Feasibility Study.doc

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CCZECZECH SH SEEEED CD CAPITAAPITAL FL FUNUNDDFeasibility study

Responsible Partner: Central Bohemia Regional Development Agency

Editor: Mr Martin Januš

Feasibility study: Czech Seed Capital Fund SEED-REG Central Bohemia Regional Development Agency October 2006

Date: October 2006

PPREFACEREFACE

This document is one of 5 feasibility studies in the frame of the SEED-REG project. The main sources were internet and publications about venture capital and seed funds, consultation with dr. Peter Eulenhofer from ZAB Brandenburg and mainly it is outuput from expert group of the project and its project team.

Chapter 1 includes basic information about the process of creating this study and about localization of the project.

Chapter 2 assesses the situation on the financial market in the Czech Republic and all possibilities for starting SMEs to get money for their project ideas. This possibilites are venture capital, business angel, loans in banks, labour offices and grants from the EU. There are examples of international funds for seed capital from Germany, Spain, Portugal, Slovakia and Baltic countries. All have advantages and good point usefull for our study.

Chapter 3 includes basic information about new seed capital fund on the national level in the Czech Republic. There is no possibility to establish a regional fund because the Central Bohemia Region is too small part for seed financing.

This Fund will be aimed only for SMEs in strategical branches, they can get investment from 1 mil. CZK to 50 mil. CZK fo 1 – 5 years. In the frame of the Fund will be established management structure for development of the Fund, the headquarter will be located in Prague. In each NUTS II region will be regional representant which will be responsible for the contact with potential applicant.

The last chapter includes all information about next steps and evaluation of the Fund. There are 5 variants for establishment of the Fund and recommendet for next development.

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CONTENT

Preface 2

1. Basic Information 4

1.1 Fast details about document 41.2 Name of document 51.3 Author 51.4 Contact person responsible for the Study 51.5 Project team / Expert group 51.6 Creating of study 61.7 Location of project 7

2. Description Of Present Situation 8

2.1 Starting condition 82.2 Objectives 82.3 Target groups and theirs benefits 82.4 Situation on the market in the Czech Republic 92.5 Describtion of similar projects in Europe 142.6 SWOT analysis of the start-up SME’s financing in the Czech Republic 182.7 Results of chapter 2 19

3. Czech Seed Capital Fund 20

3.1 Basic data about the Fund 203.2 Detail information about the Fund 21

4. Conclusion And Recommendation 31

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1.1. BBASICASIC I INFORMATIONNFORMATION

1.1 Fast details about document

Project reference number 4E00581

Project acronym SEED-REG

Project full title Development of specific regional policies through the analysis of early-stage financing opportunities for innovative start-ups and spin-offs

Component 4Output Feasibility study

Security (distribution level) Public

Contractual date of delivery 11/2006

Actual date of delivery 10-11-2006

Number of pages 34

Component contributing to the

deliverable

Component 4

Component / Task responsible CERTH, Greece

Author(s) Mr Martin Januš – project manager,

Mr. Leoš Stehlík, Ms. Petra Kursová, Ms. Gabriela

Jirátová, Mr. Aleš Minařík, Ms. Kateřina Hubáčková,

Mr. Jan Sova, Dr. Pavla Řehořová, Dr. Jiří Svítek

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1.2 Name of document

Name: Czech Seed Capital Fund

Program: Interreg III-CProject: Development of specific regional policies through the analysis of

early- stage financing opportunities for innovative start-ups and spin-offs

Acronym: SEED-REGDuration of project: 6/2005 – 5/2007

1.3 Author

Name: Central Bohemia Regional Development AgencyName in Czech: Regionální rozvojová agentura Střední ČechyAddress: nám. Sítná 3106 272 01 Kladno

Czech RepublicIdentity number: 69342440Phone / fax: +420 312 681 347

1.4 Contact person responsible for the Study

Name: Martin JanušPosition: project managerGSM: +420 776 797 969E-mail: [email protected]

1.5 Project team / Expert group

Nb. Name Organisation City Sex1. Martin Januš CB RDA / FID-NNO Kladno M2. Kateřina Hubáčková CB RDA Kladno F3. Aleš Minařík CB RDA Kladno M4. Dr. Jiří Svítek CB RDA Kladno M5. Petra Kursová ARCA Capital Prague F6. Leoš Stehlík IBM Czech Republic Milovice M7. Jan Sova BIC Prague Prague M8. Gabriela Jirátová Czech Technical University in Prague Prague F9. Dr. Pavla Řehořová Private person - expert Prague F

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mailto:[email protected]


1.6 Creating of study

By creating of feasilibity study was used method of strategical planning. The best benefit of strategical planning is that the planning aids understanding of trends and it center the effort to result of key problems. Its shows how to prepare for future evolution of conditions by minimalization of negative impacts and by maximalization of opportunities. The exit document is strategy or similar document, where everybody could find group of actions and tools for management of changes.

Actions by creationg of FS

Creating of FS had several steps.S1 – profile of market – the main aim of this profile is to show situation in the market in the Czech Republic with specification of support to starting SMEs, the main target groups are venture capital, business angels, loans, grants and seed capital fund on the national or regional level (see chapter 2.4)S2 – vision – formulation of target condition including common images about future situation (see chapter 2.2)S3 – aims (see chapter 2.2)S4 – SWOT (see chapter 2.6)S5 – definition of document about seed capital fund’s possibilities (see chapter 3)

The feasibility study was created mainly by the meeting of project group from Semtember 2006 til November 2006. Project group had 4 members

- Martin Januš – manager of group and author of the text of study,- Petra Kursová – expert in the field of venture capital, staff of ARCA Group (venture

capital organisation), she have experiences with creationg of similar study in national agency CzechInvest,

- Leoš Stehlík – staff of IBM with experiences with financing and consultancy for SMEs,

- Pavla Řehořová – she is private consultant for SMEs.

Diagram of meetings and results:

Role of members in project team (expert group):a) manager of project group (project manager) – creating and writting of FS, contact with

members of group, preparing of documents for all meetings of project group and expert group, end version of FS, translate from Czech to English

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Project manager

Preparative works

06.08.06 –-

Expert group

meeting1

VisionObjectivesDeadlines

24.08.06

Project team

meeting 1

Case studyProfileSWOT

FS version 1

01.09.06 – 10.10.06

Project team

meeting 2

FS v2

Project team

meeting 3

FS v3

Opposer’s positions

Topics and reminders

for changes

11.10.06 –-

Expert group

meeting 2

Discussion

27.10.06

Project manager

Finalization of FS

30.10.06 –-


b) members of project group – participation in 3 meeting of project group, drafts of ideas and reminders for chapter 2 and 3 of the FS, helping by creating of FS, correcturing,

c) opposers – reading draft version of FS, reminders, participation in disscusion for end version of FS,

d) expert group a. meeting I – dealing of charges of each member, deadlines, preparing of

summary of FS and discussion about content of each chapter,b. meeting II – disscusion between opposer and authors of FS for end version.

