Jochen Moesslein - relevant experience
                                                                                   ...
CleanTech in Europe from the angle of an investor                                                              One example...
Typical terms for CleanTech investments                                                                        Work flow o...
…time for intensive technology transfer in CleanTech!


    Arctic Ice Cover 1979                     Arctic Ice Cover 200...
Upcoming SlideShare
Loading in...5
×

Technology Transfer and CleanTech Venture Capital

1,129

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,129
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
31
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Technology Transfer and CleanTech Venture Capital"

  1. 1. Jochen Moesslein - relevant experience 1990 - 1992 Physics thesis on CdTe solar cells at Stanford University with close touch to Silicon Valley spin-offs (David Packard) R&D and technology transfer on CIS solar cells at University Stuttgart, Technology Transfer and CleanTech also MBA Venture Capital Built-up of solar collector production line & business unit (to 15 employees) for German manufacturer of construction tubes & building lighting) Jochen Moesslein, VentureInvest AG, www.ventureinvest.de 1998 Co-Founder of Freiburg University spin-off BioTissue AG -> IPO @ € 35m on German New Market after 28 months ASTP, Annual Conference, Best Practices in Transfer of Science and Technology, Heidelberg - Germany, 31 May & 1 June 2007 Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Jochen Moesslein - relevant experience Headlights on CleanTech Venture Capital 2000 Founder, CEO & largest investor of VentureInvest AG (small evergreen vc Results of IPCC on climate change drive strong investment into CleanTech fund): new and longer cycle mega trend - invested in 7 early stage companies, among others in biomass company UBP 3rd sector of US venture capital in 2006: $ 2,9bn, 78% increase over 2005, - cooperation with Fraunhofer Institution for deal sourcing and technology due 11% of overall vc investments diligence Successful IPOs: Q-Cells, REC, First Solar and many others Several financial rounds of start-up and growth companies (i.e. 2006 ProContour A-round with € 4,5m) and M&A deals (i.e. 2004 sale of Altatec (dental implants) @ Strong presence in public markets: US CleanTech Index comprises $ 300bn € 85m to Henry Schein) market cap with 40% increase in 2006 (>> than NASDAQ, S&P 500 etc.) Mandate from Demeter Partners (€ 105m French CleanTech fund) US – EU paradox: EU has stronger technology base, but US is taking over due to more mature Venture Capital and Public markets Since 2007: new partnership of 5 experienced entrepreneurs and vc managers focused on CleanTech advisory and vc fund management -> Evergreen Partners EU chance: better technology at lower valuations! Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Venture Capital is the agent for change What is CleanTech? Venture Capital has worked as the agent for change in many industries: Renewable energies: photovoltaics, solar thermal, biomass, wind etc. - Pharmaceuticals: driving the emergence of biotechnology Energy efficiency: combined heat and power, monitoring, passive solar - Telecom: driving the de-monopolization, privatization buildings - Communication: driving the success of internet and e-business Energy storage: fuel cells, batteries, hydrogen etc. Strong growth of CleanTech Venture Capital in the last 2 years shows that Venture Capital will also drive the change to a cleaner and more Recycling / waste: conversion of waste to valuable materials & products sustainable way we deal with energy and resources Water: recycling, filtering, desalination The structural change in the energy and resource sector is the largest structural change in the next 20 years Manufacturing: improve energy and resource efficiency a perfect playground for Venture Capital Transportation: electric, fuel cells and hybrid vehicle technologies Air & environment: detection, purification Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Technology Transfer and CleanTech Venture Capital – Jochen Moesslein 1
  2. 2. CleanTech in Europe from the angle of an investor One example for strong growth: photovoltaics Good public funding situation and strong technology base strong deal flow with globally the best technologies Strong “home” markets: Germany is probably still the largest renewable energy market worldwide with favorable and leading legal framework (i.e. feed-in tariffs); ~€ 20bn turnover and ~ 200.000 employees High public awareness for CleanTech and numerous larger CleanTech companies good climate and basis for IPOs and trade sales Climate change and goal of secure & clean energy and resource supply reliable long term perspective for clean technologies Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Venture Capital business model Capitalization table (cap table) Equity investment (not loans) in young tech companies with strong growth Shows the different financing rounds up to exit (sale of shares) potential Driving factors are: required equity; pre money valuation accepted by Several investment rounds (A-round, B-round…), together with other vc investors; time to exit investors and over increasing valuation of the company (see cap table) Output in terms of return: IRR (internal rate of return for each investor), multiple of cash in / cash out One vc investor is usually acting as “lead” investor; lead in terms of due diligence and hands-on management Cap Table Year 1 Year 1 Year 2 Year 4 Foundation A round B round Exit Shareholders Cash % Cash % Cash % Cash IRR Mult. Strong exit orientation: return are not dividends but share sale via trade Team / founders 25 100% 25 53% 25 33% 6.699 545% 268 sale, IPO and other A round investors 1.800 47% 1.800 30% 6.029 83% 3,3 B round investors 4.000 36% 7.273 82% 1,8 Total (k Euro) 25 100% 1.825 100% 5.825 100% 20.000 VC investors usually provide added value: organize financing rounds, introduce to high level market contacts, give strategic insight, identify Pre money valuation 2.000 7.000 20.000 additional management personnel… Post money valuation 3.800 11.000 Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Typical investment criteria Typical criteria for CleanTech investments Strong technology base with USP, IP and other large barriers for follow- Ideal: strong management team (“serial entrepreneurs”) with good uppers references that is positive about venture capital business model Lower costs than existing technology, i.e. lower Euro / Watt for solar cells Good personal chemistry between team and investors, especially with subjective criteria such as look & feel play minor role in CleanTech, lead investor unlike for Internet & IT Complete business plan is the start of everything: one of the team must be Attractive, growing market segment, preferably independent from public capable of writing a comprehensive business plan subsidies not too dominated by large players with strong capital position (i.e. wind turbine manufacturers) Exit potential through IPO or trade sale Realistic business case and access to market, ideally as supplier of tech component Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Technology Transfer and CleanTech Venture Capital – Jochen Moesslein 2
  3. 3. Typical terms for CleanTech investments Work flow of a VC One vc investor minority share 20 - 49%; several vc investors Shows the different steps and processes possibly majority together! In addition: Fundraising takes up 30% of VC time! Investment size: € 1 - 10m Investment term: open, but target is liquidation (Exit) within 3 – 6 years Find Screen Invest Manage Exit Active shareholder: board seat, hands-on support with business • Corporate & R&D • Match against the • Detailed Due-Diligence • Board seat mandatory • Identify and act on Relationships investment focus exit-window from day- development etc. • Investment • Pro-active one • Local VC’s and • Robust business Memorandum investment intermediaries model and manager • On-going contact with • General Partners’ management involvement advisors, banks and Liquidation preference: first shareholder to get return • Conferences recommendation corporate • Initial Due-Diligence • Max. 4-5 Port-Co. per • Personal Network • Appropriate with deep sector partner • GP’s recommendation syndication • Pro-active search knowledge Liquidation clause: date or milestone triggers the sale of shares or company • Rigorous screening using our network Low / no return for team members if the leave company before exit Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Venture Capital from companies perspective Technology transfer issues from vc perspective A 2002 survey by EVCA found that of all venture capital backed companies: CleanTech requires strong technology and R&D base, like BioTech and unlike Internet & Software 95% said venture capital had been an essential ingredient in their creation, universities and R&D institutions are strong and dominant sources for survival or growth. CleanTech start-ups and growth companies 60% said they would not exist without venture capital Fair & simple agreements on IP transfer are important: - no / low down payment On average 46 additional jobs were created per company after vc - license fees as from beginning of sales or profits investment - “entire” IP that is needed for business model “Our VC investor has asked the right (difficult) questions!” - first right or refusal on new & relevant IP “ Our VC investor was our first and most solid window to the business world” Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Technology transfer issue from vc perspective Interesting question going forward… Fair & simple agreements on transfer of critical people is instrumental Quite often in CleanTech we have good teams in terms of technology, but with small business experience Ideal: complete set of the more entrepreneurial people with critical know- Should the vc investors in these cases play a stronger hands-on role how transfer fully to spin-off, as employees and shareholders and hold the majority of the shares until the team is stable and experienced? …and the less entrepreneurial people remain within the R&D institution to Often there is a lack of experience and financial resource for researchers to advocate and counterpart the technological pipeline of the spin-off – these dare to spin-off from R&D: people should also become shareholder of the spin-off Should the R&D institutions play a stronger role, cooperate with VCs and push spin-offs actively? Credible proposition vis a vis investors: the R&D institution itself becomes minority shareholder of the spin-off as well Most VCs are still very reluctant with financing start-ups (A rounds); therefore there is a missing link in equity financing for spin-offs Do we need specific public spin-off financing programs, located with the R&D institutions to bridge the first year of a spin-off? Technology Transfer and CleanTech Venture Capital – Jochen Moesslein Technology Transfer and CleanTech Venture Capital – Jochen Moesslein 3
  4. 4. …time for intensive technology transfer in CleanTech! Arctic Ice Cover 1979 Arctic Ice Cover 2003 Technology Transfer and CleanTech Venture Capital – Jochen Moesslein 4

×