1. Vækstfonden
- An introduction & lessons learned
23 November 2011

2. About Vækstfonden
Promotes growth and innovation in
entrepreneurial firms and SME’s in order to
SME s
achieve greater socio-economic returns
29. november 2011 / page 2

3. Products
EQUITY LOAN CAPITAL
VF
VF Venture VF Funds
Guarantees
Growth Growth ”Get started”
loans
l guarantees loans
l
29. november 2011 / side 3

4. Investment activity (1993-2010)
Phase III
1800
1600
1400
1200
Phase II
DKK million
1000
800
600
Phase
400 I
200
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Direct investments Investments in funds Guarantees
29. november 2011 / side 4

5. Accumulated portfolio
Direct & indirect investments:
181 companies
Guarantees:
1.400 companies
29. november 2011 / page 5

6. Initiative for more risk capital
Pension funds
Max EUR 500 million loan Min EUR 167 million Equity X KR
KR.
VÆKST-
FONDEN
DANSK VÆKSTKAPITAL
Funds
Companies
VÆKSTLÅN VÆKSTKAUTION 3 MEZZANINKAUTION
29. november 2011 / side 6

7. VF Funds – Leverage effect
Portfolio companies ‒ EUR 6 bn
(EUR 13 bn with DVK)
EUR 1 bn EUR 5 bn
(EUR 3 bn with DVK) (EUR 10 bn with DVK )
Private funds Other sources of
(VC & small cap) private funding
EUR 0,5 bn EUR 0,5 bn
(EUR 1 bn with DVK) (EUR 2 bn with DVK)
Private
Vækstfonden
investors
29. november 2011 / side 7

8. Learning points
1) Investment returns
2) Selection
3) Ambitions
4) Competences
5) Learning by doing
6) Smart subsidises
/ side

9. 1) Investment returns
It k
I takes a l
long term effort to create a
ff
market where private investorts can make a
solid return!
/ side

10. 1) Investment returns
Pump priming
Move along the
market
Leverage
Le e age to p i ate
private
management
teams
/ side

11. 1) Investment returns
The l
Th alternative:
i
Subsidy based venture tourism!
/ side

12. 2) Selection
Specialisation  Critical mass
/ side

13. 2) Selection
New i
N investments i D
in Denmark and the USA
k d h
160
140
120
100
80 USA
USA
Denmark
Danmark
60
40
20
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
*In proportions to inhabitants
29. november 2011 / side 13

14. 3) Ambitions
Be ambitious
…and agressive!
/ side

15. 4) Competences
Find the right persons!
/ side

16. 5) Learning by doing
Partnerkapital
Equity
q y
together
with
business
angels
/ side

17. 6) Smart subsidises
Subsidising by loans
- and remember god governance
/ side

18. 6) Smart subsidises
The l
Th alternative:
i
Subsidising by equity
/ side