45
Following year overview
Our results over the past years are summarized in the following year overview:
Realization
2013
Realization
2012
Realization
2011
Income 2,810,400 2,229,600 3,910,200
Spent on objective 3,772,600 2,165,100 2,010,000
CBF % 3.8% 20.0% 25.1%
Spending % 134.2% 97.1% 51.1%
Consolidated figures BiD Network and bidX
The annual report 2012 included an annex of the consolidated figures of BiD
Network and bidX. It has been decided not to consolidate the figures for 2013,
because all bidX shares of BiD Network will be sold in 2014. This decision was
made in 2013.
Annual report BiD Network Foundation 2013 - 46
BUDGET 2014
(All amounts are in Euro)
Budget 2014 Real 2013
Own fundraising 1.055.100 1.067.785
Efforts of thirds 500.000 539.500
Government subsidies 748.000 1.078.638
Other income 40.000 128.563
Interest Income 0 (4.049)
Total income 2.343.100 2.810.436
Spent on objective 1.797.200 3.772.577
Costs of own fundraising 22.300 40.302
Costs for obtaining income from efforts of thirds 2.000 437
Costs obtaining government subsidies 1.700 0
Costs obtaining other income 300 0
Spent on fundraising 26.300 40.739
Management and administration 66.500 272.966
Total expenditure 1.890.000 4.086.283
RESULT 453.100 (1.275.846)
Annual report BiD Network Foundation 2013 - 47
FINANCIAL STATEMENTS
Balance sheet after appropriation of result as per 31 December 2013
(All amounts are in Euro)
ASSETS
Tangible fixed assets
Tangible fixed assets 18.452 27.299
Financial fixed assets
Financial fixed assets 0 0
Loan granted (group company) 0 505.000
0 505.000
Current assets
Receivables 58.971 71.574
Prepayments 2.460 58.722
VAT receivables 0 83.636
Cash and bank balances 104.241 584.763
165.672 798.695
TOTAL 184.124 1.330.994
LIABILITIES
Reserves and funds
General reserve (351.928) 209.413
Allocated funds 0 714.505
(351.928) 923.918
Short term liabilities
Creditors 87.029 73.376
Taxes and social security 141.158 28.817
Commitments to international partners 27.695 30.750
Early receipts 157.217 201.805
Other short term liabilities 122.953 72.328
536.052 407.076
TOTAL 184.124 1.330.994
31-12-2013 31-12-2012
Annual report BiD Network Foundation 2013 - 48
Statement of Income & Expenditure 2013
(All amounts are in Euro)
Real 2013 Budget 2013 Real 2012
Own fundraising 1.067.785 510.522 227.206
Efforts of thirds 539.500 539.500 517.500
Government subsidies 1.078.638 1.056.188 1.296.816
Other income 128.563 120.466 145.234
Interest income (4.049) 25.000 42.872
Total income 2.810.436 2.251.676 2.229.628
Spent on objective 3.772.577 1.904.400 2.165.067
Costs own fundraising 40.302 31.500 38.584
Costs obtaining income from efforts of thirds 437 2.800 3.410
Costs obtaining government subsidies 0 2.400 2.937
Costs obtaining other income 0 400 490
Spent on fundraising 40.739 37.100 45.421
Management and administration 272.966 123.859 168.195
Total expenditures 4.086.283 2.065.359 2.378.683
RESULT FROM OPERATIONAL ACTIVITIES (1.275.846) 186.317 (149.055)
RESULT ON INVESTMENT 0 0 (882.000)
RESULT (1.275.846) 186.317 (1.031.055)
Appropriation of result
General reserve (561.341) (44.055)
Allocated funds Banks & Angels 0 (105.000)
Allocated funds BiDx10 (714.505) (882.000)
(1.275.846) (1.031.055)
Annual report BiD Network Foundation 2013 - 49
Cash Flow Statement 2013
(All amounts are in Euro)
2013 2012
Cashflow from operational activities
Result (1.275.846) (1.031.055)
Depreciation tangible fixed assets 8.847 9.221
Devaluation financial fixed assets 0 882.000
Conversion loans into grant 719.505 0
Gross cashflow from operational activities (547.494) (139.834)
Changes in current assets and receivables 152.501 (302.460)
Changes in current liabilities 128.976 240.439
Net cashflow from operational activities (266.017) (201.855)
