Transcript IFC Venture Capital

IFC Venture Capital
Accelerating Technology Innovation for Emerging Markets
Spring 2014
Contents
IFC at a glance
IFC’s track record in tech ventures
Portfolio
The IFC advantage
Work with us
Team
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IFC: Part of the World Bank Group
IBRD
IDA
IFC
MIGA
ICSID
International
Bank for
Reconstruction
and
Development
International
Development
Association
International
Finance
Corporation
Multilateral
Investment
and
Guarantee
Agency
International
Center for
Settlement of
Investment
Disputes
Guarantees of
private sector
investment’s
noncommercial
risks
Conciliation
and
arbitration of
investment
disputes
Loans to
middle-income
and creditworthy lowincome
country
governments
Interest-free
loans and
grants to
governments
of poorest
countries
Solutions
in
private
sector
development
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IFC Overview
• IFC is the member of the World Bank Group focused on the private sector
• Founded in 1956 with 184 member countries
• Largest multilateral source of loan/equity financing in Emerging Markets
• Over $97 Billion invested since 1956
• AAA-rated by S&P and Moody’s
• Equity, quasi-equity, loans, risk management and local currency products
• Takes market risk with no sovereign guarantees
• Promoter of environmental, social, and corporate governance standards
• Resources and know-how of a global development bank with the flexibility of a merchant bank
• Holds equity in over 756 companies worldwide across the following sectors:
- Agriculture
- Manufacturing Service
- Infrastructure
- Telecoms, Media & Technology
- Financial Markets
- Health & Education
- Oil, Gas and Mining
• Holds $77.5 Billion in total assets on the balance sheet
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IFC’s Three Businesses
Investment
Services
Advisory
Services
Loans
Access to finance
Equity
Syndicated loans
Environmental and Social
sustainability
Trade finance
Investment Climate
Structured finance and
securitized products
Public-Private Partnerships
Infrastructure advise
Risk management products
Local currency financing
$18.3 billion invested in FY13,
$49.6 billion committed portfolio
Over $200 million in fee income
annually (FY13)
In USD as of 30 June 2013
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IFC Asset
Management
Company
Wholly-owned subsidiary
of IFC founded in 2009
Invests third-party capital
alongside IFC in a private
equity format
Allows equity investors to
benefit from IFC’s expertise
in achieving strong equity
returns as well as
development impact
$5.5 billion under management
(FY13)
IFC Invests across all Regions and Sectors
$18.3 billion invested in FY13
South Asia
9%
Financial
Markets
20%
Middle East
& North
Africa
11%
Trade
Finance
35%
Global
1%
Latin
America &
the
Caribbean
26%
Infrastructure
12%
Oil, Gas, &
Mining
2%
Telecom & IT
3%
East Asia &
the Pacific
16%
Funds
5%
Agribusiness
& Forestry
7%
Consumer &
Social
Services
9%
Manufacturing
7%
Europe &
Central Asia
18%
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SubSaharan
Africa
19%
IFC at a glance
IFC’s track record in tech ventures
Portfolio
IFC advantage
Work with us
Team
7
IFC Track Record in Technology Venture Investments
Accelerate High Impact Early Stage Innovation for Emerging Markets
Corporate Venture
Platform
Expanded
Cleantech
Cleantech
-Dedicated
cleantech VC
platform
established
IT Services
- Selective VC
investing in IT
services
- focus on tech
transfer and Asia
- Expanded into
Agribusiness and
Water
- Regional Expansion
into Africa, MENA,
LAC
- Focus on China
and India
- Expanded VC mandate
beyond cleantech to
priority sectors: ITenabled businesses,
education, smart
systems, healthcare
- Investing worldwide
- Explicit mandate to
invest into innovative
companies that deliver
technology transfer into
emerging markets.
TIMELINE (FY)
2004-08
2009-10
2011-12
2013/14 and onward
Cumulative # of
investments
18
32
49
62 (FY14 to date)
Total $ invested
$110M
$193M
$491M
$582M
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Strategic Sectors of Focus
Energy
Renewables and Generation
Energy Storage and efficiency
LED
E-commerce
Business2Business,
Business2Consumer
Consumer2Consumer
Industrial
Biotech
Environmentally friendly
Bioderived Chemicals/Fuels/Materials for
various applications
Agri-tech
Land management
Natural pesticides natural fertilizers
Cold chain logistics
Telemedicine, healthcare IT,
cost efficient innovative
devices for human Med-tech
health
Edu-tech
Smart
Systems
Smart grid,
Smart buildings
Embedded IT
Water-tech
Filtration & purification
Water conservation
Wastewater treatment
Waste
Recycling
Waste to
Energy
Telemedicine
Healthcare IT
Innovative devices for human health
Online education
Remote learning
Innovative learning models
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Recycling services
Waste treatment
Waste to fuel
IFC at a glance
IFC’s track record in tech ventures
Portfolio
IFC advantage
Work with us
Team
10
Active Portfolio of 21 Early Stage Deals ~$250m committed
Fluidic Energy
$7 MM Equity
CVentures
$8 MM Equity
Kaiima
$10 MM Equity…
World, 2014
Brazil, 2013
World, 2013
Tianren
Ecology
$8.5 MM Equity
……
China, 2013
QD Jason
$6 MM Equity
TPG ART
$25 MM Equity
……
Organica
$4 MM Equity
China, 2013
World, 2013
World, 2012
RenewGen
Ventures
$2.2 MM
Project equity
Sri Lanka, 2012
SINOGREEN
FUND
Ecolibrium
$1 MM Equity
Infuse Capital
$5 MM
Sinogreen
Fund
$20 MM Equity
Nereus Capital
$20 MM Equity
Kalkitech
$1.35 MM
Equity…
India, 2012
India, 2012
China, 2012
India, 2012
India, 2012
Microvast
$25 MM Equity
Sunpreme
Silicon
$25 MM Equity
Attero
Recycling
$5 MM Equity &
Convertible
Azure Power
$4.5 MM Equity,
$5.5 MM
Convertible, $1.84
MM Rights Issuance
China, 2011
China, 2011
India, 2010
India, 2010-2012
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Applied Solar
$10 MM debt,
$5MM Equity,
$3.3 MM Equity
India, 2010-2012
Husk Power
Systems
$0.4 MM
Convertible
India, 2010
Haitai
$9 MM Equity
China, 2011
Shuoren
Energy
$8 MM Equity
……
China, 2009
Snapshot of Portfolio Companies
Attero Recycling Private Limited (India) is a pioneer in the nascent domestic e-waste
recycling market that operations across the full spectrum of the e-waste recycling
activities.
