Sirris Materials Day 2010 - Sustainable investments - Capricorn venture partners

  • 371 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
371
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
9
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Capricorn Venture Partners Sustainable investments about materials based ventures and cleantech Marc Lambrechts Sirris Materials Day 2010 Heverlee – 29 April 2010
  • 2. Capricorn Venture Partners Agenda  About us, cleantech and materials ventures  Business models  Value chain  Some examples  Materials ventures – watch out for ....2 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 3. Capricorn Venture Partners Your speaker today  Dr ir Marc Lambrechts  research in microsystems and PhD on biosensors at KU Leuven  industrial R&D experience at Terumo Europe  RTD programme management experience at IWT  + 10 years experience as senior investment manager in early stage venture capital  technology fusion as special area of interest  board member Boondoggle, fluXXion, Neosens, Leuven.Inc  Capricorn Venture Partners  founded in 1993  independent and partners-owned  pan-European activity, located in Leuven, Belgium  hands-on, early stage & technology focus  investing out of Capricorn Cleantech Fund – € 112 M  raising the Capricorn Health tech Fund3 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 4. Capricorn Venture Partners Portfolio examples4 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 5. Capricorn Venture Partners Materials related portfolio examples5 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 6. Capricorn Venture Partners Advanced Materials = Cleantech Cleantech is not something “new“ but a regrouping of topics that are and will remain important at least for the next decades “more with less”6 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 7. Capricorn Venture Partners Photovoltaic energy = materials7 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 8. Capricorn Venture Partners Energy storage = materials8 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 9. Capricorn Venture Partners and also wind energy, desalination, ...9 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 10. Capricorn Venture Partners Cleantech investments in 2009 HSBC estimate : green stimulus package $ 521 billion worldwide10 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 11. Capricorn Venture Partners Are all tech SMEs born equal? SMEs  Consultancy company  Start as a one-man band no/low tech companies  Self supporting  Life style ventures life style  Growth profile - 1 FTE per year ventures  knowledge and experience based, little IP  20 persons – a few million € in sales - profitable  ‘High growth potential DNA’ ventures  Technology as long term competitive advantage  Capital intensive  International ambition – substantial markets  High growth - high value – high risk  Exit orientation11 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 12. Capricorn Venture Partners The Venture Capital model € IP knowledge €€€€ experience + €€€€ proof of concept business plan €€€€ + market €€€€ customers .. entrepreneurs and team investors12 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 13. Capricorn Venture Partners Tech VC’s prefer to invest in  Entrepreneurs and a team  Technology as sustainable competitive advantage  strong and clean intellectual property/capital  proof of concepts exists and mode of action is understood  A business model we understand and like  Growing and huge markets  ‘Need to have’ proposals with ‘identified customer pain’  Focus combined with mutant potential  Well funded and capital efficient companies  Exit perspective @ 5 to 10 x multiple13 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 14. Capricorn Venture Partners Business model  i.e. the architecture of revenue and profit  The functions of a business model are to:  articulate the value proposition , that is, the value created for users by the offering based on the technology;  identify a m arket segm ent , that is, the users to whom the technology is useful and for what purpose;  define the structure of the value chain within the firm required to create and distribute the offering and determine the complementary assets needed to support the firm’s position in this chain;  to specify the revenue generation m echanism (s) for the firm and estimate the cost structure and target margins of producing the offering, given the value proposition and value chain structure chosen;  describe the position of the firm within the value netw ork linking suppliers and customers, including identification of potential complementary firms and competitors;  formulate the com petitive strategy by which the innovating firm will gain and hold advantage over rivals.Based on : Open Innovation, Henry Chesbrough, HBS Press14 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 15. Capricorn Venture Partners Materials related business models  IP licensing = €’s for use of patents  Consultancy = €’s for hours of thinking and writing reports  Services = €’s for hours of hard work  Own production = €’s per kg material you produce  Fabless production = €’s per kg material someone produced  Toll manufacturing = €’s per kg material produced for someone  Equipment = €’s per machine you deliver  Gate fee model = €’s per kg waste you process  Materials leasing = €’s per time unit for the use of a material  Software = €’s for the use of your software code  WEB 2.0 - media = €’s per pair of eyeballs  ....15 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 16. Capricorn Venture PartnersChoosing the business modelLeo Baekeland on the IP license business model"I firmly intended to escape the recurrence of business occupations, as in myVelox days. So I planned, instead of manufacturing myself, to grant licensesto established manufacturing concerns, especially experienced in plastics.But I soon was confronted with a repetition of my former experience withVelox: that it was very difficult to teach new methods to men who hadacquired routine in older processes. The preparation of the new resinoid andits molding compositions, which to me seemed very simple, appeared eithervery difficult or needlessly complicated to others.Reluctantly I had to start manufacturing the raw materials in a sufficientlyadvanced stage so that the users had only to complete the operation ofmolding and polymerization.“See also ”The Baekeland story - Lessons for today’s ventures in new materials”http://be.linkedin.com/in/marclambrechts Sirris Materials Day 2010 - Sustainable Investments 2010-04-29 16
