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Rune Rinnan 2 November First Tuesday



Rune Rinnan 2 November First Tuesday

Rune Rinnan 2 November First Tuesday



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Rune Rinnan 2 November First Tuesday Rune Rinnan 2 November First Tuesday Presentation Transcript

  • Norsk Innovasjonskapital Rune Rinnan First Tuesday, Bergen 2 November 2010 2
  • Norsk Innovasjonskapital – A new venture investment company from an established team • One of the most experienced venture teams in Norway Managed by • Proven track record TeleVenture • 7 prior portfolio companies with sales or exit value above NOK 1 billion • Portfolio of 11 “cherry picked” companies founded by well reputed “Cherry picked” early research communities stage companies • TeleVenture chosen as the sole manager by the research communities amongst all of the venture managers in Norway • Total portfolio is currently valued at NOK 165 million (100%), while Entry on favorable NIK’s share is valued at NOK 87.9 million terms • Historically invested NOK 220 million in the portfolio (100%) including R&D grants • Portfolio companies with competitive advantages • Active ownership and selective allocation of capital Great potential • Considerable potential for growth and value increase • Full distribution of capital at each company exit
  • TeleVenture has a long and proven track record Experienced venture player… …with proven track record • Established in 1993 as the Venture capital arm of Telenor • IRR in the range of 23%¹ and 136% on closed funds group • 7 companies previously under TeleVenture management • 7 funds under management since start-up achieved sales or exit value above NOK 1 billion • Has considered over 1,500 companies • Prior investments have generated extreme returns • 150 transactions carried out • Historical survival rate: 74% of managed companies Opplysningen 1881 Q-Free ASA Data Respons ASA Eltek ASA Return: 419% Return: 44% Return: 1204% Return: 305% Fund closing Listed on Oslo Børs Listed on Oslo Børs Listed on Oslo Børs Exit: 2010 Exit: 2005 Exit: 2005 Exit: 2000 NAVIA ASA SCM Microsystems Inc. Cell Networks AB Navia ASA Tandberg Return: 396% Return: 454% Return: 470% Return: 3800% Listed on NASDAQ Listed in Stockholm Listed on Oslo Børs Listed on Oslo Børs Exit: 1999 Exit: 1999 Exit: 1997 Exit: 1995 ¹ IRR for single investors varied from -11% to 35% pending timing of exit during the years 1999-2002
  • Norwegian venture team with considerable experience and track record… Jørgen André Nilsen Rune Rinnan Partner Managing Partner and Founder - Bachelors Degree in Computer Science and Master studies - Master of Management (Siviløkonom), Norway in Political Science and International Economics , Norway - Founder of Telenor Venture and Televenture in 1993 - Founder of Several ICT and energy service companies in - Executive positions in ABB group 1989-1993 US and Norway - Previous Investment Director at the Technology Transfer Office in Campus Kjeller AS and Technology Advisor for the Norwegian Trade Council in San Francisco Rune Sørum Partner - Master of Management (Siviløkonom), Denmark - Strategy and business development in Televenture Dag Terje Rian since 1999 Partner - executive position as founder and partner in a Norwegian investment company - Masters Degree (Siv.Ing) in Petroleum Engineering from NTNU, Norway - Senior adviser for European companies in the Far East and the Middle East 1983 - 1999 - Active involvement in M&A through Hitec Vision and Altor Equity Partners Sverre Slåttsveen - CEO and founder of Scandpower Petroleum Technology (SPT group) 1984-2006 CFO & Partner - BS Finance (Siviløkonom) and MBA, USA - CFO of Wega Mining ASA and Metallica Mining ASA 2006-2009 - CFO and Senior Vice President of Aker Solutions Subsea Group world wide 2001-2006, Business manager 1996-2001 ...managing a diversified portfolio of companies across industries and development stage
  • Risk & portfolio diversification Portfolio of Risk-adjusted return Risk investments Stand-alone investments Risk reduced by selection # companies in portfolio # companies in portfolio A portfolio of several Therefore, investment in assets that are less than This will result in higher a portfolio of companies perfectly correlated, will expected risk-adjusted should outperform reduce risk while return stand-alone investments maintaining expected in single companies return
  • Developed portfolio of carefully selected companies “Cherry picked” Streamlined portfolio; companies from well focus on business development, reputed research strategy implementation and key communities financial objectives April 2009 May 2009 – October 2010 November 2010 • Akershus Teknologifond AS – Campus Kjeller – Bioparken i Ås • 11 “cherry picked” Strategic portfolio development – Akershus Fylkeskommune companies Næringsfond • Excluding two of the original companies • Significant value creation • Out of 100+ companies 30 potential were initially selected and • Including two new companies with significant value – Televenture competence creation potential 11 finally selected for the – Additional funding strategic portfolio • Securing future deal flow through exclusive • Committed capital: up to development phase agreements NOK 150 million • Committed capital: NOK 65 million Risk profile of portfolio