Organica Water (Hungary) has developed and is deploying a next-generation wastewater
treatment solution, using plant roots, that treat and recycle wastewater in significantly less
space, using less energy, and generating less sludge than conventional treatment plants.
Microvast, Inc (China) is a growing research and technology driven company offering
advanced power solutions for applications including electric vehicles, electric bikes, and
power tools, as well as patented battery materials.
Fluidic Energy (USA) is a provider of energy storage solutions with significant operations in
Southeast Asia. The company supplies zinc-air batteries to support critical loads and backup
power applications worldwide. The company’s products include remote site management,
multi-year performance warranties and innovative financing terms.
Kaiima (Israel) is a plant breeding technology company that has developed an innovative
non-GMO technology platform. which promises to deliver yield improvements across a
variety of crops that reduce production costs, energy requirements and land use.
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IFC at a glance
IFC’s track record in tech ventures
Portfolio
IFC advantage
Work with us
Team
13
The IFC Advantage
Emerging Markets
• Decades of experience as the largest multilateral
source of equity financing in emerging markets.
Full Cycle Capital
Access
• As IFC’s corporate venture arm, we can leverage IFC
mainstream and seamlessly deliver financial products
according to company maturity.
Deep domain
expertise
• Deep technical knowledge and expertise across
sectors, with access to more than 4000 IFC specialists
worldwide.
Patient Capital
Global Network
• Looking at 5-7 years exits.
• With a global network across stakeholders, we can
introduce companies to co-investors, potential
clients, and other strategic partners.
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Leveraging IFC’s Global Reach
•
100+ country and regional offices worldwide, AAA credit rating
•
4,000+ staff (57% are based outside Washington DC)
Moscow
Almaty
Washington
Istanbul
New Dehli
Cairo
Mexico City
Hong Kong
Dakar
Port-of-Spain
Bogota
Nairobi
Sao Paulo
Johannesburg
Beunos Aires
IFC HQ/Hub Offices
IFC Operational Centers
IFC Country Offices
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We have a strong network of top rated venture funds in
Silicon Valley, Israel, China, India, and more, including…
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IFC at a glance
IFC’s track record in tech ventures
Portfolio
IFC advantage
Work with us
Team
17
What are we looking for?
What are we looking for?
Late venture and early growth companies with some revenue traction and limited
technology/business model risk
Global
Based in emerging market, or
Part1 with focus on tech transfer into emerging markets
Experienced management teams/entrepreneur
Prefer asset-light and scalable business models
Deal co-investors
terms
Tier-1
US$1-15 mm from IFC’s own account.
Series B-D rounds with size of US$5-30 mm
5-7 year exits
Exit opportunities through strategic/secondary sales
Minority ownership
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Investment Process: Over 500 qualified leads, ~ 5-10
investments per year
Concept
Review
• Client needs
determined
• Assessment of
project’s
impacts and
development
contributions
IC approval
Appraisal/Due
Negotiation
&
Diligence
Disclosure
• ID & initial
assessment of
business,
technical, legal
& enviro/social
opps and risks
• Investment
Committee
approval
• Appraisal
• Disclosure of
environmental
and social
information
• Policy
Committee
approval
• Complete
analysis of
opps and risks
• Opportunity
for public
comment
• Mandate
letter
• Negotiation
and agreement
of principal
terms
Commitment and
Disbursement
• Drafting &
negotiation of
legal
documents
• Board approval
• Signing of legal
documents
• Disbursement
Active
Portfolio
Management
• Hands on
involvement in
company
performance
and strategic
high growth
• Optional
follow-on
financial
products
according to
company
maturity
Streamlines process (~3 months) overseen by permanent investment committee
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IFC at a glance
IFC’s track record in tech ventures
Portfolio
IFC advantage
Work with us
Team
20
VC Team (DC, Beijing and Mumbai)
Peter Mockel, Senior Industry Specialist,
Washington, DC
Nikunj Jinsi, Global Head
Washington, DC
Ruzgar Barisik, Senior Investment Officer
Washington, DC
Hoi Ying So, Investment Officer,
Washington, DC
Pravan Malhotra, Principal Investment Officer
Mumbai, India
Sobhi Mahmassani, Assoc. Investment Officer,
Washington, DC
Sean Petersen, Senior Investment Officer
Washington, DC
Qinglong Meng, Investment Analyst
Beijing, China
Peter Cook, Senior Investment Officer
Washington, DC
Isabel Ramberg, Investment Analyst
Washington, DC
Xiaomin Mou, Investment Officer
Beijing, China
Nikhil Tambolkar, Investment Analyst
Mumbai, India
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Contact
Nikunj Jinsi
Global Head, Venture Capital
International Finance Corporation
Venture Capital (CTTVC)
2121 Pennsylvania Avenue, NW
Washington, DC 20433 USA
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