understanding new sources of funding - pim de bokx - manchester march 2011
DESCRIPTION
2011 presentation for workshop on how business incubators can deal with the current funding markets for their startups. On this occasion Pim de Bokx received the International Business Incubation Champion Award from UKBI.TRANSCRIPT
© Pim de Bokx | [email protected] | http://www.linkedin.com/in/pimdebokx
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Understanding New Sources of Funding
Ing. Pim de Bokx BSc.General Director BViT innovation network
Pim de BokxPassionate for pioneers
© Pim de Bokx | [email protected] | http://www.linkedin.com/in/pimdebokx Manchester March 2011 | p.2
• Entrepreneurial since 14.• Several companies and organizations founded • Education in Landscape architecture and Business Science• Started BViT innovation network in 2000 to develop
network with ClusterIncubators• (past) Workgroup member European Incubator Forum• Chairman DIA (Dutch Incubation Association) • Huygens-XC |Expertise Centre Incubation• XLX: game based entrepreneurship training tools• Involved in international networks GNBI, EBN, etc.
Content
1. What Funding issues do you identify?2. How does the EU have impact on your
practice in funding?3. How do you support optimal funding?4. How can you/us improve startup funding?
© Pim de Bokx | [email protected] | http://www.linkedin.com/in/pimdebokx Manchester March 2011 | p.3
What Funding issues do you identify?
© Pim de Bokx | [email protected] | http://www.linkedin.com/in/pimdebokx Manchester March 2011 | p.4
Funding in Europe
Seed, Startup & 2d round:
€ 2bn
Venture Capital. Source EVCA
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Funding in Europe - Hurdles
• Acces to available private capital• Cross-border investment• Low ROI• High transaction costs• Low specialisation• Low quality of proposals and management• Difficulties with exits/trade• Most entrepreneurs not willing
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Funding in Europe – developments
positive r.t.b.s. negative
Government backing private capital
AIFMD: Alternative Investment Fund Managers Directive
Decreasing availability of Private Capital
Government guarantees & securities
Crowd-funding Initiatives New regulations (like Basel III)
EU access to finance programme under 2020
Removing obstacles for cross-border investments (accounting, tax, legal)
Slow economic growth in EU
Development of secondary markets
Decreasing Risk appetite
Decreasing subsidies
Financial Crisis
Low ROI
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How does EU impact your Funding related work?
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New types of Funding
New Types Old Types coming back
Micro finance & Meso finance (> 35K) More ‘bootstrapping’
Crowd Funding More tax incentives for R&D and investors
Bonds (subordinated debt)- Mezzanine (convert dep on time)- COCO bonds (convert dep on price)
Sales related:- structured finance- securisation- pre-sale payments
Guaranteed Loan (50-80%) Supplier credit
Secondary Market development Cooperatives?
Pre-commercial Innovative Procurement Personal liability loan
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How do you support optimal funding for incubatees?
© Pim de Bokx | [email protected] | http://www.linkedin.com/in/pimdebokx Manchester March 2011 | p.10
Funding in practice – samples
Zonnevloer Peers.me i-OpenerSolar powered heating Enterprise Community
based on new matching and messaging technologies
Real time Racing based on patent
Bootstrapping € 100.000
Informals & Bank€ 500.000
VC & Bank€ 4,5 mio
© Pim de Bokx | [email protected] | http://www.linkedin.com/in/pimdebokx Manchester March 2011 | p.11
Funding in pratice – incubator
Caballerofabriek ESA Business Incubation MCN incubator
Creative Industry High Tech Maritime
> 3 mnths free pre-incubation> (Guaranteed) Loans> Gov. supported Capital> Subsidies> Contracts> Bootstrapping> Cluster funding
> Product Development Grant> Guaranteed Loan> Trust.Investors (€ 100 mio)> ESA Investment Forum> Subsidy matching> Technical expertise (free)
> Startup loan> Launching customer> Dedicated investment fund (gov. Backed)> Bootstrapping with support from network
© Pim de Bokx | [email protected] | http://www.linkedin.com/in/pimdebokx Manchester March 2011 | p.12
How can you/us improve startup funding?
© Pim de Bokx | [email protected] | http://www.linkedin.com/in/pimdebokx Manchester March 2011 | p.13
Role of Business IncubatorIncubatee Investors System
Improved validation at entry
Risk Management Synchronize with investor process
Create endorsements Due diligence integrated in business incubation
Harmonize incubation process
Leverage BI-support with co-entrepreneurship
Expand mediation service by offering monitoring
Talk the language of investors
Quality of Management- HRM-Structuring operation-Cash & Risk Management
Find better ways to turn soft capital in venture capital
Position business incubation towards investors & policy makers
Financial Engineering
Create Synergy value through Clusters
© Pim de Bokx | [email protected] | http://www.linkedin.com/in/pimdebokx Manchester March 2011 | p.14
Monitoring ROI
Administration office
InvestorsEntrepreneurs /
managers Coach / accountants
Banks
Incubation as a service
Functionality of Online Platform
Stakeholders in process
Scenarios
Key ratios
Reporting
Valuation
Budget realizations
Cash Flow projections
Early warning system on KPI’s
Communication tools
Output
Historical data
User input
Model developer
Financial engine
© Pim de Bokx | [email protected] | http://www.linkedin.com/in/pimdebokx Manchester March 2011 | p.15
Statement
In a mature Business Incubation Industry, funding is managed for incubatees in accordance with practices at financial
institutions.
© Pim de Bokx | [email protected] | http://www.linkedin.com/in/pimdebokx Manchester March 2011 | p.16
Thank You for Your Participation
Pim de Bokx | [email protected] for pioneering entrepreneurship
Open for:- Sharing & Connecting
- Cooperation- Business
- Workshops & EventsContact: +31 654 247 268
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