Changes in tangible fixed assets 0 (14.070)
Changes in financial fixed assets 0 (882.000)
Cashflow from investment activities 0 (896.070)
Changes in loan granted to group company (214.505) (305.000)
Cashflow from financing activities (214.505) (305.000)
Changes in cash and cash equivalents (480.522) (1.402.925)
Cash and cash equivalents beginning year 584.763 1.987.688
Cash and cash equivalents end year 104.241 584.763
Changes in cash and cash equivalents (480.522) (1.402.925)
Annual report BiD Network Foundation 2013 - 50
ACCOUNTING PRINCIPLES FOR FINANCIAL REPORTING
The financial statements have been drawn up in accordance with Dutch
Accounting Guidelines, in particular Guideline 650 for Dutch Charities and
Fundraising Organizations (‘richtlijn 650 voor fondsenwervende instellingen’).
Valuation of assets and liabilities and determination of the result are calculated
under historical cost convention. Unless presented otherwise at the relevant
principle for the specific item, assets and liabilities are valued according to the
cost model.
Income and expenses are accounted for on accrual basis. Profit is only included
when realized on the balance sheet date. Losses originating from before the end
of the financial year are taken into account if they were known before
preparation of the financial statements.
The comparative figures have been reclassified to the new presentation. This
does not affect the results or equity position of BiD Network.
Financial year
The financial year runs from 1 January to 31 December.
Currency
All amounts are expressed in Euro.
Consolidation Exemption
At the end of 2013, BiD Network Foundation has a 59% shareholding in bidX
with whom it forms a group company. Because the group company meets the
requirements of a so called “Small Company” (art. 2:396 lid 1 BW), the
Consolidation Exemption (art.2:407 lid 2 BW) is applied.
Principles of valuation of assets and liabilities
Tangible fixed assets
Tangible fixed assets are presented at cost less accumulated depreciation and, if
applicable, less impairments in value. Depreciation is based on the estimated
useful life of 5 years and calculated as a fixed percentage of cost, taking into
account any residual value. Depreciation is applied from the date an asset comes
into use.
Financial fixed assets
Where significant influence is exercised, participations in companies are valued
according to the net asset value method, but cannot be lower than a nil value.
The net asset value is based on the accounting principles as applied by BiD
Network.
Reserves and funds
The equity of the foundation is in place for the organization to achieve its
objectives. The equity is divided into reserves and funds. The difference between
earmarked reserves and earmarked funds is that earmarked reserves are
Annual report BiD Network Foundation 2013 - 51
decided upon by the Supervisory Board, upon recommendation by the Board of
Directors, whereas earmarked funds exist because third parties have prescribed
a destination for the funds. The reserve within BiD Network consists of the
general reserve.
Liabilities
Long-term borrowings, if applicable, and current liabilities are stated at nominal
value. Debt claims are determined at their nominal value minus the expected
inability of repayment.
Principles of determination of results
Income and expenses are accounted for in the profit and loss account at the
time of supply of the relevant goods or services. Results are determined by the
difference between income and expenses for the financial year.
(Government) grants and other donations
Grants and donations are included in the result in the year in which the
subsidized or donated expenses are realized.
Principles of determination of the cash flow
The cash flow is drawn up based on the indirect method.
