partnering for growth dtu symbion innovation and seed capital dtu 42435 entrepreneurship 2009
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Partnering for growth
DTU Symbion Innovation and SEED CapitalDTU 42435 Entrepreneurship 2009
Agenda• DK Venture overview• SEED Capital• Investment criteria• The process from idea to investment• After the investment – how do we work• An example – Amminex• A few cases more
Capital Return Benchmark Ladder
• Cash -2% inflation loss• Bonds/Obligationer 3-5%• Active trade Bonds/Obligationer 4-7%• Stocks/Aktier 5-8%• Active trade Stocks/Aktier 7-10%• Hedging 10-15%• Enterprises internal rate of return 12-18%• Private Equity/Venture Capital 20-25% (ATP 7½% of portfolio)
(Danica 72% of portfolio)
(Danica 18%% of portfolio)
The Venture Capital Industry
Public EquityPrivate Equity
Real EstateSecondariesMezzanineBuy OutVenture Capital
Pre-SeedSeedStart UpExpansion
Danish Venture Capital eco-systemDVCA (Danish Venture Capital Association)
– 250 Members
• Capital / Buy Out funds• VC’s (22)
– Life Science– ICT– Energy– Other
• Innovationsmiljøer (6)• Business Angles
Venture Capital Value Chain
University
Entrepreneur
Pre-Seed
Capital
Seed/
Start-up
Capital
Expansion
Capital
Exit
IPO
Trade sale
Idea Investment rounds
Proof of Concept
AcceleraceConnect Denmark
Gazelle Growth
Pre-Seed
Capital
Seed/
Start-up
Capital
Expansion
Capital
7 Government funded pre-seed investorsInvests 100 MDKK / yInnovationsmiljøer
The Venture Industry in Denmark
+20 Venture Capital companiesLocal and few large pan Nordic VC’sMore than 20 BDKK under management
DTU Symbion Innovation
Pre-Seed Capital
33 MDKK / y
40+ companies
10-12 investments/year1 – 4 MDKK/investmentGovernment funded
3-5 investments/year5-30 MDKK/investmentClassic VC Mostly privately fundedAlmost 1 BDKK under management
DTU Symbion Innovation and SEED Capital in brief
SEED Capital
530 MDKK
~20 companies
Cooperation with Leading Universities in the region
– DTU – Risø– KU - University of Copenhagen – ITU - IT UniversityOther Partners:– HS - The hospitals in Greater Copenhagen– Delta - GTS Institute– Bioneer - GTS Institute– SCION - Science park– Symbion - Science park and manager of support
programs
- Investment team
Partners
Life Science
ICT
Cleantech
29%17%
26%28%
Investment focus
Bio
Medtech
ICT – HW, SW
Cleantech and other
Since December 2004 a total funding of DKK 1.4 bn. Total Danish venture capital funding 2007 was DKK 2.5 bn.
We are very good at attracting Funding
Total 2005-2007
1.369
0
100
200
300
400
500
600
2005 2006 2007
DK
Km
Other private SEED CapitalSymbion Capital Innovationsmiljø (IM)
437 422
517
Strong international syndicationSelected syndication partners :
• Accel, US
• DeNovo Ventures, US
• TMP, US
• Conduit, UK
• Yasusida, JP
• Solvey, B
• Ferd, N
• Novo Ventures
• Novo SEED
• IVS/Northcap
• Vecata,
• Aravis
• Novartis Venture
• Astellas
• APIDS
• Vækstfonden
• Business Angels (30+)
• Northzone, N,DK
• BioFund Ventures, Fi
• InnFond/Inventures
• Coloplast
• Krones AG, D
• iXcore, F
• Malmøhus Invest, S
• Lumitec, S
• Sarsia Innovation, N
• BioVision
• Syddansk Innovation
Investment criteria
Management team with good track record/reputationRelevant and complimentary industrial backgroundsStrong and operational board / investor base
Documented unmet need / “true customer pain”Tangible / well definedUSD 250m+ market
Breakthrough and proprietary Sustainable competitive edgeDanish centre of competence
Focused, coherent and scalableRelevant / realistic in relation to market dev. and funding
SEED investment can be defendedMultiple exit options /clear “better owner”
Market
Technology
People
Business Model
Exit
Market
• Market (A big puzzle)• Value Chain• Market Size• Customer Segments• Competition
Investment criteria
People
Technology
SalesManagement
Support
Investment criteria
Investment Process• Screening/deal flow 200/y
- Advising
• Detailed investigation 36/y- Business Plan Assessment- Market analysis- IPR analysis- Negotiation of Terms
• Investments 12/y
• Hands on approach– Board Member– Business Development– Organization Development– Fundraising
• Exit after 6-8 years
Post Investment
Hydrogen storage technology. Safe and efficient storage in solid form.
DTU founder team
Pre-Seed investment
Of which two joined the company as employees
In 2005 by DTU Innovation/SEED Capital
Post Investment Two additional investment rounds by SEED Capital and 3 International VCs
Asic’s for microphones use in mobile phones, hand-set’s etc. Enable digital microphones and adding new features
Pre-Seed investment In 2003 by Symbion/SEED Capital, a Business Angel and Vækstfonden
Post Investment
Achievements
Few internal investment rounds
Pilot Customers
Exit Sold to Analog Devices for 112-159 MDKK
Portfolio examples
High efficient power supplies. 50% lower heat dissipation/energy loss.
Pre-Seed investment 2008 by SEED Capital and DTU
Post Investment Build Board, Initializing fundraising
Achievements Pilot Customers
Portfolio examples
Q & A
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