EXTENDING THE SME VALUE CHAIN EXTENDING THE SME VALUE CHAIN EXTENDING THE SME VALUE CHAIN EXTENDING THE SME VALUE CHAIN

Financement de Capital des Entreprises Innovantes

Situation en France et en Allemagne- Perspectives européennes26 Juin 2007, Paris

Les financements offerts par le FEI

Matthias UmmenhoferHead ERP-EIF Dachfonds

This presentation was prepared by EIF. The information included in this presentation is based on figures available for May 2007. Any estimates and projections contained herein involve significant elements of subjective judgment and analysis, which may or may not be correct.

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EXTENDING THE SME VALUE CHAIN EXTENDING THE SME VALUE CHAIN EXTENDING THE SME VALUE CHAIN EXTENDING THE SME VALUE CHAIN

Table of contents

• EIF at a glance……………………………………………

• An active role in European venture capital………………

• New developments……………………………………….

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EIF at a glance

Aaa-rated European institution with MDB statusNeed to generate return on equity

EU specialised financial institution for SMEs, acting through:

•Venture Capital (fund-of-funds),•Guarantees for SME portfolios and financial engineering

AAA (Standard & Poor’s)

Aaa (Moody’s)AAA (Fitch)

MDB status 0% weighting

Geographic location

• Working in an “enlarged” union

• Subscribed capital: EUR 2bn (3bn by 2010)• EIB: 60.9 %• EU: 30 %• 29 Financial institutions: 9.1 %

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Resources and objectives

ERP-EIF

Dahlia SICAR S.R.

European Community

EUR 600m+ Capital increase(Approx. EUR 341m target under way)

EUR 4bn

Revolving

EUR 450m (MAP)

EUR 1.1bn (CIP)

Up to EUR 1bn

To be committed to venture capital funds and guarantees

in enlarged Europe

AND generate strong return on equity

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Under EIF management at 31 May 2007

EUR 2.7bn

EUR 2bn

New signatures in 2006

189 operation

s

EUR 11.1bn

GUARANTEES

EUR 15.2bnTOTAL

259 funds

EUR 4.1bnVENTURE CAPITAL

Vehicles

Total signatures

EUR 0.7bn

New signatures in 2007

EUR 0.25bn

EUR 0.19bn

EUR 0.44bn

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Primary Fund-of-Funds investor

As Primary FoFs investor:

• Active role in backing upemerging teams

• This allows us to be repeat and cornerstone investor in top quartile funds in Europe

Long-term relationship with best GPs in Europe

x100

2000 2005Through an investment in New Tech Venture Capital Fund, managed by Luxembourg-based Mangrove Capital Partners

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Dahlia: Pan-European Fund-of-Funds

• Joint initiative between EIF and Natixis Private Equity

• EIF pari passu equity co-investment of EUR 75m; Natixis equity investment of EUR 75m; Natixis loan facility EUR 150m

• Total fund size: EUR 300m

• Pan-European, generalist focus

• Paris-based

• Potential for significant synergies in linking up with a private PE player

Public Private Partnership for Progress

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NEOTEC: Spanish technology Fund-of-Funds

• Final closing June 2006 at EUR 183m (EIF sponsor with EUR 50m)

• Spanish technology fund (TMT, bio-tech and life sciences)

• EIF managed

• Madrid-based

• Deal flow to major tech and research centres in Spain

• Shared services centre in Luxembourg for risk management,IT (proprietary Fund-of-Funds system) and legal support

Tapping into future growth

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ERP-EIF Dachfonds: Fund-of-Funds with focus on Germany

• EUR 500m FoFs investing in specialised VC funds that focus on investments in early and development stage technology companies in Germany

• EIF managing on behalf of German Federal Ministry of Economics and Technology (BMWi) – dedicated EIF team

• ERP/BMWi committed EUR 250m; matched by a EUR 250m EIF co-investment; 5 year investment period

• Wider objective to help build sustainable VC infrastructure in Germany, using EIF’s know-how, expertise and pan-European network

• Started in January 2004 - committed EUR 280m in 9 Funds

A “VC Marshall Plan” for Germany

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New Products – Technology Transfer

• Several deals concluded in Europe• Links with major European research centres

Provider of innovative solutions to VC constraints

R&D Tech transfer / proof-of-concept Marketable product

«Licensing» Special Protection Vehicles

Virtual LABCreated by leading R&D

Centres

Potential exits for the

SPV projects

Licensing to corporation

Sale to corporation

Purchase / investment by other investors

IPO

Investment focus of TTA

«Technology» Intellectual Property «Prototype» Intellectual Property

«Spin-off» Special Protection Vehicles

«Hybrid» Special-Purpose Vehicles

Funding gapFunding: FP7 Funding: CIP

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Tech Transfer opportunities per region

Scandinavia & Benelux•Universities with track record in research commercialisation

•Working entrepreneurial ecosystems

•Multiple larger scale private and public technology transfer initiatives arising

France & Germany•Research base available but commercialisation still in its infancy

•Administrative/legislative hurdles

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UK & Ireland•Several tech transfer companies have emerged over the past years (IPgroup, Amphion, Angle, Biofusion, Imperial innovations, UMIP/MTI, …)

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4 Southern & Eastern EU•Limited history of technology transfer

•Research commercialisation initiatives arising, but lack of organisation, skills, critical mass and track record.

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Contact

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