RJ 650 – Allocation to objective, fundraising and overheads
BiD Network drew up its financial statements according to the Dutch National
Annual Reporting guidelines called the “RJ 650 Guidelines” for Dutch charities
and fundraising organizations. From 2010 onwards, the cost centers used in the
bookkeeping were adjusted to cater for the RJ 650 Guidelines. This implies that
all costs have been divided over the following cost centers:
Objective – the objective of the foundation as per articles of association is
to stimulate entrepreneurship in emerging markets; therefore all activities
are geared towards preparing entrepreneurs to access finance. This
includes the sourcing of business ideas, supporting entrepreneurs in
business planning, coaching entrepreneurs, advising international partners
and supporting and matching ready for finance entrepreneurs with
investors. This all falls under the one objective of preparing emerging
market entrepreneurs to access finance.
Fundraising – which is subdivided into:
o Costs of direct fundraising, e.g. persons or organizations who
donate directly;
o Costs of fundraising from fundraising organizations, e.g. from the
Dutch Postcode Lottery;
o Costs of fundraising for government subsidies, e.g. from the Dutch
Ministry of Foreign Affairs;
Annual report BiD Network Foundation 2013 - 52
o Other fundraising costs, e.g. from savings, investments and capital
gains.
Management and administration
In 2013, 92% (2012: 91%) of all expenses were related to the objective,
1% (2012:2%) to fundraising and 7% (2012: 7%) to management &
administration.
Value Added Tax (VAT) Liabilities
In 2010, the Dutch Tax and Customs Administration (‘Belastingdienst’) ruled
that BiD Network is VAT liable for its activities. From then on VAT was
administered for all expenses and deducted, and VAT was calculated on the
income components which are subject to VAT. During 2013, the Dutch Tax and
Customs Administration declared that the Foundation is not subject to VAT. At
the end of 2013 the Dutch Tax and Customs Administration decided that 21% of
the VAT was deductible.
Annual report BiD Network Foundation 2013 - 53
NOTES TO THE BALANCE SHEET
(All amounts are in Euro)
Tangible fixed assets
Financial fixed assets
In 2011, BiD Network acquired 55% of the shares in bidX, a company which
develops and utilizes a web platform to enable entrepreneurs to start and grow
their businesses and find suitable investors. The purchase value was EUR
18,000, but because of the negative result of bidX for its first financial year, the
shareholding was devalued to nil.
In 2012 additional shares were acquired, which resulted in a final majority
shareholding of 59%. Although the foundation paid an acquisition price of
EUR 882,000 for the expansion of the shareholding in 2012, the financial fixed
assets are valued at nil, because of the negative result of bidX for both in 2012.
The financial fixed assets are valued at nil at the end of 2013 because bidX’s
equity position on 31 December was negative.
In 2013, the decision was taken to sell the bidX shares. The negotiations on this
subject started in 2013. Formally the sales took place on 23 January 2014.
Tangible fixed assets Buildings Inventory Computers Total
Purchase value 1 January 2013 12.793 29.358 81.714 123.865
Cumulative depreciation 1 January 2013 12.793 17.629 66.144 96.566
Book value 1 January 2013 0 11.729 15.570 27.299
Mutations 2013
Depreciation 2013 0 3.622 5.225 8.847
0 3.622 5.225 8.847
Purchase value 31 December 2013 12.793 29.358 81.714 123.865
Cumulative depreciation 31 December 2013 12.793 21.251 71.369 105.413
Book value 31 December 2013 0 8.107 10.345 18.452
Financial Assets 2013 2012
Balance at 1 January 0 0
Acquisition 0 882.000
Devaluation 0 (882.000)
Balance at 31 December 0 0
Annual report BiD Network Foundation 2013 - 54
Loan granted (group company)
The loan granted to the group company consists of two loans granted to bidX,
and the interest income for the year of 5.6%. The loans are subordinated and
convertible. Thus in time, under the condition that the Supervisory Boards of
both shareholders explicitly supply their written approval, the loans can be
transferred into equity capital.
The loans granted by BiD Network to bidX ere for the purpose of the projects
“BiDx10” and “IFC”. At the end of 2013 it was decided to convert the loans into
grants. The financing of these loans was also received by BiD Network as grants
from the funders of these two projects.