Main sources for creating of FS were:- internet sources

o www.mpo.cz - web of Ministry of Business,o www.czechinvest.org - web of national agency CzechInvest,o europa.eu.int – statistics on web of the EU,o www.cvca.cz - web of Czech Venture Capital Association,o www.arcagroup.cz - web of company ARCA Group (venture capital investor),o www.eban.cz - web of European Business Angel Net,

- meeting of project group – discussion with experts in the field of seed financing, - meeting with Dr. Peter Eulenhofer from ZAB Brandenburg – case studies from

Brandenburg and Berlin for financing of seed capital funds in Germany, date: 26. 9. 2006, place: Kladno.

1.7 Location of project

Result of this feasibility study are aimed to all regions in the Czech Republic.

NUTS I Czech RepublicNUTS II 8 larger regionsNUTS III 14 smaller regionsNUTS IV 76 districtsNUTS V 6.214 towns and villages

Pic 1: Map of NUTS II regions

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http://www.eban.cz/

http://www.arcagroup.cz/

http://www.cvca.cz/

http://www.czechinvest.org/

http://www.mpo.cz/


2.2. DDESCRIPTIONESCRIPTION O OFF P PRESENTRESENT S SITUATIONITUATION

2.1 Starting condition

The financing market in the Central Bohemia Region is very small. All important institution for support of business are located in the capital city, Prague. For starting SMEs are only a few possibilities for financing – venture capital, business angels, loans or grants from the EU.

Venture capital and business angels are new ways for financing of SME. Problem is that only high-tech branches are supportable. From the structural fund, only START programme is available for starting SMEs, but it is only loan only for 90 % of eligible costs.

On the regional and national level, there isn’t program or fund which combinate support from private and public sources.

By meeting of expert group resolved that the market of the Central Bohemia is very small and that to establish only regional seed capital fund isn’t possible and effecient. The main argument was that from 100 aplications form only 10 are good and only 1 of then could be supported. This study is destinate not only for this region but for all the Czech Republic.

2.2 Objectives

Main aim of this study is to create basic condition for establishment of seed capital fund on the national level in the Czech Republic, which will be aimed to starting SMEs.

Other objectives are:- to initiate contact and partnership between public and private sectors,- to create fund for starting SMEs,- to better situation of SMEs in the frame of the Czech Republic,- to support high-tech projects from SMEs,- to establish the fund which will be compete with similar funds on the national and

regional level,- to create special web site for starting SMEs, where they can find information about

financing of companies and projects.

2.3 Target groups and theirs benefits

Target group for this project are:- venture capitalists,- business angels,- banks,- other financing institutions,- SMEs – start-ups and spin-off,- SMEs and large companies,- Czech Republic, regions, ministries and other national/regional institutions,- EU,- inhabitants.

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This study will be background for meeting of private and public founders which will be participate on the fund. This fund will be usefull for venture capitalists and business angels – they can invest their money to excelent project and earn money in future. It can be good steps for investment for them.

The second founder will be government of the Czech Republic or governments on the regional level. By supporting of SME’s project could fall down the unemployment rate on the regional (and national) level and the regional GDP will grow up. By good projects which are supportable, we could assume that the SMEs will employ more people in future. By selling of the company by exit could region or state has some money which could invest to new SMEs or to other fields in regions (transport, amenities, etc.).

This fund will be for starting SMEs. They can get finance for realization of business ideas for economical growth and value of the company. When they will be succesful they can do business with other SMEs and large companies on the regional, national and international level.

2.4 Situation on the market in the Czech Republic

The market in the Czech Republic is very small adn has still a long way to go to develop itself into an environment, wihich is friendly to new businesses, however the situation nowadays is rather promising.

To finance a start-up company, businesses have the opportunity to obtain financial resources from banking institutions, governmental programme, EU grants, business angels and venture capital. Entrepreneurs who intend to finance threir start-up projects need to consider, which of these financial sources is the most sustainble for them.

There are many possible sources of the start-up money in the Czech Republic. All possibilities are in next table. This table summarizes all sources, their main focus and their limitations.

Tab.nb.1: Sources of the start-up capital in the Czech Republic

Source of capitalAmount of capital offered

(in mil. CZK)Limitations

Banking sector 0,1 – 5,0 Only limited number of banking institutions offers financing of start-up companies.

Government programs 1,0 – 10,0 Focused mainly os SME segment and first-time entrepreneurs or sole proprietors.

EU grants 1,0 – 150,0 Not suitable of all projects. One of the main criterions to get an EU grant is social and public interest.

Business angels 5,0 – 20,0 One of the only possibilities to finance small- to mid-size start-up projects.

Venture (risk) capital fund 20,0 – 300,0 The only real possibility to finance large projects.

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Venture capital

Venture capital is financing of private vegetative companies by enhancement their capital. It is multiyear process of coexistence of company with venture capital investor. This process helps to development of company. Expertises of investor are more important for companies then capital resources. Venture capitalists try to maximize the value of their portfolio companies by the development of companies and by the efficient increase of their profitability. They put a big emphasis on product development, the modernisation of production technologies and on the establishment of an efficient marketing communication system.

The benefits of a portfolio company brought by the venture capitalist can be summarized as follows:

- capital which is needed for the growth and development of the company and for the furher increasement of the company value.

- authenticity - there are internationally known and acknowledged investors and fund managers behind the venture capital and private equity funds.

- business relations – The managers of venture capital funds usually have extensive domestic and international business relations. Thanks to these relations portfolio companies can exploit synergies, can find advantageous procurement sources or even more clients.

- business competences - The employers of the fund managers accumulate significant business competences and in many countries they are familiar with the sectoral trends.

- management and human resources - Venture capitalists often stress that they invest rather in the management than in the company.

