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COMPENDIUM OF

CO-INVESTMENT FOR

BUSINESS ANGELS AND

EARLY STAGE FUNDS

IN EUROPE

2009

Disclaimer

This compendium was prepared by EBAN and BDO, based on information provided by EBAN members

and other sources which we believe to be reliable, but we do not represent that they are accurate or

complete and they should not be relied upon as such. EBAN and BDO do not warrant or guarantee the

accuracy, completeness, timelessness or fitness for purpose of any information or material on this

compendium. Under no circumstances shall the EBAN or BDO can be liable for any loss, damage,

liability or expenses suffered in connection with reliance by any person on any such information or

material.

The information contained in this compendium is general and summarized and is not intended as

investment advice. The information contained herein may not be applicable to or suitable for the

individuals' specific circumstances or needs and may require consideration of other matters. EBAN and

BDO do not assume any obligation to inform any person of any changes that could affect the information

contained herein.

This publication does not seek to provide a comprehensive picture of all funds operating in Europe

alongside business angels, but rather to provide readers with an overview of the different funds of this

type existing in Europe.

Copyright

Unless otherwise stated, all material that is contained in this compendium shall not be reproduced, in

whole or in part, without the specific written permission of EBAN – the European Trade Association for

Business Angel, Seed Funds and other Early Stage Market Players. You are permitted to print or

download extracts from this matrial for your personal use only. None of this material may be used for

any commercial or public use.

COMPENDIUM OF CO-INVESTMENT FOR BUSINESS ANGELS AND EARLY STAGE FUNDS IN EUROPE

3

FOREWORD

EBAN is proud to present the results of the EBAN collaboration with BDO on co-investment

funds for business angels in Europe. EBAN, the European Trade Association for Business

Angels, Seed Funds, and other Early Stage Market Players and BDO, the 5th largest

accountancy network in the world, joined efforts to develop this unique publication. The

publication focuses on co-investment funds, includes an overview of the different types of

existing funds country by country, and a brief presentation of the main characteristics of some

selected funds in Europe.

Co-investment is a trend among early stage investors. As recent studies on the European

early stage markets show, the average size of the deal has gone up slightly in 2008 and

2009, with business angels looking to diversify their risk and co-invest with different types of

investors. The impact of co-investment mechanisms such as those in place in the UK are

measurable, with a quasi doubling of the amount invested in companies thanks to these

schemes1 which are public/private partnerships

The publication has been shaped by BDO, who produced the initial survey and coordinated

data analysis received from EBAN members and other sources of information. The results of

this research were presented for the first time at EBAN´s 8th Winter University on November

10th 2009 in Sweden.

EBAN would like to thank Pedro Aleixo Dias and Cristina Dias, Senior Partner and Senior

Manager at BDO in Lisbon, for their efforts in collecting and organizing all the information, as

well as Paulo Andrez and Francisco Banha from FNABA and the EBAN Board members for

having started the collaboration between EBAN and BDO. We would also like to thank all

EBAN members and colleagues that have proactively contributed to the publication, sharing

their valuable expertise and knowledge in this field.

Brigitte Baumann

President – the European Trade Association for Business Angels, Seed Funds, and other

Early Stage Market Players (EBAN)

1 EBAN Statistics Compendium 2009, www.eban.org


4

TABLE OF CONTENTS

EXECUTIVE SUMMARY 5

CO-INVESTMENT AND ANGELS INVESTMENTS FUNDS IN EUROP E 7

1. General overview 7

2. Description of the different organizations and t heir respective funds 9

2.1 Public Funds 9

Fonds de Participation, managing the Business Angel+ loan (BE) 9

2.2 Private Funds 10

Mountain Partners, managing Cleantech Invest (CH) 10 Alsace Business Angels (FR) 11 Grenoble Angels (FR) 12 Paris Business Angels, Paris Angels Capital and the collaboration with several angel funds (FR) 13 Sophia Business Angels (FR) 16

2.3 Partnership Public-Private (PPP Funds) 18

BAN Vlaanderen, managing the ARK-Angels Fund (BE) 18 BBAF Business Angels Fondsgesellschaft mbH, (DE) 19 Bayern Kapital (DE) 19 High-Tech Gründerfonds (DE) 21 KfW Bankengruppe, managing the kfw ERP Start Fund (DE) 22 Partnerkapital – Væksfonden (DK) 24 FINAVES (ES) 25 Veraventure (FI) 26 Ingenium (IT) 27 Lithuania JEREMIE Holding Fund (LT) 28 TechnoPartner, managing the Seed Facility (NL) 29 Business Angel Seedfund Sp. z o.o. (PL) 40 Business Angels Co-Investment Fund, managing SAFPRI (PT) 40 STING Capital, managing the STING Capital Fund (SE) 42 Early Growth Funds (UK) 43 Enterprise Capital Funds (UK) 44 Finance Wales, operating the JEREMIE Fund (UK) 45 Regional Venture Capital Funds (UK) 46 Scottish Co-investment fund (UK) 47

2.4 Others types of Funds 49

BrainsToVentures (b-to-v) AG (CH) 49 Crédit Agricole, managing the Crédit Agricole Private Equity Fund and Fonds France Investis.(FR) 50


5

EXECUTIVE SUMMARY

�� Goals and Contents

This compendium of the year 2009 is intended to assist business angels, entrepreneurs and

other readers interested in the early stage investment market, by providing information on

one of the most important incentives to stimulate and organise angel activity: angel

investment funds and co-investment funds.

The compendium integrates a mapping of 48 funds that illustrate the different types of

European funds co-investing alongside business angels, by describing the operational

approach and the key information on objectives of the fund, current investment strategy and

achievements to date.

A complementary compendium regarding fiscal incentives, another important incentive to

stimulate the activity of business angels and early stage investors has been published by

EBAN and BDO.

�� Methodology

The information has been provided by EBAN members and other sources of information that

have shared the experience and knowledge from their countries. BDO collected and

organized the information received.

�� Angel investment funds and co-investment funds

The compendium includes a description for each one of the 48 co-investment and angels

funds that have been selected, as well as a data-sheet with the key data characterizing the

funds in terms of general identification, size, type, investment strategy, achievements up to

now and contact details.

Concerning the funds typology, 34 are public-private-partnerships, 11 are private, 2 are

others (fund of funds, etc.) and 1 is a public fund. These funds operate mainly on a national

basis (65%) but with an important cross-border positioning (19%) that exceeds the regional

interest (16%).

The average size of co-investment funds and angels investment funds, that are included in

this compendium, is EUR 27.2 million, where about 74% have a budget to invest bellow EUR

10 million. In relation to investment on each deal, the average is about EUR 0.57 million and

44% of the funds invest less than EUR 0.4 million on each deal. This information confirms

that business angels are active in filling the “equity gap” from 50.000€ to 3 million€.

Less than half of the selected funds have a generalist sector strategy. Specific sectors that

have been referred include high-tech, biomedical, prevention of cancer, clean-tech, energy,

information and communication technologies, software, life-sciences, companies with

patented products, nanotechnology, innovative manufacturing industry, biotechnology,

pharmaceuticals and health.

�� Opportunities

It is commonly accepted that sustainable growth requires innovation. Business angels and

early stage investors have been supporting the innovation through the development of their

risk capital activities. At the moment, interesting public private or fully private partnerships


6

with angels are being developed, to help them to shar risks and improve investment

capacities..

This compendium is intended to make information available to business angels and

entrepreneurs, as well as to provide comparative information across different countries,

especially useful to policy-makers, by providing a mapping of one of the most important

incentives available to business angels today.


7

CO-INVESTMENT AND ANGELS INVESTMENTS FUNDS IN EUROP E

Definitions:

Co-investment funds: Investment mechanism that results from a public-private partnership

between the State/Government and business angels for investments in early stage start ups.

Angel investment funds: Capital which is pooled by one or several angel investors to invest

in one or more start up companies in exchange of a participation in the company taking an

advisory role without financial compensation.

1. General overview

13%

19%

4%

38%

13%

2%4% 6%

<= 1 M€ >1 <= 3M€

>3 <= 6M€

>6 <= 10M€

>10 <= 30M€

>30 <= 60M€

>60 <=100 M€

>100 M€

Size of the Funds


8

The average size of co-investment funds and angel investment funds, that are included in this

compendium, is EUR 27.2 million. However about 74% of the funds have a budget bellow

EUR 10 million.

In relation to the investment in each deal, the average is about EUR 0.57 million and about

44% of the funds invest less than EUR 0.4 million in each deal.

Concerning the type of the funds, 23% are private and 71% are public-private funds. In

relation of the strategy of investment, 65% are national funds, 16% are regional funds and

19% make investment across Europe.

