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Understanding New Sources of Funding

Ing. Pim de Bokx BSc.General Director BViT innovation network

Pim de BokxPassionate for pioneers

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• 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?

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What Funding issues do you identify?

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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?

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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

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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

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How can you/us improve startup funding?

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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

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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

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Statement

In a mature Business Incubation Industry, funding is managed for incubatees in accordance with practices at financial

institutions.

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Thank You for Your Participation

Pim de Bokx | pim@bvit.netPassionate for pioneering entrepreneurship

Open for:- Sharing & Connecting

- Cooperation- Business

- Workshops & EventsContact: +31 654 247 268

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