  • The portfolio - maturity stage - opportunistic timing of exit Biotech Oil & gas Energy Wavetrain Industry Product dev. Pilot contract Commercial R&D sales NEXT
  • Skilled team managing a portfolio of great potential Top management team…. • Experienced venture team • Proven track record • Active management • Incentives aligned with investor – Management fee: 2.25% p.a. of book equity Efficient allocation of – Success fee: 20% of return above 7% p.a. capital Quick employment of …and cherry picked companies capital • Great potential in portfolio companies Great investment • Diversified opportunity • Selected the best companies from acknowledged research communities • Entry at favorable terms with considerable upside potential NIK logo here Back to portfolio
  • Target: 3x incentive value in 36 months Value Illustration: mNOK IRR illustration Exit value at 24 months NOK in millions 300 500 750 1 000 Inital value 238 238 238 238 Hurdle rate 7,0% 7,0% 7,0% 7,0% Benchmark for success fee 272 272 272 272 Value added 28 228 478 728 20% VA fee to TVM 6 46 96 146 To NIK shareholders 294 454 654 854 IRR incl. mgmt fee p.a. 12,3% 45,0% 77,6% 105,0% IRR excl. mgmt fee p.a. 11,3% 38,2% 65,9% 89,5% Total return 26,1% 110,2% 215,3% 320,3% 237.9 150.0 87.9 Time
  • Term Sheet Size: NOK 100,000,000 to NOK 150,000,000 Minimum subscription: NOK 1 000 000 Number of shares before issue: 5,000 Number of shares sold through capital raising: From 6,500 to 8,300 Subscription period: TBD Settlement: No later than [DATE] Shares available in VPS: No later than [DATE] Repatriation At exit of each portfolio company
  • NIK Helix AS ownership: www.hxt.no 25.64% Description Stage • Developed a versatile, stable and powerful vehicle for piping Product Pilot Commercial inspection R&D dev. contract sales • Patented technology Market • Growing volume of pipelines • Existing pipelines are aging • Subsea and offshore, water and nuclear installations Positioning • Easily passes T-crosses • Capable of inspecting pipe sizes under 8 inches • No upper limit on pipesize • Powerful and vertical climbing skills Pilot Contract • The Helix Crawler is prequalified for inspection of Petrobras pipe facilities in Brazil Q3 2011 Back to portfolio
  • NIK Hepmarin AS ownership: 53.81% Description Stage • Technology platform for extracting high yield Heparin from bi- Product Pilot Commercial products of fisheries and aquaculture R&D dev. contract sales • Substance that prevents blood from coagulating • Low COGS-process with documented promising pre-clinical data Market • Heparin, made from pigs, is already one of the world’s most sold pharmaceutical product • Global market size: Approx. NOK 30 billion annually • Market Growth: 10% – 20% annually Positioning • Hepmarin produces Heparin from fish, a more effective and cost efficient process • Allows for identification of raw materials’ source of origination • Heparin of marine origin is less vulnerable to infection-related and ethical/religious issues than heparin derived from animals. • The company holds a strong IPR position with protection for both products and processes • Typical exit in 2 years at end of pre-clinical trial to large pharma Back to portfolio
  • NIK Genetic Analysis ownership: www.genet-analysis.com 67.96% Description Stage • In vitro test method for diagnosis of health conditions based on Product Pilot Commercial analysis of gut bacterias R&D dev. contract sales • Patented DNA-based technology platform originally developed at Nofima Mat, Ås • Enables early discovery of Necrotizing Enterocolitis (NEC) Market – The disease affects 10% - 15% of all preterm infants. • Scientific research – In the industrialized world, about 1 million children are born • Pharmaceutical industry prematurely every year • Doctors and Hospitals • Enables early discovery of Inflammatory bowel diseases, in • Food industry addition to asthma, allergies, diabetes and more Positioning • First company that can offer this technology • Proven for diagnosis of NEC • Users can effectively analyze a large number of samples at a moderate cost • Wide variety of applications Back to portfolio
  • NIK Franatech AS ownership: www.franatech.com 89.15% Description Stage • Developed leading underwater sensors for measurement and Product Pilot Commercial discovery of environmental gases R&D dev. contract sales Market • Discovery of explosive gases and leaks of hazardous gases • Mexican Gulf platform leakage could have been discovered pre-explosion • Subsea production systems / offshore / onshore drilling • Methane measurement in drinking water reservoirs • World market for “Environmental Sensing” US$ 4.2 billion • Growing at 22% p.a Positioning • Unique membrane technology Methane Sensor • High sensitivity and response on existing sensors • New generation of long lived and stable laser based sensors under development and in customer testing Selected customers Back to portfolio
  • NIK Nicarnica Aviation AS ownership: www.nicarnica.com 34.78% Description Stage • IR based camera technology for identification of ash and Product Pilot Commercial turbulence in the air R&D dev. contract sales • Either ground or airplane installations • Developed by NILU Market • Aviation industry including airports • Commercial airlines and private planes • Contract with METS (UK) • LOI with EasyJet and Airbus • Negotiations with Boing Positioning • Unique patented technology • Proven in ground based systems • Accurate detection from long distances • High resolution real time 3D images • Not interrupted by extreme climates Letter of intent Back to portfolio
