1 / 27

Access to Finance

Access to Finance. Agorada 2016. Pieter Waasdorp SME Envoy The Netherlands. Global Entrepreneurship Monitor 2015 Entrepreneurship and ambition in the Netherlands. Entrepreneurship in the Netherlands…. Two trends: To an entrepreneurial economy Industrial renaissance And :

rbrannon
Download Presentation

Access to Finance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Access to Finance Agorada 2016 Pieter WaasdorpSME Envoy The Netherlands

  2. Global Entrepreneurship Monitor 2015Entrepreneurship and ambition in the Netherlands

  3. Entrepreneurship in the Netherlands… Two trends: • Toanentrepreneurialeconomy • Industrial renaissance And: • Nearly 1 in 8 persons of the workingpopulation is entrepreneur • A lot of (new) entrepreneurs

  4. Fintech Alternative Finance

  5. Development of alternative finance market Size of alternative finance market in the EU since 2012. 2014 data on BA is not yet available and is not included in this graph (BA market is approximately € 5-6 bn). Sources: EY Moving Mainstream: The European Alternative Finance Benchmarking Report, Feb. 2015, p. 13; EBAN, Statistics Compendium 2014, p. 7; and EVCA, EVCA Yearbook - 2015 European Private Equity Activity: European Private Equity Activity Data 2007-2015, forthcoming. Alternative Finance

  6. Developments on three topics Awareness Alternative Finance Governmental Action Alternative Finance

  7. Developments in SME Finance Association for Financial Markets in Europe (AFME), "Bridging the growth gap", February 2015, p. 9; 29, figure sources SAFE analytical report, 2013, FRBNY Survey 2013/2014 Alternative Finance

  8. Developments in Alternative Finance (1) • The amount of alternative finance has been increasing in recent years. • Angel investing, later stage venture capital and crowdfunding are increasing rapidly. For the purpose of this discussion, we define alternative finance as all non-banking finance Amountinvested in € mn. 2011 CF data and 2014 BA data is notavailable. EY Moving Mainstream: The European Alternative Finance Benchmarking Report, Feb. 2015, p. 13; EBAN, Statistics Compendium 2014, p. 7; and EVCA, EVCA Yearbook - 2015 European Private Equity Activity: European Private Equity Activity Data 2007-2015, forthcoming. Alternative Finance

  9. Drivers of the Alternative Finance market Offers alternatives for traditional bank lending and growth opportunities when using combinations of (alternative) finance. Restrictive rules for Traditional suppliers Entrepreneurial economy Development of the Alternative Finance Market Financial technologies Awareness and participation Alternative Finance

  10. Developments in Awareness Lack of awareness of possibilities Lack of knowledge of the use and the requirements of these sources Lack of skill to use alternative finance Alternative Finance

  11. Developments in the role of the government • All Member States have initiatives to support and stimulate alternative finance. • A lot of Member States are also working on legislation and regulation of alternative finance. • The one-stop-shop for businesses initiative. • The Green Paper on building a Capital Markets Union is developed by the European Commission. • Initiatives to raise awareness Alternative Finance

  12. Challenges regarding our finance market Alternative Finance

  13. Challenges on the demand side of alternative finance • Decrease the reliance of banks for finance. • Cover allinvestment stages. Panteia, 'Survey on the access to finance of enterprises (SAFE)', November 2014, p. 12 Alternative Finance

  14. Challenges on the supply side of alternative finance • Increase the quality and quantity of deal flow for parties on the supply side of capital. • Increase the financial literacy and decrease the lack of awareness among entrepreneur. Association for Financial Markets in Europe (AFME), "Bridging the growth gap", February 2015, p. 8 Alternative Finance

  15. Opportunities for action Alternative Finance

  16. Opportunities Alternative Finance

  17. Embrace the differences • Given the different situations in the Member States, the challenges regarding alternative finance encountered by each Member State differ as well. • In order to deal with these problems, countries with similar characteristics or challenges could share knowledge and good practices. Alternative Finance

  18. Dutch VentureInitiative

  19. Dutch VCmarketPeer groupcomparison “Plenty of room for further VC market development” Total VCinvestments Source: InvestEurope

  20. WhyDVI? • Insufficient access to risk capital forSMEs • Adapt to changing financial landscape, increase number of‘Gazelles’ • Well matured market place forVC/PE • Diversified in terms of investment style and sectorfocus •  •  Dutch GPs benefit from an excellent reputation and trackrecord Number of funds increasing, significant transactionvolumes • Large PE, but average VC market size “A Fund-of-Funds structure was the main solution to bridge the funding gap”

  21. InvestmentFocus SEED CAPITALSUPPORT MARKETSUPPORT Pre-Seed Start-Up GROWTH Buy-Out Tech-Transfer VC

  22. DVI-I main characteristics • Fund-of-funds investing in VC/PE funds focussing on • innovative and fast growing Dutch SMEs • Sectors (‘Topsectoren’): LS, HTSM, Cleantech, Agro-food,…. • Fund size of over 200m • Complementary to other products of DMEA (i.e. Seed Capital, Innovation Credit, Qredits, etc.) • Target portfolio of 12-15 fund investments • Advised by EIF Keyfacts Strategic partners • Dutch Ministry of EconomicAffairs • PPMOost • BOM

  23. DVI-I’s first 30months “A flying start for the Dutch Venture Initiative” First closing on 12 Aug 2013 for EUR 150m Further EUR 45m commitments to European Angels Fund initiative EUR148.5m committedcapital to a total of13 different funds 54 Funds have been screened, of which 17 have been approved EUR 31m capital called up to date Firstsuccesses: 5 exits and 1IPO 45 companies in the underlying portfolio of which 22 (49%) in the Netherlands Fullyinvested within 30months. Working onDVI-II Status : January2016

  24. DVI-I FundPortfolio Prime Ventures IV Karmijn Kapitaal Fund I Gilde Healthcare III Newion Investments II Aglaia Oncology Fund II Life Sciences Partners V Forbion Capital Fund III Gilde Healthcare Services II henQ III ENDEIT Fund II HPE Fund II Keen Venture Partners SET Fund II

  25. WhyDVI-II? • DVI-I is fully invested within 30months • DVI-I demonstrates performance andsuccess • Similar InvestmentStrategy • Good visibility on further deals andtransactions • Similar underlying successor funds to beexpected • Now open to selected InstitutionalInvestors • “plenty of opportunities forDVI-II”

  26. Alternative Finance

  27. Contact Pieter Waasdorp Director Entrepreneurship – DG Entrepreneurship and Innovation p.m.waasdorp@minez.nl +31 70 379 6841

More Related