Loan Granted (group company) 2013 2012
Balance 1 January 505.000 0
Loan granted regarding project "BiDx10" 214.505 500.000
Loan granted regarding project "IFC" 891.168 0
Interest receivable 0 5.000
Conversion into grant "BiDx10" (719.505) 0
Conversion into grant "IFC" (891.168) 0
Balance 31 December 0 505.000
Annual report BiD Network Foundation 2013 - 55
Current Assets
The cash and bank balance are freely available.
Reserves and funds
The company had a temporary negative equity position per 31 December 2013,
due to the restructuring of BiD Network and the expected expenses of the
project BiDx10 which income was accounted for in 2011. The liquidity forecast
for 2014 confirms that no liquidity problems are foreseen in 2014, despite the
negative equity position on 31 December 2013. This is mainly because
CURRENT ASSETS 31-12-2013 31-12-2012
UN Foundation 19.487 0
bidX 19.015 0
SPARK, MFSII 5.795 0
SPARK, other 0 7.500
Nationale Nederlanden, pension contribution 5.049 5.630
ASN bank, interest 4.100 28.353
Aureus 3.000 0
IRIS 400 0
ING, interest 222 0
NCDO 0 7.000
Sampoerna 0 18.849
Other 1.903 4.242
Receivables 58.971 71.574
Birzeit University Center of Excellence 0 14.925
BBIN 0 16.464
BSCK 0 3.914
BC Zvecan 0 3.142
BSC Monrovia 0 2.448
JCI Rwanda 0 5.286
SEED 0 6.293
IRIS 0 6.250
Other 2.460 0
Prepayments 2.460 58.722
VAT receivable 0 83.636
Cash BiD Network - EUR 159 8.385
Cash BiD Network - USD 383 0
Cash BiD Network - RWF 0 192
Bank ING Main account EUR 62.562 127.926
Bank ING Main account USD 13.371 0
Bank ING Latin America account 0 1.964
Bank ING Bank savings account 18.783 18.722
Bank ING Africa account 0 42.097
Bank ASN savings account 3.509 382.569
Bank MoneYou savings account 2.566 0
Paypal EUR 2.908 2.908
Cash and bank balances 104.241 584.763
TOTAL 165.672 798.695
Reserves and funds 31-12-2013 31-12-2012
General reserve (351.928) 209.413
Allocated funds - 714.505
Balance 31 December (351.928) 923.918
Annual report BiD Network Foundation 2013 - 56
contractual payments for various projects are received in advance. BiD Network
can meet all grant obligations.
The allocated fund BiDx10 is formed from the grant of the Dutch Postcode
Lottery regarding the project BiDx10. In 2013, the received grant was spent in
total.
For the bidX allocated funds, the devaluation of the foundation’s shareholding in
this company was settled in 2012.
The Banks & Angels project has been put on hold in 2012, and therefore the
remaining funds have been re-allocated to the allocated funds for the project
BiDx10.
General Reserve 2013 2012
Balance 1 January 209.413 253.468
Appropriation of operational result (561.341) (44.055)
Balance 31 December (351.928) 209.413
Allocated fund, bidX 2013 2012
Balance 1 January 714.505 1.261.505
Appropriation of operational result (714.505) (882.000)
Re-allocation of funds 0 335.000
Balance 31 December 0 714.505
Allocated fund, Bank & Angels 2013 2012
Balance 1 January 0 440.000
Re-allocation of funds 0 (335.000)
Appropriation of operational result 0 (105.000)
Balance 31 December 0 0
Annual report BiD Network Foundation 2013 - 57
Short term liabilities
Off-balance obligations
Rental contract
BiD Network has an off-balance obligation towards the landlord, Metroprop bv,
for the rent of the office at the De Ruyterkade 107. The rental contract will end
in March 2016. The total rental obligation until this date is EUR 48,000 per year,
plus annual indexation.
