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

1 . Products and Services – EQUITY Equity and Quasi-Equity Fund (FC&QC) Equity investment in start-up, seed and early stage companies . Objective : Source of Funds : European Structural and Investment Funds (ESIF) – Operational Programmes of Portugal 2020 . VC  € 100.000.000 Initial Capital : BA ( 1 st call )  €18.500.000 BA (2 nd call)  €18.500.000 VENTURE CAPITAL (VC) BUSINESS ANGELS ( BA ) Financing to Financing to Financing to Special Purpose Vehicles owned by Special Purpose Vehicles owned by Venture Capital Funds Business Angels (1 st call) Business Angels (2 nd call) Página 2

2 . Special Purpose Vehicles ( SPV ) owned by Business Angels ( BA ) Minimum / Maximum Investment : - FC&QC (65%) – up to €750.000 – up to  €403.846 - BA (35%) Remuneration : - Until the initial investment is refunded: pari passu - After the initial investment is refunded : * FC&QC - 20% * BA - 80% Financing to Financing to SPV owned by SPV owned by Business Angels (1 st call) Business Angels (2 nd call) Página 3

2 . Special Purpose Vehicles ( SPV ) owned by Business Angels ( BA ) ESIF allocation destined to Business Angels (BA) Regional Allocation Investment TOTAL Priority North Centre Alentejo Lisbon Algarve 29 359 622 * ( through Compete ) PI 3.1 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. Página 4

2. SPV owned by Business Angels (BA) 2.1. Execution - 1st phase Execution of the Line of Financing for SPV owned by BA North • No. of Special Purpose Vehicles (SPV) – 14 • Centre 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 Lisbon Alentejo Algarve Página 5

2 . SPV owned by Business Angels (BA) 2.2. Financing by Region - 1st phase North Centre • • No. of Investments in SME - 20 No. of Investments in SME – 5 • • Co-financing by FC&QC – €1 600 475.73 Co-financing by FC&QC – €413 600.35 • • Total co-financing in SME – €3 065 528.00 Total co-financing in SME – €855 000.00 • • Average Investment ticket – €153 276.40 Average Investment ticket – €171 000.00 • • Increased employment ( est.) – 86 Increased employment ( est.) – 38 Alentejo • 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 Página 6

2 . SPV owned by Business Angels (BA) 2.3. Financing by Sector - 1st phase Information and Communication Technologies Energy Efficiency Health (Pharmacy, Services) 4% 4% 4% Mobility (Transport, Logistics) 4% Tourism and Leisure Activities 4% 3% 39% Cleantech 3% Electronics 7% Fashion (Textiles, Clothing, Footwear, Accessories) 7% 7% Fintech 14% Food Industry 4.0 Internet of Things Página 7

2 . SPV owned by Business Angels (BA) 2.4. Conclusions - 1st phase 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 . Página 8

Thank you! Ricardo Luz www.ifd.pt