Transcript Dias nummer 1 - Industrial Technologies 2012

Bridging the Valley
of Death
- Industrial Technologies 2012
by Ulla Brockenhuus-Schack
19.6.12
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Introduction
SEED Capital in brief
• The largest early stage venture fund in Denmark.
– Government pre-seed funding €8-9 million / year
– Traditional venture funds
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€ 240 million (DKK 1,8b) under management
70 portfolio companies
11 positive exits and 1 IPO
Attracted more than 320 million € (DKK 2,4b) to
portfolio companies over the last 7 years
• Team of 20 of which 14 investment professionals
with relevant domain knowledge
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The Challenge: Crossing
the valley of death
Investment landscape
Technology
creation
Market-Focused
Business and Product
development
Commercialization
Cash flow
Sales
Time
Valley of
Death
Typical
investors
Governement &
pre-seed
Seed & Business
angels
Public Sector
Venture Capital
Stock
Private Sector
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Innovation Incubators:
Goverment funded preseed investors
Innovation Incubators in Denmark
• 6 Innovation Incubators have annual budget
of €28m
• Purpose: Help universities and innovative
entrepreneurs to select and commercialize
high potential inventions and to assist them to
grow and get further funded
• Invest up to € 800.000 in a single company
applying traditional ‘venture capital methods’
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Innovation Incubator
Circle of life
Applied Science
New
Science
Taxes
Startups
Government funds to
Innovations Incubator
is repaid 10 times
Innovation
Incubator funding
Additional Capital
Additional capital
Growth
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The SEED Capital business
model
- in cooperation with DTU Symbion Innovation A/S
We work from research to venture
Research
Research
DTU
RISØ
KU / KU-life
ITU
AAU
SDU
AU
HS
GTS: i.e. Delta & Bioneer
Pre-seed
Venture
Capital
DTU Symbion Innovation
SEED Capital
Government financed pre-seed
funding
6 partners responsible for
DSI and 4 Venture Funds
Yearly investment budget of € 7m
(+50 mDKK)
Pre-emptive investment
rights from DSI
Up to € 0,8m (6 mDKK) per project
Up to € 9m (68 mDKK) per
project
Dedicated team of 10 Investment
Managers
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A unique selection process
Deal
Sourcing
to test team, IPR,
technology development,
market etc. and secures
time to establish
syndication for VC funding
Business Due
Diligence
Review
IM
investment
Deal
Sourcing
Business
Review
Due
Diligence
6-18 month “live”
Due Diligence
SEED
Investment
SEED
(option)
DTU Symbion Innovation
SEED Capital
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How we select investments
500 business
proposals
100+ meetings
12-15 DTU Symbion
Innovation investments
3-4 SEED Capital
investments
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Investment sizes
Private funding
Public funding
0,8 – 9 mio. €
40%
0,3 mio. €
72%
0,5 mio. €
Time
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Closely linked to Denmarks largest
Incubator - Accelerace
155 companies
emerged from
Accelerace
97% are still
active
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* - inkl. Gazellegrowth, Bio, Spin-
** - Survey from 2010
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Partners
Operational
Entrepreneurial
Executive
Investment
Consulting
Transaction
Board
Private Equity
Experience
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We are never better than our
organization
• Investment team
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One location
Domain knowledge
Clear goals and incentives
Investments management procedures well
established
– 12 module VC training program developed in-house
+ EVCA courses
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Strong international syndication
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Abbott US
Accel LN
Aravis CH
Astellas US/JA
BioFund FI
Captricorn B
Coloplast
Conduit UK
DeNovo US
EGJ DK
Faurecia F
Ferd N
InnFond
• Inventages CH
• IVS/Northcap
• Lundbeck
Foundation
• Merck Serono CH
• Navistar US
• Nestle CH
• Nordea Foundation
• Northzone
• Novartis Venture
• Novo SEED
• Novo Ventures DK
• Pferd N
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REW DE
Seventure FR
Solvay B
Sunstone
TMP US
Vecata
Vækstfonden
YasudaJP
• Business angels
(50+)
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Case:
• Technology removing NOx from diesel emission.
• Building on legislature now being passed in US
and EU on NOx emission control.
SEED Capital
Investment
2011
Partnership
with Faurecia
2004
Technological
foundation
developed at DTU
Innovation
Incubator
investment
2010
Partnership
with Navistar
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Results
DKK 2.4 bn Private Funding (9x)
700
Total 2005 - 2011
(2.400 mDKK)
600
7%
11%
0%
500
DKKm
400
2%
15%
25%
300
200
8%
100
32%
0
2005
Danish VC's
Business angels
Symbion Capital
2006
2007
2008
2009
2010
International investors
Other (Venture debt, NRE ao)
Innovationsmiljø (IM)
Note: Exluding funding to Symbion Capital portfolio worth 1 b DKK (primarily Evolva)
2011
Founder team
SEED Capital
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Documented strong performance
• DSI very strong performance compared to
other Innovation Incubators
• Outperforms other Innovation incubators on
capital attracted by a factor 9
• Shows highest return on investment
• From 2007 to 2010
– Portfolio turnover grew from € 110.000 to € 400.000
– Portfolio employees grew from 3 to 7
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Significant value has been built in notorious
difficult segment
Jan 2005- Juni 2011
(mDKK)
Antal
Cost
Proceed /
fair value
Gev./
Tab
11*
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79
+63
4
8
6
-2
73
99
5
-94
88
123
90
-33
Co’s with Funding from SEED
16
48
89
+41
Other active Co’s
49
104
104
0
65
151
192
+41
153
274
282
+8
Exits:
Sold Co’s w multipel >1x
Sold Co’s w multipel 0,5x-1x
Sold / closed Co’s w multiple <0,5x
Active Co’s:
Total
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Contact details
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Ulla Brockenhuus-Scahck
Managing Partner
SEED Capital Denmark
Diplomvej 381
DK-2800 Kgs. Lyngby
• T: (+45) 2082 8374
• [email protected]
Thank
You
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