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Lahti Science and Business Park Ltd The leading Cleantech Park in the Nordic countries Lauri Ylöstalo CEO | Lahti Science and Business Park Ltd November
Lahti Science and Business Park Ltd The leading Cleantech Park
in the Nordic countries Lauri Ylstalo CEO | Lahti Science and
Business Park Ltd November 29, 2010
Slide 2
The leading Cleantech Park in Northern Europe. Coordinator of
the Finnish Cleantech Cluster with over 500 member companies. The
coordinator of the IASP Enviroparks network. 100 % subsidiary
renewable energy centre Energon (TRI Energy Oy). Turnover 2010 7.6
M. Budget 2011 8.8 M. Project portfolio over 30 M. Number of
personnel appr. 50. CEO Lauri Ylstalo. Member or Partner of TEKEL
(Finnish Science Park Association) IASP (International Association
of Science Parks) EBN (European Business and Innovation Centre
Network) EEN (Enterprise Europe Network) Greenovate! Europe,
Cleantech Scandinavia, Global Cleantech Cluster Association Lahti
Science and Business Park Ltd We are developing the Lahti region
into a world-class centre for environmental business and
research.
Slide 3
Development services for growth-companies Business Incubator
and ICT services Business development & internationalization
services for Cleantech companies Internationalization programmes:
China, Russia, India. Investor & financer contacting: Cleantech
Venture Day. Invest-in activities & soft-landing services Lahti
Cleantech Park facilities & services. Cleantech infrastructure
- R&D labs, pilots, test-beds: Energon Renewable Energy
Research Centre Pilot-scale Soil Research Centre Lahti Science and
Business Parks Services We are developing the Lahti region into a
world-class centre for environmental business and research.
Slide 4
Finnish Cleantech Cluster Regions Kuopio, Oulu, Uusimaa, Lahti.
Led by Lahti Science and Business Park Ltd. Mandated by Ministry of
Employment and Economy (2007-2013). Target in increasing Cleantech
know-how and business in Finland and in internationalizing the
Finnish SMEs. 260 member companies of which the most are
significant universities and research institutions. 60 % Cleantech
business and 80 % of research in Finland. Ongoing
internationalization programmes: China, Russia and India. Finnish
Cleantech Cluster was ranked the 3rd best Cleantech Cluster in
global benchmark 2010 by Sustainable World Capital, USA.
Slide 5
THE EXPERIENCE OF BUSINESS INTERMEDIARIES IN FINANCING
ECO-INNOVATION Lauri Ylstalo CEO Lahti Science and Business Park
Ltd November 29, 2010
Slide 6
THE EXPERIENCE OF BUSINESS INTERMEDIARIES IN FINANCING
ECO-INNOVATION What are the recurring challenges that organisations
facilitating access to finance for SMEs observe? What initiatives
could help improve the match of demand with the offer? Is it
networking information sharing investment readiness OR something
else? Lauri Ylstalo CEO Lahti Science and Business Park Ltd
November 29, 2010
Slide 7
IT Global standardization has made it possible for start-ups to
play and win. Cleantech Highly dependent on local climate, needs,
culture, vegetation, history etc... Drives different technological
solutions deeply into the solution design. Requires still a lot of
technical and localized knowledge from the financiers.
Understanding the difference via comparison of IT and
Cleantech
Slide 8
Couple of years ago Technology & science-oriented green
people with less attention to business plans. Now More and more
entrepreneurs with good business instinct entering the cleantech
arena. Purely Cleantech focused investors have paved the way
generic funds have followed. Success stories and second-wave of
serial entrepreneurs improve the dealflow. Exits exist Venture
Capital market exists. However, still very young industry but
becoming mainstream. Venture Capital and Cleantech
Slide 9
Unpredictability and discontinuity of legislation still a major
risk Many of the eco-innovations lean on subsidy schemes ->
public & private risk sharing is needed. Gap between public
R&D funding and private VC funding -> public & private
risk sharing is needed. Financing CAPEX intensive demonstration
projects is a major bottle neck has become even worse problem with
financial crisis as risk capital moved way from the technology risk
(from early-stage companies to expansion) -> Pro-active domestic
marker is needed. Challenges
Slide 10
Energon Renewable energy research centre for companies to
demonstrate their technology prior to commercialization. Bio-oils
and biogas, solar, heat pumps, monitoring of emissions. 45 % of the
financing from European Union. Lahtis example to tackle the demo
bottle neck
Slide 11
VIGO Programme Bridges the gap between early-stage technology
companies and international venture funding with matching the
government-backed funding with VC funds. Start-ups selected by a
VIGO Accelerator gain streamlined access to a 1 M TEKES grant
(TEKES = Finnish Funding Agency for Technology and Innovation).