  • NIK Light Structures AS ownership: www.lightstructures.biz 23.08% Description Stage • Systems for surveillance of stress in hulls and constructions Product Pilot Commercial R&D • Based on fibre optics dev. contract sales • Originates from FFI, Kjeller Market • Maritime vessels such as ships and tankers • Windmills, offshore rigs and pipes, bridges and other Hullinfo unit infrastructure Junction box • Used by the Norwegian Navy Sensor interface unit Positioning Accelerometer • 70 systems delivered to the shipping market • Unique system that enables real time surveillance of Short-base strain sensor constructions Long-base strain sensor • Enables extension of maintenance intervals -> Cost saving • Stores data for use in subsequent analysis • Approved for use in explosive hazardous environments, for example inside oil and gas tanks (LNG ships) Selected customer Back to portfolio
  • NIK Odin Aero AS ownership: www.odin.aero 69.43% Description Stage • Complete supplier of unmanned aerial vehicles (UAV) Product Pilot Commercial operations R&D dev. contract sales Market • UAV platform for capturing electromagnetic and geophysical data • Enabling search for precious metal and mineral discovery in difficult accessible areas at lower cost • Other markets: Metrological observations , Inspection of infrastructure, Seek and rescue missions Positioning • No personnel at risk • Reduces capex and opex • Low speed  High quality data • Able to operate 24/7 Partner Back to portfolio
  • NIK Clarity Water TS AS ownership: www.clarity-wts.com 27.75% Description Stage • Offers unique patented technology for water purification Product Pilot Commercial R&D • The product reduce organic waste from fresh- and salt water, dev. contract sales such as phosphor, nitrogen and nitrate Incoming water containing organic waste Market • Fish farms (smolt fish tanks) • Koi dams and aquariums Airing column/trickle tower • Public water utilities • Purification plants Bio-rings for airing the • Deliveries made to USA, Sweden, UK, Denmark, Holland, water and biological Germany, Malta, South-Africa, Singapore, Australia and Spain Foam collection breakdown of ammonia unit Formation of foam on Positioning top of the water • Only purifier/skimmer that works both in fresh- and salt water • More efficient than competitors according to site tests • Competitive price and low operational expenses • Long lived and minor maintenance Return of purified water to the fish tank Back to portfolio
  • NIK Hybrid Energy ownership: www.hybridenergy.no 30.57% Description Stage • High temperature energy systems/heat pumps for industrial Product Pilot Commercial waste-heat recovery R&D dev. contract sales • Originally developed at IFE, Kjeller • Unique patented technology confirmed by the Danish Technological Institute Market Absorber Varmt- • International Food and processing industry vann 30 - 60 °C 70 - 130 °C • Companies with waste heat and a need of hot water and cooling • Delivered 7 systems to companies such as Nortura, Tine and Bekkelaget sewage plant Løsnings- Positioning Kompressor • Effective and affordable heat recovery pumpe • Exploits temperatures of 30-60oC and delivers hot water up to Strupe- 130oC under normal pressure conditions ventil • Up to 80% reduction in energy costs  1-2 years payback period • Refrigerates down to 5oC • Strongly reduces CO2 emissions 5 - 40 °C Desorber 25 - 60 °C Selected customer Kjøle- Spill- vann varme Back to portfolio
  • NIK Wavetrain Systems AS ownership: www.wavetrain.no 50.08%* Description Stage • Safety solution for railway crossings Product Pilot Commercial R&D • Can be fitted to existing solutions dev. contract sales • Based on seismology and sound detection technology from Norsar, Kjeller • Wireless Market Warning system (lights, • Railway crossings in Europe = 121,000 sounds, etc.) • Railway crossings in Norway = 3,000 The WaveTrain Controller unit Positioning • No competitors within the wireless solution market • 60 – 80 % cheaper than existing solutions • Can also work as a mobile solution Vibration sensors • JBV Norway accepted pilot test Sept. 2010 Vibration sensors -> Potential order of minimum 20 systems in 2011 • Strong interest from Sweden, UK, Romania, Czeck Rep., and Germany Selected customer * Includes option to acquire an additional 25.08% for NOK 450,000 Back to portfolio
  • NIK Lenco Systems AS ownership: www.lencosystems.com 49.00% Description Stage • Central Management Software for connecting and presenting Product Pilot Commercial information from multiple sensor platforms R&D dev. contract sales • Integration, storage, prediction, visualizing and notifications Market • Strong growth in demand for civilian integrated surveillance systems • Military installations (Camp Force Protection) • Industrial installations Process/analyze Positioning • Enhances detection and facilitates early warning Database • Cost reductions, reduces number of monitoring systems Multiple External systems for • Adds value to and increases life-span of existing security and surveillance and monitoring monitoring infrastructure Selected customers Sensors Surveillance cameras Back to portfolio