Richard Hepper Capital for Enterprise


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Richard Hepper Capital for Enterprise

  1. 1. The European Venture Fund Investors Network EVFIN Richard Hepper Capital for Enterprise, UK Enterprise Nordic-European Investor Summit Stockholm 24th November 2011
  2. 2. Table of contents1. About EVFIN2. EVFIN VC Fund of Funds project 2
  3. 3. 1.1. About EVFIN Venture capital helps to drive economic competitiveness, ffacilitating new business creation, innovation, job creation and economic growth VC is important for SMEs, who face the greatest difficulties accessing finance, yet offer greatest growth potential The funding gap is greater in the EU than the US VC fund investors can play an essential role in supporting the best emerging VC managers across the EU 3
  4. 4. 1.1. About EVFIN Set up in March 2011 in response to the continuing funding crisis in the venture capital sector across Europe A platform for dialogue, gathering 11 major national VC operators (€24bn under management) p ( g ) representing 9 European countries M tl public Fund of Funds, th all f t equity Mostly bli F d f F d they ll foster it financing for SMEs through supporting best VC funds and contribute to develop domestic VC markets 4
  5. 5. 1.2. EVFIN Objectives To share best practices among EU VC fund investors To act as a partner to the European Institutions To encourage the set-up of a pan-EU joint initiative g p p j To offer opportunity for a constructive dialogue between EU VC industry and the EU institutions – EC, y , EIB, EIF, EVCA, et al EVFIN initiative has developed from the conclusions of the EU Council meeting of Feb.4, 2011 calling on the EU Commission to present proposals for putting in place a EU VC scheme building on the EIF and national operators. 5
  6. 6. Table of contents1. About EVFIN2. EVFIN VC Fund of Funds project 6
  7. 7. 2.1. The EU VC Market: a Continuing Funding Crisis … Since 2007, the EU VC industry has suffered from a sharp contraction of its investment capacity affecting SMES access to finance: - Amounts raised b VC f d d A t i d by funds dropped b more th 70% d by than between 2008 and 2010** - Amounts invested by VC in SMEs decreased by 50% between 2007 and 2009* Fundraising for VC funds is more and more difficult The equity financing gap in the EU is becoming bigger, putting at risk th EU growth potential tti t i k the th t ti l *EVCA Quarterly Activity Indicator Q1 2007- Q3 2010, November 2010. ** Dow Jones Venture Source 2011 7
  8. 8. 2.2. … calling for an emergency action plan Need to implement an emergency action plan to support the VC sector The EVFIN VC fund of funds (F-o-F) project : a groundbreaking joint initiative designed to pool capital & expertise of VC national operators in a common pan- EU investment vehicle to select best VC firms & increase their funding >> bottom up development of VC markets A cost-effective but also be quickly operational project cost effective complementing EIF operations which could serve as a pilot project for future EU support programs to risk capital (2014-2020) (2014 2020) 8
  9. 9. 2.6. EVFIN VC F-o-F : Investment Objective j To provide access to finance to innovative and high g growth SMEs by being a catalyst for the development of a pan-EU VC industry through commitments in VC funds in the EU To tackle the EU VC market fragmentation and give VC funds the critical mass they need to operate trans- nationally & to support the continued growth of innovative companies 9
  10. 10. 2.9. Features of EVFIN VC F-o-F Project j E Expected size of th F F € 250 million t d i f the F-o-F: illi F-o-F first closing target date: 2013 g g Investment period: 4 years Investment Focus: mainly early stage, cross-border VC funds managed by established and newly-created VC management companies Term: 12 to 15 years Term: 10
  11. 11. ContactLola MerveilleSecretary General of EVFIN37, Square de Meeus – 1000 BrusselsTel: +32 2 504 80 06lola.merveille@caissedesdepots.frlola merveille@caissedesdepots fr