Cleantech – Venture Capital Perspective · Eqvitev Investment Focus Sector focus ICT –...
Transcript of Cleantech – Venture Capital Perspective · Eqvitev Investment Focus Sector focus ICT –...
Oulu Cleantech Venture Workshop
Th. Sep. 17th 2009
Cleantech – Venture Capital Perspective
© Eqvitec Partners August 2006
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Building Success, Creating Prosperity
www.eqvitec.com
Fabianinkatu 8
P.O. Box 148
00101 Helsinki
FINLAND
Tel +358 20 780 9800
Brunnsgatan 7
111 38 Stockholm
SWEDEN
Tel +46 8 676 6560
Eqvitec Overview
� Leading independent Nordic technology oriented
private equity firm
� Established in 1997
� Over €500 million capital base in six funds
� Active in all Nordic countries with offices in
Helsinki and Stockholm
� Team of 15 international professionals with long
industry experience
© Eqvitec Partners 2009
industry experience
� Investments in 80 companies of which over 40
exited
� Strong track record with top quartile returns
Eqvitev Investment Focus
Sector focus
� ICT
– IT/Software
– Communications
– Media
� Industrial products and services
– Modern production technologies
– Energy and environment
– Material technologies
Investment size
� From €500k to €20 million
� Prefer to act as the lead or co-lead investor
� Able to lead syndicates of up to €100 million in enterprise value
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Seed Start-up Early Stage Spin-out/
BuyoutExpansion
Company Size
Investment Stage
– Material technologies
EV €100m
Equity
Cleantech; Megatrend
The term "cleantech" refers to
technologies that:
– Use energy, water and other raw materials more efficiently and
productively
– Deliver equal or superior
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– Deliver equal or superior performance
– Improve customer profitability,
through cost reduction and/or increased revenues, and
– Create less waste or toxicity
...compared to incumbent technologies
Strong Drivers
� Energy Generation Wind, Solar, Hydro/Marine, Biofuels,
Geothermal
� Energy Storage Fuel Cells Advanced Batteries
� Energy Infrastructure Management, Transmission
� Energy Efficiency Lighting, Sensors, Automation,
Conservation
� Transportation & Logistics Propulsion, Advanced
Structures, Advanced Infrastructure, Vehicles
� Water Purification & Management Treatment, Metering,
Infrastructure, Conservation
� Increasing energy demand
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Infrastructure, Conservation
� Air & Environmental Quality Emissions Control, Emissions
Monitoring, Trading, Credits
� Advanced Materials Nano, Bio, Chemical,
Hybrid/Composite
� Manufacturing/Industrial Advanced Packaging, Monitoring
& Control, Smart Production
� Agriculture & Nutrition
� Pesticides Irrigation Food Products, Land Management;
� Materials Recovery & Recycling Recycling, Resource
Preservation Waste Processing
� Need for cleaner energy
� Need for own energy
� Need for efficiency
VC Investments in Cleantech; Development
• Since 2002 CAGR in investments
46%, since 2005 59%*
• in 2007 20% of raised venture
capital in Israel and Europe (37%
of total deals)*• Solar 40% of total in 2008*
• Nordic region in top 3 after UK and
Germany*
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Germany*
• 12-24 months of pullback
estimated*
• Key themes today• Energy efficiency
• Cost savings
• Well quantifiable customer benefits
• Utilising waste energy
• Increasing process output
• Etc.
* Cleantech Group 2009
New System Innovations – Great Opportunities
New energy creation, storage and delivery yields also to new opportunities in
– Service / consultancy business
– Different type of infra
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– Different type of infra investments
– ICT investments
– Logistics investments
– Risk services etc...
Key Success Factors in Fast Growth
Market view
• Industry background and tradition
• Long-term sustainability
• Market creation often by major
Company View
• Ecosystem / partners (collaboration)
• Right timing for a VC backed company
• Business plan; Fast growth / concrete
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• Market creation often by major industry players
• Business plan; Fast growth / concrete value creation opportunity
– Proven / quantifiable customer benefits
– Clear business model
– Team
– Fast execution
Global / European Perspective
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Background Analysis
Hyped area
Business driven vs.
political driven
Cleantech Boost; But Business Fundamentals Must Be in Place
Clear business model with high
growth opportunities
Sustainable competitive advantages
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Taxes, subsidies
Scale of economies in
energy creation
Clear exit opportunities
Strong
management
team
Interdependencies,
trade-offs
Side-effects
Eqvitec Cleantech Background
• Conductive polymers
• Silicon carbide wafers
• Catalytic converters
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• Air purification systems
• Thin films
• Diffractive optics
• Energy risk management systems