- exit - The venture capitalist will be forced to sell its stake at the portfolio company within a reasonable limited time from the investment, as the funds are accumulated for a fix, usually 6 to 8 years period. In other to achieve proper yields they have to sell at a high price. So already at the very first step he has to pay special attention, who could be the well-capitalised will be investor who will be willing to buy the venture capitalists share in the company if it is to succeed following the investment. If such a financial or strategic investor do not exist, than even those opportunities which exceed expectation in every possibly respect will have to be rejected. This is why a Business Plan constructed specifically for a venture capitalists will put great emphasis on this issue.

In the Czech Republic is in the field of venture capital very active organisation Czech Venture Capital and Private Equity Association (CVCA) located in Prague. CVCA is an association representing companies that are acting in section of venture capital in the Czech Republic. Members of CVCA are companies investing venture capital (full members) and companies providing advisory services in section of venture capital (associated members).

CVCA has main target to propagate phenomenon of venture capital in the Czech Republic. One way of educational activity is providing information to companies that could use venture capital. CVCA is representing basic source of venture capital in the Czech Republic. The top-priority task is to increase notice and awareness about possibilities of venture capital by continual contacts with investors and competent political, control and medial subjects,

In CVCA are full members and associated members.

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Business angels

Business Angels are private individuals who are prepared to invest their own funds in private companies in return for a minority equity stake. They are particularly interested in growth business with a clear exit strategy for their investment. These private investors / Business Angels are normally high net worth individuals who have usually accumulated capital and are looking to invest their money and expertise into businesses which demonstrate potential for growth. They recognise that these businesses need time to grow and prosper therefore, most Business Angels investments are for periods of at least 3-5 years. Business Angels recognise and, are willing to share the risks involved in this form of investment. They expect fast growth from the business and a high return on any investment made.

Business angels - in the Czech Republic are only four companies in this area, all are located in Prague: BANET, Business Angel Czech, Angel Investor Association, CEAA.

Some business angels do not require direct control over the company and hence do not want to co-own it. Instead, they support the project by offering a long-term loan. In such case, they profit from the interest rates, or they might become so called silent (sleeping) partners. Such partners do not have any rights to govern the company, however they can claim a particular percentage whack on future gains.

Loans in bank

Loans are classical instruments for financing the development of companies. But in connection with early stage enterprises loans are applicable only in a restricted way. The first problem is that a bank typically needs a surety from the borrower for granting a credit. Usually young and innovative entrepreneurs are not able to provide such a surety. Generally they don’t possess houses on which they could raise mortgages. If they are lucky they have relatives or friends who could do so. The second problem is that credit-financed young companies often are not able to build capital resource because they have to pay the interests for their credits and have to repay the credits from their earnings.

In many cases, most commercial bank in the Czech Republic do not finance start-up companies. There are, however, some exceptions. Komerční bank, Česká spořitelna and GE Money Bank offer programs for very small businesses ans sole proprietors. The amount of money offered under these programs ranges from hundreds of thousands up to 5 millions CZK for a single company or sole proprietor.

In order to finance larger projects, SMEs should consider programs offered by one the global investment banks, such as City Bank, Credit Suisse, Morgan Stanley or JP Morgan Chase. This institutions are only examples and do not representant the complete list of international investment banks.

Grants for SMEs 2004 – 2006

From 2004, Czech SMEs have a possibility to get money from structural funds. For starting SMEs are only a few possibilities for establishement or development. All business activities for SMEs are financing from OP Industry and Entrepreneurship. The EU’s and Government programmes are in the Czech Republic offered through the Czech-Moravian Guarantee and Development Bank (www.cmzrb.cz).

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http://www.cmzrb.cz/


The main aim of the START programme is to be helpful by realization of business ideas of companies they are first time on the market or they are coming back after 7 and more years. The CREDIT programme is for companies with shorter business history which could have problems to get money for financing of the projects and ideas cause they don’t have enough own capital.

In both case is the support in the form of loan. The implementation agency on the national level are agency CzechInvest and Bohemian-Moravian Guarantee and Development Bank. Both institution are located in the centre of Prague and have regional offices in the Czech Republic.

In the START programme, companies can get max 90 % of eligible costs for financing of their projects and ideas. This grant is between 0,1 and 1 mil. CZK. Target groups are only small companies. When sombody want to apply for loans in this programme, he has to have a certificate from National association for entrepreneurship development. Applicant is from industry, services, transport or business.

The CREDIT programme is only for small companies too. Applicant could get one of three type of loan:

- small loan – max 90 % of eligible costs, 0,2 – 2 mil. CZK,- standard loan – max 80 % of eligible costs, 2 – 5 mil. CZK,- loan – max 50 % of eligible costs, 0,5 – 12 mil. CZK.

Deadline for both programmes was 29th September 2006.

Tab.nb.2:Number of projects in the START and CREDIT programmes

Region

The START programme The CREDIT programmeNb. of

application forms

Nb. of unsuccesfull applicants

Nb. of succesful

applicants

Nb. of application

forms

Nb. of unsuccesfull applicants

Nb. of succesful

applicantsSouth Bohemia Region

61 5 53 78 16 52South Moravia Region

142 7 126 161 55 91Karlovy Vary Region

15 0 15 42 7 32Hradec Králové Region

68 6 56 112 37 69Liberec Region 28 4 24 38 12 21Moravskoslezský Region

275 30 238 171 74 94Olomouc Region 61 3 55 75 19 52Pardubice Region 28 3 22 128 56 68Pilsen Region 33 3 28 143 25 111Central Bohemia Region

41 3 35 109 41 61Ústí Region 76 9 58 66 20 38Region Vysočina 59 7 50 76 20 50Zlín Region 45 2 35 91 28 55All other projects are in the phase of classification. Statistic to the date 4.11.2006. Source: www.mpo.cz

Next possibility are EU grants. The EU grants are offered through the Community programmes and structural funds.

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SMEs in the Czech Republic can apply for grants from the following Community programmes:

- Small and Medium Size Enterprises,- Eqaul Opportunities,- SAVE II.

Most of the programs use the retrospective financing principle. This, in other words, means that the starting SMEs has to obtain the financial resources for the project in advance from other institutions (banking sector, governmental programmes, business angels or venture capital). The actual costs adn expenses will be then reimbursed by the appropriate structural fund at he end of the project realization. This is one of the main reasons why EU grants are in many cases not suitable for financing of start-up company.

