Venture Capital Fund Experience in Basilicata Region
Speaker: Vito Pinto
Ljubljana,
4
th
October 2017
RISK CAPITAL AND
VENTURE CAPITAL FUND
IN BASILICATA REGION
Sviluppo Basilicata’s experiences in Risk Capital Fund
is the Local Development Agency of Basilicata Region.
gained experience in
Risk Capital
for SMES, by
managing, in the last 20 years, 3 Risk Capital Funds.
was one of the the first Development Agencies to
manage a risk capital measure
in South Italy, using
public resources. Two Funds were part of two
Global
Grants
directly
allocated by European Commission
to Sviluppo Basilicata.
Sviluppo Basilicata
Sviluppo Basilicata’s experiences in Risk Capital Fund
The risk capital measure takes the form of participation into
SMES.
Sviluppo Basilicata injects capital in exchange for shares in
the business.
The Fund may invest in enterprises active in nearly all
sectors of the economy, (not only in innovative
enterprises) settled in Basilicata Region.
Principally
PRIVATE EQUITY INVESTMENTS
(enterprises
already operating, with a long experience).
Sviluppo Basilicata’s experiences in Risk Capital Fund
* 3 equity e 1 quasi equity
AT THE END OF DISINVESTMENT PERIOD:
AT THE END OF DISINVESTMENT PERIOD:
The financial resources obtained by «exit» were used to set up a
new risk capital fund:
3
write off,
3 forced execution of the outstanding debt;
17 exit (with a capital gain)
THE REGIONAL VENTURE CAPITAL FUND
THE REGIONAL VENTURE CAPITAL FUND
Sviluppo Basilicata’s experiences in Risk Capital Fund
Regional Venture Capital Fund Basilicata: general information
scheme notified to the European Commission
the Fund plafond is € 8,000,000
resources used come from the reuse of previous interventions
at the same time
(revolving fund)
.
Sviluppo Basilicata S.p.A. is the subject appointed to manage
Fund
REGIONAL VENTURE CAPITAL FUND BASILICATA
REGIONAL VENTURE CAPITAL FUND BASILICATA
The purpose of the Venture Capital Fund is to encourage the
creation and development of SMEs located or planning to
locate in Basilicata (headquarters).
SMEs
with innovative business ideas and/or growth
programs
in compliance with existing regulations
not listed on regulated markets
operating in the sectors admitted by regulation
PURPOSE
PURPOSE
RECIPIENTS
RECIPIENTS
Regional Venture Capital Fund Basilicata: purposes and recipients
The Venture Capital measure takes the form of participation
into SMEs.
Sviluppo Basilicata injects capital in exchange for shares in
the business, according to the Pre-money evaluation.
Equity participation is:
•
a
minority
holding
(maximum of 49% of
the share capital of company);
•
temporary
(maximum 7 years)
Regional Venture Capital Fund Basilicata investment
The Fund may invest above all in innovative enterprise, in
innovative sector, characterized by high level of risk but
potentially economically viable, (enterprise in
Early Stage
or
Expansion
phase)
These are enterprises in which institutional investors (banks
and private investors) would invest with difficulty.
This financial instrument could be very suitable for
SMEs operanting in CCI sector.
Regional Venture Capital Fund Basilicata investment
Assistance from the Fund is limited to
70% of the
investment.
The remaining
30%
must be carried by one or more co-
investors, of which:
–
at least
15% by co-investors outside
the company
(crowfunding….)
–
maximum
15% from those already members
of
the SMEs beneficiaries of the intervention
Regional Venture Capital Fund Basilicata: co-investors
CO-INVESTORS
CO-INVESTORS
The Fund can operate only in cooperation with one or more
private co-investors
(other funds, business angels, private
investors, members of the same company).
For the investment in equity there is an asymmetrical
distribution of risks and revenues
:
CO-INVESTORS BENEFITS
CO-INVESTORS BENEFITS
additional premium in case of disinvestment (exit) very
profitable
mitigating losses in case of disinvestment (exit) negative
Regional Venture Capital Fund Basilicata: co-investors
WAY OUT
WAY OUT
sale of shares to shareholders of the subsidiary company
sale of units / shares to other institutional investors
sale of units / shares to third parties
sale through a public offering, including the listing of the
Company on regulated markets (IPO - Initial Public
Offering)
Regional
Venture Capital Fund Basilicata: disinvestment
GOVERNANCE
GOVERNANCE
participation will be governed by special shareholders'
agreements and contracts will be signed between Sviluppo
Basilicata, co-investors and shareholders of SMEs, which will
govern in particular:
obligations of investors and shareholders
clauses to ensure the divestment in companies
rights to appoint members of the Board and the
Board of Auditors
Regional
Venture Capital Fund Basilicata: governance
Regional
Venture Capital Fund Basilicata: Final outcomes
FINAL OUTCOMES
9
9
Investments:
2
2
Expansion
7
7
Early Stage
RESOURCES INVESTED:
€ 4.080.000
€ 4.080.000
By Fund:
€ 2.740.000
€ 2.740.000
By private investor:
€ 1.340.000
€ 1.340.000
Regional
Venture Capital Fund Basilicata: Final outcomes
Regional
Venture Capital Fund Basilicata portfolio
www.biomassapp.it
www.domecsolutions.com
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Regional
Venture Capital Fund Basilicata portfolio
Thank you for your kind attention
Sviluppo Basilicata has developed significant experience in managing Risk Capital Funds for SMEs in the Basilicata Region over the past two decades. They have successfully invested in various enterprises, leading to positive exits and the establishment of a new Regional Venture Capital Fund. The Regional Venture Capital Fund aims to support businesses in the region with a plafond of €8,000,000, utilizing resources from previous interventions in a revolving fund model.
