Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate,...
-
date post
22-Dec-2015 -
Category
Documents
-
view
217 -
download
0
Transcript of Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate,...
![Page 1: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/1.jpg)
Martin Skoglund, Investment Manager, Wood & Hill Investment&
Martin Lackéus, PhD Candidate, Chalmers University of Technology
founders of the following companies
Idea on seed capital
![Page 2: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/2.jpg)
Background
• Gothenburg’s regional growth is lower than the Stockholm region
– Stockholm is a larger region, and attracts many HQs
– Large public sector, well developed financial sector
• Companies need capital to grow
– Stockholm received 50% of the total amount of venture capital allocated in 2010
– Gothenburg received 5% of the total amount of venture capital allocated in 2010
• The most obvious lack in Gothenburg is seed capital
– Very few actors can and will invest in the seed phase
• We need to think anew!
![Page 3: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/3.jpg)
Seed capital in Gothenburg region
• There is a total of around 50-100 MSEK available per year in seed & early
– Traditional types of venture capital funds are difficult to set up in Gothenburg - it is difficult to achieve reasonable IRR in early stages
– Chalmers, ALMI, VGR and Innovationsbron are examples of soft seed money, ~10-20 MSEK yearly
– Almi Invest, Innovationsbron, Chalmers Innovation Seed Fund, Chalmersinvest, Startinvest are examples of slightly less soft seed / early stage money, ~40-50 MSEK yearly (a guess)
– There are some business angels active in the Gothenburg region, often in syndication, ~10-20 MSEK
• The seed share of this is around 10-20% - 5-20 MSEK
![Page 4: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/4.jpg)
The challenge
• The capital market doesn’t dare to invest in the seed phase
– There is not a viable business case if calculating strictly by Return on Investment
• Some business angels still invest in the seed phase
– This is often based on a personal interest or other non-economical reasons
• Business angels have today limited possibilities to build rational portfolios
– Those that have invested have invested directly into the start-ups, with mixed to low success
– Those that could be interested need a better opportunity to distribute risk
![Page 5: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/5.jpg)
Seed Early stage Growth
Institutional investors NO! Maybe… YES!
Business angels Maybe… YES! YES!
Public support capital YES! YES! Maybe…
Investor’s rationale
![Page 6: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/6.jpg)
Investor’s rationale
Seed Early stage Growth
Institutional investors NO! Maybe… YES!
Business angels Maybe… YES! YES!
Public support capital YES! YES! Maybe…
Investor rationale
![Page 7: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/7.jpg)
…to invest in…
…start-ups in seed stage
Investor’s rationale …
• Because it is fun and interesting
• Because you help your fellow citizens and maybe your own kids
• Because you want your own region to prosper
• Non-monetary returns, feels good
• Appealing to the heart, not so much to the wallet!
![Page 8: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/8.jpg)
…to invest in…
• Because it is fun and interesting
• Because you help your fellow citizens and maybe your own kids
• Because you want your own region to prosper
• Non-monetary returns, feels good
• Appealing to the heart, not so much to the wallet!
…start-ups in seed stage
Investor’s rationale …
• Because it is fun and interesting
• Because you help your fellow citizens and most often your own kids
• Because you want your own region to prosper
• Non-monetary returns, feels good
• Appealing to the heart, not at all to the wallet!
…non-profit societies (sport etc.)
![Page 9: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/9.jpg)
How do non-profit societies finance their operations?
![Page 10: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/10.jpg)
How do non-profit societies finance their operations?
![Page 11: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/11.jpg)
Let’s use the metaphor of lotteries for start-ups
![Page 12: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/12.jpg)
Let’s use the metaphor of lotteries for start-ups
EENTREPRENÖRSVERKET
![Page 13: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/13.jpg)
EENTREPRENÖRSVERKET
Entreprenörsobligation
Pris: 5.000 kr
Let’s use the metaphor of lotteries for start-ups
![Page 14: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/14.jpg)
• Not a pure lottery, but emulating some of its mechanisms
• People and companies buy a lottery ticket / bond each year
– 500 / 5.000 / 50.000 / 500.000 SEK
• The money is invested into regional start-ups in seed stage
• Exit money is used to give money back to ticket holders, in traditional lottery manner
– 33% to all
– 33% to a few selected winners, getting a substantial amount of money
– 33% to one winner
• Managed in co-operation with the universities, tickets sold by students in entrepreneurship
– Investment managers or managed through affiliates such as Chalmers Innovation
– Students sell tickets to learn selling and to finance students’ study visits to entrepreneurial regions
Let’s use the metaphor of lotteries for start-ups
![Page 15: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/15.jpg)
Set-up
2012 year’s fund of 10-20 MSEK
2013 year’s fund of 10-20 MSEK
2014 year’s fund of 10-20 MSEK
Management / administrative team
Investments, 0,3-0,5 MSEK per case
Customers – companies and people with a heart
Students selling each year
Investment committee
Investments, 0,3-0,5 MSEK per case
Investments, 0,3-0,5 MSEK per case
Investments, 0,3-0,5 MSEK per case
Web-TV for follow-up & reporting, student led
![Page 16: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/16.jpg)
Deliverables
• Doubled amount of available seed funding in a region
• At least 25 investments every year
• Feeding more cases into early stage and growth capital markets
• Boosting a region’s entrepreneurial ecosystem with more seed capital
– Incubators, entrepreneurship schools, innovators, etc
• Publicly promoting entrepreneurship and the start-up community
– Could be an interesting partner to national media actors
![Page 17: Martin Skoglund, Investment Manager, Wood & Hill Investment & Martin Lackéus, PhD Candidate, Chalmers University of Technology founders of the following.](https://reader031.fdocuments.net/reader031/viewer/2022032310/56649d795503460f94a5d672/html5/thumbnails/17.jpg)
Others do similar things…