For the rental contract a deposit is kept at the ING Bank for an amount of EUR
18,000.
SHORT TERM LIABILITIES 31-12-2013 31-12-2012
bidX 0 21.567
Other 87.029 51.809
Creditors 87.029 73.376
VAT 124.766 0
Payrol taxes 16.392 28.817
Taxes and social security 141.158 28.817
BSCK 7.500 5.250
Invertir 7.498 2.000
IRIS 6.250 3.750
Business Women Forum Palestine 4.639 0
Birzeit University Center of Excellence 1.808 500
Fundes Argentina 0 1.000
Uni di Tella 0 2.750
BBIN 0 500
Creame 0 5.000
ConQuito 0 1.500
BSC Monrovia 0 1.750
Fundación E 0 2.500
JCI Rwanda 0 2.750
SEED 0 1.500
Commitment to international partners 27.695 30.750
IFAD 111.463 0
ING 37.473 25.000
Cherie Blair Foundation 8.281 0
SPARK, MFSII 0 176.805
Early receipts 157.217 201.805
Redundancy payment 60.000 0
Reservations of holiday 43.033 64.857
Dubois, auditor 19.920 0
Fundación Capital 0 7.471
Other short term liabilities 122.953 72.328
TOTAL 536.052 407.076
Annual report BiD Network Foundation 2013 - 58
NOTES TO THE STATEMENT OF INCOME & EXPENDITURE
(All amounts are in Euros)
Notes on income
Income own fundraising
BiD Network’s own fundraising increased from EUR 0.2 million in 2012 to EUR
1.1 million in 2013. The increase is mainly caused by a grant received from the
IFC coalition. Compared to the budgeted own fundraising, realized own
fundraising was EUR 0.6 million higher. The 2013 budget did not include the IFC
coalition grant.
Income from efforts third parties
The income received in 2013 by efforts of thirds amounts to EUR 539,000. This
is more or less the same as last year and as the amount budgeted for 2013. The
Dutch Postcode Lottery decided in 2011 to grant BiD Network an annual amount
of EUR 500,000 for a period of five year. The 2013 grant was received as
agreed.
INCOME OVERVIEW
Company Project Real 2013 Budget 2013 Real 2012
ING Women in Business 28.028 22.500
EY Contribution 20.000 105.500
Cherie Blair Foundation Contribution 750 0
IFC G20 891.168 0
Other Events, Challenges, Consultancy 8.294 70.951
Activa bv Consultancy 0 1.255
MVO Nederland Events 0 14.000
SPARK Events 0 3.000
United Nations Foundation Global Alliance for Clean Cookstoves 36.561 0
IFAD Somali FoodPreneurs 62.005 0
Bernard van Leer Foundation Business Benefiting Children Challenge 0 10.000
Other Ready4Finance licenses 20.978 0
Income own fundraising 1.067.785 510.522 227.206
Dutch Postcode Lottery Annual contribution 500.000 500.000
ICCO Women in Business 29.500 17.500
Happy Gift Women in Business 10.000 0
Income from efforts third parties 539.500 539.500 517.500
Dutch Ministery of Foreign Affairs MFSII - United Entrepreneurship Coalition 1.078.638 1.056.188 1.296.816
Government subsidies 1.078.638 1.056.188 1.296.816
bidX Charged out staff costs 128.563 120.466 145.234
Other income 128.563 120.466 145.234
Bank interest Interest income 6.878 37.872
bidX Interest on granted loans 0 5.000
SPARK Attributable to MFSII -10.927 0
Interest income -4.049 25.000 42.872
TOTAL 2.810.436 2.251.676 2.229.628
Annual report BiD Network Foundation 2013 - 59
Government subsidies
The income from government subsidies compared to last year decreased by
16.8% from EUR 1.3 million to EUR 1.1 million. The realization is equal to the
budget. The year 2013 was the third year of the MFSII program funded by The
Dutch Ministry of Foreign Affairs.
