Brightlands Maastricht Health Campus. Funding possibilities for innovative start-ups

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1 Brightlands Maastricht Health Campus Funding possibilities for innovative start-ups

2 Financing your start-up Major challenges faced by entrepreneurs to raise capital: To many people, starting a business may be a bit overwhelming. Entrepreneurs not only need to define their value proposition but they must also setup operations, offer economically viable solutions, gain credibility, build a customer base and generate revenues. Although entrepreneurs face a number of challenges when they commercialize their business ideas, raising startup capital to fund their business efforts is the most challenging of all. Launching a new business requires much skill and preparation. Entrepreneurs may not have the resources to raise capital in order to market their new business ideas; therefore, some great business ideas never become commercialized. This is a common dilemma that many entrepreneurs face. As a matter of fact, one of the major reasons to decline a funding application is the poor experience of the management team in business and entrepreneurship. Often entrepreneurs have poor knowledge of the market, and lack the necessary experience to make a proper financial forecast and to translate this into a convincing business plan Also, before a new business owner can raise capital for their startup, they must first identify the different sources of funding, find one that is most compatible with their needs, and then meet the given criteria of the investor or bank. These crucial steps can mean the difference between having the opportunity to successfully raise capital and leaving their new business ideas behind. Importance of writing a good business plan: Business planning and having a clear strategy is critical when starting a new start-up company. The business plan is a decision-making tool for investors. The development of a comprehensive business plan provides important information on the financial resources needed, the timelines, the work to be done, the competitive environment, commercial opportunity and most importantly the potential to develop a profitable business. By putting statistics, facts, figures and detailed plans in writing, a new business has a better chance of attracting investors to provide the capital needed for getting started. Brightlands increases the likelihood on a successful funding round: Brightlands Maastricht Health Campus is well connected to funding organizations and venture capital firms in the region of Limburg, and has an excellent connections with both national and international venture capitalist firms. For resident companies, our premises is to act as a committed broker for the client and to provide support in planning, fine tuning and optimizing the business plan and obtaining adequate funding to set up and grow the business. Our team of business developers can help you with: Providing input with drafting financial and business plan. Prepare your company for a new funding round with a convincing and inspiring presentation. Applying for funding, preparing for business meetings with potential financiers/licensees and providing access to relevant investors 2

3 Brightlands funding partners Idea & Concept Pre-Seed Prototype Seed & Start-up Product First Real VC Markets & Customers Mezzanine, Follow-on Regional Maastricht Valorisation Center (Inter)National Excellent connections of Brightlands with both national and international venture capital firms Excellent connections of Brightlands with Asian investors, governments and industry 3

4 Limburg Economic Development MKB Roadmaps Early Stage of Pre-Seed Subsidy Max. Amount Acceptance Rate None (it being a subsidy) One-time Investment + Coaching Written application form (4 pages) describing the project. Apply for early phase start-ups in the field of Life Sciences Check website for deadline One program every year N.A, the 10 best ideas each year receive the subsidy See: 4

5 Limburg Business Development Fund Proof of Principle Max. Amount Pre-Seed Subsidy to , max. 35% of the total costs, other 65% has to be funded by another party and can be co-financed in kind None (it being a subsidy) One-time subsidy Eligible for funding only the following items: - for staff - Material costs - Depreciation - for the use of equipment - Cost of third-party deployment Acceptance Rate N.A (fund established in 2015) See: 5

6 Maastricht Valorisation Center Pre-Seed Fund Max. Amount Pre-Seed Loan to , available in 2 tranches 6% interest and repayment Repayment should have started 4 years after the date the loan has been awarded; complete payoff of the loan including interest within 6 years after award date. The Pre-Seed Fund is available for starting entrepreneurs. Starting entrepreneurs that have not yet registered their company at the Chamber of Commerce, but are preparing the start-up of a company, also qualify for application for the Pre-Seed Fund. The target group of starting entrepreneurs is not limited to those who are employed at the knowledge institutions. The starting entrepreneur holds responsibility for filing detailed expense reports. Pre-Seed funding is a personal, interest-bearing loan. In case no company is founded, complete or partial quittance of the loan is possible Acceptance Rate Resulted in 4 startups in 2014, and expecting to result into 5 startups in 2015 See the website of Maastricht Valorisation Center 6

7 Limburg Economic Development Funding Pre-Seed Subsidy Max. Amount Acceptance Rate None (it being a subsidy) One-time Investment Participation in form of a pitch is obligatory, the pitches are organized 3-4 times a year. for subsidy: Plan for the funding Idea contributes to society Revenue sources Business plan Vision Subsidy is never for individual startups (mostly startups which have connections with an public institute) Approximately 50% of the startups that give a pitch are allocated funding See: 7

8 Limburg Business Development Fund Proof of Concept Max. Amount Pre-Seed Loan to , per application Requires an investment of at least 10% of another party (being non-government) Market interest rate and repayment Repayment of the loan within 1 to 6 years The funding should result in one of the following items: The product or service A business A business plan Intellectual property Acceptance Rate N.A (fund established in 2015) See: 8

9 Maastricht Valorisation Center Proof of Concept Fund Max. Amount Proof of Concept (PoC) Loan , available in 3 tranches 6% interest and repayment Repayment should have started 5 years after the date the loan has been awarded; complete payoff of the loan including interest within 7 years after award date. Financial support is available for starters, SME entrepre neurs and societal organizations, but not for knowledge institutions. The concept or company involved is linked to valorization of knowledge or ideas originating at the knowledge institutions. A study design or description of the proof of concept study will be provided by the company or organization upon request. A study report including a motivated conclusion about technical feasibility of the concept must be provided by the company or organization. Acceptance Rate Resulted in 4 startups in 2014, and expecting to result into 5 startups in 2015 See the website of Maastricht Valorisation Center 9

10 Limburg Business Development Fund Seed Max. Amount Seed Equity to , can be complemented by other parties Requires an investment of at least 10% of another party (being non-government) Shares and dividends Money is divided in tranches A solid business plan Acceptance Rate N.A (fund established in 2015) See: 10

11 Chemelot Ventures Early to late stage investments Equity Max. Amount Acceptance Rate Shares and dividends Money is divided in milestone-based tranches Good business case Strong patent protection and freedom to operate Strong unique value proposition in the field of biochemical & biomaterials, regenerative medicine & drug delivery and diagnostics & analysis 600 applications last year, 4 applications were granted See: 11

12 Rabobank Teckle Start-Up Initiative Max. Amount Seed to Startup phase 9 12 months before market introduction of the product/ service Loan Depending on the case - Market interest rate - Depending on phase of startup and its risks - Variable - Repayment Repayments depends on funding needs, life cycle and requirements from other external parties such as RVO (Rijksoverheid voor Ondernemend Nederland) Rabobank Teckle focuses on the quality of the entrepreneur, the business itself, the business plan, the product, and the Marketability of the product Acceptance Rate N.A See: 12

13 Other funding possibilities Subsidies Crowdfunding Accelerators Early / Late Stage VC 13

14 Contact our experts Brightlands Maastricht Health Campus Our team of business developers can help you with: Providing input with drafting financial and business plan. Prepare your company for a new funding round with a convincing and inspiring presentation. Applying for funding, preparing for business meetings with potential financiers/licensees and providing access to relevant investors Nico Stam Chief Business Officer +31 (0) nico.stam@brightlands.com Jos Wetzels Director Business Development +31 (0) jos.wetzels@brightlands.com Fabien Boulle Business Developer +31 (0) fabien.boulle@brightlands.com Sunny H.Y. Jiang Director Asia +31 (0) sunny.jiang@brightlands.com 14