EIT Health Triangle example I Pillar Accelerator
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Transcript of EIT Health Triangle example I Pillar Accelerator
EIT Health is supported by the EIT, a body of the European Union
Accelerate & scale your business with Venture Capital: are you ready?
Muriel Uytterhaegen, Gimv| Rotterdam | 25/02/2016
Company presentation2
Gimv, a pioneer in continental Europe since 1980
UNIQUE STRENGTHS & DIFFERENTIATION
• Funding from strong balance sheet, complemented with specialised co-investment funds
• Long-term active support to portfolio companies
• International reach with a local touch, strong brand & network
• Focus on value creation via 4 platforms
• Flexibility in investment instruments and exit timing, given evergreen fund structure
FACTS & FIGURES• Listed on Euronext Brussels• EUR 1.8 billion AUM• 35 years of expertise in PE & VC• 100 employees in 4 offices
DIVERSIFIED PORTFOLIO
Health & Care3
What can Gimv mean for you?Our H&C platform is looking at a broad range of deal types
• We focus on companies active in Benelux, France and DACH• We invest across the H&C value chain in Biotech, Medtech and Services
• A clear value creation thesis is the cornerstone of our investment strategy and we actively
support our portfolio companies in the execution thereof
• We have a flexible investment horizon• Our investment stages depend on the sub-segment
CONCEPT PRODUCT/SERVICE REVENUE PROFIT MATURE TICKET SIZE
BiotechBiopharma Pre-clinical Early
clinicalLate
clinicalEUR 3-15 mio
Medtech Pre-revenue Pre-profit
H&C Services Pre-profit Growth stage EUR 10-40 mio
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1. DIFFERENT TYPES & SOURCES OF FINANCING
Types of financing - simplified
• Loans• have to be repaid• carry interest• require collateral• used for equipment, work in progress, suppliers
• Equity• owns part of the Company• seeks capital gains• no guaranties• used for product development, marketing
• Quasi-Equity• loan convertible in equity
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Sources of capital/cash
• Personal assets• 3 F’s : Friends, Family and Fools• Business Angels• Government subsidies (IWT, EU, ESA, …)• Crowdfunding• Cash flow from customers• Professional investors
• Banks• Private Equity providers• Venture Capital providers
• Stock market
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Financing Life Cycle
• Knowledge-based CompaniesC
AS
H-IN
TIME
VCs, Acquisitions/Mergers &Strategic Alliances
Angels, FFF
Seed Capital Early Stage
Later Stage
Mezzanine
3rd
2nd
1st
IPO
PublicMarket
SecondaryOfferings
Valley of Death
Public Company
Operating Cash Flow
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2. ARE YOU INVESTOR READY?
Evaluation of the risks & potential: what & how?
• In depth investigation and analysis
• How?• Limited access to data• (potential) clients, industry experts , trend watchers
• 6 major dimensions
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1. Idea/Technology2. Product/ market3. Value chain4. The business model5. An excellent team?6. Financial assumptions
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1. Idea/Technology
• How difficult is it for others to copy your idea?• To what extent have you tried to protect your idea?• Costs/benefits of your strategy ?• Freedom to operate?• ...
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2. Market Potential
• Commercial feasibility • A product / market matric gives an overview of the relevant market segments and
the possible product variations. • How and to what extent did you already segment the market ? • Did the concept survive the test of reality?• Timing!• ...
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3. Value chain
• How will you reach the end consumer?• Who is most profitable in the value chain? • Negotiation power towards other parties in the value chain?• Do you have partners where a win-win is possible?• ...
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4. The business model
• Value proposition & market segment• Revenue generating mechanisms• Recurring revenues? • Price-setting? Does it reflect the customer value ?• Potential growth model?• ...
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5. Team
• Team recruited so far? • Balance? Different typical functional roles?• Is the team complementary?• What is the experience of the team?• Incentivized?• Open to external capital?• ...
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6. Financial assumptions
• Expected revenues? Timing! • View on net working capital? • Investments: are they realistic compared to the expected realisations? • ...
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3. WHAT VC’S LIKE & WHY INVESTMENTS FAIL
VC’s prefer to invest in
• Entrepreneurs and a team• Technology as sustainable competitive advantage
• strong and clean intellectual property/capital• proof of concepts exists and mode of action is understood
• A business model we understand and like• Growing and huge markets• Focus combined with mutant potential• Exit perspective @ x multiple
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Why investments fail?
• Technology• The technology being developed by a start-up may just plain not work. • The technology works in the lab, but takes too long to scale up to a point where the
economics work. • The technology works, but something better comes along.
• Market• The dogs won't eat the dog food. • Existing solutions may be "sticky" because of existing infrastructure. • The hoped-for market never materializes within the investment timeframe.
• People• Gaps in the management team skill set.
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Concluding & contact info
• “Only those who are asleep make no mistakes.” – Ingvar Kamprad
• “Risk comes from not knowing what you are doing.” – Warren Buffett
Muriel UytterhaegenPrincipal T +32 3 290 21 22 I M +32 473 84 48 39 Karel Oomsstraat 37 I 2018 Antwerpen I Belgium www.gimv.com