Intercompany income
As for services (Finance & Operations and Advisory Services) rendered by BiD
Network to bidX, an amount of EUR 128,563 was generated as other income.
Fundraising
The costs of fundraising versus total expenditure were approximately 1% in
2013 (2% in 2012).
Annual report BiD Network Foundation 2013 - 60
Notes on Expenses
The figures in the column “Real 2013” match the figures in the tables below. This cost overview indicates how expenses are
spread across the three main expense categories on the Statement of Income & Expenditure: Objective, Fundraising and
Management & administration. Staff costs are allocated to the Management & administration category for approximately 7%,
a percentage representing the not objective related staff costs. The costs for Office, rent, utilities; Audit and external
consultancies; Deprecation and Financial costs have been allocated to Management & administration on the basis of the
number of employees proceeding Management & administration activities, versus the total number of employees of the
foundation. This results in a total percentage of 7% of Management & administration costs, in relation to the total costs.
EXPENDITURE Objective
Management &
administration Real Budget Real
2013 2013 2012
Stimulating
enterpreneurship
in developing
countries
Costs obtaining
own income
Costs obtaining
income by
efforts of third
parties
Costs obtaining
government
subsidies
Costs obtaining
other income
Grants and contributions 1.919.142 0 0 0 0 0 1.919.142 331.000 331.687
Outsourced work 216.540 2.394 38 0 0 18.577 237.549 173.280 260.946
Promotion and marketing 9.646 1.281 0 0 0 0 10.927 86.000 79.806
Staff costs 761.318 18.432 289 0 0 180.130 960.169 1.054.180 939.254
Travel costs 64.264 10.503 0 0 0 601 75.367 148.500 251.632
Office, rent and utilities 94.331 2.146 32 0 0 15.800 112.309 124.300 109.507
Audit and external consultancies 449.840 4.923 78 0 0 38.201 493.043 80.600 360.215
Depreciation and financial costs 6.267 163 0 0 0 1.243 7.673 10.000 9.221
ICT 17.678 459 0 0 0 3.506 21.644 57.500 36.416
Special expenses 233.551 0 0 0 0 14.908 248.459 0 0
TOTAL COSTS 3.772.577 40.302 437 0 0 272.966 4.086.283 2.065.360 2.378.684
Fundraising costs
Expenses related to the objective of BiD Network
BiD Network allocates all expenses related to its objective to one
objective, which is ‘stimulating entrepreneurship in developing
countries’.
In 2013, EUR 3.8 million was directly spent on the organization’s
objective. This is 134% of the total income. In the previous year, 97%
of the total income was directly spent on BiD Network’s objective.
Grant and contributions
The amount for grants and contributions is much higher than
budgeted. The project funded by IFC was not included in the budget of
2013. The project is largely carried out by bidX. The project costs for
2013 amounted to EUR 891,168.
BiD Network has received a grant from the Dutch Postcode Lottery in
2011 for the project BiDx10. Funds still to be spent on 31 December
2011 and 31 December 2012 have been allocated to a destination
fund. In 2012 and 2013 BiD Network has provided a total loan of EUR
719,505 to bidX to finance the activities arising from the project
BiDx10. This loan has been converted into a grant at the end of 2013.
Outsourced work
Charged fees of the foundation's former daughter company were
actually higher than forecasted, because more managerial activities
were executed by bidX, on behalf of BiD Network, than foreseen. This
was caused by changes in the management structure of both entities
during the second half year of 2013.
Grants and contributions Real 2013 Budget 2013 Real 2012
National partners 1.610.673 0
International partners 215.259 189.824
Event costs 93.210 141.863
TOTAL 1.919.142 331.000 331.687
Outsourced Work Real 2013 Budget 2013 Real 2012
bidX 237.549 260.946
TOTAL 237.549 173.280 260.946
Annual report BiD Network Foundation 2013 - 62
Promotion and marketing
Promotion and marketing expenses are less than budgeted, because of
postponed execution of promotional activities on an organizational
level.