  • 17. Capricorn Venture Partners Generic materials value chain feedstock molecules materials components system end user recycling17 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 18. Capricorn Venture Partners Generic materials value chain feedstock molecules materials components system end user recycling18 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 19. Capricorn Venture Partners Concentrated PV value chain Source : Emcore - Concentrix19 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 20. Capricorn Venture Partners Concentrated PV value chain solar cell substrate epitaxy processing dicing packaging testing heat CPV module solar cell optics management manufacturing inverter CPV tracking turn key owner / and grid module systems installer operator connection20 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 21. Capricorn Venture Partners Concentrated PV value chain solar cell substrate epitaxy processing dicing packaging testing heat CPV module solar cell optics management manufacturing inverter CPV tracking turn key owner / and grid module systems installer operator connection21 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 22. Capricorn Venture Partners Concentrator Optics22 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 23. Capricorn Venture Partners Avantium23 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 24. Capricorn Venture Partners Metallkraft24 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 25. Capricorn Venture Partners Metallkraft25 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 26. Capricorn Venture Partners Metallkraft  Business model is based on buy-back principle:  Metallkraft takes full responsibility for the spent slurry  Metallkraft sells recovered SiC and PEG back to the wafer manufacturer  Agreed quality parameters  Joint R&D programme26 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 27. Capricorn Venture Partners Metallkraft27 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 28. Capricorn Venture Partners Materials ventures require ...  ... pilot plants to be able to deliver sufficient material for customer testing28 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 29. Capricorn Venture Partners Materials ventures require ...  ... partners to scale up29 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 30. Capricorn Venture Partners Materials ventures require ...  ... access to raw materials  Resource constraints to be expected ?  Lithium for batteries  Indium for transparent conductors (e.g. LCD TV) and thin film solar (e.g. CIGS)  Rare earth metals for permanent magnets  Platinum for catalyst and fuel cells  ...  = also an opportunity :  for technologies based on renewable or abundant, cheap, safe, non toxic raw materials  for recycling  for new business models – e.g. chemical or material(s) leasing30 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 31. Capricorn Venture Partners Materials ventures require ...  ... understanding of competition (narrow & broad)31 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 32. Capricorn Venture Partners Materials ventures require ...  ... understanding of the time line to market introduction32 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 33. Capricorn Venture PartnersMaterials ventures require ... ... more than good knowledge of material science“Some chemists, who have little experience with industrial enterprises, are over-inclined to judge a chemical process exclusively from the standpoint of the chemicalreactions involved therein, without sufficient regard to the engineering difficulties,financial requirements, labour problems, market and trade conditions, rapiddevelopment of the art involving frequent disturbing improvements in methods andexpensive changes in equipment, advantages or disadvantaged of location of theplant, and other conditions so numerous and variable that many of them can hardlybe foreseen, even by men of great experience.And yet, these seemingly secondary considerations become deciding factor forsuccess or failure of an otherwise well-conceived chemical process.” From “Som e Aspects of I ndustrial Chem istry – The Chandler Lecture” by Leo Baekeland - 1914 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29 33
  • 34. Capricorn Venture Partners For more information Contact: Dr ir Marc Lambrechts Capricorn Venture Partners marc(at)capricorn.be Lei 19/1, B-3000 Leuven, Belgium Tel. +32 16 28.41.00 Fax +32 16 28.41.08 http://www.capricorn.be http://creativecommons.org/licenses/by-nc-sa/3.0/34 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29
  • 35. Capricorn Venture Partners CCF’s investment strategy Companies meeting the following criteria: Geography core activities in the heart of Europe and co-investments in other areas alongside strong and return-driven local VC partners Financial instruments equity investments resulting in a significant minority stake Technology stage minimum requirement: a proof of concept exists and the mode of action is understood; with a strong preference for defendable intellectual property Company stage € 0.5 to 5 M initial investment in the first and second VC rounds; reserve for follow-on investments Exit perspective activities applicable to a growing market segment with an exit window of 3 to 7 years after initial investment35 Sirris Materials Day 2010 - Sustainable Investments 2010-04-29