Private investment of ~300k required to receive the grant. VIGO
Accelerator receives up to 10 % sweat equity in the venture and
management. New innovative financing tool with public & private
risk sharing Finnish Cleantech Cluster was ranked the 3rd best
Cleantech Cluster in global benchmark 2010 by Sustainable World
Capital, USA.
Slide 12
In 2005 less than a handful of fundable projects now we are
able to select the best from competitive deal-flow. In 2010 total
of 250 participants: 60 investors, 80 cleantech companies from all
over the world. 70 % of the presenting companies have gained access
to VC funds. Coaching of entrepreneurs and their business plans has
become an important part of the Cleantech Venture Day. Cleantech
awareness of the VC community has greatly been improved. Cleantech
Venture Day in Lahti since 2005
Slide 13
VC money getting gradually back to early stage companies after
financial crises. Chinese and Indian money seeking investment
targets in cleantech. Emerging markets are also very often part of
the expansion strategies of cleantech companies. Mainstreaming
cleantech: large corporations getting involved. Emerging
trends
Slide 14
Case China
Slide 15
FECCs General Approach POLICY LEVEL GoVT LEVEL MOUs and OTHER
PROCESSES PROCESSES in FINLAND & EUROPE SUPPORTING ACTIVITIES
FECC & PARTNERS (Opening doors; Support thru the whole business
process) OTHERS (e.g. FINANCIERS) + NETWORKING + SISTER CITIES
MARKET SURVEYS; PROJECT DEVELOPMENT; LEADS THRU NETWORKS CLIENT
COMPANY INTERFACE CONTRACTS & AGREEMENTS CLUSTERS SMEs
Slide 16
SINO Finnish Cleantech MoUs 1997 (1987) MoWR (China) / MoAF
(Finland): Science and Technology within Water Resources Sector
2002 (1996) MoEP (China) and MoE (Finland): Environment 2007 NDRC
(China) and MEE (Finland): Cleantech 2009 Mofcom (China) and MEE (2
MoUs): Ecological Zones & HighTech : , 2009 Mountain-River-Lake
Development Committee of Jiangxi Province (MRLDO) and FECC:
Cleantech FECC
Slide 17
Major Achievements 1 st operational year the budget was
10-folded (contracts for companies). 2 nd operational year budget
was more than 100-folded. In the May 2010 Cleantech seminar in
Beijing FECCs partner companies signed agreements worth over 1,5
billion Euro! Cooperation with NDRC (MoU) in good progress. Market
Studies (Solid Waste, Waste Water, Western China, Air Pollution,
Bioenergy, Biogas N-E China).
Slide 18
AGREEMENTS Cooperation agreements: Juno Capital Group; STTE ;
MRLD. More than 20 Added value services-agreements with companies.
PROJECTS over 20 projects in different development stage:
Bioenergy, Sediment sludge, Ecocities, Bioethanol, Waste water.
Energy Efficiency market survey (buildings, housing) with FinPro.
Ongoing Activities
Slide 19
Case India
Slide 20
YESBank is a leading Indian new-age private sector bank having
a strong focus on sustainability and clean technology and providing
advisory services for Finnish clean technology companies in the
Indian markets. LahtiSBP & YESBank offer joint advisory
services to Finnish and other Nordic companies pertaining to entry
into Indian markets, joint venture formation, strategic
acquisition, strategic sale to Indian companies and fund raising
for India operations. LahtiSBP & YES Bank cooperation since
2009 Finnish Cleantech Cluster was ranked the 3rd best Cleantech
Cluster in global benchmark 2010 by Sustainable World Capital,
USA.
Slide 21
Climate Change Big Challenges Great Opportunities Lauri Ylstalo
| CEO | Lahti Science and Business Park Ltd
Slide 22
To bridge the gap between R&D and expansion stages
Benchmarking and exchange of best practices in public & private
risk sharing. Development of innovative public & private
financial tools (e.g. Singapore and Israel). Learnings from ICT
sector financing To localize the knowledge and better penetrate
into the emerging markets Stimulate the establishment of cleantech
focused business and financial hubs in target markets. Cooperation
with incubators, science and technology parks and VC capital in
target markets. Suggestions for further work
Slide 23
Lahti Science and Business Park Ltd The leading Cleantech Park
in the Nordic countries Lauri Ylstalo CEO | Lahti Science and
Business Park Ltd [email protected] +358 400 708 719