Grants for SMEs 2007+

From 2007 til 2013, 3 programs stay to starting SMEs in the frame of new operational programme Industry and Innovation (managing institution is Ministry of Business, implematantion institution is agency Czechinvest):

- the START programme – this programme has the some terms as in 2004-2006, - the PROGRESS programme – this programme is new from 2007, the main aim of the

programme is to help to SMEs by capital facility, SMEs don’t have own capital for financing of larger project, this programme could help them by realizatin in the form of loans or loan in combination with financing contribution,

o the loan is from 2 to 25 mil. CZK for 11 years (first payment could be max after 6 years), interest is 3 % p.a., this loan is max 75 % of eligible costs,

o the loan with financing contribution has the some condition as first point (loan), other point is financing contribution, it means max 10 % from beaten loan, this contribution could get each SMEs, which will increase number of staff for 4 new, starting condition is number of staff to 31.12. – on the end of year before the year of grant,

- the INCUBATOR programme – one of all aim in this programme is to establish new innovative SMEs, which will be producents of new technologies, products and services, one of activies of the programme is establishment of Business Angels nets and new financing programs for starting SMEs.

There will be some possibilities for starting SMEs in next programme – Programme of Landscape Development, there will be projects for new SMEs in small cities and villages, mainly in agriculture and services. For this programme is responsible Ministry of Agriculture.

This support from the Programme is in the frame of priority I – Improvement of competitiveness of agriculture and forestry, Measure I.3.2 – Establishment of activities for young farmers / cultivators. Eligible costs are investment to agriculture buildings, technic and technology of buying of land. 75 % of eligible costs is grant from the EU, the rest (25 %) is from national sources. Max grant is 1,2 mil. CZK.

Seed Capital Fund – CzechInvest

In 2004 and 2005 was Czechinvest, national agency for direct investment, responsible for creating a feasibility study for seed capital fund on the national level. This study is at the “on the table” and one of financing possibility are structural funds. But at the moment, there is

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problem with new Czech government. They have to confirm this document. First version, that this Fund will be established from January 2007 is unreal. There are no structures for establishment. Public doesn’t have information about this Fund, so nobody knows what time will be seed capital fund established and who will be target group.

Labour office

Labour offices in the Czech Republic are responsible for sinking of unemployment in all regions. They can find new jobs or provide finance for starting new SEs. Applicant (unemployed) takes a application form and business plan to labour office and can get finance for kickoff. He can’t apply for other finance and assesment from labour office or other public institution during first year, possible are only money from bank (loans) or grants.

2.5 Describtion of similar projects in Europe

This part of the study is about similar project around Europe. The main aim is to show direction of Czech Seed Capital Fund by its realizations. There are expamples from Germany, Slovakia, Baltic countries and Spain. Only example from Slovakia is financing from public sources (EU and national budget), examples from Spain and Germany are financing from public and private sources. Fund in Baltic countries is for three countries and financing only from private sources.

Schema of private and public financing of start-up companies:

STARTING SMEs, SMEs

PROJECT IDEAS

PRIVATE FOUNDERS PUBLIC FOUNDERS(bank institutions, companies, venture capital, business angels)

MONEY MONEY MONEY

STARTING SMEs, SMEsGermany

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The first example is from region Brandenburg in Germany. This seed capital fund was established in 1993 and invested to 45 start-up companies over 28 mil. EUR. The big problem of the fund was that Brandenburg region is very small. Today, many of SMEs are insolvent and they don’t higher their value. Exit from this SMEs is unpossible.

The second example is from region Brandenburg too – High-Tech Gründerfonds. This fund is not only for this region, but for all Germany. This fund was established in May 2005 with budget over 252 mil. EUR – 242 mil. EUR from Ministry of Commerce (national sources of financing) and 12 mil. EUR from private investors ( SIEMENS, BASF and Deutsche Telecom). The aim is to invest all money to 300 start-up companies – high-tech companies in the field of IT, biotechnik and software and media. The support is in the form of equity or loan.

The company invest venture capital to newly founded technological companies whose core planning in focused on R&D. With the assistance of seed financing, the start-ups to continue with the R&D plan up to the preparation of a prototype, a proof of concept or introduction onto the market.

Name of the program High-Tech GründerfondsInstitution responsible for financing

Ministry of Commerce

Adrress BerlinCountry: GermanyWeb page www.high-tech-gruenderfonds.deTarget groups Newly founded technological companiesSupported regions All in GermanySupported branches - IT

- Biomaterial,- Media.

Conditions - The products, processes and scientific-technical services must allow significant competitive advantages and sustainable market opportunities to be anticipated on the relevant market,

- The company must be growt-oriented adn staffed with management personnel possessing the requidrd technological know-how

Criterias for investors - High-tech brancheDecision-making process - consultation between SMEs and coach

- application form established from coach- experts will evaluate the application form, presentation of

applicant, - investion committee.

Financing amount Max 500.000 EURBudget of fund 252 mil. EURSources for financing National (Ministry of Commerce) and private (BASF, Siemens,

Deutche Telecom)Exit strategy The fund is on the start, the exit strategy isn’t definited.Duration of investment 1 – 5 yearsSlovakia

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http://www.high-tech-gruenderfonds.de/


Seed Capital Fund is financing from the Phare programme and national budget and is managed by Seed Capital Company. This company is private and is established from public subjects. The main aim of the Fund is to help for development and establishment of new SMEs in Slovakia. Target groups are SMEs in branches of economy as industry, services for industry, innovative companies and active tourism. SMEs can get a money amount 5.350 – 535.045 EUR for 1 – 5 years.

Name of the program Program of directly investment – Seed Capital FundInstitution responsible for financing

Seed Capital Company, s.r.o.

Adrress Nevädzová 5, 821 01 BratislavaCountry: SlovakiaWeb page www.seedcapital.skTarget groups SME with legal status: Inc. and Ltd.Supported regions all regions in SlovakiaSupported branches - Industrial production,

- product services – transport, building industry,- business services – wholesale, restaurants, - active tourism

Conditions - SMEs,- number of employees – max 250,- date of establish – after 1st January, 1991,- min 50 % share of private character,- turnover max 50 mil. EUR or economic outcome in the frame

of final account max 43 mil. EUR,- independence,- must be Inc. or Ltd.

Criterias for investors - return of investment,- quality of management,- reinsurance of sale,- creating of new jobs, - environment – no negative impact,- innovative of project.

Decision-making process - classification of application form and business plan, creating of analysis,

- capital proposal with content of money, conditions of repayment and sort of quarantee in the frame of loan for company,

- discuss about capital proposal between company and investor,- presentment to Capital Committee, which is department for

approval and dispproval,- sending of official offer to company with results.

