MICRO-NANO Presentation Financing & Investing in Early Phase - PowerPoint PPT Presentation

MICRO-NANO Presentation Financing & Investing in Early Phase Nano Ventures MicroNanoConference 2015 Amsterdam. Willem van den Berg, Value Creation Capital – TechNano Fund w.vandenberg@valuecreationcapital.com

CONTENT • Profile of Value Creation Capital including examples of participations. • Entrepreneurial investment strategy and Management of high-tech companies in a dynamic environment. • Profile TechNano Fund • Investment Process • Assessment of Investments • Creating value and success factors • Funding

INTRODUCTION • Willem van den Berg is managing partner of Value Creation Capital with TechNano Fund focus on high tech, nanotech and IT investments (2015-) • Willem van den Berg co-founded the TIIN Capital funds with TechFund and TIIN Buy-out & Growth Fund and TIIN Capital merged with Berk Partners. Total € 65 mio under management (2005-2015) • PPM Oost director Total € 70 mio under management, 70 portfolio companies. (1998 - 2005)

PROFILE Hardware Nanotechnologie Focus gerelateerde High Tech en smart Microsysteem Enabling industry technologie technologie Sensoren MEMS, NEMS Smart systemen, Trends Internet of Things Photonics Robotics, Cloud Organ/Lab-on-chip 3D printing • Portfolio companies < 7 jaar, HQ in NL • Proven businessmodel • Investments € 250.000 - € 1,5 mln. per portfolio company • Focus on growth and exits to strategic buyers (‘ trade sales’) • Value creation using blueprint framework and value proposition design with 1000 day plan 4

FUNDMANAGEMENT: TEAM # Founder: >12 # Funds: 6 # Exits: >20 IRR > 22-30% # Investments: > 70 Team/partners left to right: Willem van den Berg, Aldebert Wiersinga, Ronald Wissink, Jos Bourgonje en Petra Cruijff (office management) # Experience netwerk high tech nano: > 150 years 5

VALUE CREATION CAPITAL PROFILE IT IS OUR MISSION TO FUND, GUIDE AND SUPPORT TECHNOLOGY COMPANIES TO THE NEXT LEVEL

INVESTMENTS OF PARTNERS OF VALUE CREATION CAPITAL 7

VALUE CREATION METHODOLOGY Business Model Phased Canvas & Value Strategy Proposition design • Blueprint • Value proposition design • 1000 days plan and hands-on support 1000 days plan 8

NANOTECHNOLOGY: NEXT BIG THING WTB: Capsule met lab on chip Chemie: Chromatografisch veld De nanopil van de Electronisch ‘’telraam’’ Mobiele app Processor en wireless comm Universiteit Twente patiëntvriendelijkere analyse darmkanker Binnen vijf jaar zou de techniek zo ver kunnen zijn. 9

INVESTMENT PROCESS 10-16 weeks Inconsistencies DD  Reach team Approval RvC & Closing & consensus Mandate RvC signature Partners 2-4 weken 6-8 weken 1-2 weken 1-2 weken 1-2 weken • First analysis • Company valuation • Summary DD • Contract • Final term sheet Leads/ • Check criteria • 2 nd Management Screening Due • Negotiations • Payment • Financial, legal & Contract • Factsheet/ valuation Closing decision intake Diligence commercial DD • Final Contract • Post closing strategy /Meeting • 1st meeting • Term sheet/LOI (1000 day plan) • Concept participation • Feedback RvC Management team • Investment Proposal agreement • Management Agenda • 100 Day Plan RvC

SUCCESSFULL ENTREPRENEURS BETWEEN INNOVATION AND EXECUTION Innovation Vision Mission Value realization Ambition Now Good companies are Next Value SWOT not sold Steps Flags creation but BOUGHT! Markt Execution

SUCCESS IS A BALANCE BETWEEN AMBITION, STRATEGY, PEOPLE AND EXECUTION Scale Left brain Right Brain • Ideas Staff on What Why • Ambition • demand • Vision Interfaces • Finance Cijfers & • Market & Image & • Performance • • Community Feiten Ideas Dashboards Customers • Mission • & crowd Experimentat • Strategy • Processes • Algoriths • Management ion People & • Plan System & • Organisation Feeling • Technology • Action • Leveraged • Commitment Autonomy • assets Social How Who • Engagement

FUND FOCUS: TARGETGROUP Products of systemen for B2B market Succesfull markettest (voorkeur bewezen businessmodel) Enterpreneurs committed and coachable Significant Value Proposition Target group in reach Solid business model Exit potential 13

ASSESSMENT AND PROOF POINTS Completeness of vision Ability to execute: • • Thought leadership Team • • Innovation / roadmap Full-time • • Value Proposition Customers • • Lack of big ego’s Realistic ambition • • Business model Market(access) • Paying Customers (test) / POCs • User acceptance (entry barrier) Market • Market size • Market growth rate • Competition • Exit potential

MULTIDISCIPLINARY APPROACH Financial & Planning Market & Customers • Assessment business model • Assessment market opportunity • Assessment cashflow • Assessment company • Assessment exit potential poortunityAssessment competitive advantage 1 4 Referentie- Wat ? Waarom ? meetings Desk- research Audits & assessments Interviews Process & technology Organisation & management • Assessment (schaalbaarheid) • Assessment quality/MT technologie • Assessment for cooperation • Assessment fulfilment 3 2 Hoe ? Wie ?

VALUATION AND STRUCTURE Value ≠ Price Price • • Value gap; present status against New shares strategy / ambition • Legal date vs economic • Value is determined by traction, • Interest and price (WACC) cash flows, risks, leverage, tax, exit potential • Price is determined by ”supply & Structure demand” (liquidity) • Debt vs equity vs convertible • Minority vs. Majority • Liqprefs, cumprefs, etc • Methods; DCF, market / • Board, reporting, support transaction multiple, book value, potential ROI, etc. • Claw back: to bridge the gap

RISC FACTORS FOR THE DEAL Management: Proposition: • • MT van 1 Technolgy Software not scalable • • Family ties No Roadmap • • Part-time commitment Who owns IP? • Low commitment (cash) • Legal disputes Finance: • Low recurring revenue • Market: High debt • • Dependance top-3 klanten Payment debtors • • Entry to customers/resellers Dependance partners/supplier • • Red Ocean Exit potential

COMPETITION Client/market If there is no competition, there is probably no market.

PRODUCT/TECHNOLOGY DRIVERS Tight monitoring developments Split complex products in sellable partial functions Low entry product implementation at customer with strong added value (pay-back of months instead of years)

MARKET • Choose right businessmodel • Hybrid business model could generate basic cashflow Business- model • Positioning and fit to market • Check and evaluate customer processes Marketing • Analyse added value of proposition for customer of customer & sales • Sites abroad with commitment country management • Direct sales en distribution development in later stage Internation- alisation 20

MANAGEMENT Management is success factor Commitment entrepreneurs Install Supervisory Board, High hands-on support Chairman ‘’walk - Management support Chairman 1 day away’’ per week (sales, contracting) threshold

GROWTH FACTORS - LESSONS LEARNED Management commitment importance Enterpreneurs too technical Management problems must be solved quickly Chairman formula works well Internationaal Sales: do not expect too much of channelpartners At dead-end product development are often opportunities in sight First 100 days be alert!

VRAGEN EN DISCUSSIE