19%

27%

16%

22%

11%

5%

<= 0,2 M€ > 0,2 <= 0,4M€

> 0,4 <= 0,6M€

> 0,6 <= 0,8M€

> 0,8 <= 1M€

> 1 M€

Average amount of the deal

Type of Funds

23%

71%

2% 4%

Private PPP Public Others

Investment Strategy (Geography)

65%16%

19%

National Regional European


9

2. Description of the different organizations and t heir respective funds

2.1 Public Funds

Fonds de Participation, managing the Business Angel + loan (BE) The Participation Fund (www.fonds.org) is a Belgian federal financial institution that supports the self-employed, professional people, SCs and starters, including jobseekers who would like to start their own businesses. In addition, the Participation Fund’s objective is to share its know-how by providing financial, technical and administrative services to other institutions, alone or with the collaboration of other organisations. The Participation Fund also hosts and spearheads BeCeFi, the Belgian Knowledge Centre for SME financing. The Business Angel+ loan is intended for entrepreneurs whose company is in a launch phase or has reached a stage of strategic development for the future of the business and does not have access to traditional bank credit because of the innovative or technological nature of the project, but on the other hand enjoys the financial support of one or more business angels. The Participation Fund has signed a co-operation agreement with the business angel networks Be Angels and BAN Vlaanderen. The projects are pre-selected by the business angel network, which proposes them to potentially interested business angels. The Participation Fund gets involved when the “matching” is nearing a conclusion.

Fund name Business Angel + loan

Count ry Belgium

Date of creation 1984

Size (in EUR millions) n/a

Life of fund (max) n/a

Type of fund (Private, Public -private partnership, Public)

Public fund

Sources of dealflow BA networks and PRICAFS

Management n/a

Who makes the investment decision? Board of Directors, who acts as credit committee

Average timing of investment deci sion 3 to 4 weeks

Investment strategy (sector) Generalist (supports the self-employed, professional people, SCs and starters)

Investment strategy (geography) Belgium

Conditions to be a co -investor BA investment, ratio private/public

Number of invest ments In 2007: 10

Investments made since inception (in EUR millions) Average year 2003-2007: EUR 1.6

% invested n/a

Average amount of the deal (in EUR millions) BA + can be combined with other loan types offered by Fonds de Participation up to a maximum of EUR 0.25 million (outstandings) on the same debtor.

Nº companies bankrupt n/a

Nº companies bankrupt/closed %deals n/a

Divested n/a

% deals / invested n/a

Follow -on fund? No

Contact details www.fonds.org

Characteristics • Interesting and fixed interest rate • Period of 5, 7 or 10 years • 1 to 3 years of capital repayment grace • A minimum of guarantees required • Maximum EUR 125,000, by means of a contribution from the business angel(s) and

the creator/entrepreneur(s) higher than or equal to the Participation Fund’s loan • The Business Angel+ loan benefits from a guarantee issued under the European

Community's Competitiveness and Innovation Framework Programme


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2.2 Private Funds Mountain Partners, managing Cleantech Invest (CH) Located in Switzerland, the Mountain Partners Group (www.mountain-partners.ch) was founded by Dr. Cornelius Boersch and Daniel S. Wenzel in 2004. Since then the Group has developed into an Asset Management Group with specialized investment vehicles. The group comprises Mountain Super Angel AG (4MS), Bluehill ID AG (BUQ) and Cleantech Invest AG (4CT) which are all three listed on the Frankfurt Stock Exchange. Furthermore Taishan Invest AG, Omnis Mundi AG and newest investment vehicle Medvest Capital AG are part of the Mountain Partners Group. Today, the group holds stakes in more than 80 companies and has positioned itself as an “institutionalized business angel”. Thus Mountain Partners combines the financial strength of an institutional investor with the flexibility of a business angel. Their investment approach can be described as fast, intuitive and opportunistic. To support the portfolio companies actively for their growth, investments are often shared with top-class co-investors. The Mountain Partners Group could attract numerous top-class business angels, institutional investors from Europe, the United States and several Arabic families. Fund name Cleantech Invest AG

Country Switzerland


Size (in EUR millions) 7.3 (CHF 11 millions)

Life of fund (max) Evergreen


Private

Sources of dealflow Industry network, active sourcing, CF advisors, direct contacts, co-investors

Management Investment Advisor: Mountain Cleantech AG. Staff at Investment Advisor: Jürgen Habichler, Alexander von Hutten, Felix Janssen, Daniel Koppelkamm

Who makes the investment decisi on? Board of Directors of Cleantech Invest AG. Decisions are prepared by the Investment Advisor Mountain Cleantech AG

Average timing of investment decision 4 weeks on average

Investment strategy (sector) Clean-tech

Investment strategy (geography) German speaking region

Conditions to be a co -investor None

Number of investments 5

Investments made since inc eption (in EUR millions) n/a

% invested n/a

Average amount of the deal (in EUR millions) 0.25 - 1.2



Divested n/a


Follow -on fund? Yes, closed end structure

Contact details Felix Janssen Email: [email protected] Tel. +41 44 783 8041


11

Alsace Business Angels (FR) The main mission of Alsace Business Angels (www.alsacebusinessangels.com) is to match entrepreneurs with high growth potential businesses from the Alsace region with business angel inventors capable to provide with the right amount of capital, knowledge and skills to these entrepreneurs and businesses. Alsace Business Angels promotes all kinds of business angel activities in Alsace. Among its main tasks, Alsace Business Angels attracts projects with high growth potential, recruits business angels, selects and validates business plans received for its members, organizes meetings and trainings for both entrepreneurs and business angels. Today the association has 39 members and has set the following ambitious targets for the future: • Present 100 projects in 5 years • "Recruit" 50 active angels • Finance 29 projects in 5 years • Create a sustainable structure. Alsace Business Angels is an initiative of the CEEI Alsace, and has received initial financial support from the Ministry of SMEs, the DRIRE ALSACE and the Alsace region. Fund name Alsace Business Angels Invest

Country France


Size (in EUR million) 0.89 and 39 members

Life of fund (max) Until 2015


Private

Sources of dealflow Direct

Management No staff

Who makes the investmen t decision? Investment leader team (11 people)

Average timing of investment decision n/a

Investment strategy (sector) Generalist

Investment str ategy (geography) Alsace only

Conditions to be a co -investor

No limit on principle (acceptation of the deal terms negotiated by ABA)

Number of investments 24 projects pre-selected, 16 projects with deep due diligence, 6 investment

Investments made since inception (in EUR millions)

0.6

% invested 67%

Average amount of the deal (in EUR millions) 0.1



Divested n/a


Follow -on fund? n/a

Contact details www.alsacebusinessangels.com


12

Grenoble Angels (FR) Grenoble Angels is the business angel network of the Grenoble region. Created in 2005 with 15 members and the support if the Chamber of Commerce and Industry of Grenoble, the network counts 130 members today. Grenoble Angels is committed to bridging the equity gap by collaborating with other investors on the market. Since the starting of its activities, Grenoble Angels has approached banking organizations and regional seed capital companies, registering today: � 3 banking network partners (Caisse d’Epargne des Alpes, Crédit Agricole Sud Rhône-

Alpes and Banque Populaire des Alpes). � Partnerships with other regional seed capital companies, regional networks of business

angels and national network France Angels and national thematic networks (Cleantech, Angels Software, Biotech).

� Partnership with Oséo in terms of information exchange on the target companies and the devices of security of the investments.

Grenoble Angels is responsible for the organization of: � Training courses and a BA School for its member investors and financed companies. � Grenoble School of Management: intervention of Grenoble Angels in the various modules

of the school courses. � Competitiveness clusters (MINALOGIC and TENERRDIS). � Other structures of support (Réseau Entreprendre Isère, GRAIN, PETALES,

MINATEC…) which work can contribute to create synergies with the activities of Grenoble Angels.

Fund name Grenoble Angels Participations

Country France


Size (in EUR millions) 0.909


Type of fund (Private, Public -pr ivate partnership, Public)

Private

Sources of dealflow Grenoble Business Angels

Management No staff

Who makes the investment decision? Investment Committee

Average timing of investment decision 2 - 3 months


Investment strategy (geography) n/a



Investments made since inception (in EUR millions) 0.9

% invested 99%




Divested n/a


Follow -on fund? Yes

Contact d etails Email: [email protected]


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Paris Business Angels, Paris Angels Capital and the collaboration with several angel funds (FR) Paris Business Angel (www.parisbusinessangels.com) is a well performing business angel network based in Paris, France. Created in 2004, the network has now more than 100 investors and partners within the city of Paris, the Ile de France Region, and the Economy Minister. Paris Business Angels´ services to the members include: � Company Presentation Events � Due diligence support � Syndication � Training for investors � Newsletters or Information bulletin � Co-investment schemes

During 2008, the association studied 616 files received in 2008 and 38 received at the end of 2007. More than EUR 2 million were invested in 2008, EUR 2 million in 2007 and EUR 1.5 million in the first half of 2008 alone. Since 2004, Paris Business Angels has funded the development of 67 enterprises invested nearly EUR 7 million and created 668 jobs. In April 2009, Paris Business Angels was awarded “European Business Angel group leader/team” of the year at the occasion of the EBAN 4th Award Ceremony in Madrid. Paris Business Angels has recently created a fund called Paris Angels Capital in order to follow-on investments made by the angel network members. Paris Angels Capital is constituted only of members of Paris Business Angels who have put money in the fund on top of their personal individuals investments in companies. The form of the fund is called a “SIBA” – Société d’Investissement de Business Angels – business angel investment company. Paris Business Angels have also secured some non-exclusive partnerships with 4 other funds or SIBA (ECLEOR, H2F, MERICOURT CAPITAL, SELENE PARTNERS). These funds pass on some of their dealflow to PBA and vice-versa. This stimulates co-investment between the different partners in the Paris region, and enables them to share due diligence on interesting projects. Fund name ECLEOR