Financing amount Max 10 mil. Sk, min. 0,2 mil. Sk, optimum 2-3 mil. Sk.Budget of fund ?Sources for financing Program PHARE, national budgetExit strategy Capital deposit from Seed Capital Company to SME. Seed Capital

Company is owner of share. On the end of period, SME can buy this share back. If this SME isn’t interesting, Seed Capital Company can have business with other subject.

Duration of investment 1 – 5 yearsBaltic countries

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Capitalists from Norway invest to SMEs in three Baltic countries from 0,3 to 1 mil. EUR.

Name of the program Baltic Small and Medium Size Enterprise FundInstitution responsible for financing

Baltic SME Fund

Adrress A.Gostauto str. 40, LT 0112 VilniusCountry: LithuaniaWeb page http://www.baltcap.comTarget groups private business, SME, only Inc.Supported regions Estonia, Latvia and LithuaniaSupported branches Strategical branches of economyConditions - Inc.,

- SME,- Number of employees – max 250,- Turnover not exceeding 40 mil. EUR, assets – 27 mil. EUR

Criterias for investors They invest in companies, which have at least some operating history, i.e. the companies must be past start-up phase. They finance:

- private companies in expansion – companies which have just entered expansion stage very often lack equity capital,

- companies in need of restructuring – companies in temporary difficulties having good restructuring plans might find themselves overleveraged, these companies need fresh equity capital to get back on track,

- buy-outs and buy-ins.Decision-making process - initial proposal is received from the interested company

with short description of the company, industry and market,- initial talks and meeting with the management and

shareholders of the company,- initial evaluation of the project involves the detail review of

the business plan/investment memorandum, valuation and benchmarking of the project againts Fund’s investment criteria and competing projects, decision on whether to proceed into due diligence stage is made,

- due diligence stage involves detailed operationa, financial and legal review of the company,

- negotiations with the management or owner of the company,

- evaluation / decision of the board,- final negotiations and close of the deal.

Financing amount from 0,3 to 1 mil. EUR.Budget of fund ??Sources for financing - equity capital of BaltCap – 15-100 % of total,

- other sources from beneficiaryExit strategy Investor can sale the share to other subjects.Duration of investment 3 – 5 years

Spain and Portugal

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http://www.baltcap.com/


SMEs in Spain have a possibility to get money from several funds in Andalusia region. From 1999, organisation Andalusia 21 together with Andalusia saving bank established Andalusia XXI Fund with budget 18 mil. EUR. They invested over 15 mil. EUR.

Over 15 mil. EUR invested other fund (Andalusia Capital Desarrollo) into 5 projects in Andalusia Region. This fund, which was established in 2002 by IDEA agency, has totaly budget 18 mil. EUR with sources from IDEA, EIB and ERDF.

The next possibility for starting SMEs will be new fund called GED IBERIA GESTION with budget over 50 mil. EUR. This fund will be for 3 regions: Andalusia, Extramadura and South Portugal. Main investors are IDEA agency, EIB and other financing institutions.

2.6 SWOT analysis of the start-up SME’s financing in the Czech Republic

SWOT analysis is analysis of strong and weak points inside the system and opportunities and threats from outside systems.

Strenghten WeaknessesHigher number of applicants of finance.

Cooperation between public and private institutions for financing of start-ups.

Support of high-tech branches.

Qualified human resource in branche of venture capital and financing.

New forms of support for starting SMEs.

Bad conditions for start-ups in banking sector.

There aren’t money for financing of larger projects.

Only a few programmes for financing of start-ups from structural funds with bad conditions.

Only a few business angel nets.

All venture capital funds and business angels are located in Prague – they are far from applicants from Moravia.

Decision-making process in bank.Opportunities ThreatsPossibilites in public-private cooperation.

Development of business angels.

Opportunieties for financing from structural funds.

Development of venture capital and other forms.

Good practices from other countries.

There aren’t experiences with financing of start-up.

Conditions of START programme.

Bureaucracy in the Czech Republic.

Non-cooperation between public and private sectors.

2.7 Results of chapter 2

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In the Czech Republic are more possibilities for starting SMEs. Grants of EU and government programmes are only for a few SMEs and sometimes aren’t for larger projects. Problem is, that grants are only a part of financing in project, the rest have to pay SMEs.

The second possibily are loans. In many cases, most commercial bank in the Czech Republic do not finance start-up companies. There are, however, some exceptions. Komerční bank, Česká spořitelna and GE Money Bank offer programs for very small businesses ans sole proprietors. The amount of money offered under these programs ranges from hundreds of thousands up to 5 millions CZK for a single company or sole proprietor. In order to finance larger projects, SMEs should consider programs offered by one the global investment banks, such as City Bank, Credit Suisse, Morgan Stanley or JP Morgan Chase.

The last possibility is venture capital fund or business angels. Business angels are on the start, venture capital funds are located in Prague. The biggest is fund DGB East Europe, the main founder in the fund is Česká spořitelna, one of the famoust bank institutions in the Czech Republic. Venture capital could be one of chance for SMEs by financing of project ideas and starting SMEs.

To find if is better to get money from public or private fund is difficult. In each region are other condition for starting SMEs. Very good is example from Slovakia, where is the Fund financing from EU’s money. But problem is in administration and project’s look-up. The number of projects isn’t high. In the Czech Republic could be the some Fund – financing from structural funds and the managing authority will be Czechinvest, national agency. There is feasibility study for this project in Czechinvest, but the problem is in approval of the Fund in Czech government. At the moment nobody knows who will be target groups or financing conditions.

In Germany, they have very good ideas in High-Tech Gründerfonds. Is financing mainly from public sources (Ministry of Commerce), but very interesting is the system of coachs in the frame of project’s searching and processing of application form with business plan. Coachs are in all regions of Germany and they can help to all person concernet in venture capital financing. It shows that venture capital for small regions aren’t supportable and viable. The some situation could be in future in the Czech Republic – is very small market for investors and venture capitalists.

It shows that this project is aimed at all regions in the Czech Republic was very good. The Central Bohemia Region is the biggest (largest) in the Czech Republic, but the number of potential investment is small. Higher possibility is on the national (or international) level.

The base for chapter 3 could be combination of High-Tech Gründerfonds from Germany, Seed Capital Fund from Slovakia and Czech conditions for investment to SMEs. Some activities or ideas are available from other examples (Spain/Portugal, Spain, Baltic countries).

