Nordic-European Public Investor Initiative WorkshopJohan Bjørkevoll

Fund Management

A governmental toolboxA governmental toolbox

• Worked with over 9000 cases in 2010• Worked with over 9000 cases in 2010• 650 employees in over 30 countries• € 680 mill. awarded in various grants, loans, guarantees and g , , g

equity schemes• 2 of 3 € go to innovative projects• Owned by the Ministry of Trade and Industry 51 %• 19 county municipalities of Norway 49 %

8

Our servicesOur services

Promotional

Financing servicesPromotional

servicesservices

Competenceservices Advisory 

Networking services

services

3

An international organizationAn international organization

OFFICES IN REPRESENTATION IN MORE EVERY COUNTY THAN 30 COUNTRIES

Contributes to higher value creationContributes to higher value creation” Without Innovation Norway's measures, there is reason to

believe that Norwegian value creation would have been lower"believe that Norwegian value creation would have been lower.

• Correct structure and good organization• Innovation degree must be even higherg g• Has to make the adviser role more clear for

owners and principals

5

Helps businesses growHelps businesses grow150

130

140

110

120

90

100

2003 2004 2005 2006 2007 2008

Verdiskaping i alle IN‐foretak fratrukket foretak som mottar BU‐midlerVerdiskaping  (Fastlands‐Norge)Sysselsetting i alle IN‐foretak fratrukket foretak som mottar BU‐midlerSysselsetting (Fastlands‐Norge)

6

Seed capital fundsSeed capital funds• 15 private funds, € 13 – 45 mill• Governmental capital 50 % – 70 %• Governmental capital 50 % – 70 %

• Subordinated loans with a loss fund• Horizon up to 15 yearsp y• Strictly commercial, board decisions• Over 250 investments

Seed capital fundsSeed capital fundsPrivate capital Public funding

Co-investors

Seed capital fund

Lessons learnedLessons learnedRelay race or Food chain?

Lessons learnedLessons learnedWassum evaluation (NHD), 2003

• Good supply of private capital• Transfer of skills - satisfactory• Transfer of skills - satisfactory• Unattractive model for risk reduction• Costly administrative form - small fundsy

Lessons learnedLessons learnedMenon evaluation (NHD), 2009

Seed Funds established in 1998• Comprehensive analysis of 175 portfolio companies• Comprehensive analysis of 175 portfolio companies• Poor results

Seed Funds established in 2006• Positive response from investors• Positive response from entrepreneurial companies• Revealed clear need for a nationwide seed capital funds• Recommend new funds with state participation

Topic for discussions:Topic for discussions:Governmental support• What is the difference between governmental support and

governmental commercial investments?• What is the preferred way to allocate governmental • What is the preferred way to allocate governmental

support?• Risk reduction for the investors• Tax incentives• Asymmetrical returns

• Will this always result in second class funds and second class investments?

Invention & Value creation quizInvention & Value creation quiz

What is one of the greatest invention of all time?

Many would say the wheel Many would say the wheel.

Invention & Value creation quizInvention & Value creation quiz

Smart idea, but a wheel has not created much value. has not created much value.

Invention & Value creation quizInvention & Value creation quiz

The person who invented the second wheel made much more impact.