Country France



Life of fund (max) Not defined


Private

Sources of dealflow Paris Business Angels and personal networks

Management No staff

Who makes the investment decision? Board of directors

Average tim ing of investment decision 1 month


Investment strategy (geography) France

Conditions to be a co -investor No conditions, same rights as another member

Number of investments 1 investment in 2009 for EUR 30,000; 3 investments the years before


n/a

% invested n/a

Average amount of the deal (in EUR millions) n/a

Nº companies bank rupt n/a


Divested n/a


Follow -on fund? No

Contact details Email: [email protected]


14

Fund name H2F

Country France


Size (in EUR millions) 2



Private


Management No staff

Who makes the investment decision? n/a






Investments made since inception (in EUR millions) n/a

% invested n/a


Nº companies bankrupt 0

Nº companies bankrupt/closed %deals 0%

Divested 0

% deals / invested 0%

Follow -on fund? No


Fund name MERICOURT CAPITAL Country France





Private


Management No staff


Average timing of investment decision 2 months






% invested n/a




Divested 0


Follow -on fund? No

Contact details Email: [email protected] Email: [email protected] Email: [email protected]


15

Fund na me PAC (all members of PBA)

Country France




Type of fund (Private, Public -private partne rship, Public)

Private


Management 1 person employed at 2/5




Investment strate gy (geography) France

Conditions to be a co-investor No conditions, same rights as another member

Number of investments 2 investments in 2009 for a total of EUR 400,000


% invested 13%

Average amount of the dea l (in EUR millions) 0.2



Divested 0


Follow -on fund? No


Fund name SELENE PARTNERS

Country France




Type of fund (Private, Public -private partner ship, Public)

Private


Management No staff


Average timing of investment decision 1 month




Number of investments 2 investments via PBA in 2009 for a total of EUR 230,000


% invested 72%




Divested 0


Follow -on fund? No



16

Sophia Business Angels (FR)

The Sophia Business Angels (www.sophiabusinessangels.com) is a select group of international serial entrepreneurs and senior managers coming together once a month in the European high-tech capital of Sophia Antipolis, France.

Today, the group numbers 50 + strong, hails from 15 countries stretching from South America to North America, the Middle East and Europe, and has a proven serious interest to invest early in local, national, and international start-up projects which bring a significant return on investment. Given the group’s combined expertise in finance, ICT, Bio, and Energy, the SBA Members have been able to work as a club to find, fashion, and fund investments for their members throughout the world.

This success has led to the SBA being one of the first recipients of a French national grant for business angel networks. It has also led to the SBA members founding 2 investment vehicles, Innovation Europe and Croissance Europe, together with Meeschaert Gestion Privée to lead private investing throughout Europe. As a result, the SBA was chosen to host the EASY Cross-Border Investment Forum 20/21 November during the French Presidency of the European Union as well as the parallel event France Angels “Semaine des Business Angels” day on 21 November 2008. The events were featured projects from around Europe and France in the MedTech, CleanTech, Hi-Tech, and Space Sectors.

The SBA is proud to have as its partners the following companies and organizations: Iris Capital, Meeschaert Gestion Prive, Cambridge Angels, Luxembourg Business Angels, CERAM, Antipolis Innovation Campus, PACA Est, Cote d Azur Pionieres, Fondation Sophia Antipolis, and Telecom Paris-Eurecom.

Success Europe, a "ISF holding company" which regroups businesses angels and entrepreneurs coming from the whole world to Sophia-Antipolis (European Silicon Valley), is intended to gather and to invest capitals in French and European innovative companies. SUCCESS EUROPE focus in three particular areas: technologies of information and communication; medical technologies ("MedTech") and health; techniques and industrial services which use natural resources, energy, water, raw materials with a perspective of important improvement of effectiveness and productiveness ("CleanTech").

Fund name Croissance Europe

Country France



Life of fund (max) 5-8 years


Private

Sources of dealflow Network and partners

Management 1 part time


Average timing of investment decision 6-8 weeks

Investment strategy (sector) Technology

Investment strategy (geography) Europe



Investments made since inception (in EUR milli ons) 2.88

% invested 99%




Divested No divestment yet


Follow -on fund? No



17

Fund name Innovatio n Europe

Country France




Type of fund (Private, Public -private p artnership, Public)

Private









Investments made since inception (i n EUR millions) 1.5

% invested 100%






Follow -on fund? No


Fund name Success Euro pe

Country France




Type of fund (Private, Public -private partners hip, Public)

Private








None



7.6

% invested 100%






Follow -on fund? Maybe



18

2.3 Partnership Public-Private (PPP Funds) BAN Vlaanderen, managing the ARK-Angels Fund (BE) BAN Vlaanderen is a non-profit organization in the Flanders region of Belgium, and a member of the Belgian federation of business angel networks BeBAN. Created in 2004, BAN Vlaanderen is a marketplace where entrepreneurs and private investors meet in order to finance growth-oriented companies. Core activities of the network are:

� Attract and raise awareness among entrepreneurs and investors about business angel

financing. � Organization of information trainings for entrepreneurs and investors. � Informing and preparing business angels. � Putting together entrepreneurs with business angels (matching events). � Bringing together business angels syndicate in order to facilitate formation companies.

Fund name ARK-Angels Fund

Country Belgium


Size (in EUR million) 6.7 committed capital



Public-private partnership (50% private, 50% government)

Sources of dealflow Business Angels Network (BAN Vlaanderen)

Management BAN Vlaanderen (1 Fund manager)




Investment strategy (geography) Flanders

Conditions to be a co -investor AAF only invests if at least 1 BA of BAN Vlaanderen is co-investor. Max. EUR 500,000 per invested company

Number of investments 10 investments in 8 companies


% invested 27.5%



Nº companies bankr upt/closed %deals 12.5%



Follow -on fund? To be seen on the basis of the availability of public funds in the future

Contact details Reginald Vossen Email: [email protected] Tel. +32 11300260


19

BBAF Business Angels Fondsgesellschaft mbH, (DE) The “BBAF Business Angels Fondsgesellschaft mbH“ (www.business-angels-berlin.de) was established on 10 March 2005 by members of the Business Angels Club Berlin e.V.

The fund has a volume of EUR 540,000. Minority holdings of EUR 50,000 per deal are envisaged. The investment decision will favour enterprises with a high potential for growth and that are led by a highly qualified team. The team should be interested not only in capital but also in business coaching. There is no regional focus as the fund invests on a federal level. Contact: [email protected] or [email protected], www.bacb.de Bayern Kapital (DE) Bayern Kapital GmbH (www.bayernkapital.de) is a Bavarian venture capital company based in Landshut, Germany, which was founded as part of the "Bavarian Future Initiative" as a wholly-owned subsidiary of the LfA Förderbank Bayern (Bavaria's development bank) at the end of 1995. The objective of Bayern Kapital is to finance research and development and market launch of new products. In this effort Bayern Kapital usually acts as co-investor in cooperation with a lead investor.

To ensure continued implementation of innovation and growth in the future, Bayern Kapital joined forces with the LfA Förderbank and tbg-Technologie-Beteiligungs-Gesellschaft mbH (now KfW – a bank sponsored by the German government), to create Seedfonds Bayern in 2003 with a volume of EUR 22 million for financing start-ups in the medical technology, environmental technology and information / communication / software sectors. The investments are up to EUR 250,000 per company or in cooperation model with the federal HTGF (High Tech Gründerfonds) up to EUR 600,000, usually in form of a combination of equity and subordinated loan or a silent partnership.

Clusterfonds Start-Up!, founded in 2008 with an amount of EUR 20 million, finances start-up companies in the second 12 months (still seed phase). A financial contribution from the founders in the amount of EUR 100,000 is needed. The fund is investing up to EUR 500,000 per company, typically in form of a combination of equity and subordinated loan or a silent partnership.

Clusterfonds Innovation (before Technofonds Bayern) aim is to facilitate access to venture capital for emerging Bavarian firms planning, developing and launching new products. In cooperation with a lead investor, Clusterfonds Innovation invests up to EUR 2 million per company in form of equity or silent partnership or a combination of both.

Bayern Kapital now manages a fund volume of almost EUR 200 million. Bayern Kapital invests principally in small and mid-sized companies with a strong growth potential in key industrial technologies. The investments are mainly concentrated in the information technology, measuring and control equipment, medical technology and pharmaceutical industries.


