This document discusses preparing a business for venture capital investment. It covers evaluating investment readiness based on the idea, market potential, business model, team, and financial assumptions. Venture capitalists prefer investments with strong intellectual property, proof of concepts, growing markets, and exit potential. Investments often fail due to issues with the technology, market, or management team. The document encourages entrepreneurs to thoroughly evaluate risks and take steps to protect ideas before seeking investment.

1. EIT Health is supported by the EIT,
a body of the European Union
Accelerate & scale your business
with Venture Capital: are you ready?
Muriel Uytterhaegen, Gimv| Rotterdam | 25/02/2016

2. Gimv, a pioneer in continental Europe since 1980
UNIQUE STRENGTHS &
DIFFERENTIATION
• Funding from strong balance sheet,
complemented with specialised co-
investment funds
• Long-term active support to portfolio
companies
• International reach with a local touch,
strong brand & network
• Focus on value creation via
4 platforms
• Flexibility in investment instruments
and exit timing, given evergreen fund
structure
FACTS & FIGURES
• Listed on Euronext Brussels
• EUR 1.8 billion AUM
• 35 years of expertise in PE & VC
• 100 employees in 4 offices
DIVERSIFIED PORTFOLIO
COMPANY PRESENTATION2

3. What can Gimv mean for you?
Our H&C platform is looking at a broad range of deal types
• We focus on companies active in Benelux, France and DACH
• We invest across the H&C value chain in Biotech, Medtech and Services
• A clear value creation thesis is the cornerstone of our investment strategy and we actively
support our portfolio companies in the execution thereof
• We have a flexible investment horizon
• Our investment stages depend on the sub-segment
HEALTH & CARE3
CONCEPT PRODUCT/SERVICE REVENUE PROFIT MATURE TICKET SIZE
Biotech
Biopharma
Pre-clinical
Early
clinical
Late
clinical
EUR 3-15 mio
Medtech Pre-revenue Pre-profit
H&C Services Pre-profit Growth stage EUR 10-40 mio

4. 4
1. DIFFERENT TYPES & SOURCES OF FINANCING

5. Types of financing - simplified
• Loans
• have to be repaid
• carry interest
• require collateral
• used for equipment, work in progress, suppliers
• Equity
• owns part of the Company
• seeks capital gains
• no guaranties
• used for product development, marketing
• Quasi-Equity
• loan convertible in equity
5

6. Sources of capital/cash
• Personal assets
• 3 F’s : Friends, Family and Fools
• Business Angels
• Government subsidies (IWT, EU, ESA, …)
• Crowdfunding
• Cash flow from customers
• Professional investors
• Banks
• Private Equity providers
• Venture Capital providers
• Stock market
6

7. Financing Life Cycle
• Knowledge-based CompaniesCASH-IN
TIME
VCs, Acquisitions/Mergers &
Strategic Alliances
Angels, FFF
Seed Capital Early Stage
Later Stage
Mezzanine
3rd
2nd
1st
IPO
Public
Market
Secondary
Offerings
Valley of Death
Public
Company
Operating
Cash Flow
7

8. 8
2. ARE YOU INVESTOR READY?

9. Evaluation of the risks & potential: what & how?
• In depth investigation and analysis
• How?
• Limited access to data
• (potential) clients, industry experts , trend watchers
• 6 major dimensions
9
1. Idea/Technology
2. Product/ market
3. Value chain
4. The business model
5. An excellent team?
6. Financial assumptions

10. 10
1. Idea/Technology
• How difficult is it for others to copy your idea?
• To what extent have you tried to protect your idea?
• Costs/benefits of your strategy ?
• Freedom to operate?
• ...

11. 11
2. Market Potential
• Commercial feasibility
• A product / market matric gives an overview of the relevant market segments and
the possible product variations.
• How and to what extent did you already segment the market ?
• Did the concept survive the test of reality?
• Timing!
• ...

12. 12
3. Value chain
• How will you reach the end consumer?
• Who is most profitable in the value chain?
• Negotiation power towards other parties in the value chain?
• Do you have partners where a win-win is possible?
• ...

13. 13
4. The business model
• Value proposition & market segment
• Revenue generating mechanisms
• Recurring revenues?
• Price-setting? Does it reflect the customer value ?
• Potential growth model?
• ...

14. 14
5. Team
• Team recruited so far?
• Balance? Different typical functional roles?
• Is the team complementary?
• What is the experience of the team?
• Incentivized?
• Open to external capital?
• ...

15. 15
6. Financial assumptions
• Expected revenues? Timing!
• View on net working capital?
• Investments: are they realistic compared to the expected realisations?
• ...

16. 16
3. WHAT VC’S LIKE & WHY INVESTMENTS FAIL

17. 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
• Focus combined with mutant potential
• Exit perspective @ x multiple
17

18. Why investments fail?
• Technology
• The technology being developed by a start-up may just plain not work.
• The technology works in the lab, but takes too long to scale up to a point where the
economics work.
• The technology works, but something better comes along.
• Market
• The dogs won't eat the dog food.
• Existing solutions may be "sticky" because of existing infrastructure.
• The hoped-for market never materializes within the investment timeframe.
• People
• Gaps in the management team skill set.
18

19. Concluding & contact info
• “Only those who are asleep make no mistakes.” – Ingvar Kamprad
• “Risk comes from not knowing what you are doing.” – Warren Buffett
19
Muriel Uytterhaegen
Principal
T +32 3 290 21 22 I M +32 473 84 48 39
Karel Oomsstraat 37 I 2018
Antwerpen I Belgium
www.gimv.com