Oulu Cleantech Venture Workshop

Th. Sep. 17th 2009

Cleantech – Venture Capital Perspective

© Eqvitec Partners August 2006

1

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

© Eqvitec Partners 2009

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

© Eqvitec Partners 2009

– 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

© Eqvitec Partners 2009

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*

© Eqvitec Partners 2009

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

© Eqvitec Partners 2009

– 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

© Eqvitec Partners 2009

• 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

© Eqvitec Partners 2009

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

© Eqvitec Partners 2009

• Air purification systems

• Thin films

• Diffractive optics

• Energy risk management systems