20

Fund name Bayern Kapital - Clusterfonds Innovation

Country Germany





Public-private partnership

Sources of dealflow Business plan competitions, networks, direct contacts, investors

Management Bayern Kapital GmbH


Average timing of investment decision 3 to 6 months

Investment strategy (sector) High-tech

Investment strategy (geography) Bavaria

Conditions to be a co -investor � Type: BA, VC, strategic investors; � Amount: no minimum, Investment of lead investor and

Clusterfonds Innovation max. EUR 1.5 millions per 12 months (for investments until 2010 EUR 2.5 millions are possible);

� Nationality: no preferences; � Co-operating investor (investment company, company or

private person) investing in the project as "lead investor“; � Co-operating investor has to prove his excellence in

technical and management know-how; � Capital investment from additional investor must be

simultaneous with Clusterfonds Innovation investment � Min. 50 % private part of financing (for investments until

2010 30% private part is possible)

Number of investments n/a


% invested n/a




Divested n/a



Contact details www.bayernkapital.de Email: [email protected] Tel: + 49 871 92325- 0 Fax: + 49 871 92325-55


21

High-Tech Gründerfonds (DE)

Based in Bonn, Germany, High-Tech Gründerfonds (www.high-tech-gruenderfonds.de) was started with EUR 272 million by the Federal German government, the KfW banking group and the industrial enterprises BASF, Deutsche Telekom and Siemens who joined together under the "Partners for Innovation" initiative to establish the fund in 2005.

High-Tech Gründerfonds invests venture capital in seed stage (i.e. younger than one year), high-opportunity technological companies, having funded since its creation 139 (as of 28 February 2009) companies with an average initial investment of around EUR 480,000. The total commitment including follow-up investments amounts to EUR 77,700.

Over the next five years, the fund wants not only to provide technologically oriented company foundations with the start-up capital they so urgently need, but also to ensure the necessary supervision and support for their management. The High-Tech Gründerfonds already offers a well-structured coaching concept for entrepreneurs. Also, the fund is actively cooperating with a relevant number of European as well as non-European investors, having already invested in some of the Fund’s portfolio companies. Fund name High -Tech Gründerfonds (HTGF)

Country Germany



Life of fund (max) 6 years investment period; 7 years divestment period



Sources of dealflow Universities; research institutes; private developers/ inventors; industry spin-offs

Management 28 full time employees; 20 investment professionals

Who makes the investment decision? An investment board consisting of representatives of the HTGF investors makes the decision

Average timing of investment decision 1,5 months

Investment stra tegy (sector) High-tech investments in three technology sectors: 1. Hardware (sensor technology, optoelectronics, semi-conductors, etc.) 2. Biotech, life science, material science, energy & clean tech, etc. 3. Software, ICT, media, web, etc.

Investment s trategy (geography) Only Germany-based companies


Type: angel investors, smaller seed funds, private investors and family offices; Minimum amount: 0-200K EUR; Nationality: all

Number of i nvestments 152 (2036 projects received)


% invested n/a

Average amount of the deal (in EUR millions) 0.48 (standardized conditions)



Divested 5



Contact details Alexander von Frankenberg Tel: +49 228 965685-02 Fax: +49 228 965685-50


22

KfW Bankengruppe, managing the kfw ERP Start Fund ( DE) KfW Bankengruppe (www.kfw.de) gives impetus to economic, social and ecological development worldwide. As a promotional bank under the ownership of the Federal Republic and the Länder (federal states), it offers support to encourage sustainable improvement in economic, social, ecological living and business conditions, among others in the areas of small and medium-sized enterprise, entrepreneurialship, environmental protection, housing, infrastructure, education finance, project and export finance, and development cooperation. KfW Mittelstandsbank (www.kfw-mittelstandsbank.de) mobilizes equity for young, innovative, technology-based firms with assistance from the Bundesministerium für Wirtschaft und Technologie (German Federal ministry of Economics and Technology) and the ERP Start Fund. In so doing, KfW enters into participations that, in most cases, do not involve assuming part of the management of the firms. The precondition is, however, that another equity investor (lead investor) enters into a participation of at least an equal amount. The participations of KfW and the lead investor are subject to the same economic conditions. Lead investors could be venture capitalists as well as business angels. Who is eligible? Young tech companies that: • are 10 years or younger, and • fulfil the SME criteria of the European Commission. Older companies can also seek financing from the ERP Start Fund in later rounds if they have already received financing under one of the preceding BTU (Technology Participation Programme), BTU -Early stage, or FUTOUR programmes. What may be financed? Innovative technology-based companies that can meet their financing requirements with the equity finance received. They must fulfil the following conditions: • Development of new or significantly improved products, processes or services and/or their introduction into the market • The innovative core is developed by the company itself • New products (processes/services) must differ from previous products (processes/services) of the same company in terms of their key functions and must be based on the company’s own R&D. What are the conditions? • Maximum amount: the maximum limit per tech company is EUR 3 million • Several rounds of financing are possible, a maximum of EUR 1.5 million for first-time financing • Terms, conditions and form of the participation depend on the participation of the lead investor. Who may participate as lead investor? The lead investor will advise and support the technology-based enterprise on all economic and financial matters. He/she should offer management know-how and marketing support. Additionally, he/she should be able to provide additional financing. The following are eligible to be a lead investor: • Equity investment firms • Companies (as strategic investors) • Business angels Equity investment firms must be accredited with KfW. Companies and business angels are eligible on a case-by-case basis. The lead investor monitors the management and development of the tech company and informs KfW accordingly. In exchange, he/she receives remuneration from KfW.


23

Fund name kfw ERP Start Fund

Country Germany






Sources of dealflow Business plan competitions, networks, direct contacts, investors

Management KfW


Average timing of investment decision 6 to 8 weeks

Investment strategy (sector) Innovative young German technology companies

Investment strategy (geography) Germany

Conditions to be a co -investor Type: BA, VC, strategic investors. Amount: no minimum amount, max EUR 3 millions per target. Nationality: no preferences, accreditation required. Other: pari passu conditions: co-operating investor has to prove his excellence in technical and management know-how.

Number of investments 481 deals

Investments made since inception (in EUR millions) 240

% invested n/a

Average amount of the deal (in EU R millions) 0.5



Divested n/a


Follow -on fund? YES, ERP Startfonds 2009 in preparation

Contact details Email: [email protected] Tel: + 49 0228 831-7698 Fax: + 49 0228 831-7493


24

Partnerkapital – Væksfonden (DK) Vækstfonden (www.vaekstfonden.dk) is a Danish State investment fund which supports and invests in the creation of new innovative companies that need venture capital to grow. Working with investors and entrepreneurs, both domestically and abroad, Vækstfonden aims to create the best performing market for innovation finance in Europe by 2010, as well as to further improve the functioning of the Danish market to rank among top 5 in the World by 2015. Since 1992 Vækstfonden has financed growth in over 3,500 Danish companies for more than DKK 6.5 billion. Vækstfonden invests directly, via other funds or with private investors, business angels, pension funds, banks, etc. Vækstfonden provides a broad spectrum of finance solutions for small as well as medium-sized companies – ranging from equity to loan guarantee. Vækstfonden’s strategy consists in: � Leveraging private investment in the market – by co-investing with private partners � Showing where new opportunities lie – by investing in new growth sectors and developing

new financial solutions � Gathering and sharing market intelligence – providing more knowledge for everyone.

Fund name Partnerkapital (part of Vækstfonden)

Countr y Denmark


Size (in EUR millions) 13.44 (DKK 100 millions)


Type of fund (Private, Public -private partner ship, Public)


Sources of dealflow Business angels, personal network, unsolicited applications

Management Søren Hougaard, Venture Partner; Jens Wittrup Willumsen, Venture Partner; Peter Schrøder Associate Partner


Average t iming of investment decision 2-4 weeks




As lead business angel the minimum is DKK 500,000. As co-investor we are looking at a minimum of DKK 250,000 depending on the size of the deal

Number of investments 8 (400 projects received)


% invested 40%


Nº companies bank rupt / closed 2 closed


Divested 0



Contact details Peter Schrøder Email: [email protected] Tel: + 45 35 29 86 37 Mobile: + 45 22 72 00 02


25

FINAVES (ES) FINAVES (www.finaves.com) is a venture capital fund focused primarily on new business ventures led by the Alumni of the IESE MBA programs. FINAVES seeks to fulfil the need for financing in business projects’ first stages of development. As such FINAVES focuses on seed capital and initial expansion phases. Since inception, a total of 3 funds have been created: FINAVES SCR (2000), FINAVES II SCR (2003), FINAVES III (2005). Characteristics of the fund:

� Fund size: each fund approximately EUR 3 million. � Time horizon: the overall life of the fund is expected to be 10 years. � Investment timeline: each fund aims to make 2-3 investments per year. � Investment size: FINAVES participates as a minority investor, requiring on average a

15% stake. � Investors: on average 9-10 investors who have each invested EUR 300.000.

Investors include private individuals, local businesses, other investment funds as well as the government.

