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 2
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 Loans to middle-income and creditworthy lowincome country governments Interest-free loans and grants to governments of poorest countries Solutions in private sector development Guarantees of private sector investment s noncommercial risks Conciliation and arbitration of investment disputes 3
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 - Financial Markets - Manufacturing Service - Health & Education - Infrastructure - Oil, Gas and Mining - Telecoms, Media & Technology Holds $77.5 Billion in total assets on the balance sheet 4
IFC s Three Businesses Investment Services Advisory Services IFCAsset Management Company Loans Equity Syndicated loans Trade finance Structured finance and securitized products Risk management products Local currency financing Access to finance Environmental and Social sustainability Investment Climate Public-Private Partnerships Infrastructure advise 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 $18.3 billion invested in FY13, $49.6 billion committed portfolio In USD as of 30 June 2013 Over $200 million in fee income annually (FY13) $5.5 billion under management (FY13) 5
IFC Invests across all Regions and Sectors $18.3 billion invested in FY13 Trade Finance 35% Financial Markets 20% Middle East & North Africa 11% South Asia 9% Global 1% Latin America & the Caribbean 26% Infrastructure 12% Oil, Gas, & Mining 2% East Asia & the Pacific 16% Telecom & IT 3% Funds 5% Agribusiness & Forestry 7% Manufacturing 7% Consumer & Social Services 9% Europe & Central Asia 18% Sub- Saharan Africa 19% 6
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 Cleantech Expanded Cleantech - Expanded into Agribusiness and Water - Expanded VC mandate beyond cleantech to priority sectors: ITenabled businesses, education, smart systems, healthcare - Investing worldwide IT Services - Selective VC investing in IT services -Dedicated cleantech VC platform established - Focus on China and India - Regional Expansion into Africa, MENA, LAC - Explicit mandate to invest into innovative companies that deliver technology transfer into emerging markets. - focus on tech transfer and Asia 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 8
Strategic Sectors of Focus Energy E-commerce Smart Systems Renewables and Generation Energy Storage and efficiency LED Business2Business, Business2Consumer Consumer2Consumer Smart grid, Smart buildings Embedded IT Industrial Biotech Agri-tech Water-tech Environmentally friendly Bioderived Chemicals/Fuels/Materials for various applications Telemedicine, healthcare IT, cost efficient innovative devices for human Med-tech health Telemedicine Healthcare IT Innovative devices for human health Land management Natural pesticides natural fertilizers Cold chain logistics Edu-tech Online education Remote learning Innovative learning models Filtration & purification Water conservation Wastewater treatment Recycling services Waste treatment Waste to fuel Waste Recycling Waste to Energy 9
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 TPG ART Fluidic Energy CVentures Kaiima Tianren QD Jason $25 MM Equity Organica $7 MM Equity $8 MM Equity $10 MM Equity Ecology $6 MM Equity $4 MM Equity $8.5 MM Equity World, 2014 Brazil, 2013 World, 2013 China, 2013 China, 2013 World, 2013 World, 2012 SINOGREEN FUND Sinogreen Ecolibrium Nereus Capital Infuse Capital Kalkitech RenewGen Fund Haitai $1 MM Equity $20 MM Equity $5 MM $1.35 MM Ventures $20 MM Equity $9 MM Equity Equity $2.2 MM Project equity India, 2012 India, 2012 China, 2012 India, 2012 India, 2012 Sri Lanka, 2012 China, 2011 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 Applied Solar $10 MM debt, $5MM Equity, $3.3 MM Equity Husk Power Systems $0.4 MM Convertible Shuoren Energy $8 MM Equity China, 2011 China, 2011 India, 2010 India, 2010-2012 India, 2010-2012 India, 2010 China, 2009 11
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. 12
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. FullCycle Capital Access Deep domain expertise AsIFC s corporate venture arm, we canleverage IFC mainstream and seamlessly deliver financial products according to company maturity. Deep technical knowledge and expertise across sectors, with access to more than 4000 IFC specialists worldwide. Patient Capital Looking at 5-7 years exits. Global Network With a global network across stakeholders, we can introduce companies to co-investors, potential clients, and other strategic partners. 14
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 15
We have a strong network of top rated venture funds in Silicon Valley, Israel, China, India, and more, including 16
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 Tier-1 Deal co-investors terms 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 18
Investment Process: Over 500 qualified leads, ~ 5-10 investments per year Concept Review IC approval Appraisal/Due Negotiation & Diligence Disclosure Commitment and Disbursement Active Portfolio Management Client needs determined Assessment of project s impacts and development contributions Policy Committee approval Mandate letter ID & initial assessment of business, technical, legal & enviro/social opps and risks Appraisal Complete analysis of opps and risks Negotiation and agreement of principal terms Investment Committee approval Disclosure of environmental and social information Opportunity for public comment Drafting & negotiation of legal documents Board approval Signing of legal documents Disbursement 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 19
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) Nikunj Jinsi, Global Head Washington, DC Peter Mockel, Senior Industry Specialist, 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 21
Contact Nikunj Jinsi Global Head, Venture Capital International Finance Corporation Venture Capital (CTTVC) 2121 Pennsylvania Avenue, NW Washington, DC 20433 USA 22