Vækstfonden and the Venture Capital Market

Transcription

1 Vækstfonden and the Venture Capital Market Bjarne Henning Jensen April 8th, 2013 Bjarne Henning Jensen - bio Bjarne Henning Jensen Education 1985 M.Sc.(Chem.Eng.) 1987 B.Comm Ph.D. Key experiences Energy and Industry Business and projects development Technical R&D and Engineering General management Executive management Board experience Professional experience Vækstfonden, Investment Director, Partner Anhydro Group A/S, VP Technology/R&D Elsam Group A/S, Executive Director CEO Elsam Engineering COWI AS, Director, Energy & Industry Division BaneDanmark, General Manager, Sales & Marketing FLSmiljø as, General Manger, Process Technology Kemira Denmark A/S R&D engineer 9 February 2011 / page 2

2 Agenda 1. Vækstfonden overview 2. Current venture market outlook 3. Funding in DK and what investors look for 4. VF Venture process 5. Some examples 9. april 2013 / page 3 We are a government backed investment fund Since 1992 we have financed growth in over 4,200 Danish companies for more than DKK 10 billion. 9 April 2013 / page 4

3 Our Products 9. april 2013 / page 5 Vækstfonden - Investment Profile VC Vækstfonden 9. april 2013 / page 6

4 Vækstfonden is a significant part of Danish venture capital funding Annual venture capital investments in Danish start-ups with Danish and/ or foreign investors with Vækstfonden as investor or via funds 5-10 companies from the Innovation Environments Non-venture financed companies from the Innovation Environments 9. april 2013 / page 7 Agenda 1. Vækstfonden overview 2. Current venture market outlook 3. Funding in DK and what investors look for 4. VF Venture process 5. Some examples 9. april 2013 / page 8

5 Start-up companies drive economy growth / page The bad news 9. april 2013 / page10

6 Less capital raised in 2012 Denmark 9. april 2013 / page11 Number of investors has decreased 9. april 2013 / page12

7 Number of new investments picking up - slightly 9. april 2013 / page13 Venture capital development DK, Europe, US 9. april 2013 / page14

8 Tough battle for the capital 9. april 2013 / page15 Agenda 1. Vækstfonden overview 2. Current venture market outlook 3. Funding in DK and what investors look for 4. VF Venture process 5. Some examples 9. april 2013 / page16

9 Typical sources of funding in Denmark Company dev. Stage/value Proof-of-concept Proof-of-business Proof-of-scale Market share Funding need Pre-venture Private funding FFF Innovation funds Business angels Soft money Venture Venture capital 9. april 2013 / side 17 Investors look for quality opportunities Financials Exit Return Business potential Innovation Market Competition (and IP) Business platform Scalability Team 9. april 2013 / side 18

10 Management is a key factor! Study of key success factors for MIT start-ups Management User market Valuation Distribution Technology Financial markets Percentage of cases when this factor was one of the top one or two most influential factors in the success 9. april 2013 / side 19 and so is understanding your market Why new products fail: 1. Wrong estimates of demand size 45 % 2. Too high price 18 % 3. Manufacturing problems 12 % 4. Product defects 9 % 5. Competitive response 7 % 6. Poor marketing & promotion 5 % 7. Poor market entry timing 4 % Source: American Product Development Association 9. april 2013 / side 20

11 Excellent business planning Structure activities to reduce risks and increase value Risks Impact Likelihood Mitigation /activity Market risks Technical risks IP Other 9. april 2013 / side 21 Agenda 1. Vækstfonden overview 2. Current venture market outlook 3. Funding in DK and what investors look for 4. VF Venture process 5. Some examples 9. april 2013 / side 22

12 We invest across industries ICT Medtech Cleantech Other Games/ infotainment Diagnostic Renewable energy Industrial technology Mobility Therapeutic Energy storage Design and fashion Web 2.0 Devices Water treatment Misc. Security Waste management Misc. 9. april 2013 / side 23 Investment process VF Venture # per year - > Typically 6 months But may take longer 9. april 2013 / side 24

13 VC investment is a long haul 6 months 3-6 years 1-2 years Good reason for VC investors being critical they live with the decision for years 9. april 2013 / side 25 Agenda 1. Vækstfonden overview 2. Current venture market outlook 3. Funding in DK and what investors look for 4. VF Venture process 5. Some examples 9. april 2013 / side 26

14 Proxeon research in proteins Develops and markets technology to the proteomics industry research in proteins. Global supplier of instruments, software for analysis, and equipment to leading university laboratories and the pharmaceutical industry. OEM contracts with two large international players. Exit: Sold to US-based Thermo Fischer Scientific in April, april 2013 / side 27 Sense measuring blood pressure Advanced sensor technology for easy and precise blood pressure measurement. Continuously, non-interfering measurement: 24-hours measurement of blood pressure, which enables patients to be monitored in natural situations with negligible discomfort. Measurement of vascular compliance as well as arteriosclerosis. The sensor patch is disposable and made from environmentally friendly materials. First human PoC study completed Vækstfonden and Seed Capital have raised DKK 30 mio for the further development 9. april 2013 / side 28

15 Shark Solutions recycling of car glass Machines for separation of front windscreens sales to car breakers and glass recycle companies as well as setup and operation of plant for cleaning PVB. Shark is able to reuse over a million tonnes of laminated glass from Europe and North America. The glass separation machine is able to handle 20 tonnes of glass per hour. Produces 300 kilo PVB per hour. 9. april 2013 / side 29 Contact Bjarne Henning Jensen [email protected] Vækstfonden Strandvejen 104A, 3., DK-2900 Hellerup 9. april 2013 / side 30