Fund Name FINAVES (FINAVES I, FINAVES II & FINAVES III)

Country Spain

Date of creation FINAVES I 2000, FINAVES II 2003, FINAVES III 2005

Size (in EUR million) FINAVES I 2.4 and 17 members, FINAVES II 2.7 and 12 members, FINAVES III 2.4 and 12 members

Life of fund (max) 10 years

Type of fund (Private, Public-private partnership, Public) Private-public partnership

Sources of deal flow Direct

Management 3 staff

Who makes the investment decision? Board of Directors

Average timing of investment decision 6-9 months


Investment strategy (geography) Generalist

Conditions to be co-investor No limits

Number of investments FINAVES I 11, FINAVES II 7, FINAVES III 7

Investment made since inception (in EUR millions) FINAVES I 2.3, FINAVES II 2.6, FINAVES III 1.5

% invested n/a

Average amount of the deal (in EUR millions) 0.3-0.5


Nº companies bankrupt/closed % deals n/a

Divested FINAVES I 8, FINAVES II 4, FINAVES III 1

% deals/invested n/a

Follow-on fund? n/a

Contact details Adelaide Cracco – Manager Email: [email protected]

Silvia Gomariz - Legal Counsel Email: [email protected]

Isabel Cuesta - Legal Counsel Email: [email protected]

tel: +34 93 253 42 00

www.finaves.com


26

Veraventure (FI) Veraventure Ltd, founded in April 2003, is a government backed venture capital investment company owned by Finnvera plc. In its operations, Veraventure Ltd complies with the Ministry of Trade and Industry’s guidelines on regional venture capital investments and on the Finnvera Group’s investment activities, and with the objectives set by the parent company. Operating on the ‘fund of funds’ principle, Veraventure Ltd makes investments in regional funds organised as limited companies. Veraventure Ltd also works in close cooperation with Finnvera plc, with bodies investing in funds, with fund management companies, and with other actors on the market of enterprise financing. As the management company of the fund Seed Fund Vera Ltd, Veraventure Ltd is responsible for the fund’s investments and for the development of target enterprises. Seed Fund Vera Ltd makes capital investments in innovative enterprises at their early stages. The majority of the funds investments are syndications with business angels. Veraventure Ltd also manages the business angel network InvestorExtra. Fund name Seed Fund Vera Ltd

Country Finland






Sources of dealflow Entrepreneurs, events, co-operation with various institutions

Management Veraventure Ltd, 13 people, management fee of 2,2%


Average timing of investment decision 4-6 months

Investment strategy (sector) Technology companies

Investment strategy (geography) Finland

Conditions to be a co -investor n/a



41

% invested 42.7%



Nº companies bankrupt/closed %deals 7.7%

Divested 11

% deals / invested 8.5%


Contact details Hannu Jungman Email: [email protected]


27

Ingenium (IT) Ingenium (www.meta-group.com/ingenium) is the first Italian public-private seed capital fund investing up to EUR 1 million in innovative businesses in the Emilia Romagna region. The fund was started with EUR 5.30 million by the Emilia Romagna region and EUR 1.7 million from fund managers. The fund welcomes other contributions from investors aimed at increasing the co-financing of the private fund Ingenium. The fund has a duration of nine years. The fund is managed by a joint venture made of the Italian META Group and the Dutch Zernike group. Ingenium operates through the temporary acquisition of minority stakes in high-opportunity technological companies. Ingenium performs operations of:

• Seed financing: it supports initiatives in the testing phase of the ideas, when it the technical viability of the product/service in enterprises set up by no more than 12 months is still to be proven

• Start up financing: it promotes projects in the business start-up phase, when there is a

prototype whose commercial viability is still unknown for enterprises set up by no more than 36 months.

Fund name INGENIUM

Country Italy

Date of crea tion 2004

Size (in EUR millions) Up to 14




Sources of dealflow Fair exhibition, workshops, internet, press releases

Management 5


Average t iming of investment decision 1 month

Investment strategy (sector) Sector-agnostic

Investment strategy (geography) Regional (Emilia Romagna)

Conditions to be a co -investor Height profile/qualified investor

Number of investments 7 (200 project received)


% invested n/a



Nº com panies bankrupt/closed %deals n/a

Divested n/a



Contact details Francesca Natali Email: [email protected]


28

Lithuania JEREMIE Holding Fund (LT) JEREMIE (Joint European Resources for Micro to Medium Enterprises) is a joint initiative launched by the European Commission (DG Regional Policy) and the European Investment Bank group to improve access to finance for SMEs in the EU within the Structural Funds framework for the period 2007 - 2013. JEREMIE enables the EU Member States and Regions to put money from the structural funds and also national resources into holding funds that can finance SMEs in a flexible and innovative way. Since the products will be provided on a repayment basis, funding will be reinvested and hence more SMEs will benefit from the EU resources. Lithuania JEREMIE Holding Fund is a fund comprising of several financial engineering instruments. The Business Angels Co-investment Fund is one of the instruments implemented under the JEREMIE Holding Fund. EIF has currently signed 7 National (in Greece, Romania, Slovakia, Latvia, Lithuania, Cyprus and Bulgaria) and 2 Regional (in France - Languedoc Roussillon, and Italy - Campania) Holding Fund agreements. Fund name Business angels Co -investment Fund

Country Lithuania





Public-private partnership (in each investment at least 50% should be private investments)

Sources of dealflow n/a

Management Fund management Company leaded by Strata and Mes Invest Key managers

Who makes the investment decision? Fund management Company leaded by Strata and Mes Invest Key managers

Average timing of investment decision ~30-60 days

Investment strategy (sector) All sectors except: gambling; the manufacture, supply or trade in arms, tobacco, alcohol; human cloning

Investment strategy (geography) Lithuania


Number of investments 30-40


% invested n/a

Average amount of the deal (in EUR millions) Not exceed 0.4



Divested n/a



Contact details Jurate Azelionye Email: [email protected]


29

TechnoPartner, managing the Seed Facility (NL) TechnoPartner (www.technopartner.nl) encourages and increased chances of success of people who want to start a company based on a technical invention. TechnoPartner supports the pioneers of the future and works to improve the environment for technology start-ups to success. TechnoPartner provides access to money, knowledge, experience and equipment through: • A platform where technology start-ups can go with questions, ideas and observations • Motivating knowledge institutions and investors to put their money and knowledge

available to technology pioneers.

Among other services, TechnoPartner runs: • The Label TechnoPartner, increasing pioneers’ chance to receive funding • A SEED funds for entrepreneurs • A SEED facility for investors • A business angel network providing matchmaking services for entrepreneurs and informal

investors. TechnoPartner is a joint initiative of the Ministry of Economic Affairs and the Ministry of Education, Culture and Science in The Netherlands. Closed-end venture capital funds are eligible for the Seed Facility. Participation funds, which invest in high-risk technology start-up businesses, can apply for a loan with TechnoPartner. The loan equals the amount deposited by the fund, up to a maximum of EUR 4 million. The flexible payback arrangement not only makes investing in technology start-ups a socially responsible activity, but also a financially attractive proposition. From the instant revenues are generated, the fund will only have to pay back 20% until it has earned back its investment. After that, the fund will have to turn over 50% until TechnoPartner has earned back its investment. If the fund keeps receiving revenue, the additional income is again divided between the fund and TechnoPartner on an 80%-20% basis. At the moment, out of the 28 funds that receive loans from TechnoPartner, 22 involve business angels as co-investors.

Conditions for applying for the seed fund: � At least three shareholders or partners must participate in the fund created � The fund has the form of a public or private limited company, partnership or limited

partnership � The sole aim of the fund is to eliminate the ‘equity gap’ � Investments must be made during the fund’s first six years. The fund must be liquidated

at the latest12 years after its inception � The fund plan must state the way in which support to technology start-ups is provided.


30

Fund name Aescap Ventures I Seed B.V.

Country The Netherlands





Public-private partnership (50% private investors and 50% Dutch Government)


Management n/a

Who makes the investment decision? Fund management


Investment strategy (sector) Medical (bio)technology with focus on the treatment of human disease

Investment strategy (geography) The Netherlands


Number of investments The fund expects to invest in 10 - 15 participations in companies in the next 6 years.


% invested n/a




Divested 0



Contact details Dinko Valerio Email: [email protected]

Fund name Aglaia Oncology Seed Fund B.V.



Size (in EUR m illions) 8





Management n/a

Who makes the investment decision? Supervisory board


Investment strategy (sector) Products and technologies related to the prevention, diagnosis and treatment of cancer



Number of investments The fund expects to invest in 8-10 participations in companies during the next 4 years.

Investments made sin ce inception (in EUR millions) n/a

% invested n/a




Divested 0



Contact details n/a


31

Fund name Business Angels Techostarters II B.V.








Management n/a



Investment strategy (sector) Techno starters



Number of investments The fund plans to realise 10 participations in 4 years


% invested n/a

Average amount of the deal (in EUR millions) Vary between 0.1 and 0.4



Divested 0



Contact details www.batfund.nl Rob Noltes; Email: [email protected]

Fund name Business Angels Techostarters B.V.








Management 6 shareholders

Who makes the investment decision? Shareholders


Investment strategy (sector) Technology ( IT, medical technology, precious metals and healthcare services)



Number of investments The fund expects to invest in 8 participations in companies in 4 years.


% invested n/a

Average amount of the deal (in EUR m illions) 0.15



Divested 0



Contact details www.batfund.nl Rob Noltes; Email: [email protected] Mark Krul; Email: [email protected]


32

Fund name Dutch Technology Fund I B.V





Type of fu nd (Private, Public -private partnership, Public)



Management Icos Capital Management B.V.