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3.3. CCZECHZECH S SEEDEED C CAPITALAPITAL F FUNDUND

3.1 Basic data about the Fund

Name of the program Czech Seed Capital Fund Institution responsible for financing

The institution will be determine in the phase of preparing of the Fund.

Headquarters: PragueCountry: Czech RepublicTarget groups Only SMEs:

- max 250 employees, - all legal statuts of SMEs, - place of business in the Czech Republic (or in border

regions),- time period of business max 1 year,

Supported regions All in the Czech Republic incl. Prague.Foreign border regions (max. 50 km from border).

Supported branches - high-tech- industrial production- high-tech services for industry

Criterias for investors - business plan,- growt potential,- experiences of management team,- market potential,- IRR,- opportunity and process of exit,- report from regional representant

Decision-making process - step 1: Prelimitary assessment of the investment opportunity- step 2: Evaluation and application form- step 3: Due diligence- step 4: Investment- step 5: Monitoring and controlling

Financing amount Min: 1 mil. CZK / cca 35.086 EURMax: 50 mil. CZK / cca 1.754.320 EUR

Budget of fund The size consists in structure of founders in the Fund.Sources for financing Private, public, combinationExit strategy Sell of the company / share after the timeDuration of investment 1 – 5 yearsFund management General manager

Project managerCapital managerNet of regional representants in each NUTS II regions (8)External experts

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3.2 Detail information about the Fund

Name of the Fund:

The name of the Fund will be Czech Seed Capital Fund.

Describtion:

The Fund will be established as opportunity for SMEs by financing of interesting and viable projects. The company (the Fund) will invest its capital in newly founded (max 1 years old) SMEs with business place in the Czech Republic in strategical and growt branches.

Investment finance resources carry know-how which is transferred to SMEs in the form of professional experiences of the investor – the Fund. It is principle of the “smart-money” – setting of management control, planning and strategic development, setting of optimal capital structure, cash flow management and working capital management.

Goals of the Fund:

The goals of the Fund are:- to sthrenghten the development of starting SMEs in all regions of the Czech Republic,- to invest finance to high-tech branches and branches with growing potential for

sthrengten of competitiveness,- to support together investment of public and private sectors,- to sthrengthen the competitiveness of regions and the Czech republic,- to invest money to the interesting projects around the Czech republic.

Headquarters of the Fund:

The headquarter of the Fund will be in Prague – the capital city. In each NUTS II region will be 1 representant of the Fund. Prague is strategical place for all activities in the field of financing market with good transport connection.

Target groups:

Target groups will be:- max 250 employees, - all legal statuts of SMEs, - place of business in the Czech Republic (or in border regions),- time period of business max 1 year,- must be in supported branches,- emphasis on innovation.

Localization of projects:

Investment is possible in all regions of the Czech Republic incl. Prague. When will the Fund financing mainly from private sources, is possible to invest to foreign border regions, max to 50 km from the border to the Czech Republic (Poland, Slovakia, Germany and Austria). Public Fund will be mainly financing from the EU’s money, so SMEs will be supported from all regions without Prague (Prague has higher GDP then other regions of the Czech Republic

21


and isn’t target region for investment). By combination of private and public money will be defined the localization in sequence of founders and agreement between them.

Pic 2: Map of the Czech Republic and border regions

Source: www.centrum.cz

Conditions for target groups and supported branches:

In the frame of investment will be supported only high-tech branches and branches with growt potential:

- industrial production,- high-tech services for industry,- services with growing potential,- high-tech sector,- IT sector.

Determination of target branches:- media and telecommunication,- IT, ICT, internet,- special chemistry,- machine-tool industry,- food industry,- energetics,- ecology,- wrapping production.

Supported branches aren’t:- agriculture,- public sector,- universities and other institutions in the frame of education,- services,- tourism.

22

http://www.centrum.cz/


Investment criterias:

The main criterias for investment into the company are:- business plan,- growing potential,- experiences of management team,- market potential,- IRR,- opportunity and process of exit,- report from regional representant.

Services of the Fund:

Main services of the Fund for all subjects are:- consultancy for potential applicant,- workshops and seminars about financing for SMEs,- investment to target groups,- searching of other sources of capital to the company,- possibilities of finance for SMEs,,- contact with public and private investors,- database of interesting project ideas.

Founders:

The potential founders are private or public investors or combination between them.

Private investors could be:- financial institutions,- Česká spořitelna – bank,- private companies,- business angels,- venture capital funds,

Public investors could be:- ministries,- regional authorities,- villages, cities, regions,- Czech-Moravia Guarantee and Development Bank, - Osinek Ltd. – established from Ministry of finance,- other public institutions.

The last group of potential investors are:- EBRD,- EU,- European Investment Bank.

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Financing sources:

In sequence of founders, there are more variants of financing sources. The finally sources will be determined after meeting with representants of potential investors. Table nb.3 shows possibilities and combinations of financing sources (financing sources from the sector is in blue collor).

Tab.nb.3: Financing sources for seed capital fund in the Czech RepublicNb.

CharakteristicFinancing sources

Public Private EU1. Structural funds, national budget2. Public budget, private companies3. Private companies, venture capitalist, business angel 4. Česká spořitelna5. Venture capitalists only6. EBRD, private company, venture capitalist7. Consorcium of banks8. Česká spořitelna, national budget, EU9. High-tech companies

Size of the Fund:

The size consists in structure of founders in the Fund. Founders have to expect not only first investment but second (or next) investment in next time. All investment are necessery for development of company and growth of investment and value of the company.

Duration:

This Fund takes in first phase 5 years. In the frame of the existention will be supported 10-15 projects each year, mainly not larger projects. After this period will be determinate about next existance of the Fund – other structure of founders, other personal structure, new level for maximum and minimal investment, etc.

Scope and type of investment:

Maximum for investment in one project in CZK: 50 milMinimum for investment in one project in CZK: 1 mil.

Maximum for investment in one project in EUR: 1.754.320Minimum for investment in one project in EUR: 35.086

Exchange rate CZK/EUR: 28,501

Average time of share in the company are 3 – 5 years. It depends on individual aspects of transaction in each project.

Type of investment:- entry into registered capital, - investment in form of convertible loan,- combination of both,

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- loans – in cooperation with bank, - purchase of assets,- purchase of receivables.

Fund management:

In the Fund must work only experts with experiences in the field of investment. All team will have max 20 members. There will be two groups of staffs:

- staffs of headquarters in Prague,- net of regional representants.

