Early stage co-investment tools: example of a public-private partnership involving Business Angels clubs, Business Incubators Accelerators and VC fund

Early stage co-investment tools: example of a public-private partnership involving Business Angels clubs,

Business Incubators Accelerators and VC fund

The MZV Ingenium Funds

Saulius RaceviciusMinsk, 17 November 2015 Global Entrepreneurship Week

International Start up Conference

Zernike META Ventures (ZMV) is a European investment management firm for regional co-investment funds. Thanks to more than 20 years of experience in the field, Zernike META Ventures has a unique ability to execute customized solutions of early stage funds: the Ingenium fundsMETA Group is part of a sound network of leading international associations such as INSME (International Association of SMEs – META Group founder Andrea Di Anselmo acts as a INSME President), EURADA (European Association of Regional Development Agencies - Andrea Di Anselmo acts as a MoB), TII (European association for Technology Transfer and Innovation), BAE (Business Angels Europe – META Group CEO Luigi Amati acts as a Business Angels Europe Vice President, a co-founder of Italian Angels for Growth and a Member of the European Commission Advisory Group on “Access to Risk Finance”), IASP (International Association of Science Parks), EBN (European Business Network) and Regional Studies Association.

Zernike Meta VenturesZMV the leading co-investment fund manager

Ingenium is an early stage co-investment risk capital fund typically built around a Region of a few million inhabitants focused on Seed and Start-up but also considering expansion phase, companies with high value of intangibles, knowledge intensive companies with high growth potential, Regional coherence of sector of activity.

The Ingenium FundsA fund for the regional development

I fondi di ZMV

Ingenium Emilia

Romagna II

Ingenium Sardegna

ATI PRISMA I ATI PRISMA II

Ingenium Catania

META Ingenium doo

Ingenium Emilia

Romagna I

Ingenium Poland

2010-2020 2009-2019 2004-2014 2010-In progress

2010-2019 2010-2019 2004-2014 2010-2019

€14,000,000 €34,000,000 €30,000,000 €5,000,000

€3,000,000 €7,000,000 €9,000,000 €20,000,000

7 Investments 12 Investments 12 Investments 7 Investments

3 Investments 2 Investments 7 Investments 2 Investments

2 follow on Fully invested 5 exits

+ Scouting + BP Competition

Fully invested

The Ingenium FundsHigh results from the portfolio of funds

Portfolio Zernike Meta Ventures + Zernike Group

Time Period 1993 – present

Average deal size € 700.000

# of Exits 110

€ Invested € 257.000.000

Total NAV* € 449.000.000

Avg holding period 5-7 years

The Ingenium FundsThe successful story of the fund management company

The Ingenium FundsCo-investment regional experience

Different types of funds, according to the local framework: one size does not fit all!

Built from scratch angel groups: IAG – Italian Angels for Growth and Leviathan Business Angels Group; Sicilian Venture Philanthropy,

Negotiated deals with private investors Development of procedures, tools and

methodologies for the evaluation of business plans

Knowledge of EU and ERDF regulations on risk capital measures to leverage public funds

Development of procedures for compliance and anti-money laundry

THE INGENIUM CO-INVESTMENT MODEL

The Ingenium FundsCo-investment model

Seed – Early Stage

€200k - €1.5 MlnPer company

Seed Capital FundBAN

Early Stage – Later Round

€1.5 Mln - €5 MlnPer company

Venture Capital Fund

Late Stage Growth Capital

€5 Mln - €50 MlnPer company

Growth Capital Mezzanine

Angel Investing

€20k - €200kPer company

Business Angels

Regional Funds

Italian Angels for Growth

360 Capital Partners

Principia

Atlante

Innogest

TT Ventures

Sofinnova

TL com

Qualcomm V

Intel Venture

Doughty Hanson

…

Angel investing and Seed Capital is not well developed in Italy and it’s often organized on a local basis.

The Ingenium FundsCovering the market gap

Sam

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: It

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The Ingenium funds are a unique example of a public-private partnership involving business Angels clubs, Business Incubators and Accelerators in Italy.Ingenium, through its management company, Zernike Meta Ventures, cooperate with few selected co-investors in order to:a) make deal sharing b) provide financial resources to selected deals mainly when the full funding among BAs club is not reachedc) join second round in companies already invested by a BAs clubd) offer portfolio companies best managerial support and clear governance rules

The Ingenium FundsHow does the fund work?

Co-investors may involve Ingenium on a single deal baseBAs clubs and the Ingenium fund are independent in their investment decision: they are free to choose to co-invest togetherThe due-diligence can (not mandatory) be performed jointlyThe investment will be matched on a pari-passu baseThe negotiation phase is delivered by the same law firm on a standard contract with specific reference to rights and duties related to Ingenium and BAs ( ie seats in the board of director, preemptive rights in future capital increase, etc)

The Ingenium FundsHow does the fund work?