Who makes the investment decision? Investment committee


Investment strategy (sector) Sustainable technologies related to foodstuffs, energy and waste



Number of investments The fund expects to invest in 10 participations in companies in next 4 or 5 years.


% invested n/a

Average amount of the de al (in EUR millions) 0.8



Divested 0



Contact details www.icoscapital.com Fred van Efferink; Email: [email protected] Nityen Lal ; Email: [email protected]

Fund name E2 Cleantech1 B.V.








Management Ewic B.V

Who makes the investment decision? Participation Commission


Investment strategy (sector) Companies offering market-ready, clean technologies that contribute to the reductions of CO2 emissions



Number of investments The fund expects to realise 8-12 participations in 4 or 5 years time


% invested n/a

Average amount of the deal (in EUR millions) between 0.2 and 1.5



Divested n/a



Contact details www.e2cleantech.com Michel Hendriks; Email: [email protected]


33

Fund name Health Innovation Fund B.V.








Management Residex B.V.



Investment strategy (sector) Healthcare



Number of investments The fund plans to realise 10 - 12 participations in 3 years


% invested n/a




Divested 0



Contact details Dick Sietses Email: [email protected]

Fund name Henq Innovatiefonds 1 B.V.








Management n/a




Investment strategy (geograp hy) The Netherlands (focuses in the Rotterdam and Eindhoven areas)


Number of investments The fund expects to invest in 10 participations in 5 years.


% invested n/a




Divested 0



Contact details www.henq.nl Coen van Duiven Email: [email protected]


34

Fund name Henq Innovatiefonds 2 B.V.








Management Henq invest B.V.

Who makes the investme nt decision? Supervisory board


Investment strategy (sector) ICT, mobile, internet, new media and cleantech

Investment strategy (geogra phy) The Netherlands


Number of investments The fund plans to realise 10 participations during the first 3 years of the fund period.


% invested n/a



Nº companies bank rupt/closed %deals n/a

Divested 0



Contact details www.henq.nl Coen van Duiven Email: [email protected]

Fund name ICT Venture B.V.








Management 4 entrepreneurs from the software industry who are also involved in the fund as investors or shareholders

Who makes the investment decision? All decisions requires the approval of at least 3 of the 4 shareholders


Investment strategy (sector) Software companies (internet application & services, enterprise software applications)



Number of investments The fund plans to realise 9 participations in 4 years.


% invested n/a

Average amount of the deal (in EUR millions) Initial investment between 0.15 and 0.3, follow up investment can be made of 0.5



Divested 0




35

Contact details www.ictventure.nl Job Heimans

Fund name Mesciences Sedd Fund B.V.








Management MedSciences Capital Management B.V



Investment strategy (sector) Life-sciences (developers of medicinal drugs for niche indications and developers of diagnostics and medical tools).





% invested n/a




Divested 0



Contact details Willem van Lawick Email: [email protected]

Fund name Percival Participations B.V.



Size (in EUR mill ions) 8





Management n/a

Who makes the investment decision? Investment committee


Investment strategy (sector) Companies with patented products, concepts and technologies or products otherwise protected by intellectual property rights that can be exploited on an international scale

Investment strategy (ge ography) The Netherlands




% invested n/a




Divested 0




36

Contact details Henk van Groen Email: [email protected]

Fund name Point -One Starter Fund U.A.








Management Point-One Innovation Fund B.V.

Who makes the investment decision? Investment Committee consisting of the fund management and a number of ventures capital experts


Investment strategy (sector) Nanotechnology. Microelectronics or integrated systems





% invested n/a

Average amount of the deal (in EUR millions) Vary between 0.1 and 1.8



Divested 0



Contact details Cees Jan Koomen Tel: +31 (0)40 2726025

Fund name Solid Ventures B.V.








Management 3 partners of Solid Capital Partners B.V.

Who makes the investment decision? Board of advisors

Average timing of investment de cision n/a

Investment strategy (sector) ICT industry (communication, enterprise software, new media)



Number of investments The fund expects to invest in 8-12 participations in 5 years.

Investments ma de since inception (in EUR millions) n/a

% invested n/a




Divested 0




37

Contact details Floris van Alkemade Email: [email protected]

Fund name VIP Fund B.V.








Management 6 shareholders

Who makes the investment decision? Shareholders


Investment strategy (sector) Techno starters





% invested n/a




Divested 0


Fund name Tecnfund B.V.



Size (in EUR million s) 8





Management TechFund Management B.V.



Investment strategy (sector) Innovative technology (ICT, nano/micro system technology, medical ICT, ICT manufacturing industry)



Number of investments The fund expects to invest in 3-4 participations in 4 years

Investments made sinc e inception (in EUR millions) n/a

% invested n/a

Average amount of the deal (in EUR millions) 2



Divested 0



Contact details www.tecfund.nl Willem van den Berg Email: [email protected] Maarten Derks Email: [email protected]


38


Contact details Jacques Eijkens Email: [email protected]


39

Fund name Start Green Consumer Product Fund B.V.





Type of fund (Privat e, Public -private partnership, Public)



Management Coenraad de Vries, Laura Rooseboom, Adse de Cock and Jan Gerrit van der Kamp



Investment strategy (sect or) Following categories: energy (reduction or generation), emission and pollution reduction, reduction of the negative impact of mobility, more efficient water management



Number of investments The fund plans to realise 10 to 15 participations in 4 years.

Investments made sinc e inception (in EUR millions) n/a

% invested n/a




Divested 0



Contact details www.stargreen.nl Email: [email protected]; Wiilma Huurnink Tel: +31 (0)35 526 24 42

Fund name Technostartersfonds Zuid -Nederland B.V.








Management Rob Verbakel, who has 6 years experience in financing techno starters


Average timing of investment dec ision n/a

Investment strategy (sector) Innovative manufacturing industry (in particular automotive and embedded software), life sciences and ICT

Investment strategy (geography) In particular in North-Brabant, Limburg and Zeeland


Number of investmen ts The funds expect to have invested in 20 participations in 4 years


% invested n/a



Nº comp anies bankrupt/closed %deals n/a

Divested 0



Contact details Email: [email protected]; Tel: +31 (0)40 - 23 72 194


40

Business Angel Seedfund Sp. z o.o. (PL) Business Angel Seedfund (BAS) (www.seedfund.pl/en) is a first seed capital investment fund established by business angels in Poland. BAS was not established by a financial institution, but by enterpreneurs who succeed establishing their own businesses from the beginning. Founders of BAS are Maciej Grabski (co-founder of Wirtualna Polska), Jędrzej Wittchen (Wittchen S.A.), Maciej Duda (PKM DUDA) and Jacek Kawalec (co-founder of Wirtualna Polska). Together with the Board, twice a month they analyze business plans and decide about future investments. Business Angel Seedfund was established in 2007. The fund cooperates e.g. with Pomorski Park Naukowo-Technologiczny, Lewiatan Business Angels, Oxford Innovation (OXIN) and Oxford Investment Opportunity Network (OION). The fund is also supported by Polska Agencja Rozwoju Przedsiębiorczości (Polish Agency for Enterprise Development) as one of the seed capital funds (SPO W.K.P 1.2.3.). Till now the fund has invested e.g. in Screen Network - system of multimedia advertising in sales points (POS TV), Polymem – company producing poliprophylen membrans established by scientists from Chemical and Processing Faculty of Warsaw Technical University and Hub30 – new, consumers’ e-commerce service and Centrum Podrozy SA.

Business Angels Co-Investment Fund, managing SAFPRI (PT) In 2009 Portugal launches a new and challenging business angel co-investment program (www.pofc.qren.pt), that brings to Portugal a new era of innovation, risk taking, enabling the development of several early stage projects. This fund is managed by the program COMPETE. Under this new scheme, that follows The Netherlands’ experience of TechnoPartner program, at least 3 business angels must create a new company with the purpose of risk investment. The business angels must bring to the new company 35% of the necessary funds, while COMPETE (managed by Portuguese Authorities) will make a 10 year (maximum) loan of 65% of the necessary funds. The repayment ratio between business angels and COMPETE, will occur in 3 different phases:

· Phase A – Until business angels receive their investment · Phase B – Until COMPETE receives its loan back · Phase C – After COMPETE and BAs have received their investment

The repayment ratio in each phase will be (BA/COMPETE): 80-20%, 50-50% and 80-20%, and is based on the following reasons: • The overall risk-return ratio must be attractive enough to convince private investors to

invest in early stage companies. • In any case, the risk-return ratio must be improved most on the ”downside” of the fund.

This is why an 80-20% ratio was chosen for the first phase. • The 50%-50% ratio in the second phase is based on the objective that, although in

principle the loan should be repaid to COMPETE, it should remain attractive for the private investors to generate income during this phase.

• The 80-20% ratio in the third phase encourages the fund management to reach the attractive third phase. In practice, however, the third phase will not always be attained.

