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October 18, 2011| Strictly private and confidential
BE-Basic
October 18, 2011
Rabobank – Early stage Venture Capital
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About us: Dutch Greentech Fund A partnership of Rabobank, Wageningen Universiteit, University of Technology Delft en WWF to finance promising innovative ventures
* Bron: WNF-rapport Clean Economy, Living Planet: building the Dutch clean energy technology industry.
“Werken aan een veilige en duurzame voedselvoorziening en bijdragen aan schone
productiemethoden zijn speerpunten in ons beleid. Het Dutch Greentech Fund past
naadloos in ons idee om samen met partners te werken aan een duurzame toekomst.“
“Schone technologie is hét antwoord op klimaatverandering. Bovendien groeit de sector in alle landen om
ons heen. Alleen in Nederland zijn de investeringen in schone technologie gedaald*. Om duurzame,
innovatieve ondernemers in eigen land te houden, moeten ze kunnen rekenen op investeerders met
toekomstvisie. Die vinden ze in het Dutch Greentech Fund.”
“We zien het Dutch Greentech Fund als een zeer belangrijke mogelijkheid
om startende ondernemers in ons domein te helpen hun „droom‟ waar te
maken. Via het Dutch Greentech Fund willen we bijdragen aan
daadwerkelijke innovatie en succesvolle business.”
“Gebrek aan risico kapitaal is een belangrijke reden voor het achterblijven van het aantal snel groeiende
“Clean Tech” ondernemingen in Nederland. Juist deze ondernemingen kunnen de komende periode
bijdragen aan een sterke economische en werkgelegenheidsgroei. Het Dutch Greentech Fund is dus van
belang voor de toekomst van Nederland.”
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Agenda
1. About Venture Capital
2. Two examples of Investment cases
3. BE-Basic
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Venture capital is often aimed at innovative driven companies in the early stage of the lifecycle
Finance
opportunities
Low
High
Innovation abilities Low High
Equity
R&D Prototype
First
customer
Market
entry
Expansion
Saturation
Turn
around
Awards
(Pre-)seed
leningen
Risk
profile
Low
High
Growth
Source: team analysis
Early stage venture capital
Subsidies
Private Equity (growth capital,
buyouts, turnarounds)
Later stage
venture capital
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The European venture capital industry faced volatile historic returns in the last 2 decades
European Venture Capital
3-, 5-, 10-Year rolling IRRs
* Average 5-Year IRR calculated as: average of 5-year rolling IRR’s over period from 1991-2007 Source: Thomson Financial on behalf of EVCA
+ 7,4% Average 5-year IRR*
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Research shows that only 20% of a VC portfolio will generate
80% of the revenues, the other 80% will not be able to capture
the growth/value potential
Return on investments over total fund lifetime
return
If a fund builds a portfolio of 20 companies, the most likely outcome is that 3-5 companies make 80% of the total proceeds of the fund (investments + targeted return). This means that every investment needs to have a potential of a return of a multiple of 5+ on the invested amount.
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This uncertainty of returns created the „equity gap‟
€
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In order to bridge this gap the Dutch government has been supporting a number of seed funds in the past years
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Source: Technopartner.nl
Technopartner Seed funds
Rabobank is shareholder
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To select the most promising ventures investors look at innovative companies from different angles
Business
plan
Investment
case
Market &
business
potential
• Technology/Product/IP • Track record team • Focus of the team • Business case & financials • Market & competitors
• Clear value proposition / user case
• Financing need coming years • IP position • Team complete • Launching customer potential – need to have
• Unique proposition • Defendable IP • Strong shareholders base • Ability to finance growth • Investment conditions • Exit potential • Experienced management
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Most funds share a number of common investment criteria where you can prepare yourself for
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• Track record?
• Enough self reflection? Focus (do the right things)
• Ambition to be a leader
• User cases (drivers, need to have), value proposition (costs, regulation)
• Competitive edge, distribution power, home market potential
• Potential market leadership (niche, no.1 of 2 position)?
• Clear exit potential within 5 years?
• Solid shareholders base for growth financing in coming 4-5 years?
• IP protection covered or defendable?
• Company open for a VC as shareholder and related minority protection rights? (drag- and tag along, anti-dilution, preference shares, lock-up)
• Life cycle analysis / footprint?
• Positive impact on CO2 reduction potential for future clients?
Management
Market/customer
Investment case
Upcoming:
Sustainability
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Additionally most venture capital funds have a specific investment focus like the funds managed by Rabobank
• Dutch companies
• Strong management team
• Defendable technology
• Companies ready to focus
• Can we add value in terms of capital, knowledge and market access?
• Funding based on clear milestones
• Sustainability impact?
• DGF: Cleantech and Food & Agri
• MIF: Mainport and aviation
• Solid and complementary shareholders base
• Equity investments by minority stakes
• Early stage venture capital up to
• DGF: €2.5m per company
• MIF: €1.5m per company
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Company related
Sector focus
Investment
profile
Investment criteria
DGF
Clean energy &
mobility Food &
environment
€0.25 m
€2,5 m
Cleantech solutions
Maximum
investment
Investment strategy
MIF*
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Agenda
1. About Venture Capital
2. Two examples of Investment cases
3. BE-Basic
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Agenda
1. About Venture Capital
2. Two examples of Investment cases
3. BE-Basic
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We are interested in BE-Basic program because we believe in partnerships to make innovation happen Together with partners we need to identify and develop Dutch ventures with high-end innovations with world leading potential
Knowledge
Network Capital
Access to different sources of
knowledge is crucial. With our
partners (WUR, Rabobank, WWF,
TU-D) we can help ventures to
find the right perspective. We are
interested in all kind of biobased
innovations and related
sustainability themes.
Access to risk capital is essential for innovative companies. Besides equity, DGF has also access to debt facilities from local banks and lease facilities for greentech solutions. We can also help ventures to create an optimal finance structure during the upscaling/growth phase.
Een strong international
network is crucial for
entrepreneurs. The network of
our partners can be helpfull to
create the right launching
platform for ventures.
BE-Basic is a great
facilitating platform to
accelerate innovation
by ventures and we are
happy to join!
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Contact details
Dutch Greentech Fund
Rabobank, Wageningen UR, TU
Delft and WNF
Office address
Amstelplein 6-8
1096 BC Amsterdam
Postal address
P.O. Box 94288
1090 GG Amsterdam
The Netherlands
Guus Verhees T. +31 88 7200100 M. +31 61 5008610 E. [email protected]
Wouter Verhoeven T. +31 88 7200100 M. +31 62 8453533 E. [email protected]
Janneke Bik T. +31 88 7200100 M. +31 65 1086090 E. [email protected]