In headquarters will be 4 different groups of staffs: general manager, projects managers, capital manager and controller. All will be together communicate with potential clients and regional representants. The will select, coordinate and monitore all process in the frame of investment process.

Regional representant will be responsible for 1 of 8 NUTS II regions in the Czech Republic. He will be first contact point between the Fund and potential applicant. He will monitore situation for investment (interview with applicant, visit of the applicant in his business place, monitoring of economical indicator). In this first phase, he has to consider if the potential project is viable and supportable from the Fund. He will have good communication skills and he must to be expert in the field of finance and venture capital. He will be responsible for establishment of business plan, application form and other for headquarters in Prague. We will participate in meeting of both partners and he will be helpful in the process and by presentations. When the project will be supportable, he will be payed both from the Fund and client. If the project isn’t supportable, he could be payed only from client after agreement with client. It could be good motivated action for all partners. Regional representant will help only to viable projects and the level of application’s quality will be high. The work of regional representant imagine that it will be not full time job for him.

The last group outside the Fund will be expert. They will be main factor by evaluation of the investment. Their oppinium will be very important for investment or no-investment to the company. All experts will be external staffs / workers and their services will be used only in Step nb. 3 – due diligence.

Generel manager THE FUND

External experts

Project manager Capital manager Controller

Regional representant RP2 RP4 RP6 RP8 in region 1 RP3 RP5 RP7

Potential companies Supported SMEs

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Project selection:

Project selection is the main activity in the common contact between the Fund, regional representant and applicants and includes a few steps:

- step 1: Prelimitary assessment of the investment opportunity- step 2: Evaluation and application form- step 3: Due diligence- step 4: Investment- step 5: Monitoring and controlling

Step 1: Prelimitary assessment of the investment opportunity

Potential applicant contact the Fund or regional representant. Regional representant is responsible for this step. He will visit the interested company for indemniny of datas for examination if the project is supportable or not. Main sources for resolution are internal datas from interested company and describtion about the company and investment project.

Interested company founders submit their concept and the generally available business plan to the Fund. The concept must bear the positive references of a regional representant or the Fund. The regional representant must explain that they have inspected the content of the company foundation concept, and that a financially successful realization of such is highly probable in their opinion.

The concept should include information regarding the amount of capital required and the initial financing of the company. It must be recognizable therein how the required capital is to be financed.

For legal and internal reasons, the Fund will not sign any non-disclosure agreements. Nevertheless, the Fund management guarantee confidential treatment of the company data, and they are subject to the confidentiality obligation customary for banks. The Fund initially inspects the concept and the available business plan. The Funds′ investment criteria are of primary importance in this regard.

Information from business plan – basic information about:- basic data about the copany, - finance plan – financial statement view for min. 3 years ahead,- a brief characteristic of the business field,- business uniqueness – a competitive advantage,- a niche in the market – opportunity describtion,- technology and technological demands,- marketing and sale,- licences, certificates, trademarks and patents in the company’s ownership.

Step 2: Evaluation and application form

If the result of the examination of the concept is positive, the founders will receive a preliminary Terms Sheet with the Fund conditions for participation and the application for financing. The Fund submits these to teh Fund together with the documentation specified in the leaflet and personal information. Fund will then decide accordingly whether it will initiate

26

http://www.high-tech-gruenderfonds.de/en/kriterien.html

http://www.high-tech-gruenderfonds.de/en/kriterien.html


the process of due diligence. The main contact is still between regional representant and company, they are togetner preparing the applicion form. Regional representant is motivated to the best work in this activity – he will be paid only if the case of succesfull application form.

Step 3: Due diligence

In the framework of due diligence, the Fund conducts a structured examination in which it obtains a number of items including an expert report regarding the technological basis, the degree of innovation and the market chances of the company foundation project. Furthermore, a personal discussion takes place between the management, the regional representant and teh Fund. In this forum, the ′side investor′ reveals the amount and the terms of its investment. In the event of a positive outcome, due diligence results in a participation recommendation to the Fonds′ Investment Committee. One of important documents is oppinium from external experts for the branche where is the copany active.

List of data for due diligence (copany audit):- history and current legal status of the company,- partners and shareholders – extract from the Register of Shareholders, extract from the

Commercila register of company partner / shareholders (if they are legal entities), the development of the company structure,

- business activities – a detail destribtion of the company’s activities including products and services (both present and intended), list of major customers, suppliers and competition,

- business plan – currect 5year plan, projekct for new products, control and planning process,

- financing and accounting information,- tangible fixed assets – list of TFA, selling or purcahisng plans of TFA, etc.- intangible fixed assets- funds, bank and securities,- liabilities, - legal – licences, patents, certificates,- employees of the company,- management,- taxes,- the environment.

Step 4: Investment

One of the two Investment Committees, each consisting of 4 members, reaches a decision regarding the entry into a participatory investment in the company.

Based on this, the Fund submits an offer for participation to the companies at the attractive investment terms.

27

http://www.high-tech-gruenderfonds.de/en/beteiligungskonditionen.html


Step 5: Monitoring and controlling

In the Step 5 will be the main activity to monitore and control investment in the company. The main sources will be datas and information from copmany and internal sources from management of the Fund. By this activity will be rated:

- level of investment,- process of investment,- return of money in the company,- level of sale in the company, new clients and new markets,- need of new sources to be invested to the company,- arrangement by bad management of the investment,- recommendation for better situation in the company, - opportunity of exit,- bankruptcy – solutions of problems.

In the frame of this activity will be management of the Fund (responsible person):- creates report about investment – every month,- create evaluation about projects – development, risks, opportunities, management of

the company, perspective in next 3 months, description of important indexes in the company,

- describes all resolutions about next meansures in the copmany – new investment, problems, exit,

- prepares documents for exit.

Schema of project selection:

In the selection process will be three subjets:

The Fund Reg.representant Starting SMEs External expert

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Step 1:

Prelimitary assessment of the investment opportunity

Step 2: Evaluation

Step 3: Due diligence

Step 4: Investment

Step 5: Monitoring and controlling


Schema of Step 1 - Prelimitary assessment of the investment opportunity

Interest from Preparing of Datas for Continue in SMEs visit in SME examination Step 2 Contact p Prepare

P Project isn’tsupportable

Schema of Step 2: Evaluation and application form

Preparing of Application Resolution Continue in datas form Step 3

Elaborate s Sending

Project isn’t supportable

Schema of Step 3: Due diligence

Positive Expert Personal Continue innotification oppinium introduction Step 4

Project isn’t supportable

Schema of Step 4: Investment

Positive Investment notification

Resolution

29

END

END

END


Schema of Step 5: Monitoring and controlling

Controling Resolution about Resolution Monitoring new investment about exit Exit

Data F Finance to SMEs bbb

Bankruptcy

Integration of the Czech Seed Capital Fund with the other national and regional seed and start-up programmes:

The Seed Capital Fund doesn’t have at the moment its structure of founders. But there is possibility that this Fund could cooperate with other Funds on the national or international level. One of opportunities are programmes of the EU too – there are finance in the START programme. Money from other sources could be supplement for investment from private subjects.