The overall budget from COMPETE for this program is EUR 10 million, on top of the amounts provided by business angels. It is also expected that the investment will generate the creation of at least 60 new start ups. All investments must be fair until 31 December 2012. This first business angels co-investment fund is the result of more than 2 years of close and cooperative work of FNABA (with continuous support of EBAN) with the Portuguese official entities, namely Ministério da Economia, through the Portuguese Secretary of State for Industry and Innovation, IAPMEI, PME Investimentos and COMPETE.


41

Fund name SAFPRI

Country Portugal


Size (in EUR million) 15.4 ( 10 by Portuguese government and the others 5.4 by business angels)


Type of fund (Private, Public -priv ate partnership, Public)

Public-private partnership (35% private investors and 65% Portuguese Government)


Management n/a

Who makes t he investment decision? n/a


Investment strategy (sector) Industry, energy, construction, trade, tourism, transportation / logistics services

Investment strategy (geography) Portugal ( Northern, Central and Alentejo)

Conditions to be a co -inv estor

BA must control the Special Purpose Vehicle (SPV); fund financial contribution up to 65%; BA must be registered in CMVM or other authorized entity



% invested n/a




Divested n/a



Contact details www.pofc.qren.pt www.fnaba.org


42

STING Capital, managing the STING Capital Fund (SE) STING Capital is one of the few venture capital funds in Sweden that invests in companies at the earliest stages of development – before a finished product or paying customers exist. STING Capital works in close cooperation with other venture capital funds. STING Capital is often the first external investor to offer business ideas or concepts financial support, and can invest up to SEK 4 million (approx. EUR 400) per business. STING Capital invests in technology cases within ICT, cleantech and medtech. The fund has a unique investor base consisting of business angels, institutional investors as well as public investors. STING Capital has a close working relationship with a network of private investors, “STING Business Angels”, and with the venture capital community in Sweden. 21 of the members in STING Business Angels have invested in STING Capital and thereby together constitute one of the major investor groups in the fund and these private investors are also invited to co-invest with STING Capital in investments exceeding a certain size. STING Capital aims to be the number one feeder of quality technology cases to the later stage venture capital community and therefore continuously work on developing close relationships with the VCs in the Nordic countries as well as in the rest of Europe. As part of this ambition, STING Capital is actively building on its relationships with European venture capital investors in order for the fund to be able to help its portfolio companies with access to international investors in later financing rounds. STING Capital has succeeded in creating a reliable and large flow of potential investment projects thanks to coherent strategies and specific targets:

• The vast majority of STING Capital’s investment projects originate from STING – one of Sweden’s most successful backers of technology-intensive start-up companies. STING is based in Kista Science City and enjoys close ties with the Swedish Royal Institute of Technology (KTH) in Stockholm and with Karolinska Institutet, one of Europe’s largest medical universities. Approximately 40% of STING’s deal flow comes from academia.

• Business angels and venture capital funding are also important deal flow generators. • STING and STING Capital have strategic partnerships with a number of industrial

corporations, among others energy provider Fortum and telecom operator Tele 2 as well as with leading research institutes such as the Swedish Space Corporation, the Swedish Defence Research Agency and the Swedish Institute of Computer Science and Acreo. The long term goal with these partnerships is, among other things, to get access to advanced concepts based on unique research and technologies with international potential.


43

Fund name STING Capital

Country Sweden


Size (in EUR million) 8.2

Life of fund (max) 10 years



Sources of dealflow Mainly from the incubator STING, but also external cases

Management 1 full time investment manager

Who makes the investment decision? Independent investment committee with representatives from the different investor groups


Investment strategy (sector) Early stage technology cases, ICT, medtech, cleantech

Investment strategy (geography) Stockholm area


n/a

Number of investments 28 (includes initial as well as follow-on investments)

Investments made since inception (in EUR millions) 3.2 (as of June 2009)

% invested 44%

Average amount of the deal Max total inv. per company EUR 0.4 million

Nº companies bankrupt 1 company liquidated


Divested n/a


Follow -on fund? Maybe

Contact details Stockholm Innovation & Growth AB Mobile:+46 (0) 708 36 22 31 Growhouse, Isafjordsgatan 39 b, SE-164 40 Kista, Sweden KTH: Teknikringen 33 Webb: www.stockholminnovation.com Email: [email protected]

Early Growth Funds (UK) The UK Early Growth Funding programme (www.berr.gov.uk) was developed to encourage risk funding for start-ups and growth firms. The funds are a mixture of regional and national funds. The objective is to increase the availability of small amounts of risk capital of on average GBP 50,000 for innovative and knowledge intensive businesses, as well as for other growth businesses. Beneficiaries of the Early Growth Funds are all small businesses in the early stages of growth whether they be: start up or university spin outs, innovative and knowledge intensive businesses, smaller manufacturers needing fresh investment to pursue new opportunities, any early growth company. Each of the funds will be managed on a purely commercial basis with each fund manager responsible for their own application processes. Fund managers will make all investment decisions and will be looking to make a commercial return on investments. The funds will be able to make maximum initial investments of up to GBP 100,000. Most funds will require matched private sector investment to at least the same amount as Early Growth Fund investment. Although there are no excluded sectors, fund managers will make all investment decisions and are likely to take into account the potential commercial return and the make-up of their portfolio.


44

Enterprise Capital Funds (UK)

Enterprise Capital Funds (www.berr.gov.uk) have been established to address a market weakness in the provision of equity finance to SMEs. Government funding is used alongside private sector funds to establish funds that operate within the ‘equity gap’; targeting investments of up to GBP 2 m that have the potential to provide a good commercial return. The first five funds supported under the scheme were launched in 2006-2007 following a pathfinder competition. A further three funds were awarded ECF status in 2007 and have now been launched. A further fund was awarded ECF status in December and will be available later in the year.

As of 1 April 2008 responsibility for the management of ECFs along with BERR’s other equity funds and the Small Firms Loan Guarantee (SFLG) was transferred to a new body, Capital for Enterprise Limited (CfEL). This change will bring about improvements in the way the funds are managed and selected but does not change the nature of the funds or their policy objectives.

The third round competition for ECFs was announced alongside Budget 2008 and publication of Enterprise: Unlocking the UK’s talent (HMT, BERR March 2008) along with confirmation that further rounds are being launched up to 2010. 8 funds have been launched since 2006 and a further fund was awarded ECF status in December and will be available later in the year.

Fund name Enterprise Capital Funds

Country UK


Size (in EUR million) 34 (GBP 31.53 Million)





Management n/a

Who makes the investme nt decision? n/a


Investment strategy (sector) ECFs will not be permitted to invest in : synthetic fibres and yarns, motor vehicles, shipbuilding, steel, coal, transport, the production of agricultural and fisheries products

Investment strategy (geography) No specific geographical region


n/a

Number of investments 185 investments, 135 SMEs (as at 31/12/2006)


% invested n/a

Average amount of the deal (in EUR millions) A maximum level of GBP 2 million for each investment (first and subsequent investments)



Divested 0



Contact details n/a


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Finance Wales, operating the JEREMIE Fund (UK) Finance Wales (www.financewales.co.uk), formed in 2001 by the Welsh Assembly Government, is an independent company, providing commercial funding to Wales-based small to medium-sized enterprises with the potential to grow. Finance Wales invests private and public funds, including EU funds. Also, Finance Wales actively seeks co-investment in growth businesses, often working closely with banks, venture capitalists, the public sector and private individuals, such as xénos, the Wales Business Network, which is a subsidiary company of Finance Wales. Since its formation in 2001, Finance Wales has:

• Invested in more than 2,200 growth businesses • Leveraged GBP 332 million of additional investment • Directly invested GBP 130 million.

In 2008/2009 Finance Wales has:

• Invested GBP 26 million in Wales-based businesses • Completed 200 investments, including 97 syndicated investments • 20 early stage investments • 25% increase in investment levels compared to 2007/2008

Finance Wales manages now funds of GBP 270 million. Finance Wales’s impact on the Welsh economy exceeds a quarter of a billion pounds of direct and leveraged investment. Fund name Finance Wales JEREMIE fund (Co -investment sub -

fund)

Country UK (Wales)

Date of creat ion 2009





Sources of dealflow Angels, VCs

Management 3

Who makes the investment decision? Senior Manager



Investment strategy (geography) Wales



Investments made since inception (in EUR millions) 10.1 (GBP 9.4 million)

% invested n/a




Divested n/a


Follow -on fund? No

Contact detail s Nick Moon Tel: + 44 2920338168


46

Regional Venture Capital Funds (UK) Regional Venture Capital Funds (RVCFs) (www.berr.gov.uk) is an England-wide programme that provides risk capital finance in amounts up to GBP 500,000 to small and medium size enterprises (SMEs) who demonstrate growth potential. The funds, managed by experienced venture capital professionals, are commercially focused, making commercial returns. There is an acknowledged 'equity gap' at the lower end of the market. The government's intervention is designed to be the minimum necessary to stimulate private sector investors to provide small-scale risk finance for SMEs with growth potential. In each RVCF, the government, via the Enterprise Directorate, is investing for its own account. In addition, the Enterprise Directorate has secured funding from the European Investment Fund (EIF), the equity arm of the European Investment Bank, such that in most cases, approximately 50% of the funding will be from these two sources. Each fund manager then has to secure the remaining percentage from other private sector investors. RVCFs can invest up to GBP 250,000 in equity or debt into any qualifying business, be it a start-up, early stage, or needing development capital either for an acquisition or for organic growth. Fund name Region al Venture Capital Funds

