IISP Investment Readiness Workshop

The programme is funded by the European Union

Integrated Innovation Support Programme

Investment Readiness Workshop

05 July 2012


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Agenda Outline

1. Purpose of Investment Readiness Training

2. Overview of proposed approach– Background– Proposed Model

3. Key planning issues– Design– Management

4. Discussion

5. Conclusions and recommendations

Integrated Innovation Support Programme (IISP)


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What is Investment Readiness?

The EC Communication on Financing Innovation and SMEs defines Investment Readiness as:

“The entrepreneur’s understanding of the concerns of

banks, business angels and venture capital funds. In

particular, this includes knowledge about communication

with investors and about how to structure business plans

to secure external finance.” (p.23)



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OECD Investment Reform Index Policy Framework



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Progress Already in Serbia….



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The Investment Readiness Value Chain


STAGE OF BUSINESS DEVELOPMENT

INV

ES

TM

EN

T

RE

AD

INE

SS

STAGE 1: AWARENESSInvestment options

STAGE 2: DIAGNOSTICSGrant, Debt, Equity, None ?

STAGE 3: READINESSWorkshopsAssessment Panels1:1 Consultancy –Green, PathfinderBuild investment proposition & pitch

STAGE 4: INVESTMENT ShowcasingLinks to investorsWeb-streaming

STAGE 5: CORPORATE FINANCE

STAGE 6: GROWTH DEVELOPMENT CAPITAL

STAGE 7: EXIT

Main Focus of Project Activity

Existing Serbian Activities

SBAN & SPEA Activity


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IR Programme Targets

• Planned Start: ~ December 2012

• 100 SMEs receive training• 20 SMEs receive investment readiness coaching

• Programme training materials• Marketing of programme• Quality assurance system• Trainers trained (x10)



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Programme will build on…

• NARD Network– Business Start-Up training - Funding sources, and Business Planning– Support to Development Fund loans

• Chamber of Commerce Workshop Programme, e.g.– Management of working capital in the company - overcoming the

challenges of liquidity– Cashflow analysis and reporting– Applied Business Finance - Financial Alternatives

• SBAN & Others



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Target Groups

Innovative, growth oriented SMEs requiring investment– Equity – e.g. business angels, venture finance– Loan – e.g. medium and long term bank loans– Grant – e.g. Innovation Fund, FP7 etc

Two Target Groups:• Emerging Business – 100 SMEs trained• Growth Business – 20 SMEs coached



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IR Programme Objectives

• Raise awareness of investment opportunities

• Develop understanding of needs of potential investors

• Making SMEs attractive to investors

• Formulating business investment propositions

• Presenting SME ‘pitches’ to win the investment

• Successful legal/contractual conclusion of deals



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Delivery Proposal

• The emerging companies will receive:– 6 days group training (split into 3 x 2-day workshops,

delivered in 3 regions and Belgrade)

• The growth companies receive:– Up to 6 days group training (delivered in Belgrade) – Up to 2 days coaching



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Emerging Business Group – 100 SMEs


Understanding Investment Opportunities(2 days)

Planning Your Investment Proposition(2 days)

Developing Your Business Model (2 days)

• Investment options for Serbian businesses• Investor demands and expectations• Assessing your business’s appeal to investors.• Legal/contractual issues

• Preparing a business strategy and business plan to appeal to investors.

• Covering topics such as product development, patents and intellectual copyright, marketing, financial projections, management structure, HR planning etc

• Clarifying your business’s investment requirements and your offer to investors.

• Delivering your pitch and handling questions.

• Negotiating and finalising a deal.


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Growth Businesses – 20 SMEs


Understanding Investors(2 x 1 ½ days 20 participants)

Individual Coaching(2 x ½ days for each participant)

Presenting Your Proposition(3 sessions for 20 participants)

Individual Coaching(2 x ½ days for each participant)

• Current investment options for Serbian businesses• Investor demands and expectations• Assessing and enhancing the appeal of your business to investors• Legal/contractual issues

• Developing your pitch • Preparing written information• Presentation skills and visual aids• Handling questions• Negotiating an investment deal

• To develop the proposition, and plan steps to enhance the attractiveness of the business

To polish the presentation and supporting materials, and practise handling investment negotiations.


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Programme Promotion

• Announcements through BSO and BISO networks

• Public announcement through the MoERD website

• Press and mass media awareness

• Promotion to SMEs that have applied to MoERD, NARD,

MoES direct support programmes and Innovation Fund

• Flyers and promotional materials through financial

intermediaries (banks, microfinance institutions etc.)



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Selection of Participants

• Application Forms• Use of Marketing and Promotional tools for ‘Self Selection’• Use of written selection criteria • Transparent selection process

• Initial assessment of overall suitability for participation in investment readiness

• Assessment of whether an SME is more suited to the ‘emerging’ or ‘growth’ training track.



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Implementation Worksteps - Planning

• Design of investment readiness programme• Establish selection criteria• Training materials, and consultant guidelines• Identification and selection of trainers and

consultants• Programme evaluation process and KPIs• Procedures and systems for consultancy support.• Responsibilities for management and monitoring• Quality control and feedback mechanism



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Promotion and Delivery

• Promotion of the programme• Training logistical support• Website content

• Select programme participants• Deliver emerging business training• Deliver growth business training and coaching



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Main Outputs and Results

• 100 SMEs receive training• 20 SMEs receive follow-on IR training and coaching

• Selection criteria• Training and promotional materials• Client contact management system• Quality system and procedures• Evaluation process and guidance• Programme backup logistical support process• Report on programme delivery



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Guideline Questions for Discussion

• Stakeholder involvement – who and how?

• Focus – balance between loan/equity promotion?

• Format for delivery – timing, mode, trainers?

• Investment process – emphasis on preparation/pitch?

• Programme length – training fatigue? Modular approach?

• Market segmentation – appropriateness of 2 track

approach?

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IISP Investment Readiness Workshop