Staff costs
Personnel Expenses
At the beginning of 2013 BiD Network had 20 staff members,
measured as full time equivalents (FTE), at the end of the year there
were 11 staff members.
Remuneration Board of Directors
Promotion and marketing Real 2013 Budget 2013 Real 2012
Representation (lunches, presents, etc.) 5.967 5.238
Translations 1.634 22.585
Printing services 1.035 6.596
Conferences (speaking, fundraising, PR) 915 2.950
Design, desktop publishing and editing 330 487
PR and press bureau 0 20.483
Marketing (software, ads, subscriptions) 0 8.781
Other PR and marketing services 1.046 12.686
TOTAL 10.927 86.000 79.806
Staff costs Real 2013 Budget 2013 Real 2012
Salaries 782.396 766.873
Social security 107.127 111.459
Pension 33.566 27.770
Other employee costs 36.564 31.189
Recruitment costs 516 1.962
TOTAL 960.169 1.054.182 939.254
Annual report BiD Network Foundation 2013 - 63
Following BiD Network’s stringent low-cost policy, remuneration of the
members of the Board of Directors is set below the guidelines of the
Dutch Fundraising Institutions Association (VFI) for management
salaries of charitable organizations (see www.vfi.nl). No loans,
advances or guarantees were given to the members of the Board of
Directors.
Cily Keizer has been incapacitated during 2013. As a result, in 2013
more costs were made on a Board of Directors’ level. Hendrik van Gent
was hired as interim director.
The Supervisory Board Allowance comprises of the attendance fees
that board members are entitled to receive to cover their costs, once
they have attended the board meetings. The fee is EUR 200 per
member per meeting. This allowance is acceptable according to the
Centraal Bureau Fondsenwerving (CBF), the Dutch Charities
Certification Organization.
Travel expenses
Remuneration Board of Directors Thierry Sanders Cily Keizer Hendrik van Gent
Employment contract
Duration Indefinite Indefinite Fixed
Hours per week 20 40 16
FTE % 50% 100% 40%
Period director 1/1-31/12 1/1-31/12 1/1-31/12
Remuneration
Gross salary 45.285 85.370 33.493
Holiday allowance 3.623 6.830 2.675
End of year allowance 0 0 0
Variable salary and bonus 0 0 0
Total annual salary 2013 48.908 92.200 36.169
Social security charges (covered by employer) 4.684 8.838 4.419
Additional taxable compensations 0 0 0
Pension premium (covered by employer) 2.853 4.296 1.826
End of service benefits 0 55.000 0
Total salary and employer charges 2013 56.444 160.334 42.413
Total salary and employer charges 2012 31.154 103.016 0
Travel expenses Real 2013 Budget 2013 Real 2012
International travel, accommodation, daily
allowance and visa participants in BiD weeks 58.046 122.679
International travel, accommodation, daily
allowance and visa staff members 13.017 125.120
Travel in The Netherlands 4.304 3.833
TOTAL 75.367 148.500 251.632
Annual report BiD Network Foundation 2013 - 64
Travel costs were lower than forecasted, because of less executed
business travels during the year. For MFSII this was caused by having
the employee and consultant for the African Region stationed in
Rwanda. More in general, because of the restructuring of the
organization, activities have been more focused on reorganizing than
on core business activities.
Office, rent, utilities
Office expenses were more or less in line with the budget and prior
year expenses.
Audit and consultancy costs
The significant rise in consultancy costs was due to the hiring of
external consultants to assist in the restructuring of the organization,
the integration of BiD Network and bidX, and to invest in matchmaking
capacities.