Country UK


Size (in EUR million) 270 (GBP 250.5 millions)


Type of fund (Private, Public -private partne rship, Public)



Management n/a


Average timing of investment deci sion n/a

Investment strategy (sector) RVCFs cannot invest in: • land and property development, dealing and investment • provision of debt and equity finance and financial services in general • accountants and legal services • hotels • nursing and residential care homes • international motor transport • agriculture • forestry and timber production • horticulture

Investment strategy (geography) UK


n/a

Number of investments 346 firms till Sep 08

Investments made since inception (in EUR millions) 136.4 (GBP 126.7 million) till Sep 08

% invested 50.5%

Average amount of the deal Up to 0.54 (GBP 0,5 million)


Nº companies bankrupt/closed %deals 8.7%

Divested As at 30/06/06, a total of 5 exits, return of 22.75%

% deals / invested 1.4%


Contact details n/a


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Scottish Co-investment fund (UK) The Scottish Co-investment Fund (SCF) (www.scottish-enterprise.com/invest-scottish-co-investment-fund.htm) is a GBP 72 million equity investment fund established by Scottish Enterprise, partly funded by the European Regional Development Fund, to invest from GBP 100,000 to GBP 1 million in company finance deals of up to GBP 2 million.

Unlike a standard venture capital (VC) fund or a business angel, the SCF does not find and negotiate investment deals on its own; instead it forms contractual partnerships with active VC fund managers, business angels and business angel syndicates from the private sector (the SCF partner).

Only SCF partners can access this fund. An essential condition of the SCF is that applicants be able to demonstrate experience in early stages and more hands-on investments where company creation, expansion and business development skills are critical. The SCF partner finds the opportunity, negotiates the terms of the deal and offers to invest its own equity cash. If the opportunity needs more money than the SCF partner can provide, it can call on the SCF to co-invest alongside on equal terms. The SCF partner determines how much the SCF can invest in any new deal; however, the SCF cannot invest more than the SCF Partner.

Fund name Scottish co -investment fund

Country Scotland


Size (in EUR million) 72 (GBP 67 million)





Management n/a



Investment strategy (sector) Technology, creative businesses, electronics, manufacturing, pharmaceuticals, biotechnology

Investment strategy (geography) Scotland


n/a

Number of investments By January 2008 the fund committed a totals of GBP 30.7 million in 121 companies

Investments made since inception (in EUR millions) 33 (GBP 30.7 million) by January 2008

% inve sted 45.8%

Average amount of the deal Vary between GBP 0.1 million and GBP 2 million



Divested n/a



Cont act details [email protected]


48

Key rules

• The SCF investment in a company must not exceed GBP 1 million in one tranche or in multiple rounds.

• The total deal size should not exceed GBP 2 million (this will include any debt component).

• The investment must be at least matched pound for pound by the SCF partner. • The terms obtained must be pari-passu with the SCF partner. • Scottish Enterprise cannot hold in aggregate more than 29.9% of the voting rights of a

company. • Public money cannot account for more than 50% of the total risk capital funding in a

deal.

In order to be eligible for investment for the SCF, the investee company must:

• Be incorporated. • Have less than 250 employees. • Have net assets less than GBP 16 million. • Be doing a deal which involves the sale of an equity interest. • Be in an approved business sector. Restrictions apply to SSF investments in the

following sectors:

− dealing in land, commodities, futures, shares, securities and other financial instruments;

− banking, insurance, money lending, debt factoring, hire purchase financing and other financial activities;

− leasing or letting assets on hire; − providing legal or accountancy services; − property development; − farming, forestry or market gardening; − operating or managing hotels, nursing or residential care homes; and − retail sectors if there is a trade displacement issue with other local businesses;

• Fall within the EU definition of a Small to Medium Enterprise (SME). • Be predominantly located in Scotland – this is primarily measured by considering:

− location of main or head office; − location of majority of staff; − country of registration of the operating company; and − location of the majority of executive directors,

• To assess a company’s ‘centre of gravity’.

COMPENDIUM OF CO-INVESTMENT AND EARLY STAGE FUNDS IN EUROPE 2009

49

2.4 Others types of Funds BrainsToVentures (b-to-v) AG (CH) BrainsToVentures AG (b-to-v) (www.b-to-v.com) is a firm dedicated to serve private investors who invest their capital, network and know-how in fast growing companies, with the aim to create value within companies and to achieve attractive returns for investors. Through BrainsToVentures AG an extensive network of committed entrepreneurial private investors with backgrounds from various sectors invests in growth companies with promising and scalable business models. The ”vibrant network of investment intelligence” finances first-class ventures with excellent management teams and offers them access to experienced investors from the respective sector. With the intensive cooperation between investors and ventures BrainsToVentures AG has become one of the leading private investor networks in Europe since the year 2000, whose activities regularly exceed this region – today reaching the US and Asia. Fund name BrainsToVentures AG (b -to-v)

Country Switzerland

Date of crea tion 2000




SICAR

Sources of dealflow Network

Management 52 Angels + 11 b-to-v


Average timing of investment decision Some days/weeks for early stage and months for growth/buy-out

Investment strategy (sector) Opportunistic, any industry exact real estate & biotech

Investment strategy (geography) Worldwide, focus Europe

Conditions to be a co -investor Trusted b-to-v angel


Investments made since incep tion (in EUR millions) n/a

% invested n/a




Divested n/a





50

Crédit Agricole, managing the Crédit Agricole Priva te Equity Fund and Fonds France Investissement (FR) Crédit Agricole Private Equity (www.ca-privateequity.com/en) is the Crédit Agricole group's private equity arm. As an active shareholder in over 250 companies, Crédit Agricole Private Equity aims at becoming a leading multi-specialist player in the private equity market. Crédit Agricole Private Equity underlying goal is to provide investors with top tier quality management and investment returns while respecting the fundamental rules governing its business.

Crédit Agricole Private Equity covers a range of segments and business areas, including:

• LBO&Expansion: Crédit Agricole Private Equity seeks growth projects and acquisition financing opportunities and is involved in all types of buy-out/buy in deals.

• Venture Capital: Crédit Agricole Private Equity supports the development of young high-potential companies in the technology and life sciences sectors. Crédit Agricole Private Equity is one of France's three largest companies in this market.

• Mezzanine: Mezzanine provides mezzanine and quasi-equity financing. Its team supports investee companies in their growth plans.

• Renewable energy: first institutional FCPR fund dedicated to renewable energies.

• PPP Infrastructure: investment fund for infrastructures funded through public-private partnership contracts or operated under concessions.

• Special situations: this activity covers all possible difficulties that might be encountered by a company, including liquidity problems, conflicts between shareholders, financial or trading difficulties (underperformance).

• Co-investment: Created in 2008, this business takes minority stakes in buyouts alongside European and American funds.


51

Fund name Crédit Agricole Private Equity - FCPI Fund

management

Country France


Size (in EUR millions) 3 foreseen to be invested in 7/8 deals EUR 2 (CAPE) to EUR 1 co-investment pari passu relationship with the early stage investors



Public (FCPI) / Private (early stage investors)

Sources of dealflow Business angel groups, seed funds

Management CAPE Management committee composed of 7 senior investment directors

Who makes the investment decision? The CAPE management team makes the ultimate decision. However, BANs and seed funds are assumed to have done an extensive amount of due diligence on the projects before putting them forward for co-investment to CAPE.


Investment strategy (sector) Electronics, software, internet, telecom and health


Conditions to be a co -investo r

Co-investors from all over Europe. In the framework of this FCPI CAPE is looking to co-invest with BA and seed funds in order to get involved in smaller deals with early stage start-ups (which is one of the requirements of managing an FCPI). Co-investors are selected based on their team, structure and track record. Expected investment from angels EUR 250,000, with co-investment from CAPE of EUR 500,000 so circa EUR 750,000 per deal

Number of investments 5 (2 in France and 3 in Holland with seed funds Biogeneration and Soridec)


% invested 83%




Divested n/a


Follow -on fund? Based on annual programmes and can be renewed

Contact details www.ca-privateequity.com Antoine Colboc Email: [email protected] Tel : +33 (0)1 43 23 96 00


52

Fund name Fonds France Investissement

Country France


Size (in EUR millions) 0.35 invested/year, but with only a part of this being dedicated to co-investing with business angel funds

Life of fund (max) n/a


FCPR (Fund of Fund)


Management CDC Enterprises, 100% subsidiary of the Caisse des Dépots, portfolio management company authorized by the Financial Markets Authority



Investment strategy (sector) Either sector specific or more generic

Investment strategy (geo graphy) Primarily in French companies


The size of the investment fund must be minimum EUR 1.5 million (without the co-funding of France Investissement). The co-funding from France Investissement can reach up to 25% of the size of the fund. The investment fund must be managed by business angels



% invested n/a

Average amount of the deal (in EUR milli ons) n/a



Divested n/a



Contact details Véronique Jacq Email: [email protected]

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