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Presentation Transcript
RISK CAPITAL AND VENTURE CAPITAL FUND IN BASILICATA REGION Ljubljana, 4th October 2017 Speaker: Vito Pinto
Sviluppo Basilicatas experiences in Risk Capital Fund Sviluppo Basilicata is the Local Development Agency of Basilicata Region. gained experience in Risk Capital for SMES, by managing, in the last 20 years, 3 Risk Capital Funds. was one of the the first Development Agencies to manage a risk capital measure in South Italy, using public resources. Two Funds were part of two Global Grants directly allocated by European Commission to Sviluppo Basilicata.
Sviluppo Basilicatas experiences in Risk Capital Fund The risk capital measure takes the form of participation into SMES. Sviluppo Basilicata injects capital in exchange for shares in the business. The Fund may invest in enterprises active in nearly all sectors of the economy, (not only in innovative enterprises) settled in Basilicata Region. Principally PRIVATE EQUITY INVESTMENTS (enterprises already operating, with a long experience).
Sviluppo Basilicatas experiences in Risk Capital Fund NUMBER OF SUPPORTED ENTERPRISE S TOTAL RISK CAPITAL FUND DATE INVESTMENT S AMOUNT Global Grant 1989/1993 (FESR) 1996 17 5,187,000 PIC PMI Grant (FESR) 2001 2 1,136,000 Global Grant 1994/1999 (FESR) 2003 4* 2,400,000 Total 23 8,763,000 * 3 equity e 1 quasi equity
Sviluppo Basilicatas experiences in Risk Capital Fund AT THE END OF DISINVESTMENT PERIOD: 3 write off, 3 forced execution of the outstanding debt; 17 exit (with a capital gain) The financial resources obtained by exit were used to set up a new risk capital fund: THE REGIONAL VENTURE CAPITAL FUND
Regional Venture Capital Fund Basilicata: general information REGIONAL VENTURE CAPITAL FUND BASILICATA scheme notified to the European Commission the Fund plafond is 8,000,000 resources used come from the reuse of previous interventions at the same time (revolving fund). Sviluppo Basilicata S.p.A. is the subject appointed to manage Fund
Regional Venture Capital Fund Basilicata: purposes and recipients PURPOSE The purpose of the Venture Capital Fund is to encourage the creation and development of SMEs located or planning to locate in Basilicata (headquarters). RECIPIENTS SMEswith programs innovative business ideas and/or growth in compliance with existing regulations not listed on regulated markets operating in the sectors admitted by regulation
Regional Venture Capital Fund Basilicata investment The Venture Capital measure takes the form of participation into SMEs. Sviluppo Basilicata injects capital in exchange for shares in the business, according to the Pre-money evaluation. Equity participation is: a minority holding the share capital of company); temporary(maximum 7 years) (maximum of 49% of
Regional Venture Capital Fund Basilicata investment The Fund may invest above all in innovative enterprise, in innovative sector, characterized by high level of risk but potentially economically viable, (enterprise in Early Stage or Expansion phase) These are enterprises in which institutional investors (banks and private investors) would invest with difficulty. This financial instrument could be very suitable for SMEs operanting in CCI sector.
Regional Venture Capital Fund Basilicata: co-investors CO-INVESTORS The Fund can operate only in cooperation with one or more private co-investors (other funds, business angels, private investors, members of the same company). Assistance investment. from the Fund is limited to 70% of the The remaining 30% must be carried by one or more co- investors, of which: at least 15% by co-investors outside the company (crowfunding .) maximum 15% from those already members of the SMEs beneficiaries of the intervention
Regional Venture Capital Fund Basilicata: co-investors CO-INVESTORS BENEFITS For distribution of risks and revenues: the investment in equity there is an asymmetrical additional premium in case of disinvestment (exit) very profitable mitigating losses in case of disinvestment (exit) negative
Regional Venture Capital Fund Basilicata: disinvestment WAY OUT sale of shares to shareholders of the subsidiary company sale of units / shares to other institutional investors sale of units / shares to third parties sale through a public offering, including the listing of the Company on regulated markets Offering) (IPO - Initial Public
Regional Venture Capital Fund Basilicata: governance GOVERNANCE participation agreements and contracts will be signed between Sviluppo Basilicata, co-investors and shareholders of SMEs, which will govern in particular: will be governed by special shareholders' obligations of investors and shareholders clauses to ensure the divestment in companies rights to appoint members of the Board and the Board of Auditors
Regional Venture Capital Fund Basilicata: Final outcomes FINAL OUTCOMES Applications submitted 60 Applications accepted for financing 9
Regional Venture Capital Fund Basilicata: Final outcomes 9 Investments: 2 Expansion 7 Early Stage RESOURCES INVESTED: 4.080.000 2.740.000 By Fund: By private investor: 1.340.000 ICT, Fintech, e-commerce for renewable energy, web platform for young soccer player, for educational tools, tourism, mobility, food, real estate crowdfunding) Economic sector
Regional Venture Capital Fund Basilicata portfolio Equity participation of Sviluppo Basilicata Enterprises DOMEC S.P.A. 21.26% CERVELLOTIK S.R.L. 24.84% IGOON S.R.L. 25.11% GIOVANI PROMESSE S.R.L. 26.32% CHEF DOVUNQUE S.R.L 28.00% PICKMEAPP S.R.L. 27.32% SLOWFUNDING S.R.L. 23.92% BIOMASSAPP S.R.L. 20.16% PERSONAL SHOP S.R.L. 27.35%
Regional Venture Capital Fund Basilicata portfolio www.biomassapp.it www.igoon.city www.pickmeapp.it www.giovani-promesse.it www.domecsolutions.com www.chefideakit.com www.personalshop.me www.cervellotik.com www.slowfunding.it