Depreciation and financial costs
Office, rent, utilities Real 2013 Budget 2013 Real 2012
Rent 62.168 54.835
External office costs (Rwanda, Colombia) 14.473 2.345
Subscriptions (print, membership, etc.) 13.950 23.128
Cleaning costs 7.635 5.161
Telecom and internet 5.640 0
Office supplies 2.980 9.307
Office taxes 2.630 1.875
Installation and service costs 1.794 7.126
Mailing and shipping costs 283 402
Insurance 0 3.027
Literature (books, manuals) 0 171
Other office costs 756 -663
TOTAL 112.309 124.300 106.715
Audit and consultancy costs Real 2013 Budget 2013 Real 2012
Advice and consultancy fees NL 279.898 144.950
Advice and consultancy fees outside EU 146.912 114.368
External audit (Dubois, audit only) 37.074 31.195
Legal advice 21.959 305
Supervisory Board allowance 7.200 3.600
Advice and consultancy fees inside EU 0 65.796
TOTAL 493.043 80.600 360.215
Depreciation and financial costs Real 2013 Budget 2013 Real 2012
Depreciation inventory 2.161 3.115
Depreciation computers, software and telecom equipment 3.050 6.106
Financial costs 2.462 0
TOTAL 7.673 10.000 9.221
Annual report BiD Network Foundation 2013 - 65
Depreciation costs show a decrease because of a 100% write-off of
part of the inventory and computers. An amount of EUR 3,636 is
charged to bidX.
ICT costs
Hosting and other costs were reduced in the course of 2013, through
better selection of service providers.
Special expenses
In 2010, the Dutch Tax and Customs Administration ruled that BiD
Network is VAT liable for its activities. From then on VAT was
administered for all expenses and deducted, and VAT was calculated
on the income components which are subject to VAT. During 2013, the
Dutch Tax and Customs Administration declared that the Foundation is
not subject to VAT. At the end of 2013 the Netherlands Tax Authority
decided that 21% of the VAT is deductible.
ICT Real 2013 Budget 2013 Real 2012
Hosting 10.694 18.909
Software 9.628 11.956
Other 1.322 5.551
TOTAL 21.644 57.500 36.416
Special expenses Real 2013 Budget 2013 Real 2012
VAT adjustment 2010 -3.855 0
VAT adjustment 2011 90.604 0
VAT adjustment 2012 75.088 0
VAT adjustment 2013 86.622 0
TOTAL 248.459 0 0
Annual report BiD Network Foundation 2013 - 66
INDEPENDENT AUDITOR’S REPORT
Annual report BiD Network Foundation 2013 - 67
Annual report BiD Network Foundation 2013 - 68
ACCOUNTABILITY STATEMENT OF THE SUPERVISORY BOARD
The board is fully aware that an NGO has to follow the rules as
specified by several authorities on various topics such as accounting
standards (RJ 650 of the Dutch Accounting Standards Board) and
governance. Standards issued by the Central Bureau for Fundraising
(CBF) are of particular importance. We subscribe to these rules and
strive to be a role model in how a reliable NGO should function in
today’s society. BiD Network’s Supervisory Board supports the
guidelines described in the Code Wijffels and emphasizes the
importance of clarity and transparency in management, supervision
and accountability.
External
The organization’s functioning, internal administration and accounts
are audited annually by an external accountant. The accountant
performs no non-auditing tasks for BiD Network. The findings of the
annual audit are discussed in the audit committee of the Supervisory
Board, together with the head of finance and the board of directors.
With the annual accounts for 2013, BiD Network received a qualified
audit opinion of Dubois & Co. This declaration is included in this annual
report of BiD Network.
Internal
The Board of Directors provides quarterly reporting about activities and
results to the Supervisory Board. Accountability, authorization and
tasks of the Supervisory Board and the Board of Directors are defined
in by-laws. The Board of Directors is responsible for the day to day
operations of the organization and represents the organization to
external parties. The Board of Directors develops plans and budgets
and is responsible for the execution of approved strategies and
policies. The Supervisory Board supervises the functioning of the Board
of Directors and is involved in developing the long term vision and
strategy of the organization. Progress of the organization versus plan
and strategy is discussed in the quarterly Supervisory Board meetings.