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4.4. CCONCLUSIONONCLUSION A ANDND R RECOMMENDATIONECOMMENDATION

There are 4 variants for future development of SMEs in the Central Bohemia Region (and the Czech Republic too):

- Variant 1: Seed Capital Fund managing from national agency CzechInvest will be established and opened to SMEs in the Czech Republic.

- Variant 2: CzechInvest will have problems with establishment of new Seed Capital Fund and there will be space for private Seed Capital Fund.

- Variant 3: Coopearation between private and public sectors

- Variant 4: Regional Fund for Central Bohemia Region

- Variant 5: Seed Capital Fund is managing from Česká spořitelna

Variant 1: Seed Capital Fund managing from national agency CzechInvest will be established and opened to SMEs in the Czech Republic

If Czech government will approve the program for Seed Capital Fund, the managing body will be Czechinvest – national agency which is responsible for programs for SMEs, innovation and business development. The problem will be where to find money (EU might be going to give the money to other programs, cause new opening of grants will be from January 2007). The opening of this Fund managing from CzechInvest won’t be in 2007 but later. It could be time gap for starting SMEs in Czech regions. To open other Fund financing mainly from private sources is risk for future time, but it could be good in the field of competitive financing market.

The other programmes of the EU will be not enough for the starting SMEs. They have to find in first months other possibilities for searching finance for development of project ideas. The problem in the field of the Seed Capital Fund will be problems in internal structure in Czechinvest and the Fund – there will take a time to create and establish management of the Fund.

Variant 2: CzechInvest will have problems with establishment of new Seed Capital Fund and there will be space (opportunities) for private Seed Capital Fund

When CzechInvest will have problems with establishment of its seed capital fund, on the market will be larger gap and it could be good possibility for private investors for establishment private seed fund and financing start-ups. Investors and venture capitalists know needs of SMEs and could offer better aim to target groups (and branches). The main motive of the financing is to get back more finance – but this is motive of each investment. This Fund could be established independently of public capital funds on the national or regional level – this Fund doesn’t need primarily cooperation with public sector.

31


Variant 3: Coopearation between private and public sectors

The disscusion between public and private sector is possible too. It is urgency to define proportion between public and private sources in the fund and criterias (which could be difficult for each partner). The main partnes from public sphere could be Ministry of Business, Ministry of Finance, Czech-Moravia Guarantee and Development Bank, Czechinvest and regional authorities. The main partners from private sphere could be private companies, venture capitalist, business angels or financing institutions. Experiences of private subjects and character of public subjects on the market could be advantages for succesful development.

It could be established the Fund with mainly financing from private institutions (banks, Česká spořitelna, venture capitalist, private companies) and cooperation with public organisation which could erforce the legal m

Variant 4: Regional Fund for Central Bohemia Region

This variant isn’t viable. Central Bohemia Region is too small to have own seed capital fund.

Variant 5: Seed Capital Fund is managing from Česká spořitelna

Česká spořitelna has free finance for establishment of new fund. At the moment, they have 2 funds for investment to the SMEs in the Czech Republic. The aim is to invest all free money to the Funds aimed to SMEs. This variant could be good, advantages are:

- free money from bank for establishment of the Fund (or to be a partner in new fund) – over 10 mil. EUR,

- experiences with financing of SMEs,- good name on the financial market,- member of international bank group (Erstebank from Austria),- only this bank is venture capitalist on the financial market in the Czech republic, the

rest of venture capitalist are private investors companies,- the bank knows needs of the SMEs on the market.

Recommendation: The best choise for investment is VARIANT 3 – cooperation between private and public sector by establishment and management of seed capital fund. The main argument could be:

- finance from private sectors for estimation of investment,- private institutions know more regions and needs of SMEs,- public institution could induse the legislative on the national and regional level,- possibility of public money from EU grant for financing start-ups,- cooperation could transfer know-how and information between public and private

institutions,- experiences with financing from private investors,- free money from Česká spořitelna at them moment – the bank is seeking a possibility

for investment to some funds or othere opportunities on the national level.

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Very important point could be cooperation with banks – mainly Česka spořitelna. If this plan will be interesting for management of the Bank, could be established new Seed Capital Fund on the national level with support of private and public money.

Next steps for establishment of seed capital fund:- meeting with representant of public subjects if they are interesting about this project

and the Fund, mainly with Ministry of Business, Ministry of Finace, Czech-Moravia Guarantee and Development Bank, company Osinek Ltd. (was establish from Ministry of Finance),

- meeting with representant of private sector – mainly Česká spořitelna and venture capitalists,

- together meeting between public and private sectors,- questionnaire survey in the frame of starting SMEs,- composition of priorit, founders and sources of the Fund in the frame of strategical

meetings,- establishment of the Fund,- development of the Fund.

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List of sources:

(1) www.czechinvest.org (2) www.arcacapital.cz (3) www.cvca.cz – Czech Venture Capital Association(4) www.mpo.cz – Ministry of Industy and Business CR(5) www.high-tech-gruenderfonds.de (6) www.seedcapital.sk (7) consultation – dr. Peter Eulenhofer, Kladno, 26.9.2006 (8) meeting of expert group of SEED-REG project – Prague 24.8.2006(9) meeting of expert group of SEED-REG project – Prague 27.10.2006(10) meeting of project team – Prague(11) www.eban.net (12) OP Industry and Innovation 2007 – 2013. Ministry of Industry and Business,

2006.(13) Programme of Landscape Development 2007 – 2013. Ministry of Agriculture.

34

http://www.eban.net/

http://www.seedcapital.sk/

http://www.high-tech-gruenderfonds.de/

http://www.mpo.cz/

http://www.cvca.cz/

http://www.arcacapital.cz/

http://www.czechinvest.org/

Economy & Finance

Feasibility Study.doc