In order to be Ingenium compliant the Business Angel clubs must demonstrate:

① High quality deal flow

② Standardized screening process and evaluation path

③ Effective investment capabilities

The Ingenium Funds3 red flags in the partners’ selection

Neon Club

Business Angel club

Neon Club

Neon Club

Business Angels

Business Angels

Current lead co-investor

Candidates

The Ingenium FundsExploiting new opportunities in the partnership

Italian Angels for Growth (IAG) is the largest angel group in Italy and is promoted and managed exclusively by individual investors. IAG was established in 2007 by nine co-founders and now comprises of more than 110 carefully selected angel investors characterized by their passion for entrepreneurship and early stage financing.

Neon Club

Italian Angels for GrowthThe leading Business Angels in Italy

Lventure Group (LV) is a leading listed operators of seed venture capital in the world and the first and only in the Major Trading Area of the Italian Stock Exchange. LV creates value by investing in and actively supporting the growth of digital startups with high growth potential, in turn helping them achieve success in the market. Thanks to our proprietary deal flow, completely run by the accelerator, LUISS ENLABS – “The Startup Factory”, LV is able to take on the most promising startups in the market.

LVENTURE GROUP-Luiss EnlabsThe leading Business Angels in Italy

INGENIUM AND ITALIAN ANGELS COINVESTMENTS

INGENIUM AND LVENTURE COINVESTMENTS

Our co-investors chose this model because:provides significant financial resources (up to 50%)have similar investment style and needsoffers selected and good quality deals to the BA clubs shares expertise and know how in the due diligence processincrease the BA clubs financial capabilities to make follow-on most promising investmentsoffers standardized format in portfolio monitoring and reportingCooperate with angels in building exits from the very beginning

Benefits for Business AngelsA valuable support for value creation

Our companies had the opportunity to:

Deal with only one shareholder (ZMV) Access to possible second round of investment Access to BAs clubs know-how and competencies

Benefits for Backed CompaniesAn easy way to scale the businesses internationally

The Ingenium fund:

has investment constrains and a fixed timelinehas geographical constrains limited investment capabilities fixed leverage between public and private money: 50-50 no access to international co-investors

Main ChallengesSome challenges to be solved to best perform in the market

INGENIUM AND LVENTURE COINVESTMENTS

Details

Developing strategy framework and implementation plans for EEI

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PART III – INGENIUM CATANIA – PORTFOLIO COMPANIES

RISPARMIO SUPER SRLRISPARMIO SUPER SRL

Location: Catania/RomeIndustry: ICTInvestment Stage: SeedInvestment date: 2011ZMV investment: 0,9 Mln €Status: unrealized

Risparmio Super is an app and website that allows you to compare the prices in different supermarkets. It helps consumers to save their time and money but also helps companies to analyze their prices, comparing them with the competitors' and provides useful insights about the customer behavior.

RS won important international awards in Silicon Valley, Moscow and New York.


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PART III – INGENIUM CATANIA – PORTFOLIO COMPANIES

APPSBUILDER SRLAPPSBUILDER SRL

Location: Catania/RomeIndustry: ICTInvestment Stage: SeedInvestment date: 2011ZMV investment: 0,9 Mln €Status: unrealized

Appsbuilder Srl is developing a new all-in-one web platform to create, manage and promote apps in a cost-effective way and with no coding skills.Thanks to a wide range of promotional and CRM tools, primary objective is to help professionals and small business build their mobile presence.

ZMV sustained the company in the start up phase and by may 2014 more then 15 million apps were downloaded.


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PART III – INGENIUM UMBRIA – PORTFOLIO COMPANIES

COCONTESTCOCONTEST

Canvace Srl developed a platform that allows the creation and the design of complex game levels in minutes, with a proprietary JavaScript Game Engine.Canvace-powered games are entirely based in HTML5, CSS and AJAX meaning that they are plugin-free and run smoothly on practically any browser.

ZMV invested in the early seed stage and sold the company in 2013 to LVenture Group, a listed venture capital accelerator.

Location: Terni/RomeIndustry: ICT Investment Stage: SeedInvestment date: 2012ZMV investment: 0,03 Mln €Status: exit – sale to financial partner

Exit


24


CANVACECANVACE

CoContest Srl is an world-class platform that revolutionizes the world of interior design and architecture. The company developed an online platform to connect designers and end-users through a crowdsourcing system that magnifies opportunities for both parties. The company exchanges ideas from public tenders and then apply their input to fit the private need of single customers.


Location: Terni/RomeIndustry: ICT / DesignInvestment Stage: SeedInvestment date: 2012ZMV investment: 0,03 Mln €Status: exit – sale to financial partner

Exit


January, 2014 25


GEOMEFREEGEOMEFREE

Geomefree Srl is a company that developed an app for smart phones for customer retention of pubs. Through a check in system it rewards customers with free drinks and other promotions.

ZMV invested in the early seed stage and sold the company in 2013 to LVenture Group, a listed venture capital accelerator. Location: Terni/Rome

Industry: ICT Investment Stage: SeedInvestment date: 2012ZMV investment: 0,03 Mln €Status: exit – sale to financial partner

Exit


26


MINDIGNOMINDIGNO

Mindigno Srl developed a social network to collect angry comments about particular facts in the society with the will to highlight things that does not work and the hope to try to change them.



Exit


27


ATOOMAATOOMA

Atooma Srl is a tech start up based in Rome and San Francisco focused on bringing automation to smart phones.Based on a “IF this, then DO that” system, the application enables phones and other smart device to communicate and act automatic following pre-determined paths.



Exit

INGENIUM AND ITALIAN ANGELS COINVESTMENTS

Details


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PART III – EMILIA ROMAGNA II – PORTFOLIO COMPANIES

EUGEAEugea

Eugea is a social company founded by a group of researches in entomology from the University of Bologna with the aim of promoting ecology and “green” in the city. The company commercialize kits for balconies which provide nourishment and shelter to a number of insects (like butterflies, ladybugs and pollinators) that bring colors and beauty. For the production the company collaborates with a social cooperative that helps socially or psychologically challenged members.

Location: BolognaIndustry: Manufacturing/SocialInvestment Stage: ExpansionInvestment date: 2013ZMV investment: 0,2 Mln €Status: unrealized


30


SPREAKERSPREAKER

Spreaker is a web and mobile application that brings together audio creators and their fans with a sophisticated broadcasting tools and functioning social network.

Spreaker sets the stage for artists and hosts, allowing them to broadcast their shows, tracks, and playlists to listeners all over the world.

Location: Bologna/BerlinIndustry: ICTInvestment Stage: Start upInvestment date: 2011ZMV investment: 0,8 Mln €Status: unrealized


31


CELLYPLYCELLYPLY

CellPly is a biomed company funded in 2013 by two researches of the University of Bologna.The company is developing diagnostic tools for defining the efficacy of immunotherapies and chemotherapies on cancer and immune cells. CellPly platform analyzes small ex-vivo samples and rare cells immediately after obtaining them from patients and preserving microenvironment conditions to readily provide information about tumor cell sensitivity to drugs and in-vivo status of single immune cells located close to tumor cells.

Location: BolognaIndustry: BiomedInvestment Stage: SeedInvestment date: 2014ZMV investment: 0,7 Mln €Status: unrealized


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ANGIODROIDANGIODROID

Angiodroid developed and patented an innovative medical device for peripheral interventional angiography based on carbon dioxide controlled injection. The company is the first one substituting traditional iodinated contrast media in angiography procedures eliminating all related side effects associated with renal or diabetic vascular disease.

The company started successfully the commercial activity in Europe and is preparing all needed authorizations to sell in US, China and Brasil.

Location: BolognaIndustry: BiomedInvestment Stage: Start upInvestment date: 2013ZMV investment: 0,9 Mln €Status: unrealized


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S5TECHS5TECH

S5Tech developed a sophisticated communication system for Retail Points of Sale that allow a real time communication and interaction of labels and customers.

ZMV invested in the early stage development of the company. Currently S5Tech is signing distribution agreements with Fujizu for the commercialization in Italy and Europe.

Location: PiacenzaIndustry: ElectronicsInvestment Stage: Start upInvestment date: 2011ZMV investment: 2,8 Mln €Status: unrealized


34


PASSPACK SRLPASSPACK SRL

Passpack is an ICT company that developed an online password management software with an impenetrable cryptography, both for companies and privates.

ZMV sold Passpack technology to Kemesa Holdings, a big US ICT company.

Location: BolognaIndustry: ICTInvestment Stage: SeedInvestment date: 2008ZMV investment: 0,4 Mln €Status: Exit – Trade sale

Exit


35


BIOGENERABIOGENERA

Biogenera is a biotech company engaged in research and development of treatment for pediatric cancer, founded in 2009 by two professors from Bologna University. The molecule got recognition of Orphan Drug from EMA – the European Medicine Agency and it is now in this Phase I research. Company got 2 rounds of financing from around 40 business angels and ZMV

Last valuation of the company by independent company 30-50 Mln €

Location: BolognaIndustry: BiotechnologiesInvestment Stage: SeedInvestment date: 2009ZMV investment: 2,7 Mln €Status: unrealized


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PART III – OVERALL PORTFOLIOZMV Portfolio

http://www.eurografica.info/index56d9.html?LINGUA=1

http://www.paperlit.com/site/default.aspx


PART III –EXITS

COMPANY EXIT DATEPaperlit October 2014

Geomfree December 2013

Mindigno December 2013

Canvace December 2013

Atooma December 2013

Pizeta Pharma July 2014

Cocontest December 2013

Passpack January 2014


CONTACTSCONTACTS

www.zernikemetaventures.com www.meta-group.com

ItalyMs Francesca NataliVia Francesco Mancini, 23

05100 Terni+39 0744 2482 [email protected]

BelgiumMs Emma FauAvenue des Arts 12 Bte 7

B-1210 Brussels+32 4769 3959 2+32 2218 [email protected]

LithuaniaMr Saulius RaceviciusJ. Galvydžio g. 5 LT-08236 Vilnius+370 686 [email protected]

PolandMr Jacek Blonskiul Bonifraterska 1700-203 Warsaw+48 5348 0091 [email protected]

http://www.zernikemetaventures.com/

http://www.meta-group.com/

Documents

Early stage co-investment tools: example of a public-private partnership involving Business Angels clubs, Business Incubators Accelerators and VC fund