BUSINESS ANGELS, Committed Operations Ricardo Luz 1 . Products and - - PowerPoint PPT Presentation

“Public/Private co-investment funds in Portugal”

BUSINESS ANGELS, Committed Operations Ricardo Luz

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Objective:

Equity investment in start-up, seed and early stage companies.

Source of Funds: European Structural and Investment Funds (ESIF) – Operational Programmes of Portugal 2020.

Initial Capital:

VC  € 100.000.000 BA (1st call)  €18.500.000 BA (2nd call)  €18.500.000 Equity and Quasi-Equity Fund (FC&QC) Financing to

Special Purpose Vehicles owned by

Business Angels (1st call) Financing to Venture Capital Funds Financing to

Special Purpose Vehicles owned by

Business Angels (2nd call)

BUSINESS ANGELS (BA) VENTURE CAPITAL (VC)

• 1. Products and Services – EQUITY

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Minimum / Maximum Investment:

• FC&QC (65%) – up to €750.000
• BA (35%)

– up to  €403.846

Remuneration:

• Until the initial investment is refunded: pari passu
• After the initial investment is refunded:

* FC&QC - 20% * BA - 80% Financing to

SPV owned by

Business Angels (1st call) Financing to

SPV owned by

Business Angels (2nd call)

• 2. Special Purpose Vehicles (SPV) owned by Business Angels (BA)

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ESIF allocation destined to Business Angels (BA)

Investment Priority Regional Allocation TOTAL North Centre Alentejo Lisbon Algarve PI 3.1 29 359 622 * (through Compete) 2 269 821 1 799 366 33 428 808 PI 3.3 3 375 236 3 375 236 TOTAL 36 804 044

* Amount corresponding to COMPETE OP that will be applied in North, Centre and Alentejo.

Public Tender

• 1st phase (70% Inicial Allocation = €18 263 978). Total financing = €33 million.
• 87 SPV competitors, involving more than 270 BA. Demand has exceeded 3x the offer.
• 35 SPV with 28 investments already made in SME.
• 2nd phase (30% Inicial + Reinforcement = €18 540 068). Total financing = €33 million.
• Applications closed, under analysis by the tender jury.
• 2. Special Purpose Vehicles (SPV) owned by Business Angels (BA)

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• 2. SPV owned by Business Angels (BA)

2.1. Execution - 1st phase

North Centre Lisbon Alentejo Algarve

Execution of the Line of Financing for SPV owned by BA

• No. of Special Purpose Vehicles (SPV) – 14
• No. of Investments in SME (FB) – 28
• Co-financing by FC&QC – €2 110 721.68
• Total co-financing in SME (FB) – €4 228 428.00

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• 2. SPV owned by Business Angels (BA)

2.2. Financing by Region - 1st phase

North Centre Alentejo

• No. of Investments in SME - 20
• Co-financing by FC&QC – €1 600 475.73
• Total co-financing in SME – €3 065 528.00
• Average Investment ticket – €153 276.40
• Increased employment (est.) – 86
• No. of Investments in SME – 3
• Co-financing by FC&QC – €96 645.60
• Total co-financing in SME – €307 900.00
• Average Investment ticket – €102 633.33
• Increased employment (est.) – 17
• No. of Investments in SME – 5
• Co-financing by FC&QC – €413 600.35
• Total co-financing in SME – €855 000.00
• Average Investment ticket – €171 000.00
• Increased employment (est.) – 38

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• 2. SPV owned by Business Angels (BA)

2.3. Financing by Sector - 1st phase

39% 14% 7% 7% 7% 3% 3% 4% 4% 4%4% 4% Information and Communication Technologies Energy Efficiency Health (Pharmacy, Services) Mobility (Transport, Logistics) Tourism and Leisure Activities Cleantech Electronics Fashion (Textiles, Clothing, Footwear, Accessories) Fintech Food Industry 4.0 Internet of Things

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POSITIVE

₋ Transparency of the process: Public Procurement Procedure; 11 evaluation criteria;

• Great capacity to mobilise private capital: over 270 individual BA, 87 applications, 72 with

a positive score, 21 supported in full, 14 supported in part;

• Selected applications with BA from other countries: Estonia, Finland, Canada, Spain,

Denmark, Germany;

• More senior entrepreneurs and managers becoming BA.
• 2. SPV owned by Business Angels (BA)

2.4. Conclusions - 1st phase

Thank you!

Ricardo Luz www.ifd.pt