#ficompass
Combining ESIF financial instruments and crowdfunding
Irene Schucht, Head of Strategy and Products, Investitionsbank Berlin, Germany
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• IBB is the business development bank of the Federal State of Berlin, an independent institution
incorporated under public law and under the control of the Federal Financial Supervisory Authority
(BaFin)
• Balance-sheet sum: EUR 17.7bn
• 630 employees
• IBB provides financial instruments for business
development, housing, climate protection and
infrastructure
• IBB focuses on supporting start-ups, SMEs and social housing companies with loans and
venture capital but also by offering grant programmes and advisory services
• IBB refinances itself on the money and capital markets (“AAA” by Fitch) and employs funds from
regional, national and EU public budgets
Berlin’s Public Regional Development Bank
Overview
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IBB is major actor implementing EU structural
and innovation policy in Berlin
SME-FundLoans / mezzanine
72 Mio. EUR
VC Fund
Tech & CreativeRisk capital
50 Mio. EUR
Pro FITGrants / loans
175 Mio. EUR
InternationalisationGrants
10 Mio. EUR
Berlin Innovativ(InnovFin )
Loans
70 Mio. EUR
Cluster and
network structures
Grants
12 Mio. EUR
IBB manages
389 m EUR EU-
funding, provides
co-financing and
leverages multiple
private funding
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IBB as pioneer of ERDF-FI among public banks
2014 – 2020
funding period
Pro FIT
SME-fund
VC-fund
2000 – 2006
funding period
2007 – 2013
funding period
∑ 419 m EUR
100 m EUR
144 m EUR
76 m EUR
∑ 216 m EUR
140 m EUR
28 m EUR
38 m EUR
∑ 66 m EUR
175 m EUR
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SME-fund Berlin
SME-fund
Module Start-up
Berlin Start withguarantee up to
500 TEUR
Direct loans
up to 250 TEUR
Modul
Micro-credit
Modul Growth
Syndicated loansup to 10 m EUR
Direct loans up to
250 TEUR
Mezzanine loans
up to 5 m EUR
Module
Green credits
Berlin Kredit with
energy efficiency
windowup to 10 m EUR
Priority axis „investments and start-ups“ Priority axis reduction of CO2-emissions
Micro-credits /
IBB MikroCrowdup to 25 TEUR
➢ More than 3.500 SMEs from Berlin have been financed
with around 200 m EUR by the SME-Fund since 2005
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How much?
Attractive interest rate irrespective
of credit rating
Fixed term of 6 years, up to 1 year
redemption free
Who? What?
Micro-credits from the SME-fund
Up to
€25,000
Businesses
Start-ups and
freelancers
SMEs
All sectors
Based in Berlin
+ Company acquisition
Investments
and working capital
Order prefinancing
Start-up costs
• IBB pioneer in developing micro-credits as part of public support schemes
• Long-standing experience, since 1999 ca. 3.000 micro-credits up to 25 TEUR
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Simplified
application
Loan
meeting
Micro-credits – simplified procedure
Up to
€25,000
Business start-ups
Short processing time
• Lean, un-bureaucratic application process (no business plan or liquidity planning necessary)
• Fast financing decisions based on quick-check-tool, focus: personal interview, entrepreneurship
• No equity or collateral needed
0.0
2.0
4.0
6.0
8.0
10.0
Professional qualification
Business skills Industry rating
(Credit rating)Business planning
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Micro-credits – breakdown
➢ 75 % Start-ups
➢ 55 % Businesses by women
➢ 19 % Businesses by people with a migrant background
➢ 1,5 % Defaults (share of loan volume) despite a cancellation rate of around 15 %
Retail20%
Manufacturing and business services
20%
Creative industries 12%
Tourism and catering9%
Energy7%
Other services7%
Transport6%
Health 5%
Others 14%
SectorsOthers
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IBB MikroCrowd
https://www.startnext.com/pages/ibbmikrocrowd
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About Startnext
• First German crowdfunding platform 2010
• Focus: Culture, Creative Industries, Food, Social Business
• Crowdfunding: Donation, Reward
• Starters from DACH region
• B-Corp-certified
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(Reward-based) Crowdfunding Principles
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Combination of microcredits and crowdfunding
• Start-up and innovation projects are tested in advance for their relevance on the market
• (Partial) financing through upfront revenues
• Marketing through dissemination via social media
Application Credit checkSignature loan
agreement
Combination
microcredit and
crowdfunding
Link (curation) on
partner page (IBB
MikroCrowd)
Create project
online
Advertise project
(market test)
Crowdfunding
successful
Loan disbursement
(max. 25k EUR)
Successfull
project / start-up
Funding payment
(min. 5k EUR)
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IBB MikroCrowd
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IBB MikroCrowd: example
• Powdy & Snatch (wb daily care GmbH) is 2nd winner of IBB-contest for social enterprises
• Powdy & Snatch offers innovative dental care for children without preservatives, without
artificially produced ingredients, with plastic-free packaging and would like to support sustainable
projects with part of the income
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Irene Schucht
Head of Strategy & Products
Investitionsbank Berlin
Bundesallee 210
10719 Berlin
Tel: 030 2125-4730
E-Mail: [email protected]
www.ibb